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CJ launches chili processing plant in Ninh Thuan

Released at: 16:46, 26/06/2017

CJ launches chili processing plant in Ninh Thuan

Photo: baocongthuong

Project a cooperative arrangement between CJ, the Korea International Cooperation Agency, and the Ninh Thuan Provincial People's Committee, with investment capital of $650,000.

by Ngoc Chi

South Korean conglomerate the CJ Corporation last week launched an agricultural processing plant primarily focusing on chili processing in south-central Ninh Thuan province with total investment capital of $650,000.

The project is a cooperative arrangement between CJ, the Korea International Cooperation Agency (KOICA), and the Ninh Thuan Provincial People’s Committee and aimed at supporting farmers in the province. It covers area of 640 sq m and has a capacity of 500 tons of chili powder each year. 

The chili powder processed at the plant under CJ’s strict inspections will be the main material source for the group’s food industry.

Starting with the participation of only two farming families with some 0.6 ha of chili, from 2016 to mid-2017 the number of farmers involved in chili cultivation increased to 43 with 12.5 ha. Incomes have also increased five-fold compared to the initial stages.

Speaking at the launch ceremony, Mr. Pham Van Hau, Deputy Chairman of the Ninh Thuan Provincial People’s Committee, expressed his appreciation of the chili processing plant and his desire for continued cooperation with and investment from the CJ Corporation to the province in the future.

The South Korean conglomerate experienced significant annual growth of more than 30 per cent in its Vietnam operations in 2016.

It earned over VND17 trillion ($750 million) in revenue last year and VND834 billion ($36.7 million) in pre-tax profit.

Animal feed earned the highest revenue, followed by food production and entertainment. The $500 million in investment capital CJ promised to Vietnam in 2016 was fully disbursed, mostly in entertainment, animal feed, food production, and logistics, he said.

It acquired stakes in three domestic food enterprises last year: Vissan, Cau Tre, and Minh Dat.

It also invested VND1.2 trillion ($52.8 million) in developing a food processing complex in Ho Chi Minh City’s Hiep Phuoc Industrial Zone. The complex comprises a food processing plant, a research and development center, and a modern food safety center. 

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