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TH Group project a new driving force in Russian agriculture

Released at: 15:52, 25/09/2018 BUSINESS SPOTLIGHT

TH Group project a new driving force in Russian agriculture

TH Group Chairwoman, Ms. Thai Huong shared her feelings in the ceremony beginning construction of the fresh milk processing plant in Kaluga (Photo: VNA)

Vietnamese group now a major player in Russia's agriculture sector with construction of new dairy plant in Kaluga Oblast underway.

by Khanh Hoa

Russia was at one time the leading agricultural country in the world but during the past 20 years has witnessed fallow fields and fertile land remaining barren. President Vladimir Putin has released a series of important decisions aimed at reviving the sector.

Seizing the opportunity, the TH Group has made breakthroughs in the Russian market. With a clear roadmap and business plans, the Vietnamese group has not only focused on investment but also contributed to changes in Russia’s agricultural sector.

Largest milk processing plant in Russia

The TH Group held a ceremony on September 7 to kick off construction of its new plant at the Kaluga Special Economic Zone in Kaluga Oblast. The plant will produce 1,500 tons of milk products each day once operational and is expected to become the largest and most modern fresh milk plant in the country.

Attending the launch ceremony, Mr. Anotoly Dmitriyevich Artamonov, Governor of Kaluga Oblast, expressed his pleasure at Kaluga being the TH Group’s investment destination. “The dairy industry is one of the top priority industries in the agricultural sector in Kaluga,” he said. “With the experience of the TH Group, I hope to create a new impetus for both Russian enterprises as well as Vietnamese enterprises in the investment process.”

Believing in the success of the project, Russian Deputy Prime Minister Alexei Vasilievich Gordeev expects the TH Group’s investment projects will not only be in Kaluga but also in other regions of Russia.

Change to Russia’s agricultural sector

Russian agriculture was at one time the leader in the world. After years of decline, Russians are now dreaming of taking back the crown, in which the billion-dollar project of the TH Group will play a key role.

The TH Group’s project promises to contribute greatly to the restructuring of Russia’s agricultural sector, in particular high-tech application in dairy farming and the introduction of complete automation technology in dairy processing. Fields of thousands of hectares will reappear in Russian provinces and territories where TH has set its footprint.

The final target of the restructuring plan is Russian consumers, who will benefit the most from good, natural products that are beneficial for the health and come from the homeland.

With the mind and scope of a businesswoman, Ms. Thai Huong, Founder of the TH Group, is committed to putting quality criteria and health benefits at the top. “TH will accompany Russian farmers, who love this land,” she said. “Six months of hibernation during winter creates the best nutrient ecosystem for the land, and when the sun rises all things multiply. With a value chain from grasslands to the table, TH will create the world’s leading dairy products.”

                                                                                        TH Group’s dairy farm in Russia (Image from TH Group)

Preferential policies from Russia

The TH Group quickly realized its plans thanks to the special preferential policies from the Russian Government in the agricultural sector. The implementation of the TH Group project shows that the Russian Federation, headed by President Vladimir Putin and his colleagues, have perfect policies in areas such as Kaluga and Moscow that have prompted the entry of experienced investors into the agricultural sector.

In Kaluga, according to the policy on the Kaluga Special Economic Zone in Borovsk district, investors, including TH, are entitled to tax incentives, some at rates of 0 per cent, such as value-added tax on imported goods (for 49 years), transportation tax (for ten years), land tax (for five years), and corporate property tax (for ten years).

In addition to tax incentives, the Russian Federation and Kaluga have adopted a one-stop policy and have paid close attention to the project. The project has also received much attention from financial and credit institutions, including the Russian Direct Investment Fund.

“Contributing to the rise of the Russian agricultural sector, we hope the experience of the TH Group will create a new driving force for both Russian enterprises as well as Vietnamese enterprises in the investment process in the world’s leading agricultural countries,” said Kaluga Governor Artamonov.

 

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