Brazil’s JBS has announced plans to invest $100 million in the construction of two meat processing plants in Vietnam, signaling a significant expansion in the food and beverage industry within Southeast Asia. These facilities, which will focus on beef, pork, and poultry production, will predominantly utilize raw materials sourced from Brazil.
Once operational, the plants will not only cater to the Vietnamese market but also serve other countries across Southeast Asia. JBS, recognized globally for its renowned brands such as Friboi, Seara, and Pilgrim’s Pride, aims to strengthen its foothold in the region and enhance its competitive edge in the global food and drink business.
The dual projects are expected to create approximately 500 jobs, with development occurring in two phases. The first facility will be located in Khu công nghiệp Nam Đình Vũ within the city of Hải Phòng, in northeastern Vietnam. This site will feature a logistics center equipped with storage, pre-processing, cutting, and packaging activities.
Furthermore, as part of a memorandum of understanding (MoU) with the Vietnamese government, a second facility will be established in southern Vietnam at an unspecified location. This site will mirror the operations of the first and is anticipated to commence construction about two years after the initial plant begins production.
JBS is currently in discussions regarding its existing operational presence in Vietnam and the wider Southeast Asia region. The company has expressed its intent to launch these projects shortly.
Renato Costa, the president of JBS’s Friboi division, stated, “The new factories in Vietnam will not only be an expansion of production capacity, but an investment with purpose: to generate value for the local economy, create qualified jobs, contributing to food security throughout Southeast Asia. We are investing in the future, with a focus on innovation, sustainability, and development.”
JBS has made noteworthy global investments recently to broaden its production capabilities. For instance, in February, the company allocated $200 million for beef production facilities in the U.S. states of Texas and Colorado. Additionally, an ambitious project in Nigeria was unveiled last year, involving a $2.5 billion investment for six meat-processing plants over the next five years, including three for poultry, two for beef, and one for pork.
Moreover, in Saudi Arabia, JBS has announced plans to quadruple its production capacity with a new chicken facility in Jeddah, supplementing its existing processing unit in Dammam. In a notable acquisition beyond traditional animal-based proteins, JBS-owned Vivera has agreed to purchase The Vegetarian Butcher from Unilever, reflecting evolving food and drink consumer trends.
Costa emphasized the importance of the partnership between JBS, the Vietnamese government, and local partners, calling it a crucial strategic step for geographic diversification. He noted, “This move not only strengthens our ability to serve the local market, but also expands our global presence, creating a robust and sustainable production chain that positions us even more competitively on the international stage.”
In conclusion, JBS’s expansion into Vietnam exemplifies the growing opportunities within the food and beverage industry, driven by a blend of local market engagement and global ambition.