TH pours 19 billion rubles into an agricultural project in the Russian Far East

On May 21, 2024, TH Group kicked off the Dairy Farming and Milk Processing project with a total capital investment of 19 billion rubles (more than VND 5,200 billion) in Nikolo-Mikhailovka village, Yakovlevsky district, Primorsky region (Far East, Russian Federation). At the event, when asked by international and Russian Federation reporters, Mr. Korenchuk Alexey Alexandrovich, Chief of Yakovlevsky District, emotionally affirmed, "TH is an extremely professional foreign investor, so I believe the project will be successful."

The TH Dairy Farming and Milk Processing project in Primorsky Krai includes the following items: the construction of a farm with a scale of 6,000 dairy cows (total herd of 12,000 heads); the construction of a milk processing plant with a capacity of 250 tons/day; and the exploitation of a raw material area covering 13,000 hectares.

This is an important milestone in the process of implementing TH's Dairy Project Complex in the Russian Federation, following successes in Kaluga and Moscow provinces, where TH farms and factories are considered key economic development projects of the provinces. The newly kicked-off project is expected to contribute to awakening the great agricultural potential that has been neglected for a long time in the Far East.

As a local leader who has directly participated in supporting and evaluating the registration and implementation procedures of TH Group's Dairy Farming and Milk Processing project, how do you evaluate this project, Mr. Korenchuk?

The history of attracting foreign investment in Yakovlevsky district shows that Yakovlevsky is a locality with a tradition of implementing many agricultural and livestock projects. Among them, it can be affirmed that TH Group's Dairy Farming and Milk Processing project in the Primorsky Territory is a typical project in the livestock and agricultural industries.

After the process of researching, evaluating the dossier, and working directly with TH, as of this moment, I confidently affirm that the project will definitely be successful. Obviously, we must have a lot of data in hand for us to confidently make that firm assertion.

First, as soon as we read the project dossier, we evaluated this as an extremely professional foreign investor. The modern technologies TH applied in the project really impressed us after each appraisal of the dossier and approval of specific investment items.

TH Group's experts and workers work extremely professionally. Mastering their expertise is obvious, but surprisingly, they also understand the Far East region in general as well as the Yakovlevsky area in particular. Thanks to the time spent working with TH, the local government has somewhat become more active and experienced in supporting investors to comply with all regulations and legal procedures of the Russian Federation.

All of these things make me confident enough to affirm that this great project will definitely succeed. And it must be truly shared that, if we were not confident about the project, we would not have had the enthusiastic support and assistance for the project as we do now.

Can you share your expectations about the socio-economic impact that a large international investment project like this will bring to Yakovlevsky district in particular as well as the Primorsky region in general, Mr. Korenchuk?

As far as I know about the commitments between TH and Primorsky region, in addition to project development content such as investing in building clusters of dairy farms, milk processing plants, etc., in the long term, TH Group will have many measures to attract and recruit unskilled labor as well as high-quality labor locally and in many surrounding areas. Thus, with the project coming into operation, TH Group also provides an international labor environment for workers in the Primorsky region. In addition, this investor also synchronously deployed items such as building housing for workers, building schools for children, etc.

Thus, in parallel with economic development, Yakovlevsky district in particular as well as Primorsky region in general will have many opportunities to develop all aspects of social life thanks to the large labor force that has been coming to TH's project. 

Because of the project's positive socio-economic impacts, we are making more efforts to support TH. At any time, whatever content TH needs and suggests, we will enthusiastically support and accompany the Group.

Even when TH Group's leaders wondered about the need to recruit a large workforce and whether Yakovlevsky's facilities and infrastructure could meet it or not, I myself proactively proposed to the Chairman of the Board of Directors of TH Group that the locality is ready to support TH with a plan to provide housing for all project employees by arranging a housing system right in the Yakovlevsky district or residential area bordering the district.

Going into the specific field, according to your assessment, how will the TH Group's Dairy Farming and Milk Processing project impact Yakovlevsky district’s dairy farming industry in particular and agricultural sector in general, sir?

Up to now, Yakovlevsky and surrounding areas have not had any dairy farming and milk processing projects with such large scale and strong investment as the project TH Group is implementing. Looking broadly across the Primorsky region, I assess TH's project with a scale of 6,000 dairy cows as the first project of such a large scale and application of modern technology. The Primorsky region also has other agricultural investment projects, but on a much more modest scale.

So, of course, the development of Yakovlevsky's dairy farming industry in particular as well as agricultural industry in general will certainly have changes thanks to contributions from the TH Milk Project.

Sir, is there anything you wish to share when attending today's groundbreaking ceremony?

On behalf of the people of Yakovlevsky district and the Russian people, I just wish to thank TH Group for investing in our homeland. From here, the Group created modern working conditions, a professional working environment, and a prosperous socio-economic life for our workers and people.

And like a "new dawn in the Far East," I think that today is an important milestone marking the development of TH Group as well as the government and people of our Primorsky (Far East) region.

TH Group is currently the largest Vietnamese investor in Russia in the agricultural sector, with a High-tech Dairy Farming and Milk Processing Complex project with a total investment of USD 2.7 billion. The project is being implemented in Moscow, Kaluga provinces, and the Far East.

In Moscow province, in January 2018, TH imported 1,100 purebred high-yield cows from the US and inaugurated a high-quality dairy farm. Thanks to the genetic resources of purebred cows combined with modern technology and management science, TH's dairy herd produces an average milk yield of about 40 liters/head/day - the highest in Russia. With its high protein and fat content, TH Farm's raw milk is being sold to the largest milk processing plant in Russia at market-leading prices. These are important indicators proving the effectiveness of TH's project in Russia. Currently, TH is completing the farm in Volokolamsk district, Moscow province, to reach the scale of 6,000 dairy cows (a total herd of 12,000 heads).

In Kaluga province, TH Group has been building a farm cluster as well as a clean, fresh milk processing plant. In January 2023, TH Farm in Kaluga welcomed 2,400 Holstein Friesian high-yield cows imported from the US. Currently, the total herd in Kaluga is 3,300 heads. The milk processing plant at Kaluga Industrial Park Phase 1, with a capacity of 500 tons/day, is under construction.