Japan's leading flour company to build factory in Vietnam

According to Nikkei Asia, Japanese flour producer Nippn has just announced plans to build a factory in Vietnam to supply raw materials to domestic producers.

Nippn aims to double its overseas revenue by fiscal 2026. The group has expanded operations to five countries, with Vietnam being the third in Southeast Asia. The company expects demand in Southeast Asia to grow strongly as the region’s economy continues to grow.

Nippon Corporation is a Japanese company whose revenue comes from milling flour and manufacturing flour-related products such as noodles.

Specifically, this factory will be located near Ho Chi Minh City and will specialize in producing pre-mixed flour used for making batter for frying and various baked goods.

When completed in 2027, the plant is expected to have a capacity of approximately 4,300 tons per year.

Vietnam is the latest country in Southeast Asia that Nippn has set foot in. Many Japanese multinational corporations are currently manufacturing frozen foods here to serve the domestic market. Nippn aims to meet the demand from these companies as well as local businesses.

Nippn said it will set up a subsidiary in Vietnam by the end of August 2024. While waiting for the factory to come into operation, the company will import premixed powder from factories in Thailand and Indonesia to sell in Vietnam.

Nippn anticipates strong demand in Southeast Asia as the region’s economy grows. Expanding production in Vietnam will not only give Nippn access to cheap raw materials and labor, but also facilitate deeper penetration into the potential Southeast Asian market.

Source: https://baoquangninh.vn/doanh-nghiep-bot-mi-hang-dau-nhat-ban-se-xay-nha-may-tai-viet-nam-3310610.html