JBS has announced a $100 million investment to build two factories in Vietnam, aiming to enhance its market presence and contribute to local economic development. The project, formalized with the Vietnamese government, aligns with the country’s socioeconomic goals. Approximately 500 jobs are expected to be created, along with training programs for local workers, while JBS addresses concerns over past labor and environmental controversies.
On March 31, Brazilian meat company JBS announced a substantial investment of $100 million to establish two factories in Vietnam. This initiative aims to bolster JBS’s presence in the Southeast Asian region and enhance its competitiveness in the global market. JBS operates more than 600 locations across five continents, employing over 70,000 individuals in the United States alone.
The factories will produce beef, pork, and poultry primarily utilizing raw materials supplied from Brazil. This investment aligns with Vietnam’s socioeconomic targets, although it also raises concerns due to ongoing controversies linked to JBS’s labor practices and environmental allegations.
The project formalized through a memorandum of understanding with the Vietnamese government, specifically Northern Investment Promotion, Information, and Support Centre, and Sao Do Group, oversees operations within the Nam Dinh Vu Industrial and Non-Tariff Zone in Haiphong. The initiative is designed to enhance local production and to cement Vietnam’s position in the global meat trade.
Renato Costa, president of JBS subsidiary Friboi, emphasized the company’s commitment to sustainable growth. He stated, “The new factories in Vietnam will not just expand our production capacity but represent an investment with a purpose: to create value for the local economy, generate skilled jobs, and contribute to food security across Southeast Asia. We are investing in the future, with a focus on innovation, sustainability, and development.”
The project’s initial phase will take place in Nam Dinh Vu Industrial Park, focusing on developing a logistics center equipped for storage and processing operations. Following this, a second phase is scheduled to commence two years later in southern Vietnam, featuring additional infrastructure such as a logistics center and processing plant.
Costa remarked, “The partnership between JBS, the Vietnamese government, and our local partners represents a critical strategic step in our geographic diversification.” He added that this move strengthens JBS’s market service capabilities and develops a competitive global supply chain.
With the establishment of these factories, JBS anticipates creating roughly 500 jobs and implementing technical training and technology transfer programs for local workers, thereby fostering Vietnam’s productive sector.
In conclusion, JBS’s significant investment in Vietnam marks a strategic expansion aimed at enhancing its global presence while aligning with local socioeconomic goals. The project’s phases indicate a commitment to sustainability, job creation, and technological advancement, despite potential concerns regarding JBS’s historical labor and environmental issues. This partnership solidifies the company’s aspirations for regional growth and competitive market positioning.
Original Source: www.agdaily.com
