(VOVworld)- Vietnamese dairy firm TH True Milk began construction on its farming and processing project in Kaluga Oblast’s Ulianov district, Russia on October 18.

Scene at the ceremony marking the start of TH True Milk project in Kaluga Oblast’s Ulianov district, Russia (Photo: VNA)

According to TH True Milk Chairwoman Thai Huong, using technologies from Israel, the project covers nine farms with nearly 100,000 cows. Its products are expected to go on sale in October 2017.

The complex is part of the group’s ten-year investment worth 2.7 billion USD in Russia. The investment is divided into three phases, with 500 million USD earmarked for the first phase.

In the last phase, TH True Milk will expand its herd to 350,000 cows reared on 140,000 hectares of land and be capable of processing 5,900 tonnes of milk a day.

The company also plans to run a distribution network of 300 stores across the country.

Speaking at the project’s opening ceremony, Kaluga governor Anatoly Artamonov said local authorities are working on freeing up 100,000 hectares of land to handover to TH True Milk.

He thanked the company for choosing his locality to invest in and hoped more Vietnamese investors would do likewise.

He said TH True Milk has made a good decision as Russian milk production capacity falls short of domestic demand.

Vietnamese Ambassador to Russia Nguyen Thanh Son said the dairy group is a pioneer of big Vietnamese investors in Russia.

The project will help enhance ties between Vietnam and Russia