The project is run by Lao-Jagro Development Xiengkhouang Company (Lao-Jagro), a joint venture of enterprises from Laos and Japan and Vinamilk (Vietnam), which holds 51 percent of its shares. Under the project, an organic dairy farm of the international standards will be built to produce dairy products for Vietnamese and Asian markets as well as to promote a high-tech dairy industry in Laos.

Present at the event were Politburo member and head of the Communist Party of Vietnam Central Committee's Commission for Mass Mobilization Truong Thi Mai, Lao Deputy Prime Minister Sonexay Siphandone, Vietnamese Ambassador to Laos Nguyen Ba Hung, among others.

At the event

Speaking at the event, Vinamilk Director General Mai Kieu Lien highly appreciated the development potential of the dairy industry in Xiengkhouang while underscoring that the project targets to develop the Lao province as a dairy hub of Laos and in the region as well as to lever development of hi-tech agriculture in particular and economy in general of both Laos and Vietnam.

Vinamilk will apply advancements of Industry 4.0 and modern equipment and technology to the management and operation of its international-standard organic dairy farms.

In the first phase, the project, which costs USD 120 million funded by Lao-Jagro and covers 5,000ha, will be home to 24,000 milch cows. In the second stage, it will expand to between 15,000ha and 20,000ha and raise 100,000 dairy cattle.

Photo for illustration. Source:

Secretary and Chairman of Xiengkhouang province Bontone Chanthaphone said the project would contribute to local economic growth and improve farmers’ skills at raising cattle and their incomes.

At present, Vinamilk owns 12 farms with 130,000 cattle in Vietnam and holds some 59% of the domestic market share with high potential for further development.

Along with improving its domestic market share, the company has expanded the sale of its products to other countries.

It has so far invested in projects in the US, Cambodia, New Zealand, and Poland, and is eyeing the Philippines, Indonesia, and Myanmar.

The project in Laos is scheduled to officially operate in 2020, and under the plan it will cover 20,000ha and raise 100,000 cattle.

Translated by Khanh Ngan