JBS Announces $100 Million Investment in Vietnam for Global Expansion

JBS plans to invest $100 million in two factories in Vietnam to enhance its global presence and support local production. The factories will produce beef, pork, and poultry using Brazilian raw materials, creating about 500 jobs and contributing to local socioeconomic goals. Despite previous controversies surrounding labor practices and environmental issues, the project is set to drive innovation and development in the region.

On March 31, JBS, a prominent Brazilian meatpacking company, announced a $100 million investment plan to establish two factories in Vietnam. This strategic move aims to enhance the company’s presence in Southeast Asia and bolster its position in the global market. JBS operates over 600 facilities across five continents, including a significant workforce of over 70,000 employees in the United States.

The new plants will focus on producing beef, pork, and poultry, utilizing raw materials primarily sourced from Brazil to cater to the Vietnamese market as well as other countries in Southeast Asia. Despite its alignment with Vietnam’s socioeconomic goals, JBS’s expansion raises alerts due to the company’s previous labor disputes and environmental controversies.

This project was formalized through a memorandum of understanding with the Vietnamese government, including the Northern Investment Promotion, Information, and Support Centre and the Sao Do Group. The initiative is designed to enhance local production capabilities and reinforce Vietnam’s role in the global meat trade.

Renato Costa, the president of Friboi, a subsidiary of JBS, expressed the company’s dedication 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 will commence in the Nam Dinh Vu Industrial Park, initially establishing a logistics center equipped for storage and pre-processing. A subsequent phase will follow two years later in southern Vietnam, replicating the infrastructure of the first site, which will include similar facilities.

Costa further indicated, “The partnership between JBS, the Vietnamese government, and our local partners represents a critical strategic step in our geographic diversification. This move not only strengthens our ability to serve the local market but also expands our global presence, creating a robust and sustainable supply chain that positions us even more competitively in the international market.”

With these two new factories, JBS anticipates creating around 500 jobs, along with initiating technical training programs and transferring technology to local Vietnamese workers. This initiative is poised to support the country’s productive sector development.

JBS’s $100 million investment in Vietnam reflects the company’s ambition to strengthen its global foothold while contributing to local economic development. By establishing two new factories dedicated to producing beef, pork, and poultry, JBS aims to bolster Vietnam’s position in the international meat trade. While the project aligns with national socioeconomic goals, it also underscores the challenges posed by JBS’s prior controversies. Nonetheless, the initiative promises job creation and growth opportunities for the local workforce.

Original Source: www.agdaily.com