Vietnam's CP Group chicken factory begins shipping to Japan
The largest chicken processing facility in Southeast Asia, which is located in Vietnam, was completely operational on Tuesday when Thai conglomerate Charoen Pokphand Group started exporting to Japan.
With an initial investment of $250 million and a monthly production capacity of 5,000 tonnes, the facility in the province of Binh Phuoc was constructed. The roughly 2,500-person staff will grow as manufacturing picks up pace.
After receiving permission, CP Group plans to utilize the facility to export goods to more than 10 nations, with around 60% of the plant's capacity devoted to Japan. The facility, which already serves the local market and Hong Kong, wants to run at full capacity by 2026.
The Vietnam factory will allow CP Group to export chicken to Japan for around 10% less money even though the business already has capabilities for producing chicken in Thailand.
In comparison to Thailand, Vietnam has cheaper labor prices. Hanoi, unlike Bangkok, benefits from lower tariffs with Japan as a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement, which includes 11 nations.
With the help of CP Group, the Japanese trade business Itochu will market some of the factory's goods.
Source: Nikkei Asia
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