JBS has announced a $100 million investment in Vietnam to build two factories producing beef, pork, and poultry, enhancing its global presence. This initiative aligns with Vietnam’s socioeconomic development goals but raises concerns due to JBS’s past labor and environmental issues. Approximately 500 jobs will be created, with technical training programs for local workers.
On March 31, Brazilian meatpacking giant JBS announced its plan to invest $100 million in Vietnam by constructing two manufacturing facilities aimed at enhancing its regional footprint and bolstering its global market share. JBS operates more than 600 facilities across five continents, including significant operations in the Americas, Asia, Europe, Africa, and Oceania, with over 70,000 employees in the United States alone.
The planned Vietnamese plants will focus on producing beef, pork, and poultry, primarily sourcing raw materials from Brazil to meet the demands of the Vietnamese market as well as other Southeast Asian countries. This expansion is intended to align with Vietnam’s socioeconomic development objectives, though it has raised concerns due to JBS’s history of labor disputes and environmental issues.
The investment was formalized through a memorandum of understanding with the Vietnamese government, represented by the Northern Investment Promotion, Information, and Support Centre and Sao Do Group, which administers the Nam Dinh Vu Industrial and Non-Tariff Zone in Haiphong. This project aims to enhance local production and strengthen Vietnam’s position in the global meat industry.
Renato Costa, president of Friboi, a JBS subsidiary, emphasized the company’s dedication to sustainable growth, stating that the new facilities will boost production capacity and generate economic value for the local community. He highlighted, “We are investing in the future, with a focus on innovation, sustainability, and development.”
The initial phase of the project will develop a logistics center at Nam Dinh Vu Industrial Park, equipped for storage, processing, cutting, and packaging. The second phase will commence two years after the first facility opens, adding similar infrastructure in southern Vietnam.
Costa mentioned, “The partnership between JBS, the Vietnamese government, and our local partners represents a critical strategic step in our geographic diversification.” This collaboration aims to enhance local service capabilities while reinforcing JBS’s global presence, resulting in a more competitive and sustainable supply chain.
Through these factories, JBS anticipates creating around 500 jobs and initiating technical training programs alongside technology transfers for Vietnamese workers, significantly contributing to the growth of the nation’s production sector.
JBS is set to invest $100 million in Vietnam, marking a significant expansion in its operations. The initiative will build two factories producing various meats and is aligned with Vietnam’s developmental goals. Despite the potential economic benefits, JBS’s previous controversies regarding labor practices and environmental impacts remain a concern. Overall, the investment aims to foster sustainable growth, generate employment, and enhance food security in Southeast Asia.
Original Source: www.agdaily.com
