JBS announced a $100 million investment to build two factories in Vietnam, producing meat products primarily for local and Southeast Asian markets. This project, formalized with the Vietnamese government, aims to support local economic development despite concerns over JBS’s labor and environmental record. The initiative seeks to create around 500 jobs and includes training programs for Vietnamese workers.
On March 31, 2023, Brazilian meatpacking giant JBS announced a significant investment of $100 million to establish two factories in Vietnam. This strategic move aims to enhance JBS’s presence in Southeast Asia and bolster its position in the global market. JBS operates more than 600 facilities across five continents and employs over 70,000 workers in the United States alone.
The new factories in Vietnam will focus on producing beef, pork, and poultry, with raw materials primarily sourced from Brazil. This effort not only supports local market needs but also positions JBS to cater to other Southeast Asian countries. While the investment coincides with Vietnam’s development goals, concerns persist regarding JBS’s past labor disputes and environmental controversies.
JBS’s expansion plans were solidified through a memorandum of understanding with the Vietnamese government, represented by the Northern Investment Promotion, Information, and Support Centre and Sao Do Group. This partnership is designed to enhance local production and increase Vietnam’s involvement in the global meat trade.
Renato Costa, president of Friboi, a JBS subsidiary, emphasized the company’s commitment to sustainable growth. He stated that the new factories “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.”
The project will unfold in phases, with the first phase located in Nam Dinh Vu Industrial Park, featuring logistics and processing facilities. A second phase, set to commence two years thereafter, will extend to southern Vietnam, replicating this infrastructure. Costa highlighted that this partnership represents a crucial step for geographic diversification and aims to construct a solid supply chain to enhance JBS’s competitive edge globally.
With these developments, JBS anticipates the creation of around 500 new jobs along with initiatives for technical training and technology transfers for Vietnamese workers, thereby fostering the growth of the nation’s productive sector.
In summary, JBS’s $100 million investment in Vietnam marks a significant expansion effort in Southeast Asia, aiming to enhance local production and support food security amidst ongoing scrutiny regarding labor and environmental practices. This initiative facilitates both economic growth within Vietnam and bolsters JBS’s competitive stance in the global market. Notably, the project promises to create jobs and offer technical training, reflecting JBS’s commitment to sustainable and responsible growth.
Original Source: www.agdaily.com
