JBS to build two meat plants in Vietnam with a US$100 million investment

VIETNAM – Brazilian meat processor JBS is investing US$100 million in two new meat production facilities in Vietnam.

The company has signed an agreement with the Vietnamese government to establish the plants, which will be built in two phases. 

The facilities will process beef, pork, and poultry, with most raw materials sourced from Brazil.

JBS, which owns brands like Friboi, Seara, and Pilgrim’s Pride, stated that the production sites will cater to both the Vietnamese market and other Southeast Asian countries.

The two projects are expected to create approximately 500 jobs. 

The first phase involves constructing a plant in Khu công nghiệp Nam Đình Vũ, an industrial zone in Hải Phòng, a northeastern city in Vietnam. 

This site will include a logistics center with storage facilities, as well as areas for pre-processing, cutting, and packaging.

Under a memorandum of understanding with the Vietnamese government, a second facility will be built in the southern part of the country. 

The location has not been disclosed, but construction is expected to begin two years after the first plant starts operations.

JBS has not provided details on its existing production presence in Vietnam or the broader Southeast Asian region but stated that these new facilities will help expand its operations in the area.

Renato Costa, president of JBS’s Friboi division, said the Vietnam investment is aimed at increasing production capacity while also contributing to the local economy through job creation and food supply.

JBS has recently announced several large-scale investments worldwide to grow its processing capabilities. 

In February, the company allocated US$200 million to expand beef production in Texas and Colorado, where it operates plants in Cactus and Greeley.

Vietnam’s meat consumption trends

Vietnam ranked as the fourth-largest consumer of fresh and processed meat in Southeast Asia in 2023, with a total market value of US$13.9 billion.

Fresh meat dominated sales, accounting for 98.5% of the total, while processed meat contributed 1.5%. 

The country’s per capita meat consumption was 33.2 kilograms, significantly lower than the United States (107 kg) and the European Union (76 kg).

Pork remains the most consumed meat, making up about 70% of total consumption. 

The average Vietnamese person consumed 27.7 kg of pork in 2023, while beef consumption stood at 8.73 kg per capita.

Meat consumption has grown rapidly over the past two decades, rising from 22 kg per capita in 2002 to 55 kg in 2018. 

Urban households generally consume more meat than those in rural areas, with meat expenditure forming a substantial part of monthly food costs.

JBS views Vietnam as a key market for expansion, with Costa emphasizing that the partnership with local authorities is a strategic step in diversifying the company’s global production footprint.