Hanoi (VNA)🥀 – Under the witness of both Vietnamese and Russian leaders, Vietnamese dairy giant TH Group on May 11 inaugurated a state-of-the-art fresh milk processing plant in Borovsk district, Kaluga oblast of Russia, marking a key milestone in its closed-loop production model described as “from green pastures to a glass of pure milk”.

With this event, TH true MILK, a brand deeply rooted in Vietnamese values, made its debut on the Russian market, serving as a tangible symbol of the enduring friendship and effective cooperation between the two nations. As the project unfolds, the vision is not only for fertile land to bloom, but also for Vietnamese and Russian farmers to become partners in prosperity, cultivating shared values and mutual well-being for generations.

At the heart of this bold endeavour is TH Group’s founder, Labour Hero Thai Huong, a visionary often hailed as the “chief architect” of this transformative project. Her ambitious pledge – “I will bring Vietnamese milk to the world” – has now taken concrete form in the rolling fields of Kaluga, a testament to her unyielding determination. This inauguration marked a new sustainable leap forward for TH Group’s hi-tech dairy farming and milk processing complex in Russia. Historically, Vietnamese investments in Russia have leaned toward familiar sectors like oil and gas, where Russia holds undeniable strength. But TH Group’s foray into agriculture signals a new era, showcasing a generation of Vietnamese entrepreneurs who are scientific, professional, and methodical in their approach to uncharted fields. For Huong, agriculture is the lifeblood of any nation, intricately tied to the livelihoods of millions. Russia, with its vast expanses of fertile land and untapped agricultural potential, is uniquely positioned to lead in food security and safety. By harnessing these strengths, she argued, the country can deliver the organic, clean agriculture that a health-conscious world increasingly demands – a vision TH Group is bringing to life. The road to this moment was fraught with challenges. International sanctions, a global pandemic, and geopolitical tensions tested the project’s resolve. Yet Huong’s unwavering leadership, paired with cutting-edge technology and world-class management, steered the initiative through turbulent waters. The result is a facility poised to rank among the most productive and high-quality dairy operations in Russia and beyond, embodying TH Group’s core belief: “People are the mainstay of society, and health must be nurtured by leveraging the land’s natural advantages”. This project also sets a new precedent for Vietnam’s investment cooperation with the global community. The plant’s launch underscored Vietnam’s evolving role in global agriculture. By establishing a sustainable foothold in Russia’s agri-sector, TH Group is paving the way for next-generation Vietnamese enterprises to move beyond traditional industries into high-value, innovation-driven fields, redefining what Vietnamese businesses can achieve on the world stage.

Held under the stirring banner “Let’s make a glass of milk infused with Vietnam-Russia friendship”, the ceremony sent a powerful message about TH’s commitment to sustainable value and the enduring bilateral comprehensive partnership. Spanning nearly 15ha in the Kaluga Special Economic Zone, about 100 km southwest of Moscow, the plant boasts a total processing capacity of 1,000 tonnes of milk daily. Its first phase, now operational, handles 500 tonnes per day, making it one of Russia’s largest dairy facilities.

Designed by Dutch firm Bilfinger Tebodin and German engineering group GEA, and built by Chinese contractor CBMI Sinoma, the plant integrates cutting-edge processing, bottling, packaging, and automation systems from global makers in Germany, Sweden, Norway, Japan, Turkey, and China, all operated by top-tier experts. The milk comes exclusively from TH Group’s hi-tech dairy farms in Moscow and Kaluga, home to premium high-yielding cows imported from the US. These farms leverage modern technology and scientific management to achieve remarkable productivity: an average of 40–41 litres per cow daily, with top performers yielding up to 90 litres and some exceeding 100. With a fat content of 4% and protein level of 3.2%, TH’s milk ranks among Russia’s finest. Even before the plant’s launch, its raw milk earned a “Grade A” rating, attracting orders from giants in Russia like Danone and PepsiCo. TH’s herd in Kaluga and Moscow now nears 10,000 cows. The plant’s product lineup includes staples like pasteurised and ultra-high-temperature milk, smetana, yogurt, kefir, ryazhenka, butter, cheese, and ice cream, alongside innovative offerings tailored to combat non-communicable health challenges like obesity, heart diseases, and diabetes. These products blend local tastes with TH’s wellness-driven innovations. Looking ahead, TH Group plans to double the plant’s capacity to 1,000 tonnes daily in 2026 with a second phase, while launching the K2 dairy farm in Kaluga and sustaining operations in Primorye and Bashkortostan. Beyond serving Russia’s 145 million consumers, TH true MILK aims to reach BRICS nations and the Asia-Pacific while planning a new line of organic products meeting international standards in Russia. TH Group’s closed-loop, high-tech agricultural model integrates the world's best technologies in herd management, veterinary care, feed production, and milk processing. This approach not only boosts productivity and quality, giving TH true MILK a competitive edge, but also aligns with Russia’s “Digital Agriculture” policy. TH Group Chairman Ngo Minh Hai underlined the project’s dual significance. First, it honours a moral truth, as Huong once said: “When you eat fruit, remember who planted the tree.” The investment is a gesture of gratitude from Vietnam to the Soviet Union for its support during wartime. Second, Russia offers a strategic opportunity – a nation with vast clean land, abundant water, and a climate ideal for sustainable farming, backed by a transparent and strong agricultural policy under the leadership of President Vladimir Putin. “Russia has the potential to become an agricultural superpower”, Hai declared. “The path from decision to action was far from easy. We launched the project during one of the most turbulent periods, marked by sanctions, a global pandemic, supply chain disruptions, and geopolitical upheaval. Yet, TH Group remained steadfast. We adapted and pushed forward, driven by the sense of responsibility and boldness that defines TH”, he added. The rise of TH Group in Russia marks the special success of the host country’s forward-looking agricultural policies. Since 2014, in response to mutual sanctions with the West, Russia has embarked on a bold transformation of its domestic agriculture. Back in 2013, Russia was importing 2.5 times more food than it exported. By 2020, the country had reversed that ratio, becoming a net food exporter, a dramatic shift that now sees exports outpacing imports by more than 24%. The dairy sector has emerged as a key pillar of this transformation. In 2024 alone, the Russian Government allocated a record 81 billion RUB (1 billion USD) to support the dairy industry. Key policies include low-interest preferential loans, reimbursement of 30–42% of infrastructure investment costs, tax incentives, production-based subsidies, and export transport grants. These measures have enabled agricultural players like TH Group to thrive and turn adversity into opportunity. Throughout its operations in Russia, TH Group has received strong support from both Russian and Vietnamese leaders. Russian President Vladimir Putin has repeatedly cited TH as a model of economic cooperation, lauding Huong as a “brilliant entrepreneur” for her market foresight. During his recent visit to Vietnam, Putin again hailed TH as an exemplary investor, noting its sharp market insight and timely execution that allowed it to seize opportunities others missed in the Russian market. Kaluga, the plant’s home, is central to Russia’s dairy ambitions, aiming to produce one million tonnes of milk annually by 2030, a 40% increase from current levels. Despite producing 162% of local demand, the province has long lacked processing capacity, forcing over half its raw milk to be shipped elsewhere. TH’s facility addresses this gap, enabling Kaluga to process its dairy resources locally and efficiently. Local authorities are working to attract big investment, about 52 billion RUB over the next 6–7 years, to expand processing capacity and hi-tech dairy farming. Russian consumer demand for dairy is at a 28-year high, with per capita consumption reaching 250kg in 2024, outstripping domestic supply. This creates a ripe market for TH Group’s premium, health-focused products, tailored to shifting tastes for value-added items like cheese, yogurt, kefir, and low-fat options. In response, Russia’s agricultural sector, particularly dairy, is undergoing a wave of automation and modernisation aimed at enhancing efficiency and food safety. This aligns with the strategy TH Group has steadfastly pursued since launching its landmark dairy project in Russia.

Thanks to the mutual understanding and support from both Governments, coupled with the tireless efforts of TH Group staff, the project has delivered tangible socio-economic benefits, revitalising tens of thousands of ha of abandoned farmland in Moscow and Kaluga and creating over 500 local jobs. It stands as a beacon of “people-to-people diplomacy”, strengthening Vietnam – Russia ties. The inauguration, broadcast live to the Vietnam – Russia Business Forum in Moscow during Vietnamese Party General Secretary To Lam’s state visit, underscored the project’s significance. As Vietnam and Russia mark 75 years of diplomatic ties, leaders vowed to elevate their comprehensive strategic partnership. Lam praised Russia’s economic resilience as the world’s fourth largest economy and the top performer in Europe in terms of growth. He underlined the enduring nature of Vietnam – Russia ties and expressed his hope that the relationship will be renewed to reflect current realities, bringing tangible benefits to both countries’ people and contributing to global and regional peace, stability and development. He also acknowledged the vital role of businesses in driving economic collaboration and stressed that the forum serves as a concrete step to realise strategic directions and high-level agreements. Despite being an important pillar of the bilateral relationship, two-way trade has yet to match the potential of the Vietnam – Russia comprehensive strategic partnership. In 2024, it hit at around 6 billion USD, lower than in 2021 and previous years. Both General Secretary Lam and Russian Prime Minister Mikhail Mishustin agreed on the need to accelerate trade and investment growth, setting an initial target of 15 billion USD. This goal places great responsibility on the business communities of both countries. "This is a pivotal moment that calls for renewal in Vietnam – Russia relations, especially in business-to-business cooperation. I urge enterprises from both sides to seize this opportunity and work toward realising the full potential of our comprehensive strategic partnership", said Lam. Present at the Kaluga ceremony, Chair of the Federation Council Committee on the Budget and Financial Markets Artamonov Anatoly Dmitrievich recalled his first meeting with founder Huong over a decade ago when she declared: “We will develop a dairy farming industry here.” The groundbreaking for the plant was witnessed by late Party General Secretary Nguyen Phu Trong, adding symbolic significance to today’s inauguration attended by his successor General Secretary Lam. Kaluga Governor Vladislav Valeryevich Shapsha praised the project as not only a successful investment but also an epitome of the fruitful Vietnam – Russia cooperation. He stressed its importance to the province and expressed his delight in welcoming a major international investor like TH Group here. “Kaluga is boosting dairy development in Yanovsky and Vostochny districts. The TH plant marks a major milestone in our hi-tech dairy farming and processing sector. Projects like these help us become one of the fastest-growing milk producing areas in Russia and play a key role in ensuring national food security — a priority set by the Russian President”, the Governor said. From lush pastures to advanced processing, TH Group is delivering quality that resonates with Russian consumers. More than a factory, the Kaluga plant is a bridge of human connection and corporate responsibility, adding another cornerstone to the ever-strengthening monument of the Vietnam – Russia friendship. Since 2016 when Russia faced dairy shortages due to Western sanctions, TH Group has grown into the largest Vietnamese investor in Russia's agricultural sector, operating farms in Moscow, Kaluga, and Primorsky Krai. Alongside dairy, TH is investing in crop cultivation, livestock feed manufacturing, and food production. It has deployed modern machinery to reclaim land and grow wheat, barley, and soybeans, employing nearly 500 locals./.