According to Nikkei Asia, Japanese flour producer Nippn has just announced plans to build a factory in Vietnam to supply raw materials to domestic manufacturers.
Nippn aims to double its overseas revenue by fiscal 2026. The group has expanded operations to five countries, with Vietnam being its third in Southeast Asia. The company expects demand in Southeast Asia to grow strongly as the region’s economy continues to grow.
Specifically, this factory will be located near Ho Chi Minh City and will specialize in producing premixed flour used to make fried dough and baked goods.
Expected to be completed in 2027, the factory will have a capacity of about 4,300 tons per year.
Vietnam is the latest country in Southeast Asia that Nippn has set foot in. Many Japanese multinational corporations are currently producing frozen foods here to serve the domestic market. Nippn aims to meet the demand from these companies as well as local businesses.
Nippn said it will set up a subsidiary in Vietnam by the end of August 2024. While waiting for the factory to come online, the company will import premixed flour from factories in Thailand and Indonesia to sell in Vietnam.
Nippn anticipates strong demand in Southeast Asia as the region’s economy grows. Expanding production in Vietnam will not only give Nippn access to cheap raw materials and labor, but also facilitate deeper penetration into the potential Southeast Asian market.
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