Prodezi Long An (PLZ) Partners with Swiss Asia on €100M Be Milk Dairy Project

Overview

Prodezi Long An JSC (PLZ) has signed a strategic partnership with Swiss Asia Partner SA to develop the Be Milk dairy manufacturing project, valued at approximately €100 million, within Prodezi’s industrial park in Tây Ninh province. The project involves international technology and branding partners including France’s Sodiaal Group and Sweden’s Tetra Pak. This represents a significant anchor investment for PLZ’s industrial real estate platform, directly integrating into its existing environmental, social, and governance (ESG)-focused infrastructure.

Key Facts

• The Be Milk project involves a total investment of approximately €100 million (about VND 2.4 trillion).
• The project will be implemented in two phases within the Prodezi Industrial Park in Tây Ninh province.
• Key international partners include Sodiaal Group (France), owner of the Candia milk brand, for production standards and branding; Tetra Pak (Sweden) for packaging; IPEM Group (France); and Takenaka Corporation (Japan).
• The project was announced during a working session at the Tây Ninh Provincial People’s Committee headquarters, attended by relevant provincial departments and the French Trade and Industry Association.
• Swiss Asia Partner SA is the main investor and developer for the Be Milk project.
• Prodezi Long An’s infrastructure is designed as an ecological industrial park with pre-built ESG standards, including centralized wastewater treatment.

What Happened

Prodezi Long An and Swiss Asia Partner SA formalized a partnership to develop the Be Milk dairy manufacturing plant. According to announcements from a working session with Tây Ninh provincial authorities, Swiss Asia Partner SA will act as the main investor and market developer for the project. The venture is based on a cooperation and brand licensing agreement with France’s Sodiaal Group, integrating European production and quality standards. The project is planned for two phases of implementation.

Philippe Phan Van Ho, CEO of Swiss Asia Partner SA, stated that the location choice was based on both market potential and the ability to meet long-term operational standards, noting Tây Ninh’s clear development space in food processing and Prodezi’s suitable platform. Trương Khắc Nguyên Minh, Deputy General Director of Prodezi Long An, highlighted that the company’s early focus on developing infrastructure as an ecological industrial park, aligned with ESG standards and industrial symbiosis, created compatibility with international investor requirements. He described Swiss Asia Partner’s choice as a positive signal for the investment environment in Tây Ninh.

Market Context

PLZ trades on the HOSE exchange under the Consumer Staples and Real Estate sectors. The announcement of a €100 million anchor project within its industrial park represents a tangible validation of its business model, which focuses on developing and leasing industrial infrastructure. Successful attraction of such a sizable, internationally-backed tenant could improve occupancy rates and rental income visibility for PLZ, factors closely watched by investors in the industrial real estate segment.

Strategic Significance

The partnership strategically positions PLZ’s industrial park as a hub capable of attracting sophisticated, export-oriented manufacturing. By integrating the Be Milk project directly into its pre-built ESG infrastructure—such as centralized wastewater treatment—PLZ demonstrates the operational and cost advantages of its ecological park model. This move could create a competitive moat, appealing to other international firms seeking sustainable production bases in Vietnam, thereby driving long-term lease-up and potentially allowing for premium pricing on its industrial land and services.

What to Watch

• Official ground-breaking and commencement of the first construction phase for the Be Milk plant.
• PLZ’s subsequent quarterly financial reports (Q2, Q3 2024) for commentary on new lease agreements or revenue contributions from this partnership.
• Announcements of additional international tenants attracted to the Prodezi Industrial Park following this anchor investment.
• Updates on the project’s progress toward obtaining necessary operational certifications and export approvals.
• Any further details on the financial structure of the partnership between PLZ and Swiss Asia Partner SA.