Asia Ingredients Group breaks ground on coconut processing plant

Asia Ingredients Group breaks ground on coconut processing plant

On May 11, Asia Ingredients Group officially broke ground on the Asia Coconut Processing Plant II at Long Phuoc Industrial Cluster in Vinh Long province.

Asia Coconut Processing Plant II is the second plant invested by Asia Ingredients Group in Vietnam

At the groundbreaking ceremony, Nguyen Truc Son, member of Vinh Long Party Standing Committee and Vice Chairman of Vinh Long People’s Committee, praised the efforts of AIG.

“The continuing investment expansion from AIG sends a strong message to the investor community about Vinh Long’s transparent, open, and highly promising business environment. I expect the plant to be completed soon, helping coconut products from Vinh Long reach further into international markets,” he said.

Nguyen Truc Son, member of the Provincial Party Standing Committee and vice chairman of the People’s Committee of Vinh Long Province at the ceremony.

Over the past decade, AIG has continuously invested in developing Asia Coconut Processing Plant I, supplying a wide range of products to global markets, including UHT coconut water, desiccated coconut, coconut milk powder, frozen coconut milk, UHT coconut milk and coconut oil.

To meet rising global demand for coconut-based products, APC2 is being equipped with state-of-the-art production lines and machinery sourced from leading EU manufacturers, ensuring compliance with the stringent quality standards of international markets.

APC2 is being developed with three key components, including a UHT sterilisation production line transferred from Tetra Pak - the world’s leading provider of food processing and packaging solutions - with a designed capacity of 48,000 tonnes per year; a frozen coconut cream production line with a capacity of 16,000 tonnes annually; and two desiccated coconut production lines with a combined capacity of 2,400 tonnes per year.

All production lines and equipment are imported from Europe, ensuring compliance with the stringent quality standards required by global markets.

Speaking at the groundbreaking ceremony, Frederick Cruchet, project centre director ASEAN at Tetra Pak, said that the company is proud to accompany AIG as a comprehensive solutions partner, providing integrated processing and packaging technologies for this strategic expansion project.

"We are proud to stand as your selected end-to-end partner – providing the complete processing and packaging solution for this pivotal expansion which signifies that your business has been growing, and we are grateful to be part of your growth journey," Cruchet said.

Built with a total investment of nearly $24.2 million spanning almost 60,000 sq.m, APC2 is expected to commence operations in the first quarter of 2027.

The venture is anticipated to support the expansion of large-scale coconut raw material areas in Vinh Long Province, create additional jobs, improve local incomes, and contribute to the development of the province’s agricultural economy.

In particular, the development of Asia Coconut Processing Plant II reflects the strategic ambition of AIG to position Asia Coconut Processing JSC (ACP) as Vietnam’s largest coconut processing enterprise, while contributing to the broader vision of turning Vietnam into a leading global hub for high-quality agricultural processing and exports.

Artist’s impression of Asia Coconut Processing Plant II

Vietnam is among the world’s leading agricultural producers and exporters, ranking within the top 20 global economies by export scale and GDP.

As one of Vietnam’s leading groups in life-science solutions and natural ingredients business, AIG has, over nearly 25 years of development, continuously strived to unlock the full potential and strengths of Vietnamese agricultural products.

This vision has been pursued through three strategic pillars: sustainable development of raw material areas; research and development integrated with advanced processing technologies, and building Vietnamese agricultural brands with international standing.

To date, AIG has developed an ecosystem of member companies operating multiple deep-processing plants across key raw material regions nationwide, spanning northern, central, southeastern Vietnam and the Mekong Delta.

AIG’s processed agricultural products are exported to more than 50 countries and territories, including the United States, Europe, Japan, South Korea, and high-potential Halal markets in the Middle East.

With the vision of enhancing the global standing of Vietnam’s agricultural ingredients industry, alongside a pioneering and innovation-driven spirit, AIG has invested in advanced technologies, equipment, and production capabilities. The group also works closely with global partners to pursue sustainable development strategies based on green operations and international integration.

Accordingly, AIG has partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to provide advisory services for Asia Coconut Processing Plant II in developing Environmental, Social and Governance standards, emissions management, and reporting systems, thereby strengthening the plant’s operational capabilities in line with international standards.

The cooperation with IFC and the World Bank carries strategic significance not only for ACP2, but also underscores AIG’s strong commitment to sustainable development and its long-term vision for Vietnam’s deep-processed agricultural sector.

According to Pham Hoang Van, project leader at IFC, the collaboration between IFC and AIG is part of the World Bank Group’s Agriconnect initiative, which aims to strengthen agricultural connectivity for sustainable development goals.

“The groundbreaking of APC2 marks the development of a new, modern coconut processing facility in Vietnam, laying the foundation for a sustainable agricultural development model with strong international competitiveness,” Van said.

VIR