On May 11, Vietnamese food-ingredient major Asia Ingredients Group (AIG) held a groundbreaking ceremony for its second coconut-processing plant at the Long Phuoc Industrial Park in Vinh Long province in the Mekong Delta. The investment is about 630 billion dong (about US$23.9 million, 3.7 billion yen), with operations scheduled for the first quarter of 2027. Centered on a UHT-sterilization line of 48,000 tonnes a year and frozen coconut milk of 16,000 tonnes a year, it will build a mass-production system and further strengthen a supply network to over 50 countries worldwide. It is worth attention from Japanese food makers too as a stable sourcing destination for coconut raw materials.
US$23.9 million investment—the second plant breaks ground
Through its subsidiary Asia Coconut Processing JSC, AIG secured about 60,000 square meters of land at the Long Phuoc Industrial Park in Vinh Long province. The second plant plans to produce 48,000 tonnes a year on a Tetra Pak-supplied UHT-sterilization line, 16,000 tonnes a year of frozen coconut milk, and a total of 2,400 tonnes a year of desiccated coconut (dried coconut). Groundbreaking was May 11, with the start of operations expected in the first quarter of 2027.
Background: Vietnam's coconut-processing power reaching over 50 countries
AIG is a representative Vietnamese food-ingredient and packaged-food maker that exports processed agricultural products to over 50 countries and regions, including the US, Europe, Japan, South Korea and Middle Eastern halal markets. The new second plant aims to respond to expanding world demand while also firming up the Mekong Delta coconut-supply network at industrial scale. It is a locally rooted investment that also leads to job creation and higher incomes for farmers in the area.
In the Mekong Delta, large-scale investments in fruit and raw-material processing are coming one after another, and in coffee deep processing too, Intimex's freeze-dried coffee plant, turning-point projects are in motion. The flow from exporting primary products to processing and higher value addition is clear.
The second plant in data (yen conversion)
| Item | Details | Yen conversion |
|---|---|---|
| Investment | About 630 billion dong / US$23.9 million | About 3.7 billion yen |
| UHT-sterilization line | 48,000 tonnes a year | — |
| Frozen coconut milk | 16,000 tonnes a year | — |
| Dried coconut | 2,400 tonnes a year | — |
| Site area | About 60,000 m² | — |
Local reaction
An AIG representative is enthusiastic: "Coconut demand is expanding worldwide, and the second plant will greatly raise our supply capacity." Local administration shows a welcoming stance: "An industrial-scale processing base stabilizes farmers' sales channels and incomes." Industry figures analyze that "a configuration that puts UHT and frozen in place at the same time can take in overseas buyers with different uses broadly," and place expectations on a lift in export competitiveness.
Impact on Japanese buyers and food makers
UHT coconut milk and frozen coconut milk are raw materials with broad demand in Japanese food OEM for drinks, sweets and seasonings. If supply capacity increases with the second plant's operation, sourcing stability and room for price negotiation widen. Japan is already one of AIG's main markets, and it becomes a strong option when advancing comparison with domestic and other countries' products in PB development and OEM. Grasping a supplier's production capacity is the premise of stable sourcing.
Ripple effects on the industry
The introduction of a Tetra Pak line means aseptic filling for long-term room-temperature storage and export suitability. By holding three forms—frozen, dried and this—at a single base, AIG can respond to diverse overseas standards and uses. The more the Mekong Delta coconut industry advances vertical integration of "harvest → processing → export," the more raw-material added value is apt to remain in the production area, and the greater the ripple to the regional economy.
Practical information
| Item | Details |
|---|---|
| Business entity | AIG(Asia Ingredients Group) |
| Location | Long Phuoc Industrial Park, Vinh Long province |
| Groundbreaking | May 11, 2026 |
| Scheduled operation | First quarter of 2027 |
| Main export destinations | US, Europe, Japan, South Korea, Middle Eastern halal |
Summary
AIG invested about US$23.9 million to break ground on a second coconut-processing plant in Vinh Long province. Equipped with three forms—UHT, frozen and dried—it will start operations in the first quarter of 2027. For Japanese food makers, it is a good chance to assess the supplier's capability as a stable sourcing destination for expanding Vietnamese coconut raw materials.
Source: The Investor
