Japan’s Ajinomoto To Increase Production In Vietnam

Friday, July 15th, 2016 | 715 Views

Japanese company Ajinomoto Co. has announced that they will be increasing production capacity at its Bien Hoa Factory in Dong Nai, Vietnam to meet growing demand in the Southeast Asian country for umami seasoning Aji-no-moto.

With a capital investment of approximately US$20 million, production capacity will increase to approximately 1.2 times the current level. The target increase is scheduled to reach by August 2017.

Ajinomoto launched the umami seasoning in Vietnam in 1991. Sales volumes have increased since then, with an average growth of six percent annually since fiscal 2011.

Based on an Ajinomoto survey, the market for umami seasonings in Vietnam was approximately 160,000 tonnes in fiscal 2014—the second largest in the world after China. Umami seasonings are widely used in local home cooking and restaurant dishes, and the market is expected to grow at a rate of two to three percent annually, backed by factors such as rising average income and population growth.

In its FY2014-2016 Medium-Term Management Plan, the Ajinomoto Group had positioned Vietnam as one of its major growth drivers, as well as one of its core focus countries in ASEAN and Latin America.

To strengthen its presence and growth in the country, the company is looking not only to increase the supply for Aji-no-moto, but to also embark on environmentally conscious production activities such as resource recycling amino acid fermentation process. It is also looking to collaborate with local governments to distribute nutritionally balanced meals to elementary schools.