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Soybean Oil — Chicago (CBOT)
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NewsOils and Fats Sector Coverage

Vietnam Unveils Southeast Asia's Largest Soybean Crushing Complex

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

With the official opening of a second soybean crushing line at the Phu My 1 industrial complex, Vietnam Agricultural Products Trading Company Limited has become Southeast Asia's largest soybean crushing complex today.

Source: Vietnam Government News (Báo Chính Phủ)

On 10 December, Vietnam Agricultural Products Trading Company Limited (VAL) — a joint venture between Bunge and Wilmar specialising in oilseed processing and the supply of food products and animal feed — officially opened its second soybean crushing line at the Phu My 1 industrial complex, boosting its daily processing capacity by an additional 4,000 tonnes.

This expansion, together with the first production line (which has been operating since 2011), raises VAL's total crushing capacity to 7,800 tonnes per day. This is a significant milestone that marks a leap forward in the company's journey of innovation and development, and demonstrates its practical contribution to the strategy of securing raw material supplies for the country's livestock and food industries.

The VAL complex sits on 11.2 hectares within a strategic industrial hub and is considered one of the most modern facilities in the region, specifically designed to improve efficiency and ensure superior product quality. The complex includes eight large-capacity storage silos with a combined capacity of 120,000 tonnes, fitted with a fully automated temperature and humidity control system that helps preserve freshness, maintain nutrient stability and meet optimal processing standards.

Meeting 30% Of Domestic Animal Feed Needs

With total investment exceeding US$100 million, the new production line was designed to the highest international standards, incorporating a comprehensive automation system alongside real-time quality monitoring and control technology. These advanced upgrades boost operational efficiency, save energy, ensure consistent product quality, and strictly adhere to the highest safety and environmental protection standards.

By integrating advanced technologies from leading global suppliers, the plant was designed with a fully automated process spanning cleaning, dehulling, flaking, conditioning and extraction. Smart sensors, combined with near-infrared (NIR) analysis, continuously monitor critical parameters, reducing deviations and ensuring consistent product quality.

The production process operates in line with strict international standards, including HACCP, HALAL, KOSHER, ISO 22000:2018, ISO 14001:2015, FSSC Version 6 and OSHA, ensuring food safety, traceability transparency and environmental accountability.

When running at full capacity, the two crushing lines will process up to 2.6 million tonnes of soybeans and produce nearly 2 million tonnes of soybean meal annually, meeting around 30% of domestic animal feed demand. This capacity expansion will significantly bolster Vietnam's animal feed industry, strengthen national food security, and support sustainable growth in the country's agricultural sector.

Over the past two decades, Vietnam's livestock industry has maintained a stable annual growth rate of 3-5%, driving up demand for plant-based protein sources, particularly soybean meal. In a context where supply relies heavily on imports, the expansion of domestic soybean crushing plants such as VAL not only helps secure a reliable supply of raw materials — offering customers greater flexibility and efficiency — but also retains added value locally, representing a strategic step towards national self-sufficiency and sustainable development of the livestock industry.

Outlook For Large-Scale Agro-Processing Projects In The Region

Speaking at the event, Nguyen Cong Vinh, Vice Chairman of the People's Committee, said the opening ceremony was a testament to international investors' confidence in the region's strong and stable development prospects. The plant is expected to become a large-scale agro-processing project in Southeast Asia, with a modern production line that meets strict environmental standards and aligns with the drive towards high-tech agricultural development.

Nguyen Cong Vinh said: "I believe that thanks to its prime location and its ability to supply around 30% of the soybean meal market share for the animal feed industry, this project will play an important role in ensuring food security, reducing supply chain risks, and stabilising prices for the livestock industry, as well as boosting budget revenues, creating thousands of stable, high-income jobs, and contributing to improving people's lives and promoting sustainable growth in the local area."

Nguyen Minh Vi, General Director of VAL, explained that the opening of the second soybean crushing line marks a milestone in the company's long-term strategy to expand production capacity to meet growing demand in both domestic and international markets.

The new production line also supports VAL's "Green Growth – Responsible Development" goal, which the company has embraced from the outset. The modern plant includes a waste heat recovery and reuse system to reduce energy consumption, a closed-loop water recycling system to improve resource use and cut emissions, and continuous automation processes to reduce workplace risks.

At the same time, VAL maintains a strong safety culture through regular training programmes across all production activities. By upholding three core pillars — efficiency, sustainability and safety — the company is not only boosting production capacity but also reaffirming its deep responsibility towards the environment, the community and future generations.

The plant is expected to produce more than 500,000 tonnes of crude soybean oil annually to serve domestic consumption and export needs. This strengthens Vietnam's position among the region's leading soybean oil exporters and provides strong access to key markets such as South Korea.