The construction of a dairy factory which is expected to be the most modern with the largest scale in Southeast Asia started on May 14 in Nghia Trung Commune, Nghia Dan district of central Nghe An province.

The 1.2-billion USD project, invested by TH Dairy and Food Company and the North Asia Commercial Joint-Stock Bank, is set to also become the biggest hi-tech processing project in the region.

Located on a 22-ha area, the factory will use advanced Swedish technology and is expected to be able to produce 500 tonnes of milk a day by 2012.

According to Tran Bao Minh, director of the TH Dairy and Food Company, about 8,000 breeding milk cows will initially be imported from New Zealand for the project. Within two years, the company's farm in the commune will have about 30,000 milk cows.

The chairman of Nghe An provincial People's Committee, Phan Dinh Trac, said the dairy farm could be a breakthrough for Vietnam , enabling it to raise milking cows in modern manner and into self-contained fashion.

He added that at present, agricultural production in Nghe An province and many other provinces was not thriving.

Hi-tech production at the new dairy factory would help provide work for many workers. The dairy project is the second in a chain of hi-tech agricultural projects aimed at developing Nghe An province's western area./.