Situated near Ho Chi Minh City, the factory will specialise in producing premix to make batter for fried foods and baked goods. The factory will have a capacity of 4,300 tonnes per year once completed in 2027.

As reported by Nikkei Asia, Vietnam is the latest country in Southeast Asia where Nippn is putting down capital. Japanese multinationals are making frozen food for the Japanese market, and Nippn is seeking to capture demand from these companies as well as local businesses.

Nippn didn't disclose the investment size, but it is planning to establish a Vietnamese subsidiary by the end of August.

While the Vietnamese factory is under construction, Nippn will import premix from its factories in Thailand and Indonesia for sale in Vietnam.

Vietnam is the third Southeast Asian market in which Nippn has made a foray, following Thailand and Indonesia. The expansion is part of the company's plan to tap rising demand in the region.

Nippn has set a goal of doubling its overseas revenue by fiscal 2026. As of present, the company has expanded its operation to five countries, including Vietnam.

"We intend to reach our goals by actively expanding overseas if conditions are right," a Nippn spokesperson noted.