Malaysia’s Greenyield Bhd, a producer of chemicals and services for the agriculture industry, plans to invest US$1.2 million in building its first overseas factory in Vietnam.

The factory, which is expected to be operational by 2010, will provide plantation and non-plantation services for the rubber industry.

Greenyield group’s executive chairman and managing director Tham Foo Keong said that the Vietnamese government is offering very attractive incentives as well as tax exemptions for plant construction in the country.

The factory is considered to be the group's global distribution facility, which will enhance its abilities to increase export growth, he said.