Mar 15, 2012

Vietnam - Japanese food group enters Vietnamese market



Nichirei Foods, a subsidiary of Japan’s Nichirei Group, has joint-ventured with HCM City’s Cholimex Food JSC to penetrate the Vietnamese market.

Nichirei Foods has already bought 19 per cent of the Vietnamese company’s stock, costing JPY500 million ($6.25 million).

Cholimex is one of big companies in Vietnam, providing spicy products to domestic market and exporting frozen food to the Europe Union. It earns just $25 million in revenue a year, but obtains an annual growth rate of 30 per cent.

In the coming time, Nichirei Foods will send its technicians to Cholimex to transfer technology and diversify frozen food in Vietnam.

If the cooperation model succeeds, the Japanese company will increase its capital in Cholimex in the next two years to turn Vietnam into a key production base in the Southeast Asian region.

Earnings from Vietnam’s frozen food manufacturing fetch $125 million, one third of Thailand’s figure ($312 million), and far below Japan’s figure ($10.3 billion).

VOV



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