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13-year struggle ends with victory for Vietnamese investor

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A 13-year confrontation between Vietnamese and foreign investors at a leading sweets manufacturing company has come to an end: the Vietnamese investor has acquired the entire company while the South Korean investor has left.

13-year struggle ends with victory for Vietnamese investor

PAN Group’s Chair Nguyen Duy Hung

PAN Group made public the resolution of the board of management on approving a plan to purchase 7.7 million BBC shares, or 41.06 percent, of the remaining shares in circulation of Bibica, a big sweets manufacturer. Once the purchase is completed, PAN’s ownership in Bibica will be 100 percent.

The decision was made after the South Korean shareholder decided to divest all shares it is holding. The Covid-19 pandemic has put pressure on businesses globally, including Lotte.

As such, the struggle between Vietnamese and foreign shareholders in Bibica is expected to end this year. PAN Group’s Chair Nguyen Duy Hung now can raise the ownership ratio to 100 percent which he wanted three years ago.

The struggle between the two sides broke out in 2011, when the shareholder from South Korea wanted to rename the company Lotte-Bibica, putting the Vietnamese name at risk of disappearing.

However, the foreign investor’s attempt failed. Bibica decided to join hands with PAN, selling 35 percent of shares to PAN which acted as a counterbalance to Lotte.

Prior to that, with an aim to develop more strongly, Bibica had welcomed the investor from South Korea. With its presence, Bibica could develop and the brand become better known.

Bibica also received support in finance, technology and branding, and its products have been exported to many Asian countries.

However, the spirit to protect the Vietnamese brand kept by Bibica and the financial tycoon Nguyen Duy Hung changed the situation. The strong rise of large domestic corporations and the deep understanding about Vietnamese culture allowed Bibica to continue growing rapidly. Bibica share prices have increased sharply over many years, thus bringing big benefits to shareholders.

Domestic 100-million consumer market

After the deal is completed, Hung’s PAN Group will hold 100 percent of Bibica shares. The sweets manufacturing company will serve as an important part of PAN’s 3F strategy (feed-farm-food) on developing food and foodstuff industry.

Once the entire company belongs to one owner, Bibica will be able to gather strength to develop its production scale, boost sales and expand its market share.

Once the entire company belongs to one owner, Bibica will be able to gather strength to develop its production scale, boost sales and expand its market share.

PAN Group recently approved the plan on issuing shares, 245.8 million units at maximum, or VND2.358 trillion in face value and VND7 trillion in current market price, to increase charter capital.

Foreign investors have made investments in Vietnam’s companies and then taken over companies in the last two decades. However, the robust growth of domestic private corporations has changed the situation. In many cases, Vietnamese enterprises have bought back Vietnamese brands which fell into foreign hands, and have even taken over foreign companies.

The Masan Group of billionaire Nguyen Dang Quang has taken over Vinacafe Bien Hoa (VCF) shares, including VinaCapital. Both Masan and Vinacafe Bien Hoa benefited after the deal. VCF has been growing well.

In 2016, it was Masan which ‘laid its cards on the table’ and prevented the expansion of foreign influence in the food processing industry.

At that time, Anco, belonging to Masan Nutri Science (MNS), beat out South Korean CJ CheilJedang to obtain the right to buy shares and become the strategic shareholder of Vissan JSC, thus helping MNS approach the leading position in the industry.

MNS was the Vietnamese enterprise which took over two famous brands, including Proconco (which was a joint venture between France and Vietnam), and Anco (a joint venture between Malaysia and Vietnam). Livestock products using the feed of the two brands are accepted to go directly to the US market.

Meanwhile, Vicostone, the quartz manufacturer, has become a Vietnamese owned company. It is now taking the lead in artificial stone and listing itself among the companies with the biggest profits in the stock market.

About one decade ago, the Vietnamese retail market was ‘scorching hot’ with the entry of large corporations from Thailand, South Korea, Japan and France. For many years, the retailers’ playing field was nearly controlled by foreign players, including Metro, Big C, Lotte and Aeon, which overwhelmed Vietnamese brands such as FiviMart, Intimex and Hapro.

However, in recent years, Vietnamese brands, including Vinmart, which is now Winmart of Masan, and The Gioi Di Dong, are dominating the market.

In agriculture, An Giang Plant Protection JSC, which is now Loc Troi Group, and the foreign shareholder VinaCapital, had a disagreement in business strategy. VinaCapital later decided to divest from Loc Troi, and the Vietnamese group has been growing very well, becoming the No1 player in the Vietnam’s rice market.

Meanwhile, analysts say that the leading position of CP Group owned by the Thai billionaire Chearavanont was affected after Vietnam’s Masan Group launched the Masan MeatLife brand in a plan to enter the pork market worth $10 billion. Masan MeatLife (MML) has listed its shares and has capitalization value of over $1 billion.

The rise of domestic corporations in the struggle with foreign giants is an optimistic signal that shows the robust growth of Vietnamese businesses in domestic and world markets. 

M. Ha

Source: https://vietnamnet.vn/en/feature/13-year-struggle-ends-with-victory-for-vietnamese-investor-814127.html

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Vietnam Fisheries Trade Union raises fishermen’s awarness on combatting IUU fishing

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Vietnam Fisheries Trade Union (VFTU) on May 29 held a communication event aiming to raise awareness of union members on national sovereignty over seas and islands as well as on the prevention and combat of illegal, unreported and unregulated (IUU) fishing.

Vietnam Fisheries Trade Union raises fishermen's awarness on combatting IUU fishing hinh anh 1To remove the European Commission’s yellow card, it is necessary for ship owners to comply with legal documents on seas and islands while operating at sea. (Photo: nongnghiep.vn)

Khanh Hoa Vietnam Fisheries Trade Union
(VFTU) on May 29 held a communication event aiming to raise awareness of
union members on national sovereignty over seas and islands as well as on the
prevention and combat of illegal, unreported and unregulated (IUU) fishing.

Participants at the event were updated on the current
situation of the country’s sea and islands, efforts to combat IUU fishing associated with the responsibilities of union members and fishermen towards having the “yellow card” imposed by the European Commission
on Vietnamese fishery products removed.

According to the Vietnam General Confederation of Labour, the
VFTU has 90 chapters in 16 out of 28 coastal provinces and cities, with nearly
18,000 members and over 5,200 fishing vessels of more than 15m in length.

In recent years, the VFTU has been proactive in popularising legal
documents on seas and islands and calling on its members and boat owners to combat
IUU fishing. It has coordinated with relevant agencies in providing national
flags, first aid kits and life vests to fishermen.

Vietnam Fisheries Trade Union raises fishermen's awarness on combatting IUU fishing hinh anh 2At the signing ceremony (Photo: nongnghiep.vn)

The trade union has timely issued statements rejecting the unilateral fishing ban in the East Sea by foreign countries, as well as protesting acts that hinder, drive away, attack and arrest people and property of union members and Vietnamese fishermen.

At the event, the
VFTU signed several cooperation agreements with enterprises such as Son Ha Group, Bao Viet Insurance Corporation and
Minh Hong Phuc Vietnam Co. Ltd. These agreements will create favourable
conditions for union members to access products and services at preferential
prices, thereby helping them feel secure while operating at sea, contributing
to protecting the country’s sovereignty over sea and islands./.

Source: https://en.vietnamplus.vn/vietnam-fisheries-trade-union-raises-fishermens-awarness-on-combatting-iuu-fishing/253811.vnp

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Vietnamese durian gets more farming area codes for export to China

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China has approved another 47 farming area codes and 18 packaging facility codes for importing durian from Vietnam, according to Ministry of Agriculture and Rural Development.

Vietnamese durian gets more farming area codes for export to China hinh anh 1Illustrative image (Photo: thanhnien.vn)

Hanoi – China has approved another 47 farming area codes and 18
packaging facility codes for importing durian from Vietnam, according to
Ministry of Agriculture and Rural Development.

Farming area codes enable traceability and thus agricultural exports.

To qualify for export to China, durian need to weigh three kilogrammes or more,
meet stringent safety standards, have traceability stamps in English or Chinese,
and show the name of the packaging facility.

China, the world’s largest durian market, began importing the fruit from Vietnam
last year after approving 51 farming area codes.

The number has since increased to 293 along with 115 packaging facility codes.

According to statistics from the General Department of Customs, durian has been
identified as the fruit with the highest economic value.

Its exports in the first quarter were worth 153 million USD, 8.3 times up from
the same period last year, of which China accounting for 83%.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit Association, said the
fact that more farming area codes and packaging facility codes had been
approved by China was good news for durian growers and exporters.

It would enable Vietnam to increase exports to China, where demand is enormous./.

Source: https://en.vietnamplus.vn/vietnamese-durian-gets-more-farming-area-codes-for-export-to-china/253798.vnp

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Vietnam willing to join efforts for CPTPP elevation, IPEF negotiations

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Vietnam is ready to coordinate with other CPTPP member countries in implementing the 2023 rotating chair New Zealand’s initiatives on elevating the deal as a model one of the region and the world, affirmed Minister of Industry and Trade Nguyen Hong Dien.

Vietnam willing to join efforts for CPTPP elevation, IPEF negotiations hinh anh 1At the Indo-Pacific Economic Framework for Prosperity (IPEF) ministerial meeting in Detroit, Michigan, the US (Photo: VNA)

Washington – Vietnam is ready to coordinate with other CPTPP member countries in implementing the 2023 rotating chair New Zealand’s initiatives on elevating the deal as a model one of the region and the world, affirmed Minister of Industry and Trade Nguyen Hong Dien.

Dien made his remarks while attending the recent ministerial meeting among members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Detroit, Michigan, the US. Participating countries agreed that it is necessary to continue promoting the effective implementation of the agreement to bring full and practical benefits to people and enterprises, particularly small- and medium-sized ones.

While in Detroit, Dien also attended a meeting of ministers from ASEAN nations joining the Indo-Pacific Economic Framework for Prosperity (IPEF) and the IPEF ministerial meeting.

At these meetings, Dien stated Vietnam will continue to work closely with other IPEF countries, including those from ASEAN to complete basic negotiations of the initiative this year. For the IPEF’s Pillar III of Clean Economy, Vietnam wishes to see more cooperation activities among the ASEAN partners in clean energy production, and the development and transfer of technologies and solutions serving the elimination of greenhouse gases, among others, serving the energy transition of each country.

Lauding efforts by partner nations so far, the minister affirmed Vietnam always supports and is ready for discussion to contribute to the building of practical content suitable to each member’s development conditions.

He also called on participating countries to continue upholding the principles agreed upon from the beginning of negotiations.

On the occasion, the Vietnamese minister met with US Secretary of Commerce Gina Raimondo and Japanese State Minister for Foreign Affairs Yamada Kenji.

Raimondo told Dien that the US is ready to work with Vietnam to discuss some necessary flexible options to ensure that countries respect Vietnam’s legal system and work together on such a basis.

Dien affirmed that Vietnam will work closely with the US and other countries to ensure the overall success of the IPEF. He voice support for the US view of fair commerce, which does not discriminate, cause burden or restrict trade, or harm production and workers. Vietnam commits to continue to actively cooperate with the US to comprehensively address concerns of both nations, thereby maintaining their stable commercial relations, towards a harmonious, sustainable and mutually beneficial trade balance, the minister stated.

Meeting with Yamada, Dien welcomed the three ODA projects worth 61 billion JPY (434.2 million USD) freshly signed between Vietnam and Japan on the sidelines of the 49th G7 summit in Hiroshima. He said room remains extensive for the sides to work together in the fields of energy, food processing, support industries, and material technology.

The Vietnamese Government is committed to ensuring an open and stable business climate for enterprises of the two countries to operate and succeed in Vietnam, he said./.

Source: https://en.vietnamplus.vn/vietnam-willing-to-join-efforts-for-cptpp-elevation-ipef-negotiations/253797.vnp

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