Entry into Food Distribution Business in Vietnam
February 18, 2011
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that ITOCHU has agreed with PHU THAI GROUP JOINTSTOCK COMPANY (headquartered in Hanoi, Pham Dinh Doan, Representative Director; hereinafter “PTG”) to invest in a new food distribution company, and has concluded a capital tie-up agreement.
PTG handles a wide range of products, including foodstuffs, household products and clothing, and has a top-class distribution network that covers all areas of Vietnam. It has gradually expanded its business since its establishment in 1993, and recently decided to create a new company for a food distribution business, a sector showing impressive growth, and enter the joint venture with ITOCHU.
Vietnam has the second largest population in South East Asia. The majority of its 87 million people are young, with an average age of 27. The food market has continued to grow since 2000 at a high rate of between 10 percent and 20 percent. Consumption by the urban middle class is growing and the food distribution sector is forecast to grow in line with this expansion of market consumption. Japanese companies also are expected to increasingly shift from a domestic Japanese market in decline to growing overseas markets, especially the Asian market.
ITOCHU sees Vietnam’s food distribution market as a place for trade from the ASEAN region and as a consumer market that is forecast to grow further, and will build it as a cornerstone for food distribution. ITOCHU plans to lead the way in establishing itself in Vietnam, a place where Japanese companies are expected to make inroads, and will develop a food distribution network in Vietnam.
PHU THAI GROUP JOINT STOCK COMPANY (PTG) Company Outline
|Established||Sept. 24, 1993|
|Address||186 Truong Chinh, Dong Da, Ha Noi, Vietnam|
|Representative||Pham Dinh Doan|
|Capital||VND 600 billion (about \2.5 billion)|