Sojitz, Vinamilk to set up JV for beef sales in Vietnam
HANOI, NNA - Japanese trading house Sojitz Corp. and a group company of Vietnam Dairy Products JSC, Vietnam's largest dairy maker known as Vinamilk, have agreed to set up a joint venture in Hanoi around April to import, process and sell beef products in Vietnam.
The joint venture, tentatively named Japan Vietnam Livestock Co., will be capitalized at $2 million, of which Sojitz will hold a 49 percent stake while the Vinamilk group company, Vietnam Livestock Corp. JSC, will hold a 51 percent stake, the Japanese trader said in a news release Tuesday.
The joint venture is considering importing beef from such areas as Japan, North America and Australia, but details will be decided later, a Sojitz spokeswoman told NNA on Tuesday.
Combining Sojitz's know-how to sell livestock products and Vinamilk's sales network, the joint venture aims to take up its stand in the beef market in Vietnam while taking into consideration an advance into other countries of the Association of Southeast Asian Nations, according to the spokeswoman.
Sojitz also plans to cooperate with the Vinamilk group in many other businesses.
Vietnam's annual beef consumption is close to 500,000 tons, about a half of Japan's, according to Sojitz. Pork is currently more popular in the country because prices are lower, but beef consumption is expected to increase due to a rising population and income growth, the company said.
Sojitz is involved in a wide range of businesses in Vietnam, such as fertilizer production, feed production, flour milling, food wholesale, prepared food production, convenience store operations and cold chain logistics. (NNA/Kyodo)