Sauce is indispensable in a typical Vietnamese meal. (Photo: Internet)
The joint venture, Nam Duong International Foodstuff Corporation, will be 49% owned by Saigon Union of Trading Cooperatives (Saigon Co-op), a major retailer in Vietnam, and the remainder by agribusiness group Wilmar International Limited (Wilmar).
Nam Duong International Foodstuff Corporation will build a factory in the Hiep Phuoc Industrial Park in Ho Chi Minh City, with a total investment of 277.2 billion dong ($25.6 million).
The factory will take over Saigon Co-op’s existing one for the manufacture of sauces and condiments under the Nam Duong brand.
Established in 1951, the Nam Duong brand produces soy sauce, chili sauce and tomato sauce. The products are popular in Vietnam and exported to the US, Canada and Europe as well.
Wilmar, founded in 1991, is ranked among the largest listed firms by market capitalization on the Singapore Exchange. Its business activities include oil palm cultivation, oil-seed crushing, edible oils refining, among others.
Wilmar also holds a 76% stake in Cai Lan Oils & Fats Industries Company (Calofic), based in Vietnam’s northern province of Quang Ninh. The Singaporean group also has several factories in Vietnam.