South Korea’s CJ Group Ponders Acquiring Vietnamese Food Retailer

Tuan Minh

18:22 14/09/2017

BizLIVE - CJ Group is looking to expand its presence in the Vietnamese food market.

South Korea’s CJ Group Ponders Acquiring Vietnamese Food Retailer

The Vietnamese food market is proving attractive to CJ Group. Photo: CJ.net

CJ Freshway, a subsidiary of South Korean conglomerate CJ Group that specializes in institutional food service and food ingredient distribution, is mulling over taking over a Vietnamese food retailer to strengthen its foothold in the Southeast Asian country, The Investor cited a senior executive as saying.
“We will further increase global sales by acquiring a Vietnamese food material distributor,” CJ Freshway CEO Moon Jong-suk said, without revealing the name of the Vietnamese company.
The executive noted that Vietnam’s business environment is more favorable than China’s.
CJ Group has been striving for a larger presence in the Vietnam food market that feeds more than 93 million people.
Last November, CJ Freshway signed a deal with Vietnamese restaurant chain operator Golden Gate to supply meat worth 10 billion won ($8.82 million) annually. The firm also supplies Korean fruits to Ho Chi Minh City-based Saigon Trading Corporation (Satra).
The company recorded sales in Vietnam at 1.8 trillion won ($1.59 billion) in the first half of this year and an operating profit of 28.3 billion won ($25 million) during the second quarter.
CJ now holds a 4.18% stake in Vietnam’s leading meat processor Vissan. In addition, CJ Cheiljedang Corporation, another CJ Group subsidiary, earlier this year raised its stake in Cau Tre Food JSC to 71.6%.

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