Some products of Duc Viet Food. (Photo: ducvietfoods.vn)
South Korea’s food-making conglomerate Daesang Corp. has decided to purchase 13 million shares, or 99.99% stake, of Hanoi
-based Duc Viet Food JSC for $32 million, aiming at the refrigerated ham market in Southeast Asia, South Korean media reported.
Daesang said in a regulatory filing that it has decided to buy Duc Viet Food to enter the Vietnamese food processing market that is set to grow fast as it is still in its fledgling stages currently centering frozen ham products.
Established in 2000, Duc Viet Food mainly makes processed meat products such as hams and sausages. It made a net profit of two billion won ($1.7 million) on sales of $26.4 million last year.
With the latest contract, to be finalized in August, Daesang plans to use the Vietnamese market as a base to expand its market to other Southeast Asian countries such as Thailand, Cambodia and Indonesia.
The Korean food-making tycoon first entered the Vietnamese food market in the 1990s by building a seasoning manufacturing plant but has not taken any additional steps until now.