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Korea’s Daesang buys Vietnamese sausage maker Duc Viet

Collected: 2016.11.18

Distributed: 2016.11.21

Source: Go Direct

Workers at Daesang Corp.’s factory in Vietnam are packing products. (Picture by: Daesang Corp.)

South Korea’s food-making conglomerate Daesang Corp. said Wednesday that it has completed the acquisition of a 99.99 percent stake in Vietnam-based meat processor and distributor Duck Viet Foot Joint-Stock Co. at $32 million in September, ensuring the Korean company a presence in the Southeast Asian meat processing market.

Duc Viet Food that mainly makes processed meat products such as hams and sausages is a small, but sound in Vietnam with 16 billion won ($13.6 million) in total assets, according to Daesang. The Vietnamese company posted a net income of 2 billion won and 31 billion won in sales last year.

The Vietnamese food processing market is set to grow fast as it is still in its fledgling stage. According to market intelligence agency Mintel Group Ltd., demand in processed meat products in Vietnam reached 580 billion won in 2015. Chilled sausages made up the largest share of 23 percent, followed by shelf stable sausages with 19 percent and Vietnamese traditional sausage with 18 percent.

Competition in the chilled sausage market in Vietnam has been gradually becoming fiercer among local players - Duc Viet and Vissan - and foreign peers such as the

Philippines’s San Miguel Corp., Japan’s Nippon Ham Group and Thailand’s CP Foods. Daesang will make the first Korean firm to enter the market.

The Korean food maker hopes to reap 50 billion won in annual sales in Vietnam by 2020.

By Jeon Ji-hyun

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