September 23, 2014
Feed plant -- latest Filipino acquisition in Vietnam
Big corporations in the Philippines, the second best performing economy in Asia after China, have been expanding into Vietnam without much fanfare.
The latest Filipino foray into Vietnam, analysts say, is by the Aboitiz Group, whose interests in the Philippinesinclude feedproduction, power generation, banking and real estate.
Thhroughits Singapore-based affiliate Pilmico International Pte. Ltd.,Aboitizbought 70% of Vietnam''s biggest aqua feed producer VinhHoan 1 Feed JSCfor US$19.60 million.
Under the deal, the Filipino conglomerate has the option to buy the remaining 30% of the Vietnamese feed company from the other shareholders in five years, bringing the total transaction value to US$28 million.
Following the sale, theAboitizGroup inked a long-term agreement for the feed company to supply aqua feeds to the shrimp farms ofVinhHoan Company, Vietnam''s leading shrimp exporter.
"The acquisition is aligned with Aboitiz Group''s strategy of expanding its core feeds business and expanding into the Vietnamese market," the listed holding firm said.
Analysts said that the sale of the fourth largest feed plant in Vietnam with the capacity of 130,000 tonnes per annum, brought high profits to VinhHoan, which built the plant with VND70 billion, or US$3.4 million only.
Prior to that, a Filipino fast food chain, Jollibee, spent US$25 million to buy 50% of Pho 24, a well-known pho (noodles served with beef or chicken) brand, and a famous café brand, Highlands Coffee.
With the deal, Jollibee became better known to Vietnamese and the brand is mentioned with McDonald''s and KFC when people list the big fast food chains in
Vietnam.
Most recently, a large Filipino food group, Universal Robina Corp., has taken big steps in its plan to expand its business plan in Vietnam.
The group announced it will turn Vietnam, with 90 million consumers, into a key market which can bring US$1 billion.
Robina emerged in Vietnam''s food and beverage (F&B) market recently when it launched C2 bottled green tea, a product considered a direct rival to Tan HiepPhat, and Coca Cola and Pepsi Cola.
Analysts said Filipino investors have also been keen on infrastructure projects. In late 2013, Manila Water South Asia Holdings Pte. Ltd., a subsidiary of the Filipino Manila Water Company, Inc., bought 18.37 million shares in a Vietnamese water infrastructure company worth VND310 billion (US$14.6 million).
Reuters also reported recently that Metro Pacific Investments Corp., another major Filipino infrastructure investor, is considering a transport infrastructure project in Vietnam.