Nissin Foods to build instant noodle plant in Vietnam

Nissin Foods Holdings Co. (2897.TO) said Tuesday it will set up an instant noodle plant in Vietnam to meet increasing demand in the country, with the overall investment tentatively set around Y3.4 billion.

The Japanese company, known for its Cup Noodle instant products, will launch a 100%-owned subsidiary and a new plant in an industrial site about 35 kilometers north of Ho Chi Minh City, it said in a press release. The company plans to kick off production and sales around June 2012. It didn’t provide details such as sales targets.

Nissin already has operations in other Southeast Asian counties like Thailand and Singapore, but no presence in Vietnam.

Its decision to advance into Vietnam comes as demand has been climbing there on the back of steady economic growth and rising household incomes.

Vietnam consumed an estimated 4.3 billion cups of instant noodles in 2009, the fourth highest in the world after China, Indonesia and Japan, according to Nissin. Demographically, the market is promising too, with citizens aged 30 or under comprising about 60% of the population.

Nissin is the latest Japanese company to tap into the Vietnamese market, as the home market shrinks and ages and as a weak economy puts pressure on consumer demand.

Convenience store operator Ministop Co. (9946.TO) has announced plans to open a chain of stores in Vietnam, with the first to open in Ho Chi Minh City in May, and 100 to follow within two years, and 500 more in five years.

Beverage company Sapporo Holdings Co. (2501.TO) plans a production and sales network in the country, with a new plant near Ho Chi Minh City expected to come onstream in 2012.- Down Jones

Tags: Nissin Foods, Nissin Foods Vietnam

Posted by VBN on Mar 9 2011. Filed under Food & Beverage. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry