Japanese firms eye Vietnamese shares

A number of Japanese firms bought up shares in Vietnamese companies during the first few months of 2011, recent purchases mainly taking place in the consumer goods and financial sectors.

The DI Asian Industrial Fund (DIAIF) recently bought a 25 per cent stake in dairy manufacturer Nutifood, becoming part of its Management Board.

Last month Saigon Paper published private offers of 38 per cent charter capital to two Japanese organisations including the Daio Paper Corp and the BridgeHead Investment Fund (Development Bank of Japan).

“We had to spend at least six months on research into our Vietnamese counterpart in order to assure its growth potential,” said a representative from Saigon Paper partner Nishikawa.

Japanese beverage firm Kirin Holdings acquired a 100 per cent stake in Trade Ocean Holdings, parent company of International Food (IFS). Kirin’s purchase has enabled it to hold a 57 per cent stake in IFS.

The Vietnamese companies, despite their high market shares, met with many challenges. The accumulated loss of Nutifood and IFS during 2010 came to VND46.6 billion (US$2.2 million) and VND266 billion ($12.7 million), while Saigon Paper saw little profit, as reported by financial information website cafef.vn.

“Co-operation will promote the expansion of Vietnamese firms into the Japanese market,” a source from Nutifood stated. In addition, DIAIF representatives, as members of the Board, will assist Nutifood in corporate management.

Under respective agreements, Japanese firms will offer comprehensive support in financial investment, research, market development, technology transfer and human resources.

In the financial sector, SBI Securities bought a 20 per cent stake in FPT Securities while Nikko Cordial bought a 15 per cent take in PSI. – VNS

Tags: vietnam stock, Vietnam stock market, VNindex