SINGAPORE — Saigon Union of Trading Cooperatives (Saigon Co-op) and Wilmar International Limited announced on Oct. 27 the execution of a joint venture contract to establish Nam Duong International Foodstuff Corporation, a limited liability company to be incorporated in Vietnam with two members (49% Saigon Co-op & 51% Wilmar Group) specializing in the manufacture of sauces and condiments for both the domestic and export markets.
Nam Duong International Foodstuff Corporation said it will undertake a project with a total investment capital of VND577.2 billion ($25.6 million) to construct a new factory in the Hiep Phuoc Industrial Park, Nha Be District, Ho Chi Minh City, which will take over the current operations of Saigon Co-op’s factory for the manufacture of sauces and condiments sold under the Nam Duong brand.
“As the retailer with the most extensive modern retailing network in Vietnam, Saigon Co-op has intimate knowledge of Vietnamese consumers’ taste and preference in food,” said Nguyen Thanh Nhan, general director of Saigon Co-op. “Wilmar Group, on the other hand, is very experienced in the manufacture and distribution of food products globally. The combination of Saigon Co-op and the Wilmar Group’s strengths in the Nam Duong International Foodstuff Corporation joint venture will be a milestone in the Vietnam consumer market. This joint venture will introduce international health and production standards and global distribution networks to Nam Duong sauces and condiments products that are well regarded and rich in traditional taste.”
Established in 1951, the Nam Duong brand is among the leading brands for sauces and condiments in Vietnam, which include soy sauce, chili sauce and tomato sauce. These products are also currently being sold in export markets such as the U.S., Canada, Europe and Vietnam.
Nam Duong International Foodstuff Corporation will leverage on Saigon Co-op’s strength in distribution and Wilmar’s experience in manufacturing operations as well as its research and development in food technology and also tap on Wilmar’s global network for export sales.