VietNamNet Bridge - South Korea’s food-making conglomerate Daesang Corp. has bought nearly full stake in Vietnam's meat processor and distributor Duc Viet Food Joint-Stock Co. at $32 million in a move to make inroads into Vietnam’s meat processing market with high growth potential, reported Korea Newswire.

Duc Viet products.

According to Korea Newswires, Daesang plans to complete the acquisition of the 99.99 percent stake in Duc Viet Food by August 5.

Daesang said that it has decided to buy Duc Viet Food to enter the Vietnamese food processing market that is set to grow fast as it is still in its fledgling stages currently centering on frozen ham products. The company expects the addition of the Vietnamese food company would help reinforce its food business.

With the contract, Daesang also plans to expand its market to Southeast Asia, including Thailand, Cambodia and Indonesia, based on the Vietnamese market.

Established in 2001, Duc Viet Food specialises in manufacturing and distributing meat products, sausages, spices, and instant food. The company currently has a total asset value of $5.99 million. In 2015, the company earned $26.5 million in sales and $1.7 million in net income.

Starting operations in 1956, Daesang Corp specialises in food and seasoning manufacturing, including soybean paste, ssamjang, marinade, soy sauce, soups, and Chinese noodle, among others.

The Korean food-making tycoon first entered the Vietnamese food market in the 1990s by building a seasoning manufacturing plant but has not taken any additional steps until now.

Nam Hai