Vietnam’s leading meat processor Vissan has taken over 81.5% of Ninh Thuan Trading Joint Stock Co.
The HCM City-based company bought into Ninh Thuan Trading as part of a cooperation programme between HCM City and the central province, according to Ninh Thuan Trading vice chair and deputy director Van Duc Muoi.
“Ninh Thuan officials want Vissan to invest in the province so that Vissan’s prestige and distribution system will help boost trade,” he said.
Now that Vissan holds a controlling stake, Ninh Thuan Trading will soon manage Vissan’s 100-hectare cattle farm in Ninh Thuan.
The rest of Ninh Thuan Trading, which has 4.8 billion dong in registered capital and recently turned into a shareholding company, has been sold to insiders, said company director Kieu Trong Ly.
Last year Ninh Thuan Trading’s revenue was more than 100 billion dong. Ly said the company has made profits in recent years, trading farm produce, processed food, machines, home appliances and petroleum products.
Ninh Thuan Trading’s predecessor was a state-run company set up in 1992.
Vissan has plans to invest 450 billion dong this year. Part of this sum will go to cattle farms in Ninh Thuan and Dong Nai and to a planned food-processing factory in Cambodia that Vissan will own with the Saigon Trading Group.
The company has already expanded its distribution network nation wide.
Last year Vissan’s revenue was 1.37 trillion dong, up 28% on 2003.