Sojitz and KOKUBU Tie-up in Food Distribution Business in Vietnam
- Alliance to Innovate and Expand Food Distribution Business in Vietnam -
Jun. 15, 2010
Sojitz Corporation and KOKUBU CO., LTD. have signed a business collaboration agreement to expand business in the food distribution field and to conduct business in Vietnam using an intermediary distribution function by sharing and supplementing their respective know-how and services.
Sojitz is developing business in Vietnam by connecting the upstream, midstream, and downstream segments of the food sector and is playing a leading role in establishing a value chain.
KOKUBU aims to enter into the Vietnamese market by taking advantage of its know-how established in Japan including merchandising functions, retail support, and physical distribution systems.
Under the collaboration agreement, the two companies will accelerate business expansion through personnel exchanges, intelligence sharing, and mutual use of management resources and know-how, as well as by exploring the possibilities of joint business in Vietnam in the food, beverage, and consumer goods segments.
The consumer market for foods, beverages, and consumer goods in Vietnam is expanding because of a population with strong consumer confidence (persons 30 years old and under accounts for 70% of the total population) as a result of rise in the income levels and Westernization of the food culture. Vietnam is attracting considerable attention as a promising market in Asia as the manufacturing base shifts away from China towards Vietnam and the number of foreign-affiliated supermarkets and shopping centers that move into the country increases since joining the WTO in November 2006.
Sojitz and KOKUBU will work together to create new value in Vietnam’s expanding distribution markets.
Outline of Vietnam (as of April 2010)
|Country name||Socialist Republic of Vietnam|
|Population||Approx. 85.79 million (according to the April 1, 2009 census)|
|Population growth rate||1.2% (average of the past 10 years)|
|Principal cities||Hanoi, Da Nang, Hoh Chi Minh City|
|Prime Minister||Nguyen Tan Dung|
|GDP||1,658 trillion dong (US$91.5 billion) in 2009|
|GDP per capita||$1,064 in 2009|
|Economic growth rate||5.32 % in 2009 (6.31% in 2008)
The second highest growth rate in ASEAN.
The economic growth target for fiscal 2010 is 6.5%
(set by the Vietnamese government)