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South East Asian groups eyeing Vietnamese businessesNot only the powerful conglomerates from the US or Europe, but the big economic groups from South East Asia also attempt to take over Vietnamese businesses.

SCG buys Prime Group at VND5 trillion

Prime Group is a multi-field investment group, injecting money mostly in real estate, building material and tile production sectors. It makes out 75 million square meters of tiles every year, holding 20 percent of the domestic market.

Siam Cement Group (SCG) is the biggest Thai enterprise operating in the fields of petrochemistry, paper, cement, building material and distribution.

SCG has recently valuated Prime Group at US$280 million, or 5.8 trillion dong, the level which is believed to be higher than the actual value of the group. This has prompted Prime Group’s shareholders to sell stakes to SCG, thus helping SCG successfully buy 85 percent of Prime Group at roughly VND5 trillion.

SCG considers Vietnam a strategic market, beginning expand its operation to Vietnam in 1992. It now has 17 subsidiaries with the total assets worth $370 million, the total turnover of $300 million which employs 2,300 Vietnamese workers. Besides, SCG is also looking for other investment opportunities in Vietnam, including the petrochemical complex in the south of the country.

Wilmar and the Vietnamese vegetable oil market

Wilmar has been known as one of the biggest businesses in Singapore in terms of the market capitalization value and one of the biggest enterprises in the agriculture sector.

Wilmar now holds 68 percent of stakes in Calofic, the company which holds 55 percent of the bottled vegetable oil market share.

In 2011, Calofic reported the high VND10.5 trillion in revenue and VND250 billion in profit, leaving the second biggest enterprise Tuong An, which got 4.4 trillion dong and 25 billion dong in turnover and profit, far behind.

Ayala and the plan to join the water supply industry in HCM City

The big private Filipino group with the total assets of $8.5 billion and the investments in the real estate, water distribution, finance & banking and telecom sectors, is attempting to dominate the water supply industry in HCM City.

In 2008, Ayala penetrated the Vietnamese market with the $44 million project on reducing the water loss during the transmission in zone 1 in HCM City. In November 2011, the joint names of Manila Water, Mitsubishi and Vietnamese REE suggested the implementation of similar projects in zones 4, 5 and 6.

In December 2011, Ayala bought 49 percent of stakes of Thu Duc Water BOO JSC from CII at $42.6 million.

Maybank enters the Vietnamese banking sector

In August 2012, Kim Eng Vietnam Securities Company changed its name into Maybank Kim Eng. Currently, Maybank Kim Eng Holding Singapore, a subsidiary of Maybank, is holding 49 percent of stakes of Maybank Kim Eng Vietnam, while the other 51 percent of stakes are being held by four Vietnamese individual investors.

However, the foreign partner has expressed its willingness to buy the other 51 percent of stakes to set up a 100 percent foreign securities company in Vietnam.

Maybank now has 20 percent of stakes in An Binh Bank, the highest possible foreign ownership ratio in a Vietnamese commercial bank.

Jollibee runs Highlands Coffee and Pho 24

The information that Highlands Coffee bought 100 percent of stakes of Pho 24 in early 2012 surprised many people, because Pho 24 was then very prosperous, which was considered one of the most successful franchise chain in Vietnam.

Highlands Coffee, after acquiring 100 percent of Pho 24 stakes, has sold 50 percent of stakes to Jollibee after a transaction worth $25 million.

US$1=VND21,000

(Vietnam Net)

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