Nguyen Van Thu, chairman of G.C Food, the largest producer of aloe vera and coconut jelly in Vietnam, noted that the booming export market for processed fruits and vegetables has significantly benefited companies in the sector.

Since last year, the company has continually received proposals for meetings and collaborations from foreign investment funds and strategic partners, primarily from Singapore. The discussions aim for pushing up business co-management, joint product development, and market survey.

“In 2025, if our company shifts its listing from the unlisted public company market (UPCoM) to the Ho Chi Minh Stock Exchange, we may augment our capital and call for new investors to boost liquidity, bolster operations, and build new production facilities. However, we aim to retain autonomy in overall management, ensuring mutual respect for the company’s long-term development tailored 5–10 years ahead,” said Thu.

On October 24, G.C Food announced its consolidated financial report for the third quarter of 2024, showing revenue of nearly $7.2 million, up 31 per cent on-year, and post-tax profit surpassing $958,000, shooting up 84 per cent on-year.

For the first three quarters, the company’s revenue touched $18.3 million compared to $15.6 million in the same period last year, while its post-tax profit soared to nearly $2.3 million, far exceeding $958,000 one year ago.

Similarly, Nguyen Kim Thanh, CEO of Sa Ky Foods Corporation based in Ho Chi Minh City, remarked that Japanese firms were particularly interested in Vietnam’s food processing industry, driven by a high percentage of young population and strong consumer demand.

“Investors from Japan, Korea, and the US have expressed interest in Sa Ky Foods, proposing to acquire over 51 per cent stake. However, we prioritise collaborative offers and carefully assess compatibility with potential investors before embracing specific negotiations,” Thanh said.

In late September, Nutifood Nutrition Food JSC (Nutifood), one of the top dairy companies in Vietnam with a comprehensive Sweden-based ecosystem, announced the completion of procedures to acquire a 51 per cent stake in Kido Frozen Foods JSC (Kido Foods).

The acquisition makes Nutifood the parent company with controlling rights over Kido Foods, which owns two popular ice cream brands, Celano and Merino.

The investment in Kido Foods allows Nutifood to expand into health-oriented nutrition products while gaining control over a frozen goods distribution network that includes hundreds of thousands of ice cream freezers, spanning traditional retail outlets, modern retail chains, restaurants, hotels, and entertainment venues nationwide.

By the end of last year, a raft of deals involving the full acquisition of local food distribution companies by Japanese firms had been finalised.

These transactions highlight the growing penetration of foreign businesses, particularly Japanese investors, into Vietnam’s food distribution market.

Specifically, Dai Tan Viet JSC (New Viet Dairy)- Vietnam’s largest commercial food wholesaler with a 40 per cent market share - has completed the transfer of all its shares to Sojitz Corporation and its affiliated subsidiaries. The deal value has not been disclosed.

Sojitz is also collaborating with leading local partners Vietnam Dairy Products JSC (Vinamilk) and Vietnam Livestock Corporation (Vilico) to invest in facilities for cattle farming, processing, and distributing beef products in Vietnam, serving both domestic and export markets.

The partnership is projected to reach a total scale of up to $500 million, equivalent to approximately VND11.5 trillion.

In addition, Japan’s Marubeni Corporation acquired a significant minority stake in AIG Asia Components, a leading supplier of food ingredients in Vietnam.

In 2024, Vietnam’s agricultural, forestry, and fisheries sectors achieved notable success in international markets and are predicted to make further breakthroughs in 2025.

Accordingly, Vietnam’s total agricultural, forestry and fisheries export value surpassed $51.7 billion in the first 10 months of 2024, up 20.2 per cent on-year. The export surplus during the period touched $15.2 billion, showing 62.2 per cent jump on-year.

As a result, major corporations and foreign private equity funds are increasing their presence through M&A activities, injecting substantial capital into local businesses.

However, the growing presence of foreign companies poses challenges for Vietnamese businesses and brands. Local groups must proactively innovate, improve their capabilities, diversify product offerings, and enhance quality to survive and thrive in an increasingly competitive environment.

Source: Vietnam Investment Review