Japanese dairy group Morinaga establishes joint venture in Vietnam

Ho Chi Minh City Morinaga Le May Joint Venture with 51% capital from Morinaga Milk Industry Group, aims to achieve revenue of 10 billion Japanese Yen in Vietnam and increase presence in the international market.

At the joint venture launch ceremony on the afternoon of May 23, Mr. Yohichi Ohnuki, General Director of Morinaga Milk Industry, said the company had transferred 106 billion VND, equivalent to 4.5 million USD, to hold 51% of the shares in the joint venture.

According to Ms. Le Van May, Chairwoman of Hoa Sen Food Group Joint Stock Company (Le May's parent company) and General Director of Morinaga Le May Vietnam Joint Stock Company, the joint venture operates in the field of importing and distributing formula milk products for mothers and babies. This is also the field in which Le May Company has cooperated exclusively with Morinaga Milk Industry in the Vietnamese market for over 10 years.

Mr. Yohichi Ohnuki, General Director of Morinaga Milk Industry at the launch of the joint venture company. Photo: Morinaga Le May

The establishment of Morinaga Le May Vietnam Joint Stock Company is considered a step to realize Morinaga Milk Industry's 10-year vision: to become a global company with a presence worldwide , with international business revenue accounting for at least 15% of the group's total revenue. The joint venture will focus on distributing product lines manufactured in Japan, contributing to strengthening Morinaga's target of 10 billion Yen (about 72 million USD) in total revenue per year in Vietnam.

Meanwhile, Mr. Yohichi Ohnuki said the company will study the ever-changing needs of Vietnamese customers, promptly making more appropriate decisions about products and business strategies.

Morinaga Le May's leader shared the joint venture's vision at the launch. Photo: Morinaga Le May

According to the Japanese partner's assessment, Vietnam's infant and young child milk market is growing rapidly in the context of the country's strong economic growth, the 14th largest population in the world with about 1.4 million births per year. Data from Euromonitor International "Passport Baby Food in Vietnam" published in September 2022 shows that the average annual growth rate of this market is about 8% in the period 2010-2021, meaning that the market size has more than doubled, to about 110,000 tons.

Morinaga Milk entered the Vietnamese market through Le May in 2010 with an average annual growth rate of 33%. To date, more than 10 million products of the group have been consumed in Vietnam. The Japanese group's leaders believe that the advantage of the product is quality. "We are the first company in the world to research and develop products containing Lactoferrin, a functional ingredient, to help enhance the daily health protection of children and consumers," said Mr. Yohichi Ohnuki.

Thanks to its steady growth, Morinaga Milk Industry has gradually positioned its brand in Vietnam. In 2020, the group established Morinaga Milk Vietnam Co., Ltd. In 2021, they acquired the Elovi factory in Thai Nguyen to establish the Elovi Vietnam joint venture, producing and distributing liquid milk and yogurt products. Also in the same year, Morinaga Milk Vietnam Co., Ltd. established an industrial cheese factory in the South.

According to the plan, the joint venture will have more than 200 employees. "At each strategic stage, we will make decisions to increase investment capital as well as human resources, so that the joint venture can operate better," said Mr. Yohichi Ohnuki.

Scene of the launching ceremony of Morinaga Le May joint venture. Photo: Morinaga Le May

Morinaga Milk Industry Co. Ltd. is a Japanese company that mainly manufactures and sells dairy products, headquartered in Tokyo, Japan, since September 1, 1917. The company's diverse product portfolio includes milk, beverages, candy, confectionery, formula milk, and health foods. The products are available in Europe, America, the Middle East, and Southeast Asia.

Lotus Food Group was established in 1996, currently has more than 2,500 employees and operates throughout Vietnam in four main areas: food production and distribution; import and distribution of consumer goods; restaurants and retail. Le May Company is a member of Lotus Group with the goal of bringing the healthy Japanese lifestyle to Vietnamese people through quality products.

Hoang Anh

Source link: https://vnexpress.net/tap-doan-sua-nhat-morinaga-lap-lien-doanh-tai-viet-nam-4609293.html