Vietnam’s market is rapidly expanding because of the GDP growth of 7 – 8% annually, Montri said in an interview with Bangkok Post, adding CP Vietnam expects 2019 revenue to grow by 10%, driven by higher purchasing power in the country.
“Vietnam has a lot of potential for processed food products and ready-to-eat products, as the behavior of local consumers has changed,” Montri was quoted by Bangkok Post as saying.
Montri said Vietnam is a new market for Thai food companies, with a large population of 95 million. The market is driven by young people who have higher spending on food and consumer products.
CP Vietnam plans to produce more ready-to-eat products and expand distribution channels in that market.
CP Vietnam began its business in 1988 with the government there opening up to foreign investment flows in line with the Doi Moi economic reforms initiated in 1986.
CP Vietnam opened the first representative office in Ho Chi Minh City, then in 1993 it established CP Vietnam Livestock Co to start upstream manufacturing for food products in Vietnam.
In 2011, the company’s name was changed to CP Vietnam Corporation. In 2018, CP Vietnam posted revenues of US$2.28 – US$2.6 billion.
He said the Thai government has given support measures for companies to invest in overseas countries to enhance competitiveness and diversify risk for several years.
Previously, CP Foods announced it would invest THB30 billion (US$977 million) in overseas plants in China and Vietnam, as well as research and development this year, accelerating its pursuit of growth outside Thailand, Nikkei reported.