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April 27, 2018

 
CPF sees Vietnam as potential market for businesses

 

 

Charoen Pokphand Foods PCL (CPF) has identified Vietnam as one of its potential markets in ASEAN that has one of the fastest growing economies in the world.


For the first quarter of 2018, Vietnam's GDP showed a promising 7.4% growth.


According to CPF, the company is one of the very first Thai companies that invested in Vietnam since 1988 through the CP Vietnam Corporation, and has become a large manufacturer for integrated agro-industrial and food products.


CPF said Vietnam has a vital role in its growth, thanks to the domestic consumption demand and its export, which has expanded more than 20% compared to previous year. The performance resulted from Vietnam's free trade agreement with European countries and US.


Moreover, 60% of Vietnam's population are of working age and has become a driving force for stable domestic consumption and spending.


In terms of the agro-industrial sector, CPF saw a strong improvement from previous year, with a sharp drop in swine price due to oversupply. Currently, swine price has rebounded to VND38,000-40,000 (US$1.67-1.76) per kilogramme from VND20,000 (US$0.88) in 2017.

 
In the meantime, the Vietnamese government has targeted to increase its seafood exports, especially for shrimp. It is forecasted that Vietnamese shrimp exports will increase from 690,000 tonnes in 2017 to 830,000 tonnes in 2018 and to 1.14 million tonnes by 2025. This would make Vietnam one of the largest shrimp producers in the world.
 
Based on its vision "Kitchen of the World", CPF expanded it businesses to 16 countries. It is currently in the process of investing in the shrimp business in Brazil.


As of 2017, 64% of CPF's revenue from sales was attributed to international businesses.


CPF's growth strategies involve adding value to its processed food products and focusing on international businesses growth, especially in countries with a population of over 100 million people, such as Vietnam, the Philippines and India.

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