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.
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.