China's Hao Weiyuan Group to buy up to 30% of Vietnam firm

China's Hao Weiyuan Group has signed a memorandum of understanding with Vietnam's Sao Mai Construction Corporation (ASM), which deals with processing seafood for export, to reinforce their bilateral cooperation.

Under the agreement, the Chinese corporation will buy a 20% to 30% stake in ASM to become a strategic partner in the Vietnamese partner, ASM said in a statement posted on its website.

In 2012, the two companies will also establish a joint-venture firm headquartered in China to trade and distribute seafood products for this market. Hao Weiyuan Group will hold a 49% stake in the venture while ASM will have a controlling stake of 51%.

The two firms will build a freezing storehouse in the border area of Lang Son province, with the view to gathering goods for the Chinese market.

Hao Weiyuan Group, quartered in the Chinese province of Hubei, has a registered capital of US$250 million. Its businesses focus on real estate development and trading, construction and fisheries. It owns two fish-raising farms covering over 2,000 ha and provides large quantities of seafood products to many Chinese provinces.

ASM, listed on the Hochiminh Stock Exchange, made a net profit of VND15.19 billion (US$723,300) on revenues of VND205.41 billion (US$9.85 million) in the first quarter of this year, down 36.8% and 10.6% on year, respectively.