August 19, 2025

 

Thai conglomerate CP sees 15% drop in H1 Vietnam revenue after food safety scandal 

 

 

Thailand's Charoen Pokphand Foods Public Company Limited (CPF) recorded revenue of ฿53.8 billion (US$1.66 billion) from its Vietnam operation in the first half of this year, down 15% year-on-year, according to its earnings report.

 

In terms of products, the farming business, including animal breeding, live animals, and processed meat and eggs, was the biggest cash earner with ฿36.4 billion (US$1.12 billion), down 19% year-on-year and accounting for 68% of the total.

 

It was followed by animal feed with ฿13.1 billion (US$404 million), down 15%, making up 24%. Food recorded a growth rate of 1%, reaching ฿4.2 billion (US$131 million) and accounting for 8%.

 

In the second quarter of 2025, the Thai food giant posted THB26.2 billion (US$807.2 million) in Vietnam revenue, down 21% year-on-year, contrasting with growth posted by CPF's markets such as Thailand, China, and others. As a result, its total revenue decreased 1% year-on-year to ฿291.8 billion (US$8.99 billion).

 

CPF did not specify the reasons for its weaker performance in Vietnam, despite the country being its second-largest market after Thailand. In April, CPF became the full owner of CP Vietnam after acquiring Itochu's minority stake.

 

In June, CP Vietnam was embroiled in a food safety scandal after a social media account under the name Jonny Lieu (real name Lieu Quy Ngan), who claimed to be a former employee of the CP Fresh Shop in Soc Trang province, accused the company leadership of ordering the sale of diseased pork and chicken.

 

CP Vietnam denied the allegations and asserted that its products complied with strict quality control procedures. While authoritarian inspections found no evidence of diseased meat in CP Vietnam stores, others uncovered violations, including expired safety certificates and a lack of proper documentation, at three outlets.

 

In early July, the Soc Trang Police's investigative agency announced that it had decided not to take legal proceedings against CP Vietnam following Lieu Quy Ngan's denunciation of the "crime".

 

The reason, according to the agency, was that "the behaviour does not show signs of a crime of violating food safety regulations as prescribed in Clause 2, Article 157 of the Criminal Code."

 

CPF started investing in Vietnam in 1993 with its first factory in the southern province of Dong Nai. In Vietnam, the firm now operates 21 factories, including eight animal feed plants, four fisheries feed plants, two fisheries processing plants, and seven meat processing plants.

 

-      The Investor