HO CHI MINH, VIETNAM (22 June 2015): Malaysia's Felda Global Ventures (FGV), Vietnam's Kinh Do Corporation (KDC) and Indo Trans Logistics Corporation (ITL) today entered into a Memorandum of Business Exploration (MOBE) to explore the formation of a new joint venture company focusing on the production, sales, marketing and distribution of specialty oils and palm-based consumer packed goods for Vietnam market.
The MOBE was signed between FGV Head of Palm Downstream Cluster, Dato’ Zakaria Arshad; CEO of KDC Mr. Tran Le Nguyen; and Mr. Tran Tuan Anh, Managing Director of ITL Corporation.
Through the strategic partnership, the three parties will conduct joint discussions over the next six months in identifying strategies to capture the Vietnamese consumers packaged oils market, leveraging on the strength of all parties.
"By leveraging on the strength of both KDC and ITL in this market, the strategic partnership has a huge potential to attain a leading position in this market. This collaboration will also stretch our reach within the Indochina region and intensify our current presence in South East Asia.” Dato’ Zakaria said.
Dato’ Zakaria also qouted Group President and Chief Executive Officer of FGV, Dato’ Dato' Mohd Emir Mavani Abdullah, “This business exploration is in line with FGV’s Global Strategic Blueprint (GSB) where we seek significant position in new location that is a major consumption centers such as Vietnam. This will indeed be a stepping-stone for us to penetrate South East Asia Market.
“We believe in the opportunity that this country has and have been looking for the right partner to collaborate who can help us penetrate the market. KDC and ITL has their own respective strengths in consumer foods business and in integrated logistics services,” added Zakaria.
Mr. Tran Le Nguyen - CEO of KDC Group said: "With the combined strengths of the parties KDC, FGV, and ITL, the new joint venture will have all the key elements to become a strong and successful packaged oil player. Being one of the leading Food & Beverage companies in Vietnam, KDC has developed deep understanding of Vietnam consumer taste and has been successful in many areas including distribution, marketing, and brand building. After launching cooking oil products under the brand Dai Gia Dinh An Hao at the end of May, this Memorandum of Business Exploration (MOBE) is KDC's next step to further penetrate into cooking oil industry. With the new joint venture, KDC aims to diversify the product portfolio, bolster supply, increase product quality, lower costs, and ultimately bring better product at lower price to Vietnam consumers. This joint venture is the strategic cornerstone for KDC to develop our cooking oil category as well as lay foundation for the entire group to expand into Food & Flavor segment.”
“KDC will leverage our extensive experience in building successful consumer brands trusted to ensure the success of this partnership,” said Nguyen.
FGV will capitalise on its access to its high quality processed palm products for this venture. On the other hand, KDC will bring to the partnership its proven expertise in building consumer packaged food brands - especially in the consumer packaged oils space.
"We strongly believe that the partnership with 2 leaders of the industry supported by our leading logistics position in Vietnam is the right ingredient for success. We will back this partnership with access to our extensive storage, transportation and distribution network across Vietnam." shared ITL Managing Director Tran Tuan Anh.
About Felda Global Ventures Holdings Berhad
Felda Global Ventures Holdings Berhad (FGV) is Malaysia’s leading global agri-business and is the world’s largest producer of Crude Palm Oil (CPO).
FGV’s operations stretch across more than 10 countries in Asia, the Middle East, North America and Europe, and are focused on six main business clusters, namely; Palm Upstream, Palm Downstream, Rubber, Sugar, R&D and Agri-Services; and TLMO (Trading, Logistics, Marketing and Others).
FGV is the world’s third biggest oil palm plantation operator, has the world’s largest bulking and storage facilities for vegetable oil and is Malaysia’s top refined sugar producer. It also specialized in the production of renewable bio-fuels, oleo-chemicals, oils and fats, and advanced materials including carbon nanotubes and graphene.
With more than 19,000 employees, FGV has set itself the target of becoming one of the world’s Top 10 agri-business companies by 2020.
For more information, please visit http://www.feldaglobal.com
About Kinh Do Corporation (KDC)
KIDO Group will be the power brand for KDC’s consumer staple product. Being the leader in the confectionery industry over the past 22 years with Kinh Do brand, KDC now has become one of the top Food company in Vietnam. The company has gained the trust and love of consumers by its high quality product.
Throughout its extensive history, KDC has successfully built up a management foundation and advanced technology, strong distribution channel which is appraised the most professional and successful in FMCG with over 300 distributors, 200,000 outlets of confectionary category and cold channels. KDC pocessed a steady flatform to leverage further efficiencies and extraordinary growth by officially partaking in Consumer Staples with Food & Flavor strategy to fulfill the consumer demand.
Continued the success of the Dai Gia Dinh instant noodle which launched at the end of 2014, KDC most recently announced the launching of 3 groups of new product that are also under the Dai Gia Dinh power brand: premium noodle, seasoning powder, and cooking oil. In order to build these new categories sustainably. In the upcoming period, KDC will continue to expand into new categories: congee, macaroni noodle, seasoning, sauce, instant food, ect. Particularly with cooking oil business, KDC has 3 members in manthe Board of Director agement board of Vocarimex. KDC has set its ambition to become one of the top 3 leading food corporation group in Vietnam.
About Indo Trans Logistics Corporation (ITL)
Indo Trans Logistics Corporation (ITL) is a regional solutions provider for integrated Logistics with operations in Cambodia, Myanmar, Thailand, Laos and headquartered in Vietnam. As the leading logistics brand primarily in Vietnam and Indochina, ITL group has 6 main business focus, namely Aviation, Freight Management, Contract Logistics, Rail services, Last Mile & Express and E-commerce.
ITL is ranked amongst the top 500 biggest companies in Vietnam, an accreditation from VNR500 for 8 consecutive years. The company has also been recognised by the Vietnam Logistics Association as the number one 3rd party logistics (3PL) company for Vietnam in 2014.
ITL group consists of more than 10 subsidiaries and joint ventures, all dedicated to the goal of providing superior integrated logistics solutions to our valuable clients.