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Vietnam’s Kinh Do, Taiwanese partner to build $30mn noodle plant

Vietnam’s Kinh Do, Taiwanese partner to build $30mn noodle plant

Wednesday, May 13, 2015, 14:22 GMT+7

Vietnam’s confectionary giant Kinh Do has teamed up with a Taiwanese partner to set up a multimillion-dollar instant noodle plant, less than a year after the company officially entered the sector.

Kinh Do Corporation and Saigon Ve Wong Co. signed Tuesday a deal to form a joint venture to build the US$30 million factory, the Vietnamese firm said Wednesday on its website.

Kinh Do holds 49 percent of the joint venture, whereas Saigon Ve Wong owns 51 percent.

The 2.5-hectare facility, whose initial capacity is six million products a year, will be located at the Vietnam-Singapore Industrial Park in the northern province of Bac Ninh, according to Kinh Do.

Construction of the plant will be implemented in four phases, and the capacity is scheduled to increase to 12 million products a year by 2017.

Saigon Ve Wong is a member of Taipei-based Ve Wong Corporation.

“This is the next step in Kinh Do’s bid to dominate Vietnam’s essential food industry,” the Vietnamese snack maker, known for such popular products as Aloha fresh bread, AFC crackers and Celano ice-cream, said on the website.

The essential food industry is an apparent reference to instant noodles, cooking oil, sauces and rice-made products, according to Kinh Do’s recently announced development strategies.

The Vietnamese snack maker hailed the planned factory as “the result of successful cooperation between the two parties in the instant noodle industry over recent years.”

In December 2014, Kinh Do marked its official presence in the instant noodle sector with the launch of the “Dai Gia Dinh” brand, which its CEO said is “the initial success,” followed by the joint venture with Saigon Ve Wong and the upcoming plant.

These are “important steps for Kinh Do in preparing its internal capacity to penetrate further into the essential food industry,” he said in a statement.

Kinh Do will be in charge of distributing and promoting products made by the Bac Ninh plant, while its Taiwanese partner will take care of manufacturing, technology, operations and product research.

Chen Kung Pin, CEO of Ve Wong Corporation, said the joint venture meets expectations of both sides and provides a solid foundation for the company to expand and develop new product lines in Vietnam.

The joint venture also plans to set up more facilities in other regions across Vietnam after the first plant in Bac Ninh.

Kinh Do was founded in 1993 and introduced its first snack product to the market a year later, according to its website.

Established in 1990, Saigon Ve Wong Co. is the maker of A-One monosodium glutamate and instant noodles.

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