Many Thai giants have amassed a fortune in stock purchase and merger and acquisition (M&A) deals in Vietnam despite the challenging Vietnamese market.

They have reported hefty earnings from running companies, listing them on stock exchanges, and pouring billions of U.S. dollars to buy stocks from Vietnamese firms.

Binh Minh Plastic JSC, whose BMP stock is listed on the Ho Chi Minh City Stock Exchange, one of Vietnam’s leading plastics manufacturers, became a subsidiary of Nawaplastic Industries, a member of Thailand’s Siam Cement Group, in early 2018.

Nawaplastic raised its ownership in Binh Minh Plastic to 55 percent from nearly 50 percent in early 2023.

BMP has seen its profit trend up over the past few quarters.

Specifically, in the second quarter of 2023, the firm made VND294 billion (US$12.4 million) in after-tax profits, double the year-ago figure, marking the quarter in which BMP has earned the highest profit since it was taken over by the Thai firm.

BMP recorded an after-tax profit of VND575 billion ($24.2 million) in the first half of the year, increasing 2.2-fold year on year and reaching 88 percent of its full-year target.

Another M&A deal benefiting a Thai investor is Bien Hoa Packaging JSC’s divestment.

TCG Solutions Pte, a subsidiary of Thailand's conglomerate Siam Cement Group, owned a 94-percent stake in the Vietnamese packaging company in late 2020.

In the second quarter of 2023, Bien Hoa Packaging reported VND387 billion ($16.3 million) in net revenue, down 25 percent year on year due to dipping costs of goods sold, but its after-tax profit amounted to VND38.5 billion ($1.6 million), up 20 percent from the year-ago period.

The firm made VND68 billion ($2.9 million) in after-tax profits in the first half of the year, a 13-percent year-on-year rise.

Among the big M&A deals was Thailand’s ThaiBev spending $5 billion acquiring a 53.59-percent stake in Saigon Beer-Alcohol- Beverage Corporation (Sabeco) through Vietnam Beverage Co. Ltd. in 2017.

Over the past few years, the government’s Decree 100 strictly banning drink-driving and the COVID-19 pandemic have affected Sabeco’s business operations.

The firm’s revenue reached VND14.62 trillion ($615.5 million) between January and June, down 11 percent year on year.

However, Sabeco is listed among the firms with strong cash flows, depositing trillions of Vietnam dong into bank accounts. The firm gained interest of VND684 billion ($28.8 million) in the first half of the year.

Besides, Thailand-invested C.P Vietnam is holding a big stake in Sao Ta Foods JSC, while Ngoc Nghia Industry - Service - Trading JSC was taken over by Indorama Netherlands, a subsidiary of Thailand’s leading Indorama Ventures, last year.

Siam Brothers Vietnam, which trades its SBV stock on the Ho Chi Minh City Stock Exchange, is one of a few listed foreign-invested firms in Vietnam.

Founded in 1995, SBV, invested in by Thailand’s Siam Brother Group, started listing on the stock exchange in 2017.

Specializing in producing ropes, twines, and nets for fishermen, Siam Brothers Vietnam has made hundreds of billions of Vietnam dong in revenue since 2016.

The firm earned over VND100 billion ($4.2 million) in before-tax profits per year in 2016 and 2017.

However, after two years of the COVID-19 pandemic, its profit has trended down.

The company obtained some VND104 billion ($4.38 million) in revenue in the second quarter of 2023, but it recorded an after-tax loss of VND7.7 billion ($324,140), according to its recent financial statement.

The firm reported a consolidated revenue of VND195 billion ($8.2 million) and a loss after tax at VND18.2 billion ($766,150) in the first half of the year.

Veerapong Sawaytyanon, chairman of the firm, said that the local fishery market is facing several difficulties and the company has boosted its export to beef up sales.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!