Japan-based Sumitomo Corporation has made an agreement with one of the leading food companies in South Korea CJ CheilJedang Corporation to establish a flour mill in Vietnam.
The Japanese company Sumitomo Corporation has signed an agreement with CJ CheilJedang Corporation that is a major food company based in South Korea in order to establish a flour mill that produce and sell flour and baking pre-mix products in Ba Ria-Vung Tu in Vietnam CJ is a member of the CJ Group, which was originally founded in 1953 as the first manufacturing business of the Samsung Group and then spun off from the conglomerate in 1993. The Group continues to expand its product range each passing day in order to be one of the leading players in South Korea’s food industry. In response to soaring food demands evident in the burgeoning markets of emerging economies, Sumitomo Corporation has been seeking an opportunity to advance into the primary grain-processing sector, focusing its search mainly on Asia.
Showing a great growth potential with its population to be expected to increase from 90 million to 100 million Vietnam is seen as one of the most promising markets especially in Southeast Asia. To enter this rising market, Sumitomo Corporation has found an ideal partnership in CJ, the strategy of whom perfectly matched each other. Under this joint-venture, the two enterprises will take full advantage of their respective strengths with the aim of winning a substantial share at the earliest possible time. Sumitomo Corporation brings to the partnership the flour sales know-how it has accumulated in the Vietnamese market. CJ, meanwhile, with more than 55 years experience in flour milling business, provides its operational excellence and know-how of manufacturing and R&D competence in the state-of-the-art flour milling technologies for producing high-value-added products with a primary focus on high-end food ingredients of such as seafood-based and bakeries products.
Following this joint-venture, the two enterprises are enhancing their partnership by extending the collaboration to diversify to other food products sectors in Vietnam.
We also suggest you to read our previous article titled "Indonesia Plans to Continue to The Tariff on Flour Import".