"In fact, in the past 5 years, more than 10 of Vietnam's largest packaging enterprises have been "taken over" by foreign enterprises and this situation is continuing," Mr. Nguyen Van Duong - Chairman of Hiep Vietnam Printing Association said on the sidelines of the 21st International Exhibition of packaging and printing industry 2023 - Vietnam PrintPack 2023.
The giant that has most actively acquired businesses in the printing industry to expand scale in Vietnam in recent years cannot help but mention the Thai SCG Group.
SCG Group, a Thai giant, is one of the leading businesses in Southeast Asia. SCG Group is also among the earliest group of foreign investors present in Vietnam right after the revised Foreign Investment Law took effect in 1992.
Compared to businesses from Europe, Korea, and Japan, Thai corporations are considered to have some advantages due to geographical location and cultural similarities. To date, SCG Group manages more than 20 subsidiaries in Vietnam, focusing on three main business segments: cement-construction materials (SCG Cement-Building Materials), petrochemicals (SCG Chemicals), and packaging ( SCG Packaging).
As for the packaging segment, SCG has been present for more than a decade and has accelerated since the second half of 2020. Similar to other business segments, this group started with joint ventures but then expanded faster. through mergers and acquisitions (M&A).
Currently, the number of packaging businesses in the ecosystem of SCG Vietnam Group has reached 10 units.
We can name SCG's most famous M&A deals in the packaging industry such as the acquisition of 80% of Tin Thanh Packaging, 94% of Bien Hoa Packaging, or 70% of Duy Tan Plastics...
In 2015, TC plastic packaging company - a member company of the SCG group - successfully acquired 80% of the shares of Tin Thanh Packaging Joint Stock Company (Batico).
The deal value as well as Batico's production information were not announced by this leading Thai industrial manufacturing group. However, industry insiders believe that Batico is a large complex soft plastic packaging manufacturing enterprise in Vietnam with about 20 years of experience.
December 2020, TCG Solutions Pte. Ltd is managed by Thai Containers Group Co., Ltd - a member company of SCG Group (Thailand) that successfully purchased 12.1 million shares of Bien Hoa Packaging Joint Stock Company (HOSE: SVI) and owns 94.11% of SVI's charter capital.
The value of the deal at that time, according to media reports, was about nearly 2,100 billion VND.
Bien Hoa Packaging Company is one of the 5 largest packaging suppliers in the Southern region, specializing in providing packaging for Unilever, Pepsico, and Nestle. With the SVI packaging brand, this enterprise has 3 affiliated factories, with a capacity of 100,000 tons/year, continuously achieving an average growth rate of 20-25%/year.
Not long after that, on February 9, 2021, the online signing ceremony between Duy Tan Plastics and SCG Packaging Company took place, realizing SCG's purchase of 70% of Duy Tan Plastic's shares after previous rumors. there.
Duy Tan Plastic is one of the leading enterprises in the Vietnamese market for rigid plastic packaging products, with its main customers being multinational companies and domestic FMCG businesses. 80% of Duy Tan's products are sold in Vietnam, 20% are exported to the US and other markets.
In 2020, Duy Tan Plastics achieved revenue of 4,700 billion VND (equivalent to 6.1 billion baht), with total assets by the end of the year reaching 5,000 billion VND (6.5 billion baht). The annual capacity of this enterprise is 116,000 tons of rigid plastic packaging and household plastic products.
"The investment in Duy Tan expands SCGP's rigid plastic packaging business across ASEAN, while strengthening the company's ability to serve FMCG manufacturers and consumers in Vietnam," SCGP's information announcement reads.
Sharing on the sidelines of the 21st International Exhibition of the packaging and printing industry 2023 - Vietnam PrintPack 2023, Mr. Nguyen Van Duong - Chairman of the Printing Association said that recently there has been a phenomenon of printing and printing businesses. packaging from countries in the Asian region looking for investment and business opportunities in Vietnam.
Because, investors see that the market of nearly 100 million people in Vietnam for industrial production is growing and will continue to increase as foreign investment is increasingly directed.
This expert commented that the demand for printing and packaging will increase as industrial production increases. This is both an opportunity but also puts great pressure on the competitiveness of Vietnamese businesses operating in the industry. .
According to Mr. Tuong, foreign businesses will invest in production in Vietnam, even buying back the majority of shares or acquiring factories of domestic enterprises to take advantage of factories, technology, and strength. Available skilled labor to quickly enter the market.
Meanwhile, many Vietnamese printing enterprises have no successors, cannot attract labor resources, and their business spirit is not strong enough to cope with market challenges when foreign enterprises enter, so they have chosen How to "sell yourself" to foreign countries.
"In fact, in the past 5 years, more than 10 of Vietnam's largest packaging enterprises have been "taken over" by foreign enterprises and this situation is still continuing," Mr. Duong said.
At the Printing Industry Summary Conference in 2020, experts pointed out that, with the requirements and continuous changes of the printing market, Vietnamese businesses, no matter how good their foundation and loyal customer base, will still be. falling into a weak position, unable to compete with foreign investors.
FDI companies have advantages in financial potential, production, operation and management experience. When entering Vietnam, they only need to pour capital and invest in technology for stable development. Therefore, without a suitable solution, domestic enterprises are very likely to suffer losses, leading to a situation where they are vulnerable and inferior.
(Nhịp Sống Thị Trường)