Saha, Japan partner eye Vietnam
Saha Group, Thailand's largest consumer products conglomerate, is negotiating with its Japanese partner for joint expansion of its logistics and property ventures in Vietnam next year.
The group was approached by its Japanese partner to expand together in Vietnam because the Thai conglomerate has had a presence there for years, a Saha executive said.
Saha has teamed up with Japanese companies to do various businesses in Thailand for more than 50 years.It understands the working culture of its Japanese partners and has obtained many technology transfers.
Moreover, Thailand has a geographical advantage to expand business to Vietnam. Saha also has experience in logistics and product distribution throughout that country.It set up Saha Vietnam Co to distribute consumer products in Vietnam via retail outlets over there.Currently, Saha and a Japanese company are in the negotiation process for the joint venture.
"We want to invest more abroad. For Vietnam, we're interested in logistics, property and wholesale," the executive said.
This will not only cash in on opportunities arising from the Asean Economic Community to be formed at year-end but also gain benefits from the Trans-Pacific Partnership trade agreement that Japan signed two weeks ago along with several countries including Vietnam.
If the deal can be concluded, it will help Saha Group to improve its competitiveness in the regional market.
"The regional community will make cross-border logistics more important," the executive said.
Prior to this, Saha joined hands with Yangon-based retailer MK Group to set up a distribution company in Myanmar as a springboard to distribute and market more products in neighbouring countries.
"We're interested in expanding the property business in Vietnam in the long term," the executive said. Saha diversified into the property market a few years ago.
It joined with both local and Japanese partners to develop housing projects in Phetchaburi's Cha-am district and Chon Buri's Si Racha district.
Chairman Boonsithi Chokwatana said the group's export revenue totalled 80 billion baht last year.
The figure is expected to remain the same this year due to the global and domestic economic slowdowns.
"The weak baht helps exports to improve, and it will probably fall less this year," Mr Boonsithi said, adding that the group would continue to expand more businesses abroad, particularly to Asean members.The group recently opened a garment factory in Myanmar to serve both the domestic market and exports to Thailand.