After 22 years in business, the Phuc Sinh Group, a leading player in Vietnam’s spice exports, is selling shares for the first time to a European partner. Detailed information on the deal has not been disclosed, but according to Mr. Phan Minh Thong, Founder and Chairman of the Phuc Sinh Group, the foreign partner valued the company at $320 million, with which he feels satisfied.
“We found a very suitable partner, and I was encouraged during our discussions,” he said. “They mentioned that agricultural companies in Vietnam are undervalued and not invested in up to their potential, and are genuinely considered ‘cheap’ compared to counterparts in Thailand, Indonesia, or the Philippines, where they are highly valued. Though Vietnam is the ‘world’s pantry’ of agricultural products, it receives less attention because of a minimal focus on building brands. This reinforces my belief in a reliable partner who accurately assesses the potential of Vietnamese agriculture in general and Phuc Sinh’s in particular.”
He also said that, in recent times, Phuc Sinh has actively expanded markets to 102 countries worldwide, focusing on developing sustainable factors and standardizing technology, factories, and human resources. The decision to receive capital at this time is therefore “a positive sign in terms of development and a lever for Phuc Sinh to leap forward, elevating its value to a new level,” Mr. Thong said.
Vietnam’s agriculture sector is developing strongly, he continued, presenting significant opportunities to attract foreign investment. Foreign enterprises hope to leverage the advantages on offer from free trade agreements (FTAs) Vietnam has signed, along with favorable policies for foreign businesses. As a consequence, a large wave of investment in agriculture is forecast in the near future.
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