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Korean retailer teams up with Vietnam’s Satra on food industry venture

access_time Sep 14,2016 chat_bubble_outline 84 views

Korea's CJ CheilJedang has signed a deal with Vietnamese state-run retailer Saigon Trading Group (Satra) to sell its processed food products in the Southeast Asian country.

Affiliates of CJ Group, the parent company, also signed deals on September 12 with Vietnam’s retail giant Satra to develop a distribution network for meat and fruit products.

Under the agreement, the Korean food manufacturer will establish special zones inside Satra’s outlets to sell its meat products, various sauces and new products customized to meet local tastes.

“The cooperation with Satra is expected to serve as a foundation for CJ CheilJedang’s food business to grow in Vietnam,” said Kim Chul-ha, CEO of CJ CheilJedang, was quoted as saying by The Korea Herald.

Korean retailer teams up with Vietnam’s Satra on food industry venture

Vietnam's retail industry is booming with increasing incomes and a growing population. Photo from

The Korean firm will support its Vietnamese partner by upgrading retail facilities, marketing and training courses.

Another CJ Group affiliate, CJ Freshway, will supply fruit to Satra's nationwide supermarket chain. It is also planning on developing pre-cleaned, frozen vegetable products such as carrots, onions and broccoli, according to The Korea Herald

Satra was established in 1995 and currently operates 90 supermarkets and convenience stores across the country. The company reported revenue of $2.07 billion last year.

CJ Group has a four percent stake in Satra’s affiliate, Vissan, Vietnam’s top food manufacturer. The Korean retailer first set foot in Vietnam in 1998 and is involved in logistics, entertainment, communications, food and film production.

The Korean group has plans to pour an additional $500 million into M&A deals in the fields of food, bio-technology, retail and entertainment in Vietnam. In the first half of 2016, CJ Group injected $2.1 million into a chili plantation with the Korean International Cooperation Agency and farmers in Vietnam’s central province of Ninh Thuan.

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Tags: CJ CheilJedang CJ Group Satra CJ Freshway CJZone Kim Chul-ha South Korean People Loving Vietnam VESAMO
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