FiinResearch, the Research and Consulting Division of FiinGroup, has completed a comprehensive study on rigid plastics market in Vietnam to support Duy Tan Plastics Co. Ltd on its sale to SCG Packaging

Mr Wichan Jitpukdee, SCGP Chief Executive, centre, holding the share purchase agreement his company signed online on 9 February 2021 with executives from Duy Tan Plastics Manufacturing Corporation in Vietnam." (Source: Bangkok Post)

FiinResearch is pleased to announce that on 24 July 2021, its client, Duy Tan Plastics Co. Ltd, completed a transaction to sell 70% stake in Duy Tan Plastics Manufacturing Corporation (“Duy Tan”), a subsidiary of Duy Tan Plastics Co. Ltd, to SCG Packaging Public Company Limited (“SCGP”), a subsidiary of Siam Cement Group (“SCG”). The remaining 30% in Duy Tan Manufacturing Corporation will be held by its existing owners, who will continue to support and manage the company, together with management from SCGP.

The transaction value will be no more than the total of 6,400 billion VND.

Duy Tan is a leading rigid plastics manufacturer in Vietnam with annual sales of over US$200 million in 2020.

SCGP is a leading comprehensive packaging solution provider in ASEAN offering fiber-based packaging, performance and polymer packaging (PPP), food service products, design, printing and other diversified solutions. The investment in Duy Tan is in line with its expansion strategy to polymer and paper-based packaging market in Vietnam.

FiinGroup was engaged by Duy Tan Plastics Co. Ltd to conduct a comprehensive study on Vietnam rigid plastics market to support their shareholders and management to get in-depth understanding of their market positioning, evaluate the deal valuation and make informed decisions in its sale to SCG Packaging.

Mr. Dong Le, Head of FiinGroup’s Market Research & Consulting Services (“FiinResearch”), commented: “We are proud to have worked for Duy Tan Plastics Co. Ltd to assist their shareholders and management in the transaction. The study project demonstrates FiinResearch’s in-depth plastic sector expertise, comprehensive corporate database, strong research and analytics capability of our project team. Vietnam rigid plastics market is expected to continue its double-digit growth momentum in the future thanks to increasing demand from beverage, sauce & condiment, agrochemicals, pharmaceuticals, homecare & personal sectors as well as favorable demographics factors (i.e. golden population, rising disposal income, improved living standards etc.,). We expect Duy Tan to continue growing under the existing and new shareholders’ leadership in the coming time”.

ABOUT DUY TAN PLASTICS MANUFACTURING CORPORATION

Duy Tan Plastics Manufacturing Corporation is the leading rigid plastics manufacturer in Vietnam with two main business lines including rigid packaging (i.e. non-PET containers, PET bottles & jars and industrial plastics products etc.,) and plastic housewares. It is the leading rigid packaging supplier for multinational companies and local brand owners of consumer and FMCG products. The company has also established a wide distribution network through more than 16,000 retail outlets, wholesalers, and supermarkets in Vietnam for its plastic houseware products. The majority of Duy Tan’s products are sold in Vietnam, with 20% exported to the US and other overseas markets.

ABOUT SCG PACKAGING

SCG Packaging, a subsidiary of the Siam Cement Group, is the ASEAN’s leading integrated packaging solution provider with three main product groups including fiber-based packaging, performance and polymer packaging and paper packaging. In Vietnam, SCG Packaging has established the presence via its investments in Alcamax Packaging, New Asia Industry, Packamex, Tin Thanh Packaging (Batico) and Vina Kraft Paper.

ABOUT FIINGROUP AND FIINRESEARCH

FiinGroup is the leading business information, market research and consulting service firm in Vietnam and has been an associated company of Nikkei Inc. (Japan) since Sep 2014.

Established as a leading independent market research team in Vietnam, the FiinResearch, a research and consulting division of FiinGroup, provides high-quality independent research reports, in-depth analytics and consultancy services across major Southeast Asia markets in various sectors. In recent years, it has successfully supported so many foreign investors to penetrate and/or expand their business in the Vietnam market.

For more information about FiinResearch’s market research and advisory services and how we can support, please contact:

Ms Nhung Nguyen

Client Advisor 
Market Research and Advisory Services
T: +84 24 3562 6962
M: +84 967 647 997
E:  nhung.nguyenhoai@fiingroup.vn