CPF Targets Vietnam’s Middle Class Consumers
CPF Vietnam Corporation, an affiliate of Charoen Pokphand Foods Public Company Limited, is expanding into food processing from livestock to meet an increasing demand from middle class people.
Sooksunt Jiumjaiswanglerg, the chief executive of CP Vietnam Corporation (CPV) disclosed the direction on group’s business in Vietnam that would concentrate more on food processing and ready-to-eat food. Brands and marketing will play an important role there.
Found in 1993, CP Vietnam Corporation, formerly known as CP Vietnam Livestock Corporation, is the leading livestock and aquaculture company in Vietnam. Later it incorporated whole food production chain – making and distributing animal fee, breeding and farming of livestock and aquatic animals and the processing and production of meat and packaged food items.
Ninety percent of business comes from animal feed, feed meal and aquatic animal farming while remaining 10% is from food processing and ready-to-eat food. The average growth percentage for the past five years is 29% per year. In 2011, CPV earned 30 trillion dong (44.4 billion baht), or 50% increase. Vietnam’s economy is projected to grow at 6% in 2012. The company expects its revenue growth of 15%.
Vietnam’s growth will boost financial services and basic sectors like food and beverage. Out of 90 million people, 68% is under the age of 40. Higher workforce will push consumer spending for the next 10-15 years. Middle class group consists of 7 million families. This number will likely to double in five years.
Source: bangkokpost.com/business/economics/312819/b2-trillion-in-border-trade-by-2015-eyed