Japan Tobacco wants deeper partnership with Vinataba

Friday, Oct 04, 2019 17:59

Vinataba's head office in Ha Noi. — Photo vinataba.com.vn

Japan Tobacco wanted to play an important role in the equitisation of Vietnamese State-owned cigarette producer Vinataba, according to CEO Terabatake Masamichi.

The Japanese CEO wanted the Committee for Management of State Capital (CMSC) to share and update the equtisation plans for Vinataba, he said at a meeting with CMSC Chairman Nguyen Hoang Anh this week.

Japan Tobacco was the world’s third-largest tobacco firm, the CEO said. Japan Tobacco has been a partner of Vinataba since 2001.

The Japanese firm is expanding to global markets through merger and acquisition deals in Africa and Southeast Asia.

As Vietnamese consumers are switching to less harmful cigarette products, Japan Tobacco wants to get in on the act.

The Japanese firm has experience in transforming into a private company as it was once a State-owned business, and has offered to share its lessons so that Vinataba can improve its corporate governance and performance.

In 2018, Vinataba recorded VND19.6 trillion (US$842.8 million) worth of total net revenue. Its post-tax profit dropped 23 per cent year on year to VND1.25 trillion.

In 2016-18, Vinataba recorded total revenue of VND60.7 trillion with a 2.2 per cent annual compound revenue growth rate. Vinataba also operates in the real estate, farming, travel and apparel sectors.

As of the end of 2018, Vinataba had 11 subsidiaries and six associate firms. — VNS

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