Saigon Union of Trading Cooperatives and Singapore's Wilmar International Limited today (October 27) formed a joint venture in Viet Nam called Nam Duong International Foodstuff Corporation. — VNS Photo Linh Nguyen

HCM CITY (Biz Hub) — Saigon Union of Trading Cooperatives (Saigon Co.op) and Singapore's Wilmar International Limited on October 27 formed a joint venture in Viet Nam called Nam Duong International Foodstuff Corporation.

Wilmar Group owns 51 per cent of the new company, and Saigon Co.op, which owns the CoopMart supermarket chain, the rest.

The joint venture, for which a licence has to be obtained, will manufacture Nam Duong sauces and condiments for both the domestic and export markets at a new VND577.2 billion ($25.6 million) factory to be built in the Hiep Phuoc Industrial Park in HCM City.

Saigon Co-op makes Nam Duong products, which have been a leading brand of soy sauce, chilli sauce and tomato sauce in Viet Nam since 1951, after buying the brand soon after the nation's independence. These are also exported to the US, Canada, and Europe, where they are favoured by overseas Vietnamese.

Nam Duong will leverage Saigon Co-op's strength in distribution and Wilmar's experience in manufacturing, research and development in food technology, and global sales network. — VNS