KDC signs MoU with FGV and ITL. — VNS Photo Thu Ngan

HCM CITY (VNS) — Kinh Do Corporation (KDC) on Monday announced that it will co-operate with two other companies to develop its new business segment of producing and trading cooking oil.

The group on Monday in HCM City signed a memorandum of understanding on business exploration with Malaysia's Felda Global Ventures (FGV) and Indo Trans Logistics Corporation (ITL).

The three companies will explore the formation of a new joint venture company focusing on production, sales, marketing and distribution of specialty oils and palm-based consumer-packed goods for the Vietnamese market.

At the signing ceremony, the three parties said that through strategic partnerships, they will conduct joint discussions over the next six months in identifying strategies to capture the consumer packaged-oils market, leveraging the strength of all parties.

KDC plans to hold 45 per cent of the joint venture. The others will share the remaining 55 per cent. This scale, however, "has not been finalized," according to the parties involved.

They do not plan to build a new factory in Viet Nam, according to KDC.

The company would focus on trading raw materials used to produce oil. The next step will be producing and selling oil products.

The targeted clients would be oil cooking producers, industrial clients, consumers, hotels and restaurants.

KDC was formerly a giant domestic confectionary producer. They have changed business strategy and put a foothold in the food and beverage industry.

For nearly a year, they have announced co-operation with partners to develop a noodle and oil business segment.

FGV, meanwhile, is Malaysia's leading global agri-business and is the world's largest producer of crude palm oil.

Its operation is in more than 10 countries in Asia, Middle East, North America and the EU.

ITL is a regional solutions provider for integrated logistics with operations in Cambodia, Myanmar, Thailand and Laos, and is headquartered in Viet Nam. — VNS