A Matsumoto Kiyoshi store in Tokyo, Japan. — Bnews

Matsumoto Kiyoshi Holding Company has approved the establishment of a joint venture in Viet Nam to develop and operate the chain of ‘MatsuKiyo’ pharmaceutical and cosmetic stores in Viet Nam.

Japanese Matsumoto signed a preliminary agreement with Vietnamese Lotus Food Group JSC in July to establish the Matsumoto Kiyoshi Vietnam Joint Venture Company.

Accordingly, the joint venture will be officially established in February 2020 with a total capital of VND31.5 billion (US$1.35 million), of which Matsumoto Kiyoshi holds 51 per cent of the shares and Lotus holds 48.87 per cent, the remaining 0.13 per cent will be held by Lotus President Le Van May, who will be the president of Matsumoto Kiyoshi Vietnam. Executive director of the joint venture will be undertaken by a member of Matsumoto Kiyoshi.

Matsumoto Kiyoshi's goal is to take advantage of Viet Nam, one of the most promising emerging markets in Asia.

According to survey data, Viet Nam's cosmetics market is worth about $2.3 billion as of the end of 2018, however, the operation of the market was old fashioned. Vietnamese consumers are very fond of cosmetics products as well as functional foods from Japan.

Chairman of Matsumoto Kiyoshi told local media that said he wanted to quickly launch stores in the Vietnamese market and provide Vietnamese consumers with high quality products.

Lotus is chosen as its partner as the firm has extensive experience in the local market in food processing, trading and circulation and it has also cooperated with a number of large Japanese firms.

With this cooperation, the two sides will be able to provide each other with business know-how and support to quickly expand Matsumoto in Viet Nam.

As of the end of September 2019, Matsumoto Kiyoshi has 34 stores in Thailand and five stores in Taiwan. The company aims to open more chains in Asia.

Founded in 1932, Matsumoto Kiyoshi Holding was formerly known as Matsumoto Kiyoshi Co., Ltd. with headquarters in Chiba, Japan. Currently, it operates many wholesale and retail pharmaceutical and cosmetic companies in Japan. — VNS