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Nov. 08, 2013
Katosangyo Co., Ltd.
Sumitomo Corporation

Establishment of Wholesale Food Distribution Business in Vietnam

Kato SC Asia Investment Co., Ltd., a subsidy of Katosangyo Co., Ltd. (Head Office: Nishinomiya-shi, Hyogo; President and CEO: Kazuya Kato; hereinafter, "Katosangyo"; ownership ratio: 65%) and Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura; ownership ratio: 35%,) hereby announces that it has received an approval from the Government for the establishment of a wholly-owned wholesale food distribution business in the Socialist Republic of Vietnam.  Details are as follows:

1. Background of expansion to Vietnam
Katosangyo and Sumitomo Corporation both have long focused on Asian countries, where the retail market has been expanding due to the increase of consumer spending along with the economic growth. The retail industry in this region is undergoing a transformation in its distribution structure, in which traditional business models centering on small-sized local businesses are being replaced by large-scale businesses such as major supermarkets or convenience stores expanded from Japan, Europe and the U.S. to Vietnam, or major food manufacturers locally producing. In such circumstances, it is expected that there will be more needs for wholesale food distribution businesses that systematically supply goods to stores. In this field, the Japanese-style wholesale system is highly advanced in meeting the diverse needs and preferences of individual consumers utilizing its established know-how in conducting and using detailed product and market analysis. Sharing these views, the two companies set up Kato SC Asia Investment Co., Ltd. on October 23, 2012, with the intention of accelerating decision-making, thereby facilitating the overseas expansion, and have prepared for the establishment of a wholesale food distribution company in Vietnam, as its first affiliated business. Vietnamese retail industry is a promising market, with the sales amount of 11.6 trillion yen in 2012 and the growth rate from January to September 2013 reaching 12.5%, as well as a rapid increase in the number of supermarkets, shopping malls and convenience stores. In this growing market, Kato SC Asia Investment Co., Ltd. will expand Japanese-style wholesale distribution business aiming at overseas supermarkets expanded to Vietnam and Vietnamese large-scale retailers.

2. Outline of the established company

(1) Company Name Kato Sangyo Vietnam Co., Ltd (English)
Cong Ty TNHH KATO SANGYO VIET NAM(Vietnamese)
(2) President and CEO Daisuke Katsuta
(3) Head Office address Ho Chi Minh City, Socialist Republic of Vietnam
(4) Paid-in Capital   25.5 billion Vietnamese dong (approx. 120 million yen)
(5) Establishment date October 2, 2013
(6) Ownership ratio 100% owned by Kato SC Asia Investment Co., Ltd.
(7) Business description wholesale, import and export of beverages, food and daily commodities
(8) Business start date December 2, 2013 (scheduled)

Inquiries

Corporate Communications Department,
Sumitomo Corporation

TEL:+81-3-5166-3100News Release Contact Form

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