“Japanese Giant Acquires 49% Stake in a Vietnamese Pesticide Manufacturer”

On November 21st, Summit Agro International Ltd. (SAI), a subsidiary of the esteemed Sumitomo Corporation, announced its investment in CTCP Đầu tư Hợp Trí, acquiring 49% of the company’s shares. As a result of this strategic investment, the company will be renamed CTCP Hợp Trí Summit (HTS).

HTS is a prominent manufacturer and distributor of crop protection products, fertilizers, and public health products. Founded in 2003 by agriculturally-focused entrepreneurs, HTS boasts internationally-certified production facilities and analytical laboratories. The company’s farmer-centric business policy has led to the deployment of a dedicated team of 200 technical and sales support staff, offering meticulous services to its marketing and sales operations. This customer-centric approach has solidified HTS’s position as a leading provider of agricultural supplies in Vietnam.

SAI established its presence in Vietnam with the formation of Summit Agro Vietnam LLC (SAV) in 2016, distributing crop protection products throughout the country. The decision to invest in HTS was a strategic one, following HTS’s confirmation to acquire SAV. The integration of HTS and SAV’s businesses is expected to take place in 2024, pending legal procedures. As part of its expansion plans in Asia, the Sumitomo Corporation has committed to significant investments, with SAI injecting an additional 3.45 billion Yen in September 2024. The investment in HTS is a testament to this commitment.

By combining HTS’s deep roots in Vietnam with the comprehensive strengths of the Sumitomo Corporation, SAI, and SAV, the venture aims to expand its product and service offerings. Together, they will contribute to Vietnam’s agriculture sector as a comprehensive provider of agricultural supplies, meeting the growing demand for food.

The Sumitomo Corporation is one of Japan’s largest trading and investment enterprises, with a significant presence in Vietnam since 1995. The corporation has invested in various sectors of Vietnam’s economy, including industrial parks, urban railways, power plants, airport projects, logistics, and real estate. They have left their mark on landmark projects such as the construction of the elevated section of Ho Chi Minh City’s first urban railway line (Bến Thành – Suối Tiên) and several power plants, including Phả Lại, Duyên Hải 3 Expansion, and Phú Mỹ 2-2.

Notably, Sumitomo is also the investor behind the Vân Phong 1 BOT Thermal Power Plant, a 2.6 billion USD project. With a total installed capacity of 1,432 MW across two units, Vân Phong is one of the largest thermal power plants in Vietnam in terms of scale and capacity. Additionally, Sumitomo holds a 58% stake in the Thang Long Industrial Park (TLIP), which encompasses three industrial parks in Hanoi, Hung Yen, and Vinh Phuc.

The corporation has also formed a joint venture with the BRG Group to invest in the Bắc Hà Nội Smart City project, a 4.2 billion USD venture. Through this partnership, they established CTCP Đầu tư phát triển Thành phố Thông minh Bắc Hà Nội (NH Smart City), with a charter capital of 14,260 billion VND, and hold a 50% stake in the company. Furthermore, Sumitomo collaborates with BRG in developing the FujiMart supermarket chain in Vietnam, holding a 49% stake.

Sumitomo Corporation and its subsidiaries also hold shares in numerous other companies in Vietnam, particularly in the electronics and automotive parts industries. In the realm of equity investments, Sumitomo, through SSJ Consulting, currently holds a 9.71% stake in Gemadept (GMD) on the stock market.