Data compiled reveals that Thai investors have been thriving on their stakes in a variety of Vietnamese companies, particularly in the dairy, beverage, plastics, and retail sectors. The spotlight is on Vinamilk, a dominant player in the dairy market, which has showered its Thai shareholders with a staggering VND16.1 trillion in dividends since 2013.
Vinamilk, which boasts the largest share of the dairy market, has garnered significant attention, especially from Fraser & Neave, a beverage giant that holds a 20.4% stake in the company. In a strategic move, Sirivadhanabhakdi’s TCC Holdings acquired Singapore-based Fraser & Neave back in 2013. Last year alone, Vinamilk dished out VND1.85 trillion in dividends to Fraser & Neave. Despite several attempts in recent years to increase their stake further through the stock market, those plans have been thwarted by challenging market conditions.
Sirivadhanabhakdi’s investment strategy doesn’t stop at Vinamilk. He maintains a controlling interest in Sabeco, one of Vietnam’s leading breweries. In 2017, ThaiBev, operating under Sirivadhanabhakdi, splurged $4.8 billion to acquire 53.6% of Sabeco from the Vietnamese Ministry of Industry and Trade. Over eight years, ThaiBev has raked in over VND14 trillion in dividends from Sabeco, with 2024 marking a record payout of VND3.44 trillion. At a press conference in September 2022, Thapana Sirivadhanabhakdi, CEO of ThaiBev, characterized Sabeco as a “crown jewel,” highlighting its unique value in the crowded regional beer market.
Beyond the dairy and beverage arenas, TCC Holdings also made headlines with its $704 million acquisition of the Metro supermarket chain, repackaging it as Mega Market. This reflects the breadth of Thai investment in Vietnam, with the acquisition of Binh Minh Plastics standing out as particularly lucrative. Nawaplastic, a subsidiary of Thailand’s SCG Group, took control of Binh Minh in 2018, purchasing 24.2 million shares from the State Capital Investment Corporation and reportedly benefiting from VND2.5 trillion in dividends since 2012.
SCG’s interests extend further into Vietnam, controlling companies such as Tan Bien Packaging and Duy Tan Plastics while also operating a major petrochemical complex in Ba Ria – Vung Tau Province. This facility, costing over $5 billion, has a remarkable annual capacity of 1.4 million tons of products. As the Thai footprint deepens, they are also eyeing sectors like finance and retail. The Siam Commercial Bank is involved with Home Credit Vietnam, and Central Retail Group boasts brands like GO! (formerly Big C) and Nguyen Kim, solidifying Thailand’s formidable presence in the Vietnamese retail landscape.
Thai investment continues to flourish, with a 2024 HSBC survey revealing that 66% of Thai businesses are keen on investing in Vietnam. The confidence level among Thai investors stands at a robust 93%, just behind Vietnam (98%) and Singapore (94%). Data from the Foreign Investment Agency highlights that Thailand has been Vietnam’s 13th largest investor since 1988, with total investments exceeding $14.7 billion, primarily fueling the manufacturing sector, which receives 74% of their financial commitment.
Could this surge of investments make Vietnam the Silicon Valley of Southeast Asia? Only time will tell!
How much have Thai shareholders made from Vinamilk since 2013?
Thai shareholders have benefitted from a remarkable VND16.1 trillion in dividends from Vinamilk since 2013.
What characterizes ThaiBev’s investment strategy in Vietnam?
ThaiBev’s strategy is focused on long-term growth, with plans to dominate the beer market and expand across Southeast Asia, as evidenced by their significant stake in Sabeco.
What sectors do Thai investors primarily focus on in Vietnam?
Thai investors predominantly invest in the manufacturing sector, with 74% of their capital directed towards this area, reflecting their strong interest in production capabilities within Vietnam.
