Food seasoning firm Vedan earns $174 mln in Vietnam in 2023, down 11%

Food seasoning maker Vedan recorded a revenue of $173.6 million in Vietnam in 2023, down 11% year-on-year, according to the 2023 performance review of the Taiwan-headquartered firm.

The downtrend in Vietnam was in line with Vedan’s 14.4% decline in global revenue. The country remained the biggest market for Vedan with 44.9% of its total revenue. Other major markets were Japan with 18.4% and mainland China with 14.2%.

"The slowdown in overseas demand indirectly affected the domestic market and consumption in export-oriented Vietnam, causing problems such as lower factory utilization and higher unemployment," Vedan said.

"The decline in sales volume and revenue from Vietnam in 2023 was mainly because it was difficult for Vedan to raise the prices of MSG, seasonings, and specialty chemicals due to poor market sentiment, lower demand, and fierce competition," it added.

Reviewing the Global Minimum Tax (GMT) implications in Vietnam, Vedan said its total revenue was less than €750 million ($800 million) for 2023 and all entities within Vedan have an effective tax rate that exceeds 15%, so Vedan has no related current or deferred tax exposure under OECD’s Pillar Two.

In Vietnam, Vedan’s principal operations are subject to an incentive tax rate offered by the government at 15%. For non-principal operations in Vietnam, the applicable corporate income tax rate is 20%.

Reviewing 2023 and previewing 2024, Vedan said global economic growth is expected to stabilize or decline slightly in 2024.

“Since 2023, in addition to the ongoing Russia-Ukraine war, interest rate hikes by the world’s major central banks have also raised fears of economic recession,” Vedan added.

“However, with Vietnam’s excellent operating environment and various trade agreements signed with a number of countries, the country is expected to possess huge development potential after the short-term economic volatility stabilizes,” the company highlighted.

Vedan’s Vietnam subsidiary was established in 1991, with its factory located in the southern province of Dong Nai. The factory’s output includes starch, glucose syrup, MSG, modified starch, Chlor-alkali, Lysine, and other products. Vedan also has a branch in Hanoi and a tapioca starch processing factory in the southern province of Binh Phuoc.