MSG maker Vedan Vietnam earns $79.5 mln in H1, down 3.4%

Taiwan-invested food seasoning maker Vedan, known for its MSG products, earned a revenue of $79.5 million in Vietnam in the first half of this year, down 3.4% year-on-year.

According to Vedan’s H1/2024 report, the Vietnamese market accounted for 43% of Vedan’s total revenue, down from 43.6% in H1/2023. The Vietnamese market made up the biggest portion of Vedan’s global revenue.

Vedan attributed the decline during the period to weak market sentiment and thus reduced demand for MSG, fertilizer, feed, and specialty chemical products. The firm also had to adjust selling prices to respond to the cautious attitude of customers, which in turn affected revenue.

Vedan said economic activities in Vietnam slowed down slightly due to the impact of various short-term factors in the economic environment, but the market has an “outstanding business environment and the support of trade agreements” such as the EVFTA, UKVFTA and RCEP.

Once the short-term uncertainty is over, it can be expected to have great development potential. Therefore, Vedan remains cautiously optimistic about its business in Vietnam, the firm added.

Vedan reported its total number of employees was 3,930 as of end-June 2024. The figure included 3,719 employed by subsidiaries in Vietnam, 184 in mainland China, 18 in Taiwan, and nine in Cambodia.

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.