Toho Gas Co., one of Japan’s top three gas companies, has invested in Phuc Sang Minh Trade Engineering Services (PSE) to enter the Vietnamese gas market.
The Nagoya-headquartered giant announced Friday that it had acquired a 40% stake in the Vietnamese firm, whose business includes sales of compressed natural gas (CNG) for industrial use, liquefied petroleum gas (LPG), and gas equipment.
The duo signed the partnership deal in Ho Chi Minh City, where the Vietnamese partner is based. Toho Gas did not disclose how much the stake costs.
Toho said in a release that Vietnam's demand for natural gas is rising given its shift away from gasoline or coal to reduce carbon dioxide emissions. "The country's stable economic growth will also lift its energy consumption."
PSE was set up in 2006 in HCMC. Its director Vo Phuong Trinh and other individuals hold a 60% stake in the company after Toho’s acquisition, it added.