Vietnam remains the biggest market for Taiwan-invested MSG maker Vedan despite an 18.1 year-on-year drop in H1/2023 revenues to $82.3 million.
The firm has reported global revenues of $188.9 million in the period, down 17.6% year-on-year. Its other major revenue markets include Japan ($34.3 million) and mainland China ($27.2 million), the U.S. ($14.7 million). Home market Taiwan earned H1/2023 revenues of just $6.5 million.
Reviewing Vietnam’s macroeconomic performance, the Vedan report says, the country effectively controlled Covid-19 pandemic in the period after severe 2022 impacts. The economy bore impacts of the Russia-Ukraine conflict, global inflation, fluctuations in raw material prices, rising energy prices and others adverse events.
Vedan said its global performance dipped corresponding to its record in the Vietnamese market.
The firm clarified that the fall in the Vietnamese market was due to poor market conditions like lower demand for MSG, seasonings and specialty chemical products. In response, Vedan has consolidated its sales channels, introduced new products, and adjusted its pricing strategy to boost sales in the second half of this year.
Vedan also said it plans to adopt a “co-opetition” strategy to boost products and services, especially to leverage the firm’s production base in Vietnam to develop the market in ASEAN and other countries that are members of free trade agreements (FTAs) that Vietnam has signed.
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 has then established a branch in Hanoi and a tapioca starch processing factory in the southern province of Binh Phuoc.