SK Group's strategic partnership with Masan Group in Vietnam is leading to full-fledged achievements.
SK announced on April 6 that it has signed a contract to purchase a 16.3 percent stake in VinCommerce, a distribution subsidiary of Masan Group, for $410 million.
SK exercised its "selective priority investment right" that it secured when investing in Masan Group in 2018. VinCommerce, which operates 2,300 convenience stores and supermarkets in Vietnam, is the No. 1 distribution company with a 50% share in the retail market.
"We expect VinCommerce to grow into an Omni-Channel business that combines online and offline like 'Alibaba' and 'Amazon' in the future," a SK official said. "This is an investment in a future distribution value chain that is expected to grow in Southeast Asian market."
Masan Group, Vietnam's largest food and beverage company, is believed to have secured firm market dominance in each business area through synergy with its existing food and beverage business and VinCommerce after acquiring a 83.7 percent stake in VinCommerce from Vin Group in December 2019.
VinCommerce sales grew about 30% from $1.1 billion in 2019 to $1.4 billion in 2020, the first year of its Masan Group acquisition, and are expected to reach $1.8 billion this year.
SK acquired a 16.3% stake in VinCommerce under the same conditions that it acquired Masan Group in 2019. Through this, SK secured not only a significant level of valuation gains, but also the right to additional investment in the comprehensive consumer goods business that Masan Group is intensively fostering.
SK Group established SK Southeast Asia Investment Corporation in August 2018 to secure new growth engines in Southeast Asia, including Vietnam. Since then, SK Southeast Asia Investment Corporation has made full-fledged investments, acquiring a 9.5 percent stake in Masan Group in October 2018 and 6.1 percent stake in Vin Group in May 2019.
Through this investment, SK plans to accelerate its investment in major strategic interests such as online and offline distribution, logistics, and electronic payment in Vietnam by utilizing stronger strategic partnerships with Masan Group.
Meanwhile, major executives of SK Group and Masan Group, including CEO Park Won-chul of SK Southeast Asia Investment Corporation and VinCommerce CEO Truong Cong Thang, attended the contract ceremony on the same day.
CEO Park said, "Masan Group is the best partner for success in the Vietnamese market and SK will spare no supports to create new success stories."
"VinCommerce has succeeded in strengthening its sales network and improving sales efficiency through customer-centered management," CEO Truong Cong Thang said. "This investment by SK will be the starting point for VinCommerce to take another leap forward in the Vietnamese market."
