Malaysia’s Felda Global Ventures Holdings Berhad (FGV) has announced its plan on cooperation in the cooking oil industry with Vietnam’s leading confectionary producer Kinh Do Corporation and regional logistics solution provider Indo Trans Logistics Corporation (ITL).

The three companies are working to establish a new joint venture company focusing on production, sales, marketing and distribution of specialty oils and palm-based consumer-packed goods for the Vietnamese market.

According to head of FGV Palm Downstream Cluster Zakaria Arshad, the cooperation with local companies, which boast a strong customer base, could help the Malaysian giant crude palm oil producer to gain foothold in the country.

He said he believes in a future two-digit-number profit.

FGV and Kinh Do will each hold 40 percent of the venture’s total shares, while the remaining 20 percent will belong to ITL and other supporting companies.

Vietnam is the third largest populated country in Southeast Asia and the 13th biggest palm oil importer worldwide.

One Vietnamese is estimated to annually consume 16 kg of palm oil by 2020, almost doubling the current figure, as the vegetable oil is increasingly favoured by locals for its health benefit and competitive prices.-VNA