Walt Disney deal to give facelift to Dai Dong Tien Plastics furnishing
Walt Disney deal to give facelift to Dai Dong Tien Plastics furnishing
As the Vietnamese plastics and packaging industry is luring in a new wave of foreign investors with its strong growth, a domestic plastics manufacturer has teamed up with Walt Disney to take over the market.
Most recently, Dai Dong Tien Corporation, a local plastics manufacturer, entered into a co-operation with The Walt Disney Company (Southeast Asia) Pte., Ltd. to develop the former’s plastic products.
Accordingly, Dai Dong Tien became the only strategic partner of Walt Disney in the Vietnamese plastic sector authorised to use the images of beloved Disney characters (Avengers, Spiderman, Disney princesses, Frozen, and standard characters) on home furnishing products and to sell such products in Vietnam.
Dai Dong Tien expected that the deal will create a new face for local plastic household products which are currently decorated mostly with monotonous images of animals and flowers.
Besides, co-operating with the global entertainment group will help Dai Dong Tien gain market share, bringing them closer the target of becoming the leading plastics manufacturer in Vietnam.
With its great unexploited potential, the plastics sector is a lodestone to foreign investment.
Ho Duc Lam, chairman of the Vietnam Plastics Association, said that the plastics sector will continue to grow on the back of strong growth in the domestic demand. Per capita plastics consumption is projected to increase to 45 kilogrammes in 2020, mainly due to growth in the packaging and construction segments.
Additionally, numerous foreign investors have ambitions to acquire local plastics manufactures via M&A deals.
In December 2017, Japan’s Sojitz Pla-Net, the plastics division of Sojitz Corporation, entered into a strategic partnership with Rang Dong Plastic JSC to establish greater co-operation in the market, with Rang Dong Plastic selling a 20 per cent stake in its subsidiary Rang Dong Long An Plastic JSC to Sojitz Pla-Net. (Sojitz Pla-Net concluded an agreement for a strategic alliance with RDP in March 2016).
The firms will join forces to develop the Rang Dong Long An factory complex in the southern province of Long An. The first phase of the project started operations in mid-May.
With $32 million in investment capital for the first stage, the plastics complex will house three factories on an area of 8.7 hectares. The factories will employ the latest technology from Germany, Italy, Japan, Taiwan, and South Korea.
Previously,in September 2015, Dongwon Systems, a packaging unit of Dongwon Group, released the information on its website that it completed the purchase of controlling stakes in Vietnamese packaging firms Tan Tien Plastic Packaging and Minh Viet Packaging for the total cost of $96 million.
According to the agreement, Dongwon Systems would transfer technology to the Vietnamese firms to export high-performance packaging materials. The firm expected that it will be able to leapfrog to become a global integrated packaging company with the acquisition of Tan Tien and Minh Viet.
In the same year, SCG completed the acquisition of an 80 per cent controlling interest in Vietnam’s Tin Thanh Packing JSC (Batico) for $44.4 million. At the time, the deal was the largest purchase in the Vietnamese plastics sector.
At the time, Batico was one of Vietnam’s top five packaging companies, churning out some 230 million square metres of products on average each year and it held a 40 per cent market share in the southern region.
Previously, in December 2013, Oji Holdings Corporation acquired 75 per cent of all the issued shares of United Packaging Joint Venture Co., Ltd. The value of the deal was not disclosed.
At present, the Vietnamese plastics industry has 3,000 enterprises operating across the country. The 2016 revenue of the plastics industry was estimated to reach nearly $14 billion, a 10.3 per cent increase compared to 2015.
