In the second phase, the two sides will jointly develop new sugar products under new brand names to meet the demand of consumers.

TTC currently has more than 200,000 points of retailing sugar products nationwide. With the cooperation with KIDO in place, the company expects to expand the distribution system for Bien Hoa Daily sugar.

KIDO CEO Tran Le Nguyen said the two companies’ strategic partnership is aimed at supporting each other based on their strengths. KIDO will distribute 60,000 tons of Bien Hoa Daily sugar next year, generating VND1.1 trillion (US$48.44 million), and the volume is expected to jump to 200,000 tons by 2020.

Analysts said TCC’s tie-up with KIDO would help expand its sugar market share and enhance its competitiveness as low-cost sugar products from Thailand and Indonesia may flood the domestic market next year when Vietnam cuts duty on sugar imports from ASEAN countries under the ASEAN Trade in Goods Agreement (ATIGA).

TTC, which is a large sugar producer and supplier with Bien Hoa sugar brand, has operated for 50 years with nine plants in the central coast, Central Highlands, the southeast region, and Laos with a total crushing capacity of 46,100 tons of sugarcane a day.

Meanwhile, KIDO has six plants processing frozen food, ice-cream and cooking oil nationwide. This year, the company remains the leading ice-cream producer with a market share of 40%.

In the packaged food sector, KIDO has acquired two major cooking oil producers, namely Tuong An and Vocarimex. The corporation has shortened the time required to launch high-quality products thanks to the cooperation with local and international partners.