Hong Kong-based firm Excelsior Oak Ltd. became a shareholder of Truong Thanh Furniture Corporation (TTF) on May 12, showing its ambition to enter Vietnam’s furniture industry.
|Truong Thanh Furniture Corporation's chairman Mai Huu Tin |
Excelsior Oak Ltd. has recently acquired 1,520,000 TTF shares, increasing its ownership from 4.69 per cent to 5.06 per cent of TTF’s charter capital. The transaction was completed on May 12.
On May 4, 2022, TTF invested $7.2 million to acquire 5.7 million shares, equivalent to 19.2 per cent of the charter capital, in the furniture manufacturing company Tekcom Corporation.
Tekcom Corporation, founded in 2005, has emerged as a true industry leader in Vietnam's plywood production sector. The company's sheer dominance is evident from its market share of 60 per cent of plywood exports and 19 per cent within the domestic market.
Tekcom Corporation operates two expansive factories situated in the Nam Tan Uyen Industrial Zone in Binh Duong Province, covering an impressive total area of 115,000 square metres. These facilities specialise in producing high-quality plywood and film-coated boards, catering to the growing demands of both the domestic and international furniture industries.
In addition, TTF's chairman, Mai Huu Tin, disclosed that in April 2022, Excelsior Oak Ltd. further increased its ownership in Tekcom Corporation to 34 per cent. This unexpected development has sparked widespread interest and speculation regarding the future trajectory of these interconnected entities.
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During his visit to Vietnam as part of the biggest trade and investment promotion delegation between Vietnam and Hong Kong in years, Algernon Yau, Secretary for Commerce and Economic Development, talked to VIR’s Linh Le about economic cooperation opportunities between Vietnam and Hong Kong.