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The signing ceremony was held at the Intercontinental Landmark Hotel in Hanoi and was attended by executives from both companies, including Samsung Engineering executive vice president GyuYeon Kang and DNP Water chairman Ngo Duc Vu.
With this acquisition, Samsung Engineering will hold 24 per cent of the stake in DNP Water while DNP Holding will hold 53 per cent and other stakeholders the remainder.
DNP Water is a private enterprise that focuses on local water supply businesses in Vietnam and is the largest private water treatment company in Vietnam in terms of treatment capacity.
It was spun off from the DNP Group, a manufacturer of plastic piping, in 2017. Since then, it has been growing in the water treatment business by purchasing privatised water supply assets and developing new businesses.
The Asian water treatment market is shifting from a loan business to a private-led market, due to recent economic developments. Accordingly, Samsung Engineering plans to actively target Vietnam as a base for the Asian water treatment market.
Samsung Engineering has confidence that the company's rich experience and global technical expertise in the water treatment field, as well as DNP Water's experience and network in Vietnam's water supply businesses, could create synergy in future business executions.
The stake in DNP Water enables Samsung Engineering to have access to Vietnam's water and sewage treatment businesses and therefore expand businesses in this important market.
Further, based on regional competitiveness, Samsung Engineering plans to expand its business into Vietnam's sewage treatment businesses and apply the Vietnamese model to neighbouring Asian countries.
GyuYeon Kang said, "Aligned with the recent global environmental, social, and governance trend, our environmental business is positioned as one of our company's future growth engines."
He added, “Samsung Engineering plans further to expedite and grow in the global environmental markets by setting an example with successfully executing our environmental businesses in Vietnam.”