The Kinh Do Corporation (KDC) on June 22 announced that it willcooperate with two other companies to develop its new business segmentof producing and trading cooking oil.

The group signed amemorandum of understanding on business exploration with Malaysia'sFelda Global Ventures (FGV) and Indo Trans Logistics Corporation (ITL)in Ho Chi Minh City the same day.

The three companies willexplore the formation of a new joint venture company focusing onproduction, sales, marketing and distribution of specialty oils andpalm-based consumer-packed goods for the Vietnamese market.

Atthe signing ceremony, the three parties said that through strategicpartnerships, they will conduct joint discussions over the next sixmonths in identifying strategies to capture the consumer packaged-oilsmarket, leveraging the strength of all parties.

KDC plans to hold 45 percent of the joint venture. The others will share the remaining 55 percent.

The company would focus on trading raw materials used to produce oil. The next step will be producing and selling oil products.

The targeted clients would be oil cooking producers, industrial clients, consumers, hotels and restaurants.

KDCwas formerly a giant domestic confectionary producer. They have changedbusiness strategy and put a foothold in the food and beverage industry.

For nearly a year, they have announced cooperation with partners to develop a noodle and oil business segment.

FGV, meanwhile, is Malaysia's leading global agri-business and is the world's largest producer of crude palm oil.

Its operation is in more than 10 countries in Asia, Middle East, North America and the EU.

ITLis a regional solutions provider for integrated logistics withoperations in Cambodia, Myanmar, Thailand and Laos, and is headquarteredin Vietnam.-VNA