SMC’s packaging units in Vietnam post high revenue growth

San Miguel Corp.’s (SMC) packaging units in Vietnam posted double-digit growth in revenues during the first seven months of the year to $10.24 million, driven by Vietnam’s growing economy.

In a disclosure to the Philippine Stock Exchange, SMC said San Miguel Yamamura Haiphong Glass Co. Ltd. and San Miguel Phu Tho Packaging Co., Ltd. reported an 11.2-percent jump in revenues from only $9.21 million a year ago. These two plants cater mostly to the food and beverage sectors in Vietnam.

Both packaging plants, as well as the other SMC facilities in the country, are benefiting from the increased consumption growth marking the Vietnamese economy.

Vietnam’s real private consumption rose 13 percent last year – considered one of the fastest in the region from seven percent the year before, accelerated by rising employment and growing incomes.

The growth was also attributed to increases in operating efficiencies and strategic material sourcing programs.

SMC’s packaging division, San Miguel Packaging Products (SMPP), runs both its domestic and international packaging businesses.

SMPP’s strategy to seek further growth and penetrate untapped markets has likewise contributed to this growth.

SMPP has 10 existing international facilities: three in China, one in Indonesia, four in Malaysia, and the two facilities in Vietnam.

SMPP also operates 16 facilities in the Philippines. Its R&D is continuously coming up with new packaging formats in plastic containers for beverages, stand up pouches for condiments, retortable flexibles for processed meats, fish and food sauces and aseptic packaging systems for fruits and vegetable drinks.