Eurofins Scientific has signed an agreement to acquire a 65% majority stake in Sắc Ký Hải Đăng, the leading private laboratory in Vietnam for the analyses of food and agricultural products, as well as for environmental testing.
EDC-HD employs over 100 staff at its main facility in the country's economic hub and largest city, Ho Chi Minh City (HCMC), and at its satellite lab in Cần Thơ, an important trading gateway on the Mekong River Delta, where 40% of agricultural and 60% of fisheries output are produced. The company also has plans to invest in a new facility in Vietnam's leading technology park, the Saigon Hi-tech Park. Established in 2008 as a merger between the HCMC Center of Education and Chromatography Development, and the Hai Dang Scientific Service, EDC-HD has developed a reputation for high quality analytical services at short turnaround times, with a strong focus on R&D and innovation, and has become the preferred independent analytical service provider for a vast majority of the country's food producers and manufacturers. As the third largest rice exporter and one of the top 10 exporters of fish products in the world, and with agriculture forming 18.4% of its GDP, the food and feed sector is clearly an important component of Vietnam's economy.
Furthermore, given the country's status as a top exporter of one of the region's staple food products (rice) and as it expands its share of global fish exports, the focus on safety all along the food supply chain is increasing. As the largest private laboratory in the market, EDC-HD is well-positioned to benefit from the expected growth in food testing. The acquisition therefore provides Eurofins entry into this attractive testing market, and a strong platform to roll-out a broader service offering. In return, EDC-HD will gain access to the complete infrastructure and capability of the Group, including its renowned competence in grains testing and the most comprehensive range of fish and aquacultural products testing services. This should allow the company to substantially expand the range of services it offers to both domestic producers and exporters, thereby accelerating its market share expansion.
Comment from Dr. Gilles Martin, Eurofins CEO: "EDC-HD provides Eurofins solid entry into the analytical testing market in Vietnam and an excellent opportunity to support its thriving food industry. This acquisition reinforces our footprint in the region, and should allow us to accelerate our expansion in Asia Pacific. We are looking forward to strengthening EDC-HD's position in the market and supporting Vietnam's food industry by offering the full range of services and capabilities of the Eurofins Group."
Comment from Dr. Nguyen Thi Hong Minh, Vice Chairwoman of Sắc Ký Hải Đăng's Board of Directors and Honorary Chairwoman of Vietnam Association of Seafood Exporters and Producers (VASEP): "With this transaction EDC-HD achieves an important milestone in its development; firstly by becoming part of the leading food testing group in the world, obtaining access to best-in-class laboratory infrastructure, and by expanding EDC-HD's capability to support the development of Vietnam's food industry in-line with the increasingly stringent world standards."