From Pham Nhat Vuong, Nguyen Dang Quang, to Ngo Chi Dung, Dang Khac Vy?

Though the market capability just isn’t too giant, the moment noodle business has a particular place for the event of the non-public financial system of Vietnam.

Actually, essentially the most well-known entrepreneurs in Vietnam immediately all began with instantaneous noodles in Japanese Europe.

Mr. Pham Nhat Vuong (Chairman of Vingroup) and Technocom produced a noodle model named Mivina in Ukraine. In 2010, Technocom was offered to Nestlé for $150 million.

Mr. Nguyen Dang Quang (President of Masan Group) first offered instantaneous noodles in Russia, then invested in a manufacturing unit with a capability of 30 million packages of noodles per 30 days.

Mr. Ngo Chi Dung (VPBank Chairman) and Mr. Dang Khac Vy (VIB Chairman) based the well-known Russian model of Rollton noodles to at the present time. Dang Khac Vy himself is the Chairman of Mareven Meals Holdings, the mother or father firm of Mareven Meals Central, which holds 46% of Russia’s instantaneous noodles market share with a consumption of two billion servings per yr.

In 2008, the Vietnamese proprietor group of Mareven Meals Central offered a 33.5% stake to Nissin (an enormous within the Japanese noodle business) for $296.four million, equal to a valuation of $885 million at the moment.

  Why do many billionaires in Vietnam start with instant noodles: From Pham Nhat Vuong, Nguyen Dang Quang, to Ngo Chi Dung, Dang Khac Vy?  - Photo 1.

Technocom’s Mivina Noodles

The query is why Japanese European billionaires select the noodle business to begin a enterprise and have success as a premise for a non-public empire that now covers the fields of actual property – tourism – banking. – consumption – retail – business in Vietnam?

Just a few years in the past, Mr. Nguyen Dang Quang talked about this problem on the Common Assembly of Shareholders of Masan Group.

Many individuals surprise why Chairman Masan studied nuclear physics so fiercely however offered instantaneous noodles?

Mr. Quang stated: “The tough context at the moment compelled us to decide on instantaneous noodles”.

Greater than 20 years in the past, the financial scenario in Vietnam was nonetheless tough, the folks’s want was methods to heat their stomachs. The quickest they acquired was a packet of noodles.

Someday, Mr. Quang realized that not solely Vietnamese folks want instantaneous noodles, however greater than 140 million Russians additionally want them. At the moment, Russians didn’t have the behavior of consuming noodles. From solely promoting noodles to Vietnamese folks in Russia, Chairman Masan invested within the first manufacturing unit with a capability of 30 million packages/month to broaden the shopper base. Subsequently, Mr. Quang is nicknamed “the one who teaches the Russian folks methods to eat instantaneous noodles”.

“We regularly discuss to one another in regards to the story of two individuals who have been tasked with discovering a marketplace for leather-based footwear in a really backward nation in Africa. One got here again disenchanted and reported that there was no alternative there. in any respect, as a result of persons are not used to carrying footwear.

The opposite excitedly introduced that it was an enormous market. Everybody has two ft and nobody has ever offered them a pair of footwear. The folks in Masan belong to the second pattern”, billionaire Quang shared about how Masan has approached the market.

At its peak, his enterprise’ gross sales of noodles and chili sauce in Russia amounted to $100 million.

The story of billionaire Quang can recommend why Japanese European entrepreneurs select instantaneous noodles to begin a enterprise. The financial scenario was tough at the moment and instantaneous noodles have been a totally new product in Russia and Ukraine however appropriate for the market (product market match).

  Why do many billionaires in Vietnam start with instant noodles: From Pham Nhat Vuong, Nguyen Dang Quang, to Ngo Chi Dung, Dang Khac Vy?  - Photo 2.

Chairman Masan as soon as shared the rationale for being drawn to the moment noodle business although his experience is in nuclear physics

Till now, solely Mr. Nguyen Dang Quang and Mr. Dang Khac Vy are nonetheless hooked up to the noodle manufacturing business.

Masan Shopper is at present ranked second in noodle market share in Vietnam with the manufacturers “Omachi”, “Kokomi”. Final yr’s income introduced in almost 6,900 billion VND.

Dang Khac Vy continues to be working a exceptional noodle manufacturing empire in Japanese Europe, together with the primary markets of Russia, Ukraine and Kazakhstan. Moreover, Mareven’s merchandise are additionally exported to 25 international locations.

In Vietnam, Mr. Dang Khac Vy and VIB Financial institution have an in depth relationship with Uniben, a noodle producer within the high 5 with the “Three areas” and “Reeva” noodle manufacturers. Final yr, Uniben achieved income of greater than 3,000 billion dong, revenue after tax of greater than 200 billion dong.

East Asia