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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] CJ Freshway has decided to liquidate its Vietnam subsidiary responsible for local agricultural sourcing, marking its exit from the entity after more than a decade, News1 reported exclusively.
According to industry sources on March 19, the company approved the liquidation of CJ Freshway Vietnam Co., Ltd. at a board meeting held on February 5. The liquidation process is currently underway and will be completed once all procedures are finalized.
CJ Freshway said the decision is part of a broader effort to enhance management efficiency through company-wide resource reallocation.
Established in 2013, the subsidiary was initially set up to strengthen direct sourcing capabilities in Vietnam, moving away from reliance on local vendors. However, the company has recently determined that centralized operations from headquarters are sufficient to manage procurement.
The unit has also struggled with profitability. It recorded revenue of KRW 10.7 billion last year but posted a net loss of KRW 116 million. In 2024, it reported revenue of KRW 7.67 billion and an operating loss of KRW 945 million, although it briefly returned to profitability in 2023 with a net income of KRW 562 million.
This is not CJ Freshway’s first withdrawal from Vietnam. The company previously exited its local food service business in 2020 after pandemic-driven demand declines, following the establishment of Fides Food System in 2016.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
