BAT, Vietnam's Vinataba tie up

BAT, Vietnam's Vinataba tie up

LONDON (AFP): Tobacco giant BAT said Friday it had sealed a deal to help develop Vietnam's tobacco industry through a new joint venture with Vinataba, Vietnam's biggest tobacco company.

The venture is the first involving a foreign partner and the state-run tobacco outfit, which has a 57-percent market share. Vietnam's 80-million strong population consumes some 58 billion cigarettes a year.

BAT said it would invest US$40 million to establish the joint venture, which will aim to develop Vietnam's domestic tobacco growing industry to reduce its reliance on imported tobacco leaf.

The joint venture, to be called British American Tobacco- Vinataba (JV) Ltd, will also construct a tobacco processing factory in Dong Nai, a province south of Ho Chi Minh City.