TLK Agriculture Joint Stock Company has agreed to acquire Phu Ben Tea Company Limited for USD2.15 million to expand its market presence in the Vietnamese tea sector.

Information on the Target

Phu Ben Tea Company Limited, based in Phu Tho, Vietnam, engages in the cultivation, manufacturing, and sale of tea. The company operates three processing factories, producing approximately 4.5 million kilograms of tea annually. As of the end of 2022, Phu Ben Tea Company reported total revenue of USD3.47 million (VND85.2 billion). This acquisition aligns with TLK Agriculture Joint Stock Company’s strategy to expand its footprint in the agricultural sector and diversify its product offerings.

Industry Overview in Vietnam

The Vietnamese agriculture sector has shown resilience and growth, driven by both domestic consumption and international exports. With a rich biodiversity and favorable climate, Vietnam has positioned itself as one of the leading tea exporters globally. The tea market contributes significantly to the nation’s economy and employs millions of farmers, underscoring its importance in the rural development landscape.

In recent years, the sector has been bolstered by the government’s efforts to promote organic farming and sustainable agricultural practices. Investments in modern technologies and processing facilities ar