CPF Targets Vietnam IPO to Fuel Massive Growth
Charoen Pokphand Foods Plc (CPF), Thailand’s leading meat producer, plans to accelerate its Vietnamese expansion with an initial public offering (IPO) of its subsidiary, CP Vietnam Corporation. This underscores CPF’s strategic focus on Southeast Asia’s burgeoning markets. After awaiting regulatory approval, CEO Prasit Boondoungprasert expressed renewed optimism, citing positive signals from Vietnamese authorities regarding the IPO. CPF is prepared to proceed as soon as approval is granted.
Vietnam’s importance to CPF’s performance is undeniable. In 2024, Vietnam contributed 122 billion baht (21% of CPF’s total offshore sales), significantly exceeding the 6% contribution from China, its second-largest overseas market. This makes Vietnam a cornerstone of CPF’s international strategy. CEO Boondoungprasert cited Vietnam’s robust economic growth and large population as key factors, predicting it will become CPF’s “biggest growth driver for years to come.” The IPO aims to inject capital into CP Vietnam Corporation and boost its brand recognition.
This strategic move follows CPF’s remarkable financial turnaround. After a 5.21 billion baht net loss in 2023, the company rebounded in 2024 with a 19.6 billion baht profit—its highest since 2020. This resurgence was largely due to improved pork business performance in Vietnam and China. CPF projects a 5% to 8% increase in total revenue for 2025, with continued profit growth anticipated from overseas operations, particularly in Vietnam and China.
CPF operates in 18 markets, including the United States, Brazil, Russia, and China. The company invests in animal feed, farming, and food processing facilities globally, a strategy designed to mitigate slowing growth and an aging population in its domestic market. CEO Boondoungprasert downplayed potential impacts of US tariffs, citing CPF’s vertically integrated business model, which allows it to supply the US market largely from its Thai production facilities. These US operations generated approximately $700 million in revenue in 2024.
CPF’s ambitious global expansion is driven by the Chearavanont family, Asia’s second-richest, with an estimated $42.6 billion net worth and majority ownership of CPF. Patriarch and billionaire Dhanin Chearavanont leads CP Group, a conglomerate with interests in convenience stores, hypermarkets, real estate, automobiles, and telecommunications. While the SET Index declined 17% this year, CPF shares on the Stock Exchange of Thailand gained over 5%, reflecting investor confidence. The planned Vietnamese IPO further demonstrates CPF’s commitment to Southeast Asia’s growth potential, marking a significant chapter in the company’s history.
