WPP takes stake in Vietnamese agency group

by Darren Davidson, Brand Republic 18-Jun-08, 12:20

LONDON - WPP Group has expanded its business in Vietnam, one of the fastest growing markets in Asia, with a 30% stake Datviet VAC Group via its group media buying operation GroupM.

The deal, which is subject to regulatory approval, will see Sir Martin Sorrell's marketing services group take a 30% stake in Datviet VAC Group Holdings.

The holding group controls: DatvietVAC Media Corporation, a Vietnamese media investment management agency; Dong Tay Promotions Corporation, a promotions and content agency; and TKL Corporation, a programming and media buying and planning operation.

The agencies, all based in Ho Chi Minh City, employ 128 people, with clients including Vinamilk, Vietnam Brewery Limited and PepsiCo.

They have combined revenues for the year ended December 31 2007 of 156,036m Vietnamese dollars, with gross assets $320,810m.

The move continues WPP's strategy of developing its networks in fast growing markets and sectors.

Vietnam is one of the fastest growing markets in the world, recently identified by Goldman Sachs as one of the "Next 11" world economies to watch. It has a population of more than 85m and GDP growth rate of 8.5% in 2007.

WPP already has a number of agenciese running in Vietnam including JWT Vietnam, Bates141 Vietnam and Ogilvy Vietnam.