Investee company name:
Sector:
Country of origin:
Region:
Aureos fund:
Total invested:
Date invested:
Investment type:
Truong Thanh Furniture Corporation
Manufacturing
Vietnam
South-East Asia
Aureos South-East Asia Fund (ASEAF)
US$3 million
December 2006 / January 2007
Expansion
Truong Thanh Furniture Corporation (TTFC) is a group of five companies manufacturing and exporting wooden outdoor and indoor furniture and flooring. It is the second-largest wood furniture exporter in Vietnam, supplying major retail chains and distributors in 30 countries around the world.
In December 2006 and January 2007, ASEAF invested US$3 million in TTFC by way of common shares and a convertible/redeemable loan, the proceeds of which were used to finance the construction of new factories in Daklak and Binh Duong and to provide working capital.
Between 2002 and 2006, TTFC increased its sales from US$4.7 million to US$22.4 million - a compound annual growth rate of 47.75%. In 2006 alone sales growth was 70% year-on-year. The number of employees has grown from 2,000 to around 2,500 over the same period, and is expected to reach 6,000 in 2007 when the two new factories begin full operations.
TTFC has adopted an Environmental Policy to minimise the impact of its operations on the environment, and as part of its membership of the Vietnam Forest & Trade Network, will plant 50,000 hectares of sustainable plantation forest in the highlands region of Vietnam.