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Home arrow News arrow Lawsuits against Saint-Gobain Vietnam
Lawsuits against Saint-Gobain Vietnam Print E-mail
Written by Administrator   
Friday, 26 February 2016
Saint-Gobain Construction Products Vietnam (a.k.a. Saint-Gobain Vietnam) -- a subsidiary of Saint-Gobain group of companies, headquartered in France -- has recently been involved in lawsuits with several local enterprises. Huy An Pte. Ltd. -- one of a few major distributors of Gyproc gypsum products in Vietnam until the middle of 2014 -- launched their legal claim to the People's Court of Nha Be district, Ho Chi Minh city in December 2014. A year later, Tong Hy Co., Ltd. -- another selective distributor of Gyproc gypsum products in Vietnam up to Quarter 1 of 2015 -- also raised their voice against Saint-Gobain Vietnam. There have been a couple of reconciliation settlements between Huy An and Saint-Gobain Vietnam but the result is null. A recent verdict from the People's Court of Nha Be district seems in favour of Saint-Gobain Vietnam. As a result, Huy An Pte. Ltd. has lodged its appeal to the higher court of justice -- the People's Court of Ho Chi Minh city. Obviously it's a not-so-nice situation for Saint-Gobain Vietnam since most of their long time committed friends are now becoming foes


Until the middle of 2015 Saint-Gobain Vietnam has restricted the number of its distributors of Gyproc gypsum products in Vietnam to a mere 4 - 5. Among them are (1) Vinh Tuong Industrial Corp. (abbr. VTI); (2) Thanh Binh Co. Ltd., (3) Tong Hy Co. Ltd., and (4) Huy An Pte. Ltd. Of which VTI is always Saint-Gobain Vietnam's most favour distributor due to a special deal since late 2007 / early 2008. 


Thai Gypsum PLC started the mass production of plasterboards in the late 1960's in Thailand. Their products became popular to the Vietnam construction building industry in the early 1990's via its initiator -- Huy An Pte. Ltd. In late 1999 BPB group of companies, UK base -- the largest gypsum board manufacturer in the world with its renown Gyproc trademark -- controlled Thai Gypsum PLC. In late 2005, BPB group was fully acquired by Saint-Gobain group. In late 2007, Saint-Gobain group made their stronger presence in Vietnam by acquiring 100% the gypsum wallboard manufacturing plant from VTI located in Hiep Phuoc industrial park, Nha Be district, Ho Chi Minh city. From early 2008 until end of 2014 -- via BPB Placo SAS, a French founded subsidiary of Saint-Gobain group -- the global giant has about 15% stake at VTI's business. In early 2015 Saint-Gobain group increased their holdings in VTI to 57%, thus actually controlling the biggest distributor of gypsum boards and metal frames used for drywall partition and ceiling systems in Vietnam.


Over the years, Saint-Gobain Vietnam have roughly maintained a nearly 50% market share of gypsum boards sold in Vietnam. Its major competitor in Vietnam is Lafarge Boral Gypsum in Vietnam (from 2007-2011) -- a 100% foreign invested firm -- whose name later changed to Boral Gypsum Vietnam (2012-2013), and finally converted to USG Boral Gypsum Vietnam (2014-now). By end of 2015, the estimated market share in Vietnam is split among three manufacturers: USG Boral Gypsum Vietnam (50 - 55%), Saint-Gobain Vietnam (40 - 45%), and Knauf Gypsum Vietnam (less than 5%).  
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