Japanese security provider Alsok is set to become a key member in Vietnam’s security industry by investing in the country’s number four player.
Nikkei Asian Review cited sources as saying that the company has decided to buy a 49 percent stake, the limit of foreign ownership in Vietnam, in Royal Hai Phong Security Service in the northern city of Hai Phong.
Alsok, officially known as Sohgo Security Services, opened a subsidiary in Vietnam in 2009 and has been selling security equipment to Japanese companies operating in the country.
The new one billion yen (US$9.75 million) deal is expected to raise the company’s annual revenue to around $10 million, in line with the income for local top security companies in Vietnam.
Alsok plans to put 1,800 security guards at the Hai Phong company through a training program developed in Japan. In the long term, it plans to provide services to Vietnamese companies and local government agencies as well, the sources said.