South Korean oil refiner GS Caltex Corporation, a 50:50 joint venture between US oil giant Chevron and the local GS Group, this week said it had signed an agreement to acquire a stake in Vietnamese aftermarket services startup VI Automotive Services.
The deal is worth VND39bn (US$1.7m) and gives GS Caltex a 16.5% stake in VI Automotive Service, which operates a chain of around 50 car wash outlets across Vietnam. It is the South Korean company's first direct investment in Vietnam.
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GS Caltex said it initially intends to market its range of automotive lubricants across VI Automotive Service's network.
New vehicle sales in Vietnam declined by just over 24% to 145,689 units the first eight months of 2020 from 192,180 units a year earlier, according to data compiled by the Vietnam Automotive Manufacturers Association. Passenger vehicle sales declined by over 25% year on year to 106,689 units, while commercial vehicle sales were down by just over 20% at 39,000 units.
