TOKYO & HO CHI MINH CITY & HANOI, Vietnam--(BUSINESS WIRE)--Dentsu Inc. (TOKYO:4324)(ISIN:JP3551520004)(President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 58,967.1 million yen) announced today that it will establish a new media agency in Vietnam1, a booming market in the Asia region. Through the new company, Dentsu Media Vietnam Company Limited, the Dentsu Group aims to strengthen and expand its business activities as well as to enhance the Group's presence in Asia. Dentsu Media Vietnam will begin operations in January 2012.
As part of the Group's growth strategy to date, Dentsu has established a network of media agencies, known as the Dentsu Media network, in Taiwan, Thailand, China, Indonesia, Singapore, India, Korea and Hong Kong, to strengthen and expand the Group's media business operations in Asia. Vietnam will also now become part of this initiative.
By fully leveraging Dentsu Inc.'s media services expertise (planning methods, analysis tools, digital business expertise, and sports and entertainment content resources), Dentsu Media Vietnam will work in collaboration with Dentsu's two local brand agencies, Dentsu Vietnam Ltd. and Dentsu Alpha Limited, to enhance full-service capabilities, provide a higher level of integrated solutions to clients and contribute to the further growth and expansion of the Dentsu Group in Vietnam. Together they will proactively develop services that are geared toward regional and local clients.
The impact of this action on Dentsu's consolidated and non-consolidated financial results for the fiscal year ending March 31, 2012 is expected to be minimal.
| 1 | According to the October 2011 edition of Advertising Expenditure Forecasts published by ZenithOptimedia, the size of Vietnam's advertising market in 2010 was US$557 million, an increase of 6.8% from the 2009 figure. The market is further expected to grow 9.4% to US$609 million in 2011, 9.8% to US$668 million in 2012, and 10.3% to US$737 million in 2013. |
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Profile of Dentsu Media Vietnam |
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| Company Name: | Dentsu Media Vietnam Company Limited | |
| Location: |
Hanoi, Vietnam (branch office to be established in Ho Chi Minh City) |
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| Shareholding Ratio: | Dentsu Inc. 90% | |
| Neko Co., Ltd. (advertising agency in Vietnam) 10% | ||
| Date of Establishment: | January 2012 (tentative) | |
| Capital: | 1.1 million U.S. dollars | |
| Legal Representative: | Takeshi Gotoda (Chief Executive Officer) | |
| Number of Employees: | 38 (tentative) | |
| Principal Business: | Media agency business | |
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Profile of Dentsu Vietnam |
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| Company Name: | Dentsu Vietnam Ltd. | |
| Location: |
Ho Chi Minh City, Vietnam |
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| Shareholding Ratio: | Dentsu Asia Pte. Ltd. 80%, Dentsu Tec Inc. 20% | |
| Date of Establishment: | December 2002 | |
| Capital: | 650,000 U.S. dollars | |
| Legal Representative: | Nobuhiko Sasaki (General Director) | |
| Number of Employees: | 63 | |
| Principal Business: | Full-service advertising business | |
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Profile of Dentsu Alpha |
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| Company Name: | Dentsu Alpha Limited | |
| Location: | Ho Chi Minh City, Vietnam | |
| Shareholding Ratio: | Dentsu Inc. 80%, Neko Co., Ltd. 20% | |
| Date of Establishment: | August 2005 | |
| Capital: | 4.4 million U.S. dollars | |
| Legal Representative: | Toshinori Aoki (General Director) | |
| Number of Employees: | 89 | |
| Principal Business: | Full-service advertising business | |
About Dentsu Inc.
Founded in 1901, Dentsu Inc. has
held the position of the world's largest single-brand agency for almost
40 years. Through its unique "Integrated Communication Design" approach,
Dentsu offers multinational clients the most comprehensive range of
advertising and marketing services in the industry. While continuing to
pursue innovation in the digital arena, Dentsu is active in the
production and marketing of sports, movies, anime and other
entertainment content on a global scale. The Dentsu Group has more than
6,000 clients and over 20,000 employees worldwide.
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