55-Year-Old Food Company Pivots to Real Estate Development

Hanoi, Vietnam – A food company with over 55 years of history in the Ha Dong district of Hanoi has officially changed its name to Ramond Real Estate Joint Stock Company, signaling a significant pivot from food production to real estate development. The company, which had been operating on rental income from its factory premises after ceasing production, plans to undertake a major real estate project. The Board of Directors of Food Joint Stock Company (FCC) recently approved the new name, Ramond Real Estate Joint Stock Company, along with amendments to its charter concerning the company name, email address, and business sector. These changes follow an extraordinary general meeting of shareholders on August 28, 2026, which approved the company's name change and its plan to invest in a high-end service and residential complex at 267 Quang Trung Street, the current site of FCC's headquarters and factory. The proposed project is a 38-story building with three basement levels, comprising 896 apartment units and nearly 17,000 square meters of commercial and service space. It is designed to accommodate a population of 3,225 people. The total investment is estimated at VND 3.169 trillion (approximately $130 million USD), with the investor contributing 20% and the remainder to be financed through loans from credit institutions. Construction is slated to begin in the first quarter of 2027, with completion expected in the third quarter of 2032. During the same meeting, shareholders also approved three separate private placement proposals to raise capital for different purposes, all at a price of VND 10,000 per share. One proposal aims to raise VND 635 billion ($25 million USD) by issuing 63.5 million shares for the real estate project, a tenfold increase in outstanding shares. Potential investors include Bolt Holdings JSC, Finra Capital JSC, and Hicorp One Member Co., Ltd. The other proposals include raising VND 40 billion ($1.5 million USD) for working capital and VND 700 billion ($26 million USD) for financial investment activities. FCC's predecessor, Food Joint Stock Company, was a state-owned enterprise established in 1969 under the Ministry of Trade. It began production in 1971, manufacturing bread, noodles, and candy. The company later expanded into draft beer production in 1989, with capacity increasing significantly over the years. By 2005, it had also introduced bottled beer production. However, facing declining demand and intense competition, bottled beer production ceased in March 2010. By 2020, the company had officially halted all beer production activities to address losses, reorganizing its workforce and providing severance packages to laid-off employees. According to FCC's 2025 financial statements, its revenue was nearly VND 9 billion ($330,000 USD), solely derived from service provision, primarily through rental agreements for retail kiosks. The company reported accumulated losses of VND 55.4 billion ($2 million USD) by the end of 2025, against a charter capital of VND 60 billion ($2.2 million USD). This strategic shift by FCC reflects a broader trend in Vietnam's economy, moving from traditional manufacturing towards service industries, particularly real estate development. This transition is facilitated by the government's focus on economic growth within a stable one-party political system, which allows for greater corporate flexibility. Such moves also contribute to the diversification of the domestic economy, potentially influencing Vietnam's economic relations with China by reducing reliance on specific sectors.