Korean firm invests in Vietnam car-wash chain
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South Korean oil refiner GS Caltex Corp has bought an 11.56 percent stake in car-wash startup Vietwash for $1.7 million. Nguyen Thanh Duong, founder of Vietwash, said the money would be used to double the number of outlets to over 100 in the next few years.
It now offers car and motorbike wash services at 51 locations in Ho Chi Minh City and central Da Nang City.
Hur Joon-hong, GS Caltex executive vice president, said his company would help Vietwash develop an automatic car maintenance system and expand.
Vietwash, which began operations in 2014, claims to be the first car-wash chain in Vietnam and serves 1.3 million customers a year.
In 2016 it received an investment of $1 million from private-equity firm Vietnam Investments Group. GS Caltex has been selling vehicle lubricants in Vietnam since 2017.
Questions & Answers
Q.What is the primary objective for Vietwash following this investment?
What is the primary objective for Vietwash following this investment?
Vietwash plans to use the investment from GS Caltex to double its number of outlets. The goal is to expand its current 51 locations to over 100 in the next few years, offering car and motorbike wash services.
Q.How will GS Caltex contribute beyond its financial investment?
How will GS Caltex contribute beyond its financial investment?
GS Caltex will provide assistance to Vietwash in developing an automatic car maintenance system. Also, the South Korean oil refiner will support Vietwash's overall expansion efforts within Vietnam.
Q.What previous investment has Vietwash received?
What previous investment has Vietwash received?
Vietwash received a prior investment of $1 million in 2016. This funding came from Vietnam Investments Group, a private-equity firm, two years after Vietwash began its operations.
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