Ve Wong Corporation

Ve Wong Corporation

Ve Wong Corporation is a Taiwanese company in operation since 1959. 1 The company has four business divisions: Food, Trading, Construction, and General Develop­ment. The company operates four distribution centers, 25 sales offices and two plants in Taiwan; three other plants are located overseas. In order to ensure acquisition of the raw materials required to produce monosodium glutamate (MSG) in a country with limited land area, the company jointly estab­lished the Thai Fermentation Industry Co., Ltd. with the KSL Group in 1966. 2   The main raw materials necessary for MSG production, the company’s main product, are tapioca starch and sugarcane.3

In August 2006, the Ministry of Agriculture, Forests and Fisheries (MAFF) awarded two ELCs in BotumSakor and SreAmbel dis­tricts of Koh Kong province to Koh Kong Plan­tation Co. Ltd (KKPC) and the Koh Kong Sugar Co. Ltd. (KKSI) for industrial sugar production. 4 Both companies were formed out of a partnership between KSL Group of Thailand, Ve Wong Corporation of Taiwan and Senator Ly Yong Phat. 5 KSL currently holds a controlling 70 percent ownership stake in both companies 6 and Ve Wong Corporation holds a 30 percent stake. 7 Ly Yong Phat reportedly sold his shares to KSL in 2010.8

Campaigns against Ve Wong

Due to Ve Wong’s alleged involvement in land grabbing in Cambodia, NGOs in Taiwan initiated a campaign against the company.  In 2011, protestors held a demonstration in front of Ve Wong head office in Taipei to draw attention to the impacts of the Koh Kong sugar concessions. After the protest, Ve Wong issued a statement saying that while the company held 30% of the shares in the Cambodian companies, Koh Kong Plantation Co. Ltd. and Koh Kong Sugar Industry Co. Ltd, “our Thai partners are in charge of the daily operations of the companies and have never informed us about what the human rights groups have stated.” 9

 

 

Show 9 footnotes

  1. Ve Wong Corporation website, “Company Profile,” at: http://www.asian-food-supplier.com/company-profile.htm (accessed June 19, 2013).
  2. KSL Group Website, “About Us:  KSL Group Business Network,” 2003, at:http://www.kslgroup.com/aboutus.html (accessed June 20, 2013).
  3. Ibid.
  4. Agreement for Plantation of Sugar Cane, and Processing Factory of Sugar Cane Between the Ministry of Agriculture, Forestry and Fisheries and Koh Kong Sugar Industry Company Ltd (KKSI ELC Agreement), 02 August 2006; and Agreement for Plantation of Sugar Cane, and Processing Factory of Sugar Cane Between the Ministry of Agriculture, Forestry and Fisheries and Koh Kong Plantation Company Ltd (KKPC ELC Agreement), 02 August 2006.  Available at:http://www.opendevelopmentcambodia.net/company-profiles/.
  5. AraneeJasmin,  “KSL Joins Partners in Cambodia Venture,” Bangkok Post, Aug. 7, 2006.
  6. KSL, “Annual Report 2011,” p. 16.  Available at:http://www.kslsugar.com/contents/files/annualreport/annualreport-en-30042012-130902-686498.pdf.
  7. “Ve Wong response to alleged human rights abuses and seizure of land by sugar companies in Cambodia,” 18 July 2012. Available at:http://www.business-humanrights.org/media/ve-wong-response-re-cambodian-sugar-18-jul-2012-en.doc.
  8. Ibid.
  9. Loa lok-sin, “Cambodian land seizures protested,” Taipei Times, 19 November 2011; available at:http://www.taipeitimes.com/News/taiwan/archives/2011/11/19/2003518692.