Serial Achieva Limited Forms Joint Venture with Viet Son Informatic to Expand IT Distribution in Vietnam

Serial Achieva’s Bold Vietnam Expansion: Joint Venture with Viet Son Set to Unlock New Growth

Key Highlights from the Announcement

Serial Achieva Limited (SAL) has entered a joint venture agreement with Viet Son Informatic Joint Stock Company (Vietson) to form Achieva Vietson Co., Ltd in Vietnam.
The JV company will focus on distributing IT products and peripherals in Vietnam, potentially opening a new revenue stream in a fast-growing market.
Shareholding structure: SAL will own 49% and Vietson 51% of the new company, with initial paid-up capital of US\$100,000.
The board of Achieva Vietson will include top executives from both companies, with SAL’s CEO, Mr. Kenny Sim, serving as chairman.
Unique profit-sharing and bonus share mechanism for Vietson, potentially leading to share issuance and dilution.
Investment by SAL is US\$49,000, funded through internal resources and not expected to materially impact 2025 earnings per share or net tangible assets.
The deal could diversify SAL’s revenue base, reduce reliance on Malaysia and Thailand, and drive long-term growth across Southeast Asia.

Details Retail Investors Must Know

About the Joint Venture

Serial Achieva Limited (SAL), a technology distributor incorporated in Labuan, Malaysia, is making its first direct foray into Vietnam’s booming ICT market. In a newly signed joint venture agreement dated 25 August 2025, SAL partners with Viet Son Informatic Joint Stock Company (Vietson), a prominent Ho Chi Minh City-based IT distributor known for its strong ties with global tech brands like Intel, Asus, and Kingston.

The joint venture company—Achieva Vietson Co., Ltd—will be incorporated in Vietnam with an initial paid-up capital of US\$100,000. SAL will contribute US\$49,000 for its 49% stake, and Vietson will contribute US\$51,000 for its 51% stake. Achieva Vietson will be tasked with distributing information technology products and peripherals, capitalizing on Vietson’s market presence and SAL’s regional expertise.

Board and Management

The board of Achieva Vietson will comprise three directors: SAL’s Group CEO Mr. Kenny Sim (who will act as chairman), Group General Manager Mr. Jason Soh, and Vietson’s CEO and controlling shareholder Mr. Nguyen Van Minh. This balanced leadership aims to leverage experience from both parties for market penetration and operational synergy.

Profit Sharing & Bonus Share Mechanism—Potentially Price Sensitive

Shareholders should pay close attention to the profit-sharing mechanism:

For five years from incorporation, Vietson will be entitled to 49% of Achieva Vietson’s net profit after tax (NPAT). This entitlement will be awarded not in cash, but as bonus shares in SAL—potentially leading to new share issuance and dilution.
Vietson can request the conversion of its NPAT entitlement into SAL bonus shares at any time within the five-year window. The conversion price will be based on the 30-day average trading price of SAL shares and the 3-month average USD/SGD exchange rate just before conversion.
Upon each conversion, Vietson will receive an extra 10% of bonus shares as an incentive.
For the first fiscal year, Vietson’s NPAT entitlement is capped at US\$1 million; future caps will be negotiated annually.
Any unconverted entitlement after five years will lapse, and all bonus shares issued to Vietson will be subject to a 1.5-year moratorium.

This mechanism could trigger share price volatility: The prospect of issuing new SAL shares to Vietson, especially if Achieva Vietson performs strongly, may affect supply-demand dynamics and shareholder value.

Rationale and Strategic Impact

The SAL board believes this JV is a strategic fit and a natural extension of its core consumer products distribution business. By entering Vietnam, SAL diversifies its geographic exposure and revenue streams, reducing reliance on Malaysia and Thailand. This expansion positions SAL for sustainable, long-term growth in Southeast Asia’s fast-evolving tech market.

Financial Impact

The initial investment of US\$49,000 will be funded internally and is not expected to have a material impact on SAL’s earnings per share or net tangible assets for FY2025. However, the long-term potential for revenue and profit growth, combined with the bonus share mechanism, could affect valuation metrics and investor sentiment.

Other Noteworthy Points for Shareholders

None of SAL’s directors or controlling shareholders have any direct or indirect interest in the JV, except for their existing shareholdings in the company.
The company will provide further updates as material developments occur.
A redacted copy of the JVA is available for inspection at the company’s Singapore share registrar for three months from this announcement.

What Could Move the Share Price?

This announcement is potentially price-sensitive. The Vietnam JV could be a catalyst for SAL’s share price if investors view the deal as a gateway to high-growth markets and improved profitability. However, the bonus share mechanism also introduces potential dilution risk, which may temper enthusiasm if Achieva Vietson’s profits surge.

Conclusion

SAL’s joint venture with Vietson marks a decisive step in its regional expansion strategy. Retail investors should monitor future updates on the JV’s performance, the exercise of bonus share entitlements, and any resulting changes to SAL’s capital structure. The success of Achieva Vietson could transform SAL’s growth profile, but the bonus share mechanism could also impact existing shareholders through dilution.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The author and publisher are not responsible for any losses or damages arising from reliance on this information.