DNP Forms Business and Capital Tie-Up with MK Smart, Vietnam's Leading Card Manufacturer

Boosting the competitiveness of the smart card business in Southeast Asia

Dai Nippon Printing Co., Ltd. (DNP) is pleased to announce its agreement on March 27 to form a business and capital tie-up with MK Smart Joint Stock Company (MKS), Vietnam's leading company in manufacturing and sales of smart cards and business forms. The two companies hereafter will be jointly cultivating the market of smart cards and related products mainly in the Southeast Asian region but also in the rest of the world.

[Backdrop to Tie-Up]

DNP has been leading Japanese smart card business by developing software, in addition to manufacturing and issuing the cards ever since 1981. DNP has been providing smart cards and related systems to the finance, communications, and retail distribution business fields as Japan's top smart card vendor.

On the other hand, MKS is Vietnam's one and only vendor approved as a manufacturer and personalizer of credit cards with global brands, and supplies smart cards and other related services to financial and communication companies in Vietnam as the leading manufacturer in the country.

In recent years, the Southeast Asian region has seen the increased use of smart cards for different purposes, such as credit cards, pre-paid cards, SIM cards for mobile phones, transport tickets, and expressway toll collecting (ETC) cards. A rapid growth of the market is, therefore, anticipated. In addition, more and more Japanese companies are launching their operations in this region. By forming a tie-up, DNP and MKS will meet the growing demand in the Southeast Asian market. DNP will offer its advanced technologies relating to smart cards to MKS in order to boost its competitiveness in the global market.

With respect to business process outsourcing (BPO), which will be in higher demand in Vietnam, MKS and DNP will respond as follows: MKS's factories in Hanoi and Ho Chi Minh will be effectively utilized, and DNP's expertise in the BPO business operations in Japan will be offered in order to speed up their business expansion.

[Summary of the Tie-Up]

DNP will acquire 36.33% of MKS's issued shares. DNP and MKS will reciprocally take advantage of each other, especially in regard to DNP's expertise in smart card production and software development and MKS's card manufacturing capacity, to carry out business collaboration as described below.

  • DNP will offer its latest smart card production and development technologies to MKS while MKS will engage in manufacturing and sales of smart cards in Vietnam.
  • DNP will commission MKS to manufacture products in response to orders that DNP receives from Japanese companies operating in Southeast Asia.

[Overview of MKS]


Nguyen Trong Khang, Chairman

Head Office

Quangminh Industrial Zone, Melinh, Hanoi, Vietnam


Hanoi and Ho Chi Minh

Date of Establishment

January 24, 2003


100 billion Vietnamese dong (non-listed)


Manufacturing and sales of cards and business forms

* Factories approved by VISA and MasterCard

[Future Developments]

DNP and MKS will be providing Japanese, local and other global companies in financial, communication, retail distribution, transport and other sectors chiefly in the Southeast Asian region as well as in the rest of the world with cards, including smart cards and business forms, and engaging in joint development of products matched with the needs in the region.

DNP aims to achieve sales of 0.4 billion yen in the initial year and cumulative total sales of 6.5 billion yen for a period of five years that ends in 2018 in the smart cards and related products' business of the Southeast Asian region.


* Product prices, specification and service contents mentioned in this news release are current as of the date of publication. They may be changed at any time without notice.