The Tokyo-based company said in a recent statement that Hataphar, formally Ha Tay Pharmaceutical Jsc, was the second largest drug company in Vietnam last year and the deal would help it get a foothold in Southeast Asia as part of its international expansion.

Le Xuan Thang, CEO of Hataphar, told VnExpress that the company would issue an additional 5.28 million shares equivalent to a 20 percent stake at a price of VND370 billion ($16 million).

The Japanese company would buy the remaining 4.9 percent from existing shareholders, he added.

Hataphar plans to use the proceeds to build a VND1.35 trillion ($58.2 million) plant in Hoa Lac Hi-Tech Park in Hanoi. Construction is set to begin in the last quarter of next year.

It reported revenues of VND915 billion in the first half, up 1 percent year-on-year, while post-tax profits grew by 6 percent to VND52.5 billion.