SM Entertainment, South Korea's leading entertainment agency, which also operates as a music label, said Monday it has forged a partnership with a Vietnamese company to advance deeper into the Southeast Asian market.

SM and Vietnam's IPP Group (IMEX Pan Pacific Group) signed a memorandum of understanding (MOU) on cooperation for the SM artists' foray into the Vietnamese market and joint cultivation of local talent in Seoul on Thursday.

In this photo provided by SM Entertainment, IPP Group Chairman Johnathan Hanh Nguyen (L) and Kim Young-min, CEO of SM Entertainment, pose for the camera after singing a memorandum of understanding in Seoul on May 10, 2018. (Yonhap)

IPP Group is a diversified conglomerate that controls a majority of the Vietnamese market in distributing foreign brands such as Chanel, Burberry, Ralph Lauren, Rolex, Cartier, Burger King and Domino's Pizza.

"IPP Group would be of great help in SM's foray into the Vietnamese market as the best business partner to cultivate various content and brands," said SM Entertainment CEO Kim Young-min. "We will also recruit and grow local artists into global stars." (Yonhap)