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  • Samsung, Vinpearl, Vinamilk among most popular recruiters in Vietnam

    Vinamilk, Vinpearl, Samsung Electronics HCMC and McDonald’s are among the most popular recruiters in Vietnam this year, according to recruitment platform CareerViet.

    The top five recruiters in the large business category are Vinamilk, Vinpearl, Samsung Electronics HCMC CE Complex, Masan Consumer and FPT IS, while the top five in the medium business category are McDonald’s, Guardian, Prep Technology, Nabati and Petrovietnam Securities Incorporated (PSI), according to a CareerViet survey on over 5,720 businesses from July 7 to October 31.

    Vinpearl is the leading recruiter in food and beverage, accommodations and tourism, while the Hoa Sen group is the leading recruiter in construction, architecture and interior design. PNJ is the leading recruiter in retail, while Bim Group is the leading recruiter in real estate.

    Popular recruiters are liked not only due to their attractive benefits, diverse working environments and incentives for personal development, but also thanks to their own brands, CareerViet said.

    The survey also revealed that while Gen X workers prioritize stability and long-term benefits, Gen Y values development and work-life balance while Gen Z focuses more on flexibility, salaries and personal development.

    83% of Gen Z workers surveyed said the main factors for them choosing their jobs are salaries and benefits, followed by working styles. They prefer workplaces that ensure holiday bonuses, have shorter working hours or offer hybrid working methods.

    “They love a job with high incomes and ensures flexibility. 90% of Gen Z workers want to be trained in new skills, including communication, problem-solving, foreign languages, management and leadership,” said Tran Lien Phuong, director of research and strategic consulting at Amco Vietnam.

    Workers’ perspectives from different generations will by a key factor for businesses to improve their HR policies, CareerViet said, adding that a workplace with different worker generations will help make it more competitive.

    “A business’s success is not only shown through its business performance, but also policies to attract, keep and develop talents,” CareerViet said.

  • Vinamilk, Kido pull plug on bottled water joint venture

    Vinamilk, Kido pull plug on bottled water joint venture

    The Vinamilk – Kido Beverage Joint Venture Company has announced its dissolution after just a year of doing business.

    Vinamilk, the country’s largest dairy company, decided to end its joint venture with ice-cream producer Kido with effect from December 1 due to “certain changes in the development perspective of both parties.”

    Kido gave a similar statement, elaborating that the unpredictable changes in the domestic market and global economy were also a factor.

    Vibev was registered in March 2021, and started out with an investment of VND400 billion (US$16.3 million).

    Vinamilk held a 51% share and Kido the rest.

    Mai Kieu Lien, CEO of Vinamilk, had said then that the collaboration stemmed from the two companies seizing mutually beneficial opportunities.

    Several months by the Covid pandemic had delayed its product launch, but the company had ambitious goals like maintaining its dominant share in the bottled water market and producing 150 million bottles annually (equating to sales of VND2 trillion) within five years.

  • Vinamilk shares experience in exploring powdered milk market

    Vinamilk shares experience in exploring powdered milk market

    Dielac powdered milk has changed the habit of Vietnamese consumers who used to prefer foreign goods by well addressing the nutritional needs of children.

    Nguyen Quang Tri, Vinamilk’s executive director of marketing, brought the success story of Dielac powdered milk to the 6th Global Dairy Congress Asia 2022, taking place on October 27-28 in Singapore.

    Vietnam’s dairy industry has an estimated net worth of nearly $6 billion, led by Vinamilk for decades. Dielac – a popular mass formula brand for children has contributed significantly to the development journey of the dairy giant.

    In the 33 years since the production of the first batch, Dielac has consistently led the market, despite stiff competition from many foreign and domestic brands. The company focuses on three criteria to win consumers’ hearts: quality, innovation, and love.

    The main point of Dielac’s story is its attempt to satisfy consumers’ needs.

    According to Tri, Vietnamese people are inherently not confident about domestically produced products and tend to be more appreciative toward imported brands which leads them to pay a premium price.

    Even in the low-income group, buyers always assume that higher price dairy products signal higher quality due to the mentality that cheaper products are not good.

    On the other hand, there is competition between dairy companies in adding ingredients with a variety of benefits, from physical to mental growth.

    Dielac recognized the challenging competition while positioning itself as a low-cost domestic brand in a market that was becoming more upscale. To establish its position, the company addressed consumers’ fundamental demand: nutrition for children.

    The founders have always had a goal in mind: infant formula should contain ingredients and nutrients that are as close to breast milk as possible.

    To create a product that is appropriate for the physical needs and specialized nutritional needs of Vietnamese children, Vinamilk cooperates with international organizations that specialize in micronutrients and microbiology.

    Over three decades, Vinamilk has faced many challenges.

    The most notable milestone was in 1976 when Vinamilk took over old, “good for nothing” factories with outdated equipment that required full repair and reassembling.

    At that time, Vietnam was also lack of a dairy sector that left Vinamilk no choice but to maximize internal capabilities for production

    In 2009, the company collaborated with the National Institute of Nutrition (NIN) to conduct a large-scale clinical study with 50,000 children, proving the quality of Dielac products.

    Another research conducted by Vinamilk that year revealed that 96% of Dielac consumers were satisfied with the milk quality.

    In 2022, the company continued to affirm its position in providing parents with a long-term nutritional solution to support their children’s growth and development.

    Dielac has adopted new modern technology in production, applying advanced formulas in its products to compete with imported brands fairly.

    The manufacturer is keen on innovating and upgrading product quality, developing new brands, and expanding the categories to meet consumers’ demands, as well as providing diverse solutions for children’s nutritional needs.

    Taking advantage of its farms, factories, and across-the-country supply chain system, Vinamilk is able to price its products to be affordable for consumers from different backgrounds.

    These strategies have contributed significantly to the formation of “Dielac brand love” and made the milk brand trusted by generations. Babies who were fed with Dielac milk in 1989 now continue to provide the younger generations with the same beloved products.

    According to Mai Kieu Lien, Vinamilk’s general director, “the affection towards the brand is nurtured by the enthusiasm of the development team.”

    Dielac is built upon three key factors: the love of a mother – providing the child’s basic needs; the heart of a Vietnamese – wanting to contribute to reducing children’s malnutrition rate and enhancing their physical and intellectual conditions, and the entrepreneur’s enthusiasm – building the dairy industry as advanced as in other developed countries.

    The Global Dairy Congress Asia 2022 attracted more than 250 participants, and more than 30 speakers from organizations, and dairy enterprises of more than 10 Asian countries.

    The program had five discussion sessions focused on the latest trends in the dairy industry, new business models, advanced technologies and equipment as well as applicability in the industry value chain (farm management, milk processing, product innovation, and so on).

    The event also offered an opportunity to explore the dairy market’s prospects in Asia. Vinamilk was the only Vietnamese dairy company invited to present at the Congress

    Caroline Emond, Director General of the International Dairy Federation (IDF), said she was inspired by Dielac’s 33 years of journey.

    According to the IDF representative, after recognizing its main challenge, Vinamilk has found a way to tackle it and deliver what customers want and build a strong organization from there.

    Caroline stressed the significance of the approach in enhancing consumers’ affection for a brand. Only when convinced by the product’s value, the strong reputation and trustworthiness of brand, they will make the buying decision.

    The global dairy industry is experiencing rapid growth due to the rising population, increasing nutritional needs, and higher average income.

    With a population of more than 4.5 billion, emerging Asia plays a significant role in global milk production and consumption, according to experts at the conference.

    In 2021, Asia led in production with 33% of the global number. The amount of milk produced last year, which was 749 billion kilograms, will see a marginal rise this year as a result of socioeconomic development, healthy lifestyle initiatives, consumer health concerns, and changes in daily diet.

    According to Euromonitor International, the dairy market in Vietnam would grow by 12.8% from 2023 to 2025. The high-end market will continue to expand since this group has not been much affected by the pandemic in term of income, hence their consumption habit remains the same as before.

  • Vinamilk profits continue to fall

    Vinamilk profits continue to fall

    Vinamilk reported a 26-percent year-on-year fall in second-quarter profits to VND2.1 trillion (US$89.97 million), and blamed it on inflation driving demand down and costs up.

    The dairy giant’s revenues fell by 5 percent to VND14.93 trillion.

    In the first five months sales of fast moving consumer goods fell by 2 percent, according to data from market research firm Nielsen.

    Vinamilk also struggled to maintain its dominance in the domestic market and saw exports drop by 12 percent due to lower global demand and higher transport costs.

    However, its profit margin rose by 0.2 percentage points from Q1, the first increase since 2020.

    Besides, its U.S. and Cambodian subsidiaries, Driftwood and Angkormilk, reported sales growth of 40 and 20 percent.

    This year it expects profits to decline by 7 percent, a second straight year of falling profits, due to rising costs of raw materials and transportation.

    But securities brokerages said lower milk powder prices would increase the profit margins for the dairy industry this year, including for Vinamilk.

    SSI Securities expects the company’s net profits to rise by 11 percent, while VnDirect Securities forecast a 7.5-percent increase.

  • Vinamilk profits to decline for 2nd year in a row

    Vinamilk profits to decline for 2nd year in a row

    Vinamilk is set to see profits decline for a second straight year in 2022 due to rising costs of raw materials and transportation.

    Vietnam’s leading dairy company targets pre-tax profits of VND12 trillion ($524.70 million), down 7 percent from last year, though revenue is likely to grow by 5 percent to VND64 trillion. Last year, profits were down 4.4 percent from a record VND13.52 trillion in 2020.

    The company said that last year it faced many challenges including a shortage of raw materials and rising prices of animal feed and transportation.

    Animal feed prices jumped 30-40 percent last year and are set to continue to rise this year, it said. Transport costs rose by 20 percent domestically and 500 percent globally, it said. The Covid-19 pandemic also made milking difficult due to prolonged social distancing, while the rising costs of animal feed forced farmers to switch to other vocations, it added.

    But the dairy giant aims reach a profit of VND16 trillion in 2026, up 33 percent from 2022. It targets revenues of VND86.2 trillion in 2026. Vinamilk plans to achieve these targets by stepping up research into new products and using new technologies for sustainable livestock farming.

    It also eyes new growth opportunities through mergers and acquisitions and new investments. Last year its exports rose 18 percent to VND1.8 trillion and went to 57 countries and territories. Vietcombank Securities said in a recent note that Vinamilk does not have much potential for growth in the next two or three years. The segment with the most growth potential in the next two years is beef, and it plans to start importing the meat from Japan this year.

  • Vinamilk ramps up R&D to win big globally

    Vinamilk ramps up R&D to win big globally

    The Vietnam Dairy Products JSC is stepping up R&D to create innovative products enriched with local flavors to satisfy the diverse range of global tastes.

    With its strategic investment in product development, international expansion, and commitment to sustainability, Vinamilk has become the only Vietnamese dairy company in the top 50 global dairy producers. This year it is ranked 36th.

    Vinamilk’s R&D efforts have developed customized products tailored to the Asian, African, and Middle Eastern markets despite the challenges of limited research data in some of these regions.

    Starting with only one infant cereal SKU, the company has since successfully developed and established 66 SKUs in multiple markets. One of Vinamilk’s successful innovative products is the Ridielac infant cereal with banana and date flavors.

    Launched in the Middle East five years ago, this infant cereal with a distinctive local flavor has been well received, and it underpinned the subsequent penetration into North Africa.

    The dairy giant has also fortified its African products with vitamin A and minerals to help tackle the challenge of vitamin A deficiency. This problem threatens 42.4 percent of sub-Saharan African children with an increased risk of mortality.

    In the Middle East, which accounts for 80 percent of Vinamilk’s export revenues, the company’s localized Ridielac is a favorite among locals, especially for the variety in flavors that enables people to switch their babies’ daily diet regularly.

    In Asia, Vinamilk has introduced sweetened condensed coconut milk in Japan to address the demand for plant-based milk amid local consumers’ dairy allergies.

    “Our long-term relationship with Vinamilk was built upon accurate and flexible export services and high-quality products meeting all Japanese standards,” Jun Hamada, Vinamilk’s Japanese partner, said.

  • Vinamilk leaps six notches in Top 50 global dairy companies

    Vinamilk leaps six notches in Top 50 global dairy companies

    Vinamilk has climbed six ranks to 36th in the top 50 world dairy producers with the highest turnovers, according to Plimsoll, a British financial analysis agency.

    With revenue of $2.6 billion in 2020,Vinamilk is the only representative in Southeast Asia to be listed among the Top 50 leading dairy companies in the world. The top 10 include firms from the U.S., New Zealand, Europe, and China.

    In 2017, Vinamilk made the list for the first time. After four years, the company’s revenue has continuously improved in the chart rankings. In 2020, despite Covid-19 impacts, Vinamilk still posted a 5.9 percent increase in revenue over the same period in 2019 and 17 percent compared to 2017, rising six ranks on the world dairy industry map.

    A report from Nielsen also shows Vinamilk is leading the domestic dairy market in key segments, including liquid milk, powdered milk, and condensed milk. Vinamilk has recently introduced new products to consumers, including Vinamilk Green Farm fresh milk, fresh milk with bird’s nest, premium juice Fruit Love, and Hero fruit milk. With a wide variety of new and quality products that meet diverse nutritional needs, the Vinamilk brand has been the most chosen by Vietnamese consumers for eight consecutive years, according to Kantar Worldpanel’s Asia Brand Footprint 2020.

    Vinamilk currently owns 13 factories, 13 farms, with a herd of about 150,000 cows, producing more than 250 types of products.

    The company has exported its products to 56 countries and territories, with a total turnover of more than $2.4 billion. Since 2017, Vinamilk’s export revenue has grown continuously along with the expansion of new export markets.

    In the first quarter of 2021, Vinamilk’s export revenue increased by 7.9 percent over the same period last year.

    To rank higher on the world dairy industry map, Vinamilk has promoted corporate governance and sustainable development as its focal points in the future direction.

    A sustainable development strategy aims at ensuring sustainable values for the economy, society, and environment.

    Mai Kieu Lien, general director of Vinamilk, said the company would maintain stability in production and business and further promote cohesion and value sharing with stakeholders.

    “At Vinamilk, sustainable development will be oriented towards advanced models of the world dairy industry. Specific action plans and initiatives would be implemented along all parts of the value chain, from research and development, farm systems, factories to supply,” Lien maintained.

  • Investors fail in plans to increase Vinamilk stake

    Investors fail in plans to increase Vinamilk stake

    Vietnam’s sovereign fund and two Singaporean investors failed to acquire stakes in dairy giant Vinamilk this month as they had planned. A subsidiary of the State Capital Investment Corporation (SCIC) was unable to buy 225,000 VNM shares, or a 0.01 percent stake, due to “market volatility”, according to a Vinamilk statement on Friday.

    SCIC is the largest shareholder in Vinamilk with a 36 percent stake. F&N Dairy Investments Pte Ltd failed to buy 17.41 million shares, or nearly 1 percent, between July 17 and August 14. It already owns 17.69 percent.

    Another company, Platinum Victory Pte Ltd, too failed to buy a nearly 1 percent stake and its ownership stays at 10.62 percent. Both Singaporean companies have registered again to buy in September. They have been seeking to increase their stakes in Vinamilk repeatedly since early 2018 but in vain.

    Vinamilk saw first-half pre-tax profit rise by 3 percent year-on-year to over VND7 trillion ($302 million). CEO Mai Kieu Lien said earlier the company had stocked ingredients so that it could have an advantage when the trade is disrupted by travel bans. The company, which holds half the Vietnamese dairy market, last year acquired a majority stake in a competitor, Moc Chau Milk, and has recently announced plans to set up a cafe chain in Vietnam and increase its investment in a Laotian subsidiary.

  • Vinamilk signs $20 mln Dubai export contract

    Vinamilk signs $20 mln Dubai export contract

    Vinamilk has signed a $20 million deal with a distributor in Dubai to supply dairy products from the second quarter of 2020.

    Vietnam’s biggest dairy company said in a statement that the deal with the distributor, whom it did not identify, was signed at the Gulfood Dubai 2020 trade exhibition this week.

    The Middle East currently accounts for 75 percent of Vinamilk’s exports. Its other major foreign markets are Japan, South Korea, Singapore, and China.

    Vinamilk, one of the world’s 50 largest dairy producer, saw its export revenues rise 14.8 percent last year to VND5.17 trillion ($223 million).

  • Vinamilk acquires majority stake in competitor

    Vinamilk acquires majority stake in competitor

    Vietnam’s biggest dairy company Vinamilk has acquired a majority stake in Moc Chau Milk, entrenching its market dominance.

    Vinamilk, formally Vietnam Dairy Products Jsc, has increased its ownership in GTNfoods from 43.17 percent to 75 percent, the dairy giant said in a recent statement. GTNfoods own a 51 percent stake in Moc Chau Milk, the biggest dairy producer in the north.

    The majority of shares were bought on December 18, when the Ho Chi Minh Stock Exchange recorded almost VND1.8 trillion ($77.54 million) worth of GTN shares being acquired at the price of VND22,800 (98 cents) per share, 5.5 percent higher than market value.

    Vinamilk made the acquisition two days after shareholders of GTNfoods approved the sale. In March, the board of GTNfoods rejected Vinamilk’s proposal to increase ownership.

    Analysts say that the deal will expand the ecosystem of Vinamilk amidst slower growth. Moc Chau Milk accounts for 9 percent of the market, which would take Vinamilk nine years to gain at its current expansion rate, according to stock brokerage Saigon Securities Inc (SSI).

    Vinamilk accounts for over half of the dairy market. In the third quarter, it posted revenues of VND14.29 trillion ($615.58 million), up 4 percent year-on-year, against a target of 7 percent.

    Vietnam’s dairy output rose 6.9 percent to 936,000 tons last year, and is set to rise to one million tons next year and two million tons by 2030, according to the Ministry of Agriculture and Rural Development.

    The firm exports dairy products to 46 markets with 70 percent going to the Middle East.

  • One percent Vinamilk stake out of reach for Singaporean investors

    One percent Vinamilk stake out of reach for Singaporean investors

    Two Singaporean investors in Vinamilk have failed repeatedly to increase their stake in the dairy giant by one percent.

    In the latest instance, investment firm Platinum Victory has once again failed to increase its stake, Vinamilk said Monday.

    The Singapore-based company has been unable to increase its stake from 10.62 percent to 11.62 percent as of November 15 “due to unfavorable market conditions,” the Vinamilk statement said.

    Platinum Victory, a unit of Singapore’s leading diversified conglomerate Jardine Cycle & Carriage, has immediately registered again to buy the 1 percent stake between November 21 and December 20, Vinamilk added.

    Since early last year, another Singapore-based company, F&N Dairy Investments, which is the largest foreign investor in Vinamilk at 17.31 percent, has also been unsuccessful in repeated attempts to raise its stake by one percent.

    Vinamilk is among the largest listed companies in the country with a market cap of VND208.96 trillion ($9 billion). From January to September, the company’s after-tax profit rose 5.8 percent year-on-year to VND7.92 trillion ($341.5 million). The state is its largest stakeholder at 36 percent.

    Platinum Victory had last month proposed to spend $60 million on increasing its stake in Vietnam’s industrial appliance maker REE from 24.9 percent to 35.01 percent.

  • GTN Foods rejects Vinamilk acquisition bid

    GTN Foods rejects Vinamilk acquisition bid

    Vinamilk’s bid to acquire a 49 percent stake in GTN Foods, which owns 51 percent of Moc Chau Milk, has been rejected. The board of GTN Foods passed a resolution turning down the public offer made by Vinamilk, Vietnam’s largest dairy company. It would have increased Vinamilk’s stake in GTNFoods from 2.32 percent to 49 percent.

    The offer was for 116.7 million shares at VND13,000 (56 cents) per share for a total value of VND1.5 trillion ($64.5 million).

    At the meeting March 23, the board was evenly split with three directors each supporting and opposing the Vinamilk bid. But the chairman Ta Van Quyen had the casting vote and he voted against the offer.

    In a report filed to the State Securities Commission, the company explained that Vinamilk is a direct competitor of Moc Chau Milk, one of its main subsidiaries.

    The acquisition and resulting 49 percent stake would have made Vinamilk a principal shareholder. GTN indirectly owns 51 percent of Moc Chau Milk through its subsidiary the Vietnam Livestock Corporation (Vilico).

    Besides, Vinamilk had only registered its public offer but had not written to GTNFoods about the plan, direction or strategy to contribute to the development of the company, it said. “They have not given us sufficient grounds to agree to the public offer.”

    Moc Chau has the biggest dairy farm in the north, and in recent years has been a major revenue earner for GTN.

    Vinamilk has a 58 percent share of the dairy market and Moc Chau, around 2.7 percent, according to international consumer statistics firm Kantar Worldpanel.

    Vietnam’s dairy industry reported revenues of more than VND100 trillion ($4.4 billion) in 2017, with Vinamilk commanding more than a 50 percent market share.

    According to a report by the EU-Vietnam Business Network, the market is expected to double in size by 2020 as the country’s population, personal incomes and dairy consumption increase.

  • Vinamilk to open plant in Myanmar, its 2nd in Southeast Asia

    Vinamilk to open plant in Myanmar, its 2nd in Southeast Asia

    Vietnam’s biggest dairy company plans to open a plant in Myanmar this year and is preparing to enter Indonesia and China. The Myanmar factory will be Vinamilk’s second in Southeast Asia after acquiring its first in Cambodia. It is in discussion for one joint venture in Indonesia. Myanmar is one of Vinamilk’s strategic markets to offset declining revenues in the Iraqi market, which once accounted for 60 percent of its exports. In 2017, Vinamilk reported falling exports for the first time in 20 years due to political tensions in the Middle East.

    In the latest year for which export figures are available, 2017, it shipped products worth VND7.4 trillion ($312 million), a 4.2 percent decline from the previous year.

    The company is also preparing to enter the Chinese market later this year. Chinese authorities are expected to sign a draft protocol in April this year allowing Vietnamese dairy products to be exported.

    Vinamilk is planning a change in export strategy.

    “The company will move from traditional exports to intensive cooperation with distribution partners in new key markets, and gradually build production facilities in potential markets such as Myanmar,” Vinamilk chief executive Mai Kieu Lien told shareholders in 2018.

    She added that the company has set aside $750 million for acquisitions, building new facilities and setting up cattle farms between 2017 and 2021.

    It now has 13 plants and 10 dairy farms in Vietnam, a plant each in the U.S., New Zealand and Cambodia and a subsidiary in Poland.

    In all, it has three wholly-owned foreign subsidiaries: Driftwood Dairy Holding Corporation in the U.S, Angkor Dairy Products Co., Ltd, in Cambodia, and Vinamilk Europe Spo’stkaz Ograniczona Odpowiedzialnoscia in Poland.

    It holds a 22.81 percent stake in a joint venture with Miraka Dairy in New Zealand and has a Thailand-based trading office.

    Last year the company paid $19.74 million to buy a 51 percent stake in Laotian company Lao–Jagro Development Xiengkhouang Co., Ltd, to set up a series of hi-tech beef and dairy farms based on Japanese technology.

    Vinamilk’s products are available in 46 countries and territories, including some demanding markets such as Japan, the U.S., Australia, New Zealand, and Canada.

    Last year the company reported profits before tax of VND11.52 trillion ($499.26 million), up 12.05 percent from the previous year, on revenues of VND52.63 trillion ($2.28 billion), down 2.93 percent.

  • Vietnam’s top five brands increase value by $2.3 billion

    Vietnam’s top five brands increase value by $2.3 billion

    Vietnam’s five most valuable brands were worth a combined $8.1 billion in 2018, up $2.3 billion or 39 percent against 2017, Brand Finance estimated. The most valuable brand was military-owned mobile network Viettel at $2.8 billion last year, up 9 percent from $2.57 billion 2017, said the UK brand valuation company. The 47th most valuable telecom brand in the world has operations in Laos, Cambodia, Haiti, Mozambique and Peru.

    In second place was Vinamilk, the country’s largest dairy company by far, which was worth $1.9 billion, up 39 percent. State-owned Vietnam Posts and Telecommunications Group (VNPT) was in third place after increasing its brand value by 84 percent to $1.34 billion.

    In fourth and fifth places were Vinhomes, the real estate subsidiary of Vietnam’s largest private conglomerate Vingroup, and Sabeco, Vietnam’s biggest brewer, at $1.18 billion and $950 million respectively.

    Samir Dixit, CEO, Asia-Pacific of Brand Finance, said: “Branding is the most critical asset of every business. It is difficult to predict the performance and behavior of customers, but the only thing that remains a constant is the brand.”

    Brand Finance’s valuation criteria uses several metrics. The value accorded to each brand is a summary of its financial strength. Each brand also gets a brand rating, which indicates its strength, risk and future potential relative to its competitors.

  • Singapore company seeks to increase stake in Vietnam’s largest dairy firm

    Singapore company seeks to increase stake in Vietnam’s largest dairy firm

    A Singaporean shareholder in Vinamilk is seeking to increase its stake in Vietnam’s largest dairy firm. Jardine Cycle & Carriage Ltd has registered to buy 17.41 million shares between January 9 and February 7 through its wholly-owned local subsidiary, Platinum Victory, which will enable it to increase its ownership in Vinamilk from over 10 percent to 11.62 percent.

    At a proposed price of VND125,000 ($5.38) per share, the transaction will be worth VND2.17 trillion ($94.42 million).

    Last year Jardine, Vinamilk’s third largest shareholder, had registered on six different occasions to buy 14-17 million shares to increase its stake to above 11 percent, but was unsuccessful due to unfavorable market conditions.

    It first bought a 3.3 percent stake in Vinamilk in November 2017. Within a month it raised its ownership to over 10 percent.

    In April last year a representative of Jardine’s parent company, Jardine Matheson, became a Vinamilk board member.

    Hong Kong-based Jardine Matheson is one of Asia’s biggest conglomerates with interests in luxury hotels, motor vehicles, property, food retail, transport financial services, and agribusiness and revenues of almost $16 billion in 2017.

    F&N Dairy Investments, a subsidiary of Singapore-based Fraser & Neave Ltd, which is backed by Thai tycoon Charoen Sirivadhanabhakdi, owns a 17.31 percent stake in Vinamilk.

    Vietnam’s dairy industry reported revenues of more than VND100 trillion ($4.4 billion) in 2017, with Vinamilk commanding more than a 50 percent market share.

    According to a report by the EU-Vietnam Business Network, the market is expected to double in size by 2020 as the country’s population, personal incomes and dairy consumption increase.