With the average increase of 1 per cent per year, Vietnam Dairy Products JSC (Vinamilk) expects that its dairy products will capture 60 per cent of the domestic market in the next five years.
|Vinamilk sets the target to make up 60 per cent of market share |
This was announced by Mai Kieu Lieu, general director of Vinamilk, at the firm’s 2018 annual shareholders’ meeting on March 31.
According to Lien, the dairy sector in general sees an increase of 5-7 per cent and Vinamilk has built plans to exceed this figure. Especially, it set the target to reach an increase of 8 per cent in exports.
On this occasion, Vinamilk saw the addition of two more members to the board of directors, including Alain Xavier Cany, head of representatives of Jardine Matheson Limited in Vietnam, which is the subsidiary of Automotive giant Jardine Cycle & Carriage (JC&C). The other member is Nguyen Chi Thanh, deputy general director of State Capital Investment Corporation (SCIC).
According to the plan, JC&C will support Vinamilk to approach overseas markets, particularly large-scale supermarkets in the Asia-Pacific.
Along with the key operations of manufacturing dairy products, Vinamilk will set foot in manufacturing functional food via a co-operation with Hau Giang Pharmaceutical JSC (DHG Pharma).
The two parties signed a memorandum of understanding (MoU) to co-operate in product research and development on March 22.
This is considered an important milestone marking a new direction in product development, business, and distribution between two of Vienam’s leading companies in the pharmaceutical and nutrition industries.
Under the strategic partnership, DHG Pharma and Vinamilk will jointly build new brand products or develop existing ones to serve the healthcare needs of people from all walks of life.
|JC&C group, through its subsidiary Platinum Victory Pte., Ltd., spent $1.15 billion on 145.6 million of Vinamilk shares, representing approximately 10.0 per cent of the company’s issued share capital. JC&C is now the third largest shareholder, following SCIC with 36 per cent and Fraser & Neave Ltd. with 18.74 per cent. |
The two firms will also coordinate in supplying raw materials to produce supplementary food products, utilising the strengths of each other’s distribution capacity to help people easily access and consume healthy and nutritional products.
In addition, the two companies will help each other seek partners and customers as well as conduct scientific research to create new values, aiming to provide consumers at home and abroad with products of international quality.
Doan Dinh Duy Khuong, acting general director of DHG Pharma said that on the long run, DHG Pharma will join hands with scientists, institutes, and schools. The company has also signed a scientific cooperation agreement with the Institute of Biotechnology for research and product development.
“DHG Pharma believes that this partnership is a step towards creating new values and new products that fit people’s needs of healthcare, nutrition, and physical improvement,” said Khuong.