1. The government is planning to fully sell its 45%
stake in Vinamilk, starting with 9% this year. What are foreign and
local investors saying; how much interest is there?
As you already know, Vinamilk is one of the most profitable
SOEs, so both foreign and local investors are very interested in
buying shares in the company. However, 9% of the charter capital of
the company is a small number and may not attract big investors
being corporations in the industry as expected.
2. Vinamilk is a hugely successful Vietnamese SOE-turned
private company. Why do you think it has been able to succeed when
so many other SOEs have failed?
There are many reasons but they come down to the following:
Doing business in the dairy products
– which are of great demand in the market and still have much
room for growth considering Vietnam's growing population);
Transparency in the business
operation (public listing from the very early stage) and efficient
management according to best private practice standards, certainly
the long term management and CEO deserves credit for this;
Early privatization leading to more
efficient and timely decision to grasp business opportunities
(compared with lengthy approval procedures by the state);
Its good development and branding
strategy, including activities to show social corporate
3. Vinamilk wants to become the top dairy company in
Southeast Asia. Do you think Vinamilk can beat the likes of
Malaysia¹s F&N and Indonesia¹s Indofood?
F&N is the current biggest foreign shareholder in Vinamilk
and its owner is targeting shares in big companies in the sector
like Vinamilk. Vinamilk is also investing in many other countries
in the region (Myanmar, Cambodia) to open its distribution network.
It is now too early to say anything, as whether Vinamilk becomes
the top dairy company in Southeast Asia depends much on who are the
strategic shareholders and the leadership capacity of the successor
of Ms. Mai Kieu Lien – Vinamilk's CEO for almost 23
4. Food safety is a big concern and talking point in
Vietnam today. How much trust do you think Vietnamese consumers
here have in Vinamilk?
The fact that Vinamilk was registered with FDA to export its
products to the US shows its high quality. In addition, Vinamilk
has access to other big markets such as Japan, Canada, Australia,
... In Vietnam, Vinamilk's yoghurts and condensed milk account
for 85-90% of the market share, while liquid milk and milk powder
accounts for 44% and 27% of the market share respectively. These
numbers say it all. In a survey by Q&ME in 2015, Vinamilk is
the most favourite and well-known dairy brand in Vietnam.
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The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
The PRC's "One-Child Policy" has been replaced by the "Two-child policy" which incentivises citizens to marry earlier and have more children, as compared to the previous policy.
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