Investors can feel secure in Vinamilk shares: exec
The dairy industry still has great potential for growth, so investors can be assured when investing in dairy giant Vinamilk, said Nguyen Quang Tri, the company’s marketing executive director.
Speaking at a Thursday forum on the F&B industry in Ho Chi Minh City, Tri said Vinamilk is leading the country in terms of dairy market share, four times higher than its next rival.
"The dairy industry has stagnated in recent years, because of not only economic difficulties and reduced purchasing power, but also fierce competition, various substitute products, and consumers' fragmented and increasingly high requirements," he noted.
"In the past, in marketing, we only had one message for everyone, but today each person has a specific need, so it's more difficult to meet them all," Tri added.
Besides, modern distribution channels such as supermarkets and convenience stores can develop their own products, putting pressure on manufacturers to raise commissions.
Other challenges are strict regulations and standards from major export markets on sustainable development, and unpredictable fluctuations in the world market that affect the supply chain, he said.
However, the Vinamilk leader stressed that the demand for milk is huge given the country recording 1.5 million new babies each year, the population of over 60 years old increasing, customers paying more heed to health and nutrition after the Covid-19 pandemic, the big gap in milk consumption between rural and urban areas, and a low rate of milk consumption per capita compared to regional countries such as Thailand and Singapore.
“The economic difficulties and falling purchasing power are only in the short term, and the company has been preparing for future growth,” he said, adding the brand's repositioning in 2023 was a pivotal step in the next five years.
According to Tri, as a long-standing, national brand, Vinamilk's challenge is the growing polarization and fragmentation between the affordable and high-end segments, requiring more personalized attention and care. This means the company must create a national brand for everyone which is also suitable for people with higher requirements.
In addition, the pandemic has changed consumers' shopping habits. They prefer online shopping and cooking at home now, and young people are going to clubs to learn cooking and bartending or stay at home to make cakes to reduce financial pressure. They also like experiential activities, a green life and sustainable development. Therefore, while liquid milk and baby milk saw negative growth, condensed milk recorded double-digit growth.
“Vinamilk has recognized these changes and sought to explore new customer groups,” he revealed.
The dairy giant’s revenue has stagnated over the past three years, with shrinking profit. In the first nine months of 2023, its revenue remained flat at VND44.75 trillion ($1.83 billion) and net profit decreased slightly to VND6.55 trillion ($267.3 million).
Regarding stock developments, after reaching its peak at the end of 2017, VNM started a downward trend. It closed the Ho Chi Minh Stock Exchange session on Friday at VND67,200 ($2.74) per share, down 15% from September 2023.
- Read More
Indonesia steps up support for textile industry
Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).
Southeast Asia - Thu, October 31, 2024 | 6:01 pm GMT+7
Thailand speeds up plans to construct six new airports
Thailand’s Transport Ministry is accelerating development and construction projects on six airports with an aim to become the region's transportation hub.
Southeast Asia - Thu, October 31, 2024 | 6:00 pm GMT+7
Thailand develops eco-friendly seaport model
Thailand is striving to implement environmental protection and social sustainability solutions in developing the country’s major infrastructure projects, such as the development of Phase 3 of Laem Chabang Port, Thailand's only deep-sea port.
Southeast Asia - Thu, October 31, 2024 | 5:58 pm GMT+7
Indonesia intensifies oil palm cultivation to meet biodiesel demand
Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.
Southeast Asia - Thu, October 31, 2024 | 5:56 pm GMT+7
Malaysia’s first domestic EV model opens for booking
The Malaysian multinational automotive company Proton's first electric vehicle (EV), the e.MAS 7, is now open for booking.
Southeast Asia - Thu, October 31, 2024 | 5:54 pm GMT+7
Thailand aims to become emerging leader in AI
Thailand is positioning itself as an emerging leader in artificial intelligence (AI) regulation and development, thanks to policies that support an approach that balances technological innovation with ethical considerations and workforce protection.
Southeast Asia - Thu, October 31, 2024 | 5:53 pm GMT+7
Vietnam PM calls for more investment from Qatar’s $475 bln sovereign wealth fund
Vietnamese Prime Minister Pham Minh Chinh has called on the Qatar Investment Authority (QIA), Qatar's sovereign wealth fund with total assets amounting to $475 billion as of 2023, to ramp up its investment in Vietnam.
Industries - Thu, October 31, 2024 | 4:43 pm GMT+7
FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain
Vietnamese retail major FPT Retail made a profit after tax of VND165 billion ($6.52 million) in the third quarter of this year, while it incurred a loss of VND13 billion ($514,000) in the same period last year.
Companies - Thu, October 31, 2024 | 3:56 pm GMT+7
Germany’s PNE opens rep office for $4.6 bln offshore wind project in central Vietnam
Germany’s PNE AG, a leading developer of renewable energy projects, has shown its determination to proceed with a mega offshore wind power project in central Vietnam by opening a representative office there.
Energy - Thu, October 31, 2024 | 2:43 pm GMT+7
Saudi Arabian energy giant ACWA Power ready to invest $5 bln in Vietnam
Saudi Arabian private energy giant ACWA Power stands ready to invest up to $5 billion in Vietnam, a senior executive said Wednesday.
Industries - Thu, October 31, 2024 | 2:39 pm GMT+7
Effective M&A deal depends on thorough understanding, value addition potential: Kido exec
An effective M&A transaction depends on fully understanding the company being acquired in order to create added value, says Kido Group CEO Tran Le Nguyen.
Companies - Thu, October 31, 2024 | 1:22 pm GMT+7
No budget apartments in Vietnam, chronic supply-demand gap widens
Vietnam saw no supply or transaction of low-cost apartments priced below VND25 million ($988) per square meter in the third quarter, says a real estate report by the Ministry of Construction.
Real Estate - Thu, October 31, 2024 | 1:10 pm GMT+7
Vietnam steel major SMC remains bogged down with difficulties
Steel manufacturer SMC Trading Investment JSC has been actively selling assets to generate cash for debt repayment and maintain operations since the beginning of this year.
Companies - Thu, October 31, 2024 | 10:41 am GMT+7
Vinhomes’ earnings fall 39% to $777 mln in Jan-Sep
Vinhomes, the largest residential housing developer in Vietnam, booked a net profit of VND19,642 billion ($777 million) in the first three quarters this year, down 39.2% year-on-year.
Companies - Thu, October 31, 2024 | 9:58 am GMT+7
AI cannot replace customer service staff: MoMo exec
AI cannot replace customer service staff, but it can give them more time to prepare and provide better care for customers, says Thai Tri Hung, senior deputy general director and chief technology officer of e-wallet app MoMo.
Companies - Thu, October 31, 2024 | 8:11 am GMT+7
Vietnam property developer Novaland posts skyrocketing Q3 profit
Novaland, a leading real estate developer in Vietnam, reported its after-tax profit hit VND2.95 trillion ($166.62 million) in the third quarter of this year, a 21.6-fold rise year-on-year.
Companies - Wed, October 30, 2024 | 10:59 pm GMT+7