31 Aug 2012 Intellasia Finance Vietnam - Hong Kong Business ...

FINANCE
Vietnam finance & business 31 August 2012
Foreign fast food
giants run a race in
Vietnam
But TH True Milk has made a big splash on the market, already seeing earnings of
VND2 trillion ($US98 million) and accounting for 33 per cent of the fresh milk market.
This was expected to rise to 50 per cent by 2017, with overall earnings to climb to
VND23 trillion ($1.1 billion), said a representative of TH True Milk.
FrieslandCampina Vietnam holds 30 per cent of the local market, putting it in second
place overall after Vinamilk, according to FrieslandCampina Vietnam public relations
manager Nguyen Ngoc Kinh Luan.
"To achieve such a large market share and increase competitiveness, the company has
improved quality from raw materials to production technology," Luan said.
The company's dairy farms produced 60 million litres of fresh milk annually, accounting
for around 25 per cent of the domestic demand for raw materials, he added.
"Milk demand is going to keep rising sharply, especially in this Year of the Dragon,
with many families thinking it's a lucky year to have babies," he said.
Meanwhile, market-leader Vinamilk currently accounts for 80 per cent of the domestic
condensed milk market, 90 per cent of the yogurt market, 50 per cent of the processed
milk market, and 25 per cent of the fresh milk market.
Vinamilk general director Mai Kieu Lien predicted Vinamilk would be able to increase
its market share by 1-2 per cent per year and would increase its share of the fresh milk
market from 25 per cent to 40 per cent. Under its development strategy through 2017,
the company expected to become one of the 50 largest dairy producers in the world.
Vinamilk has dairies in New Zealand in addition to its 10 in Vietnam operating at full
capacity and projected that it would increase the number of cows at its farms from
9,500 head in 2012 to 28,000 in 2016. It has built the Lam Son Dairy Plant in the central
province of Thanh Hoa at a cost of VND276 billion to serve the markets in Thanh Hoa,
Nam Dinh, Thai Binh and Ninh Binh provinces. The plant would begin production
next year.
"According to the Ministry of Agriculture and Rural Development, fresh milk production
in Vietnam in the coming years will only meet 22-25 per cent of the local demand,"
Lien said. "So, the dairy industry in Vietnam has great potential for development in the
future."
http://vietnamnews.vnagency.com.vn/Economy/229545/dairies-battle-for-marketshare.html
31/AUG/2012 INTELLASIA | VIETNAMNET
The Vietnamese fast food market has heated up after BBQ Vietnam announced the
plan to open more shops, while McDonald's has been intensively looking for Vietnamese
partners.
Setting foot on the Vietnamese market in 2006, the South Korean BBQ Chicken brand
has cemented its firm position there with the opening of a lot of new fast food shops
in big cities.
BBQ Vietnam, which now has 13 shops in Hanoi, plans to set up 8-10 more in the city
by 2013, especially on bustling streets such as Hai Ba Trung, Ly Thuong Kiet and Hang
Bong. It is also conducting market surveys to serve the plan to open shops in the satellite
cities around Hanoi, like Hai Duong, Hai Phong, Quang Ninh and Ninh Binh.
In 2015-2020, BBQ Vietnam would move towards to other big cities such as HCM City,
Can Tho, Bien Hoa, Ba Ria-Vung Tau, Hue, Da Nang and Nha Trang.
According to VietQ, a website of the national quality and standard directorate, there
are three most popular restaurant models. Small restaurants have the small area of 30-
90 square meters and have the investment rate of 54,000 dollars. Medium class ones
(100-190 square meters) have the total investment capital of 83,000 dollars, while the
big ones (more than 200 square meters) need 108,300 dollars.
When answering the questions of VietQ, Sim Hwang Jin, director of BBQ revealed the
ambitious plan to become the Number One in the Vietnamese fast food sector.
A senior executive of McDonald's last week paid a working visit in Vietnam, which
aimed to seek Vietnamese partners for franchising deals.
In fact, McDonald's came to Vietnam several times in the past, but no official statement
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