Report Business Finance Vinamilk Company.pdf

CHAPTER 1: VINAMILK OVERVIEW 1.1 General Information Vinamilk, officially known as Vietnam Dairy Products Joint Stock Company, 1s one of the leading dairy companies in Vietnam and Southe

VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF FINANCE AND BANKING

S000

DAI HOC TON ĐỨC THẮNG

REPORT BUSINESS FINANCE VINAMILK COMPANY

Lecturer: Ph.D Le Bao Thy

Name: Bùi Nguyễn Kim Cương Student ID: 721D0022

Ho Chi Minh City, May 2024

LECTURER’ COMMENTS

CONTENTS

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CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONG ccsssssssesssessssseesssnseseneeones

4.1: Conclusions

4.2: Recommendations

CHAPTER 1: VINAMILK OVERVIEW

1.1 General Information

Vinamilk, officially known as Vietnam Dairy Products Joint Stock Company, 1s one of the leading dairy companies in Vietnam and Southeast Asia As a leading enterprise in the dairy field, Vinamilk has long set an important vision for the company's long-term development "To become a world grade brand in food and beverage industry, where people put all their trust", always putting customer trust and interests first is the most important thing that helps Vinamilk company always be the top choice of thousands of Vietnamese families

Never disappointing consumers, Vinamilk company sets clear goals, clearly understands its own mission to consumers, Vinamilk commits "To deliver the valuable nutrition to community with our respect, love and responsibility " To achieve the set goals, the company has typical core values, including: INTEGRITY, RESPECT, FAIRNESS, ETHICS, COMPLIANCE From there, it can be seen that the company always tries its best to achieve the value "To become a world grade brand in food and beverage industry, where people put all their trust in nutnents and health products”

In addition to responsibility to customers, there are three other factors that make Vinamilk as strong as it is today: "Quality, Demand, Innovation" With a clear business philosophy "Vinamilk desires to become one of the most favorite brands in every region and territory Therefore, we keep in our mind and our heart that the quality and innovation are always our most important companions We act with customers -centered approach and committed to respond to all their needs" And the quality policy is also an important factor that helps Vinamilk always maintain its position in the dairy products market Always satisfy and be responsible for consumers’ needs by diversifying products and services, assuring quality, food safety with competitive price, respecting the business ethics and complying with laws

1.2 Development history

Vinamilk was established on August 20, 1976 on the basis of three dairy factories from the old regime: Thong Nhat Dairy Factory (formerly known as Foremost factory), Truong Tho Dairy Factory (formerly known as Cosuvina factory) and Dielac Powdered Milk Factory (formerly known as Cosuvina factory) known as Nestlé factory (Swiss) Since its establishment, the company has created many great achievements In 1985, Vinamilk was honored to receive the Third-Class Labor Medal continued to receive two great achievements respectively, Vinamilk was honored to receive the Second-Class Labor Medal, in 1991 and Vinamilk was honored to receive the First-Class Labor Medal, in 1996 In addition, in 1995, Vinamilk officially inaugurated the first dairy factory in Hanoi

Continuing to develop continuously, in 2000, Vinamilk was awarded the title

"Labor Hero of the Renovation Process” by the Government Vinamilk's ceaseless development is most clearly demonstrated by the continuous expansion of manufacturing factories After Hanoi, Vinamilk inaugurated Can Tho Dairy Factory in

2001 In the next two years, Vinamilk continuously Inaugurated Binh Dinh , Saigon and Nghe An Dairy Factory The year 2006 marked a new step in the development of Vinamilk inaugurated the first dairy farm in Tuyen Quang Vinamilk inaugurated the first dairy farm in Tuyen Quang two years later Vinamilk wants to put common interests above personal interests, so in 2009 Thong Nhat, Truong Tho and Sai Gon dairy factories were awarded the Certificate of "Green Enterprise” by the Ministry of Natural Resources and Environment for achievements in environment protection protection Not only developing domestically, the company also continues to reach out

to the world, Vinamilk has made its investment in a company in New Zealand manufacturing whole milk powder with a capacity of 32,000 tons/years In addition, Vinamilk also invested in the US and opened more factories in several countries Its export revenue accounts for 15% of total revenue and 1s increasing Vinamilk applied new technology, installed advanced equipment and modern machines to all of its factories Besides, Vinamilk also established Public Health Nutrition Consulting Centers in the country and launched over 30 new products

There are also many other typical achievements: in the 2020s Vinamilk raised its stake in Miraka Limited Company of New Zealand from 19.3% to 22.8%., Vinamilk officially launched its brand in Myanmar, Thailand and expanded operations in ASEAN, Acquiring the remaining 30% stake in Driftwood Dairy Holding, Vinamilk raised its ownership to 100% Vinamilk officially introduced condensed milk and creamer under Driftwood brand name to US market, One of the 2000 largest listed companies m the world and the only fast-moving consumer goods company of Vietnam made this list, with revenue and capitalization of USD 2.1 billion and USD 9.1 billion respectively, Launched the first European 100% Organic Milk produced in Vietnam, The list was first published by Forbes Asia In particular, Vinamilk is the only representative of Vietnam in the food industry, stand aside with the big names of the regional economy, The list was first published by Forbes Asia In particular, Vinamilk is the only representative of Vietnam in the food industry, stand aside with the big names of the regional economy in 2020, by 2021 officially Celebrating 45 years of establishment in 2021, Vinamilk not only becomes the leading dairy company

in Vietnam but asserts its brand position on the international map The company climbed to top 40 world dairy producers with the highest turnovers (The UK-based Plimsoll Publishing Ltd) Inheriting old values combined with the country's daily progress has created the Vinamilk it 1s today now

1.3 Business areas

Vinamilk's operations cover the manufacturing, distributing, and marketing of dairy products, among other facets of the dairy sector Below is a summary of its main business domains:

Production: Vinamilk runs state-of-the-art facilities for the production of a variety of dairy products These facilities are outfitted with cutting-edge technology to guarantee that manufacturing requirements are reached in terms of efficiency, quality, and safety

Product Portfolio: The business provides a wide range of dairy goods, such as: UHT (ultra-high temperature) milk, flavored milk, and fresh milk are examples of liquid milk

Powdered milk: adult milk powder, growing-up milk powder, and infant formula Yogurt: Greek and regular yogurt are among the tastes and varieties

Cheese: A variety of cheeses, including cream, mozzarella, and cheddar

Ice Cream: An assortment of flavors and supplies for ice cream

Fruit-flavored milk drinks, smoothies, and nutrient-rich beverages are examples

of dairy-based beverages

Distribution: Vinamilk's extensive network of distributors guarantees that its goods are received by Vietnamese customers all throughout the country Supermarkets, convenience shops, traditional marketplaces, and e-commerce platforms are examples

of distribution channels that are part of this network Furthermore, Vinamilk sells its goods to more than 50 nations worldwide, extending its fluence outside of Vietnam With an emphasis on quality, innovation, and sustainability, Vinamilk's business areas include the whole dairy industry value chain, from production to distribution and marketing

TH True Milk: This Vietnamese dairy company is well-known for emphasizing organic dairy goods It is a major player in the market and Vinamilk's rival in a number of product categories

Another significant participant in the Vietnamese dairy market is Nutifood, which provides a wide range of dairy goods, such as newborn formula, powdered milk, and nutritious drinks

Meiji: Operating in Vietnam, Meiji is a Japanese multinational dairy corporation that faces out against Vinamilk in a few product categories It is renowned for providing nutritious options and premium dairy products

Nestlé: With brands like Nestlé Milk and other dairy-related goods, a global food and beverage business located in Switzerland, is present in the Vietnamese dairy industry It faces competition from Vinamilk in a number of product categories

Meadow Fresh: Products from the New Zealand dairy company are sent to Vietnam In the imported dairy product market, especially in the specialty and premium dairy categories, it is in competition with Vinamilk

These rivals are a mixture of foreign and native businesses fighting for a piece of the Vietnamese dairy market Vinamilk must constantly innovate, uphold quality standards, and adjust to shifting consumer preferences in order to remain competitive

in the face of competition on several fronts

1.5 Governance model, Business organization and Governance apparatus

1.5, 1/Organization structure The organization Chart of Vinamilk is shown in a professional manner in which

departments are divided systematically and reasonably with specific hierarchy of

responsibility for each member and function in the company This structure helps the

company to operate in the most effective way and fosters the collaboration among

departments, thus making a strong Vinamilk Because it is a large company with huge charter capital, Vinamilk's system of executives is always talented people and they

work closely together to run a giant empire The head of the company is the

shareholder meeting, next to it is the board of directors including committees:

committee, Nomination committee, Remuneration committee and Audit committee

Chief Executive Officer is the person who manages the directors in different

departments, each department will have an affiliated director to manage and operate

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1.5.2 Subsidiaries and Associated companies

| Nhất Thanh Hóa (100%, 02 trang trại)

| — Tống ood ty Chăn nuôi Việt Nam - [——crCP (89%)

(01 trang trại) F6TCP Đường Việt Nam (65%) FGTCP APIS (20%)

g Dormestic subsidiaries and q[Jiliafes

CÔNG TY TNHH MTV BÒ SỮA VIỆT NAM

CÔNG TY TNHH MTV BÒ SỮA THONG NHAT THANH HOA

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CÔNG TY TNHH LIÊN DOANH THỰC PHÁM VÀ ĐỎ UỐNG VIBEV

b) Doreign subsidiaries and affiliates

DRIFTWOOD DAIRY HOLDING CORPORATION

ANGKOR DAIRY PRODUCTS Co., LTD

Céng ty con va => ty liên kết nước ngoài

Corporation (Hoa Ky, 100%) 3

VINAMILK EUROPE SPOSTKA Z OGRANICZONA ODPOWIEDZIALNOSCIA

LAO-JAGRO DEVELOPMENT XIENGKHOUANG CO., LTD

MIRAKA HOLDINGS LIMITED

DEL MONTE VINAMILK DAIRY PHILIPPINES INC

1.5.3 Shareholder structure

Vietnam Dairy Products Joint Stock Company is the leading dairy company in Vietnam VNM's

shareholder structure includes both domestic and international investors Below is an overview of major

shareholders:

11

also includes many other domestic investor companies

C6 phiéu thanh khoan cao voi co cau c6 déng da dang

8 MATTH TIGER FUND

9 VANECK VIETNAM ETF

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14 MERRILL LYNCH INTERNATIONAL

Vanguard International Value Fund 1,04%

MATTHEWS PACIFIC TIGER FUND 0,95%

TCT Đâu tư và Kinh doanh vốn Nhà nước - Công ty TNHH 36,00%

F&N DAIRY INVESTMENTS PTE LTD 17,69%

PLATINUM VICTORY PTE.LTD 10,62%

F&NBEV MANUFACTURING PTE LTD 2,70%

FUBON FTSE VIETNAM ETF 1,27%

EMPLOYEES PROVIDENT FUND BOARD 1,07%

Vinamilk’s strong and successful development over 45 years is the outcome of devotion and contribution

of all members of the company under the outstanding leadership and direction of our key personnel who are not only talented, courageous but also wholehearted for the company’s achievements

A Administrative Council

1 Mr Nguyen Hanh Phuc

Chairman, independent member of the Board of Directors More than 40 years of experience management experience at the senior management positions in Government agencies

12

Member of the Board of Directors, General manager

3 Mr Le Thanh Liem

Member of the Board of Directors,

CEO of Finance Division

4 Mr Alain Xavier Cany

Board member no operating

5 Mr Michael Chye Hin Fah

Members of the Board of Directors no operating

6 Mr Lee Meng Tat

Member of the Board of Directors no operating

7 Mr Hoang Ngoc Thach

Board member no operating

8 Ms Dang Thi Thu Ha

Board member no operating

9 Mr Do Le Hung

Independent member of the Board of Directors

10 Ms Tieu Yen Trinh

Independent member of the Board of Directors

B_ Executive Board

1 Ms Mai Kieu Lien

General manager,

47 years at Vinamilk

* Technology engineer for processing milk and dairy products

* One of the 50 most powerful businesswomen in Asia

2012-13-14 (Forbes)

2 Ms Bui Thi Huong

* Executive Director of Administration Division,

Human Resources, Foreign Affairs

5 Mr Nguyen Quoe Khanh

¢ Executive Director of Research and Division

13