Vinamilk (VNM) boosts overseas investment and forms joint venture in Philippines
Vinamilk (HSX: VNM) announced that it has just received the investment registration for its joint venture in the Philippines.
Vinamilk is stepping up operations across the globe
Specifically, Vinamilk will contribute 50 per cent of the total investment capital of the joint venture in the first phase, equivalent to around $6 million. The major activities of the new entity will be to import milk as well as promote and distribute milk and dairy products in the Philippines market.
Besides domestic business operations, Vinamilk also increases its footprint in other nations.
By the end of 2020, Vinamilk owned 100 per cent of Driftwood Dairy Holding Corporation in the US, Angkor Dairy Products Co., Ltd. in Cambodia, and Vinamilk Europe Spótka Z Organiczona Odpowiedzialnoscia in Poland.
In addition, Vinamilk also owns a 80.29 per cent stake in a company in Laos and contributed 22.81 per cent of capital to a company in New Zealand.
The Vietnamese dairy behemoth also revealed ambitions to tap into new and potential markets, along with expanding in its existing markets. Vinamilk exports to markets like South Korea, China, Singapore, and many countries in Southeast Asia. Moreover, Africa is appearing as one of the company's targets in the future.
Earlier this month, Kido Group – a Vietnamese packaged food producer – officially announced a new resolution approving the establishment of a joint venture with Vinamilk.
The joint venture – Vibev – will produce ice cream and healthy non-carbonated soft drinks. The total initial investment of the joint venture is estimated to be around VND400 billion ($17.4 million), with Kido holding 49 per cent and Vinamilk 51 per cent.
Accordingly, Vibev’s products are slated to be officially launched in April 2021. Moreover, Vibev will enjoy the nationwide and worldwide distribution channels of Kido Group and Vinamilk.
In 2020, Vinamilk's consolidated revenue reached VND59.723 trillion ($2.6 billion) and net profit was approximately VND11.1 trillion ($428.6 million), up 6 and more than 10 per cent compared to 2019, exceeding the company’s targets.