Thai billionaire wants to acquire Vietnam’s largest milk producer

(Vietnam Net)

A Singapore company owned by Thailand’s richest man wants to acquire Vietnam Dairy Products JSC (Vinamilk) to prepare for its battle for market share with Coca Cola and Pepsi in Southeast Asia, according to Bloomberg news service. 

Nhan vien Vinamilk duoc mua co phieu bang 1/4 gia thi truong hinh anh 1

Fraser & Neave Ltd. (F&N), owned by Thai billionaire Charoen Sirivadhanabhakdi, is seeking to raise its market share in Southeast Asia after its capital increased to $745 million. Bloomberg quoted F&N CEO Lee Meng Tat as saying that this firm is targeting Vietnam’s largest milk producer – Vinamilk.

According to Lee, acquiring Vinamilk would open a shortcut for F&N to expand its operation in Southeast Asia, in the competition with the two giants PepsiCo Inc. and Coca Cola Co.

By the end of June, Singapore-based F&N owned cash and other assets equivalents to $725.3 million after selling its shares in Myanmar Brewery Ltd in late August last year, three years after divesting from Asia Pacific Breweries.

F&N’s plan to acquire Vietnam’s Vinamilk is part of a strategy targeting the Southeast Asian market with 600 million people, home to the fastest growing economies in Asia.

This firm also plans to build its presence in a number of other markets if it fails to acquire Vinamilk.

Vinamilk is Vietnam’s largest company in terms of market price. Vinamilk’s shares rose to a record high price last week after the company was allowed to sell more shares to foreign investors. This company’s share has increased by 32% this year, compared to the average 14% of the Vietnam’s stock market.

However, Bloomberg cited a local newspaper as saying that Vinamilk is not named in the list of 120 state-owned companies that the State Capital Investment Corporation (SCIC) plans to divest this year.

F&N is now the second largest shareholder of Vinamilk with 11% stake. The Vietnamese government holds 45% stake.

F&N is one of the three largest beverage manufacturers in Singapore, Thailand and Malaysia, according to Euromonitor International. However, it is not in the top 5 companies in Vietnam, Indonesia and the Philippines, where it is seeking ways to develop.

The Thai billionaire has launched a strategy to expand across Southeast Asia following the acquisition of F&N at the cost of $7.84 billion in February 2013. He set a target of making food and beverage subsidiaries of F&N and other companies including Thai Beverage, Semrsuk Pcl and Oishi, the top three leading brands in Southeast Asia in 2020.


Vietnam among 10 most optimistic countries globally: Nielsen

(Thanh Nien News)

Vietnamese continue to be optimistic about the local economy, Nielsen says. Photo: Diep Duc Minh/Thanh Nien
Vietnamese continue to be optimistic about the local economy, Nielsen says. Photo: Diep Duc Minh/Thanh Nien
Though consumer confidence in Vietnam dropped slightly in the second quarter, the country is the seventh most optimistic country globally, according to the latest survey from information and measurement firm Nielsen.
In the online study, consumers in Vietnam scored 107 points in the Consumer Confidence Index, down two points from the previous quarter.
Nguyen Huong Quynh, managing director of Nielsen Vietnam, said in a statement the fact that Vietnamese continue to be optimistic about the local economy in comparison to other countries reflects “rising affluence in our country, the continued growth of middle class populations and a stable government’s economic outlook.”
The study also revealed that consumers in Southeast Asia are still among the most confident in the world. The Philippines, with 132 points, surpasses India to become the most optimistic country globally. Indonesian remains the third most confident, with 119 points.
Southeast Asian consumers continue to be among the world’s most avid savers, with more than two in three (68 percent) putting their spare cash into savings. When coming to savings, consumers in Vietnam keep the highest globally (76 percent), followed by Indonesia (70 percent) and the Philippines (65 percent).
Health remains a key concern for Vietnamese consumers, with nearly one third of consumers citing health as their biggest and second biggest concern over the next six months.
Job security and the economy uncertainty are also major concerns.


(From Wikipedia)

Plastic is a material consisting of any of a wide range of synthetic or semi-synthetic organic compounds that are malleable and can be molded into solid objects. Plastics are typically organic polymers of high molecular mass, but they often contain other substances. They are usually synthetic, most commonly derived from petrochemicals, but many are partially natural.[2] Plasticity is the general property of all materials that are able to irreversibly deform without breaking, but this occurs to such a degree with this class of moldable polymers that their name is an emphasis on this ability.

Due to their relatively low cost, ease of manufacture, versatility, and imperviousness to water, plastics are used in an enormous and expanding range of products, from paper clips to spaceships. They have already displaced many traditional materials, such as wood, stone, horn and bone, leather, paper, metal, glass, and ceramic, in most of their former uses. In developed countries, about a third of plastic is used in packaging and another third in buildings such as piping used in plumbing or vinyl siding.[3] Other uses include automobiles (up to 20% plastic), furniture, and toys. In the developing world, the ratios may be different – for example, reportedly 42% of India’s consumption is used in packaging. Plastics have many uses in the medical field as well, to include polymer implants, however the field of plastic surgery is not named for use of plastic material, but rather the more generic meaning of the word plasticity in regards to the reshaping of flesh.

The world’s first fully synthetic plastic was bakelite, invented in New York in 1907 by Leo Baekeland who coined the term ‘plastics’.[5] Many chemists contributed to the materials science of plastics, including Nobel laureate Hermann Staudinger who has been called “the father of polymer chemistry” and Herman Mark, known as “the father of polymer physics“. The success and dominance of plastics starting in the early 20th century led to environmental concerns regarding its slow decomposition rate after being discarded as trash due to its composition of very large molecules. Toward the end of the century, one approach to this problem was met with wide efforts toward recycling.

Common plastics and uses

  • Polyester (PES) – Fibers, textiles.
  • Polyethylene terephthalate (PET) – Carbonated drinks bottles, peanut butter jars, plastic film, microwavable packaging.
  • Polyethylene (PE) – Wide range of inexpensive uses including supermarket bags, plastic bottles.
  • High-density polyethylene (HDPE) – Detergent bottles, milk jugs, and molded plastic cases.
  • Polyvinyl chloride (PVC) – Plumbing pipes and guttering, shower curtains, window frames, flooring.
  • Polyvinylidene chloride (PVDC) (Saran) – Food packaging.
  • Low-density polyethylene (LDPE) – Outdoor furniture, siding, floor tiles, shower curtains, clamshell packaging.
  • Polypropylene (PP) – Bottle caps, drinking straws, yogurt containers, appliances, car fenders (bumpers), plastic pressure pipe systems.
  • Polystyrene (PS) – Packaging foam/”peanuts”, food containers, plastic tableware, disposable cups, plates, cutlery, CD and cassette boxes.
  • High impact polystyrene (HIPS) -: Refrigerator liners, food packaging, vending cups.
  • Polyamides (PA) (Nylons) – Fibers, toothbrush bristles, tubing, fishing line, low strength machine parts: under-the-hood car engine parts or gun frames.
  • Acrylonitrile butadiene styrene (ABS) – Electronic equipment cases (e.g., computer monitors, printers, keyboards), drainage pipe.
  • Polyethylene/Acrylonitrile Butadiene Styrene (PE/ABS) – A slippery blend of PE and ABS used in low-duty dry bearings.
  • Polycarbonate (PC) – Compact discs, eyeglasses, riot shields, security windows, traffic lights, lenses.
  • Polycarbonate/Acrylonitrile Butadiene Styrene (PC/ABS) – A blend of PC and ABS that creates a stronger plastic. Used in car interior and exterior parts, and mobile phone bodies.
  • Polyurethanes (PU) – Cushioning foams, thermal insulation foams, surface coatings, printing rollers (Currently 6th or 7th most commonly used plastic material, for instance the most commonly used plastic in cars).

The billion USD race to invest in Vietnamese firms


 Private equity funds (PE) in Asia plan to invest billions of US dollars in Vietnamese companies, creating fierce competition between these funds.

For Peter Sorensen, CEO of ABB Vietnam Consulting JSC, 2015 was an exciting year of Vietnam on mergers & acquisition (M&A) activities, as well as the busiest year of ABB since its formation. However, he expects that the number and value of M&A deals will grow strongly in the coming time.

As an active consultant in the field of M&A, ABB has recognized the great interest of foreign investors in the fields of retail, distribution, FMCG, agriculture and financial services. Thailand, Japan and South Korea are the countries with the greatest demand in these sectors. In 2016, the active participation of PEs for M&A activities impressed Peter Sorensen. Continue reading “The billion USD race to invest in Vietnamese firms”

Ho Chi Minh City’s FDI pledges fall 65 pct in Jan-Jul

(Thanh nien)
Foreign direct investment (FDI) pledges in Ho Chi Minh City between January 1 and July 15 dropped 65.2 percent from the same period last year to US$863.6 million, according to new data.
A report from the city’s statistics department said 448 new projects were licensed in the period with committed capital totaling $638.1 million.
Another $225.5 million was added to 78 existing projects, it said.
Most of the funds were for the real estate, trading, manufacturing and processing sectors.
Cayman Islands was the top investor among 42 countries and territories with $230.5 million, or 36 percent of the pledges.
Japan came second with $96.1 million, followed by Singapore with $87.2 million.