VIETNAM - Vinamilk’s success story – Oliver Massmann in interview with Channel News Asia

1. VIETNAM - Vinamilk’s success story – Oliver Massmann in interview
with Channel News Asia
1. The government is planning to fully sell its 45% stake in Vinamilk, starting with 9%
this year. What are foreign and local investors saying; how much interest is there?
As you already know, Vinamilk is one of the most profitable SOEs, so both foreign and local
investors are very interested in buying shares in the company. However, 9% of the charter capital
of the company is a small number and may not attract big investors being corporations in the
industry as expected.
2. Vinamilk is a hugely successful Vietnamese SOE-turned private company. Why do
you think it has been able to succeed when so many other SOEs have failed?
There are many reasons but they come down to the following:
 Doing business in the dairy products – which are of great demand in the market and still
have much room for growth considering Vietnam’s growing population);
 Transparency in the business operation (public listing from the very early stage) and
efficient management according to best private practice standards, certainly the long term
management and CEO deserves credit for this;
 Early privatization leading to more efficient and timely decision to grasp business
opportunities (compared with lengthy approval procedures by the state);
 Its good development and branding strategy, including activities to show social corporate
responsibility.
3. Vinamilk wants to become the top dairy company in Southeast Asia. Do you think
Vinamilk can beat the likes of Malaysia¹s F&N and Indonesia¹s Indofood?
F&N is the current biggest foreign shareholder in Vinamilk and its owner is targeting shares in
big companies in the sector like Vinamilk. Vinamilk is also investing in many other countries in
the region (Myanmar, Cambodia) to open its distribution network. It is now too early to say
anything, as whether Vinamilk becomes the top dairy company in Southeast Asia depends much
on who are the strategic shareholders and the leadership capacity of the successor of Ms. Mai
Kieu Lien – Vinamilk’s CEO for almost 23 years.
4. Food safety is a big concern and talking point in Vietnam today. How much trust do
you think Vietnamese consumers here have in Vinamilk?

2. The fact that Vinamilk was registered with FDA to export its products to the US shows its high
quality. In addition, Vinamilk has access to other big markets such as Japan, Canada, Australia,
… In Vietnam, Vinamilk’s yoghurts and condensed milk account for 85-90% of the market
share, while liquid milk and milk powder accounts for 44% and 27% of the market share
respectively. These numbers say it all. In a survey by Q&ME in 2015, Vinamilk is the most
favourite and well-known dairy brand in Vietnam.
Please do not hesitate to contact Oliver Massmann under omassmann@duanemorris.com if you
have any questions on the above. Oliver Massmann is the General Director of Duane Morris
Vietnam LLC.
THANK YOU VERY MUCH!