dairy industry report...

1

DAIRY INDUSTRY REPORT Q2/2018

CATEGORY

2

TABLE OF CONTENT Page TABLE OF CONTENT Page

Abbreviations4 4. Typical producing countries 47

Executive Summary 5 5. Key players in the world 52

I. Business environment 7 III. Vietnam’s market 56

1. Macroeconomic situations 7 1. History of establishment and development 57

2. Legal Framework 13 2. Producing procedures 59

3. Trade Agreements 18 3. Producing technology 61

II. Global market 22 4. Input materials 66

1. Chain value of the dairy industry 22 5. Production 72

2. Input materials 26 6. Consumption 76

3. Industry situation 32 7. Export - Import 84

CATEGORY

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TABLE OF CONTENT Page TABLE OF CONTENT Page

8. Inventory 89 2. Raising industry development 107

9. Price 91 3. Dairy industry development 109

10. Distribution 94 VI. Prospects and forecasts 111

11. Competition analysis 97 1. Development incentives 112

IV. Industriral risks 101 2. Forecasts 114

1. Industriral risk 101 VII. Business analysis 117

2. SWOT analysis 103 1. Overview 118

V. Industrial development plan 105 2. Financial analysis 130

1. Population growth 106 VIII. Financial analysis annex 143

Abbreviations

4

Abbreviations

Abbreviation Full text Abbreviation Full text

AEC ASEAN Economic Community SBV State Bank of Vietnam

FS Food Safety MARDMinistry of Agriculture and Rural

Development

CPI Consumer Price Index NZ New Zealand

JSC Joint Stock Company OECDOrganization for Economic Co-operation

and Development

BR Business Registration NTR National Technical Regulation

FAOThe Food and Agriculture

Organization of the United NationsSMP Skimmed Milk Powder

FCV Friesland Campina Vietnam Company LTD Limited

IDF The International Dairy Federation GDVC General Department of Vietnam Customs

IDP International Dairy Products Company GSO General Statistics Office

IZ Industrial Zone HCM Ho Chi Minh City

UHT Ultra High Temperature TPP Trans-Pacific Partnership Agreement

NDT Chinese Yuan Renminbi WMP Whole Milk Powder

Summary

5

Stable GDP per capita growth is an important

factor in boosting dairy consumption.

The speed of urbanization in Vietnam is

happening rapidly, both in terms of space and

population.

Vietnam's participation in free trade

agreements will help reduce import taxes on

milk and dairy products.

The world’s dairy industry is

Gross consumption in developing countries is

high but value per capita is lower than it of

developed countries,

Vietnam did not initally own the cow raising

tradition,

Input materials for milk production only 39-

40% meet of the domestic demand,

Vietnam's milk production is forecast to

increase by about 10% in 2017 and 2018.The

size of Vietnam’s dairy market is growing

rapidly with annual compound annual growth

rate (CAGR) of between 2010 and 2016.

Revenue growth in dairy industry is mainly

contributed by powdered milk and liquid milk,

accounting for of total market value.

Content is intentionally removed for demo purpose

Summary

6

The powdered milk market is dominated by

foreign firms

The liquid milk market is dominated by

domestic enterprises

Yogurt consumption in the first 3 months of

2018 reached about 3.6 billion, up 10.7% over

the same period last year.

iYogurt is one of the highest value-added rural

areas or used in beverage dispensing.. products

in the industry. Due to changes in consumption

habits of Vietnamese people, condensed milk is

slowly growing and mostly consumed n

The dairy processing industry in Vietnam has

been planned in development until 2020 with a

vision to 2025 with many innovative

mechanisms and policies, which can help

enterprises develop and increase the

competitiveness in international integration.


Content

7

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

3. Trade agreements



8

Source: VIRAC, FAO

USD/person liter/person/year

Source: VIRAC

%

GDP and dairy consumption per capita, 2001-2017e

Expenditure structure of Vietnamese people, 2017


Increasing GDP per capita is a direct factor boosting dairy

consumption.

As a result of the increasing per capita income and the formation of

using dairy habit, the Vietnamese dairy market has a good potential

for growth in the future.

9



Source: VIRAC, Statista

Source: VIRAC, Kantar Worldpanel

Growth in urban and rural dairy consumption,

2010 – Q1 / 2018

Rate of urbanization in Vietnam, 2004 - 2017

However, in the first quarter of 2018, total spending on dairy products in the

whole market was only below .


10

Million people



Source: VIRAC, GSO

Source: VIRAC, GSO


Total population and populstion structure in working age period 2010-2017

• According to the United Nations Fund for Population Activities (UNFPA),

Vietnam has entered the "golden population structure" phase.

11

Source: VIRAC, GSO



VND/USD

Monthly CPI Fluctuation 2015 - 3/2018

Source: VIRAC, SBV

VND/USD exchange rate, 2013 – 3/2018


• In the first quarter of 2018, the VND / USD exchange rate remained stable

in January and started to fluctuate from the end of February to the end of

the quarter.

The depreciation of the domestic currency directly affects the dairy industry

12



Source: VIRAC, Nielsen

Source: VIRAC, GSO


Consumer confidence index by quarter, 2014 – Q2/2017

Retail sales of goods, 2010 - 9M/2017e

VND Trillion

• Consumer confidence index in Vietnam decreased in the fourth quarter of

2017 with, lower than the same period last year 117 points (up 5 points

compared with Q4/2016),

Content

13



2. Legal framework

3. Trade agreements

14

Group of policies on technical standards

Group of policies on food hygiene and safety


2. Legal framework


15


2. Legal framework

Group of policies on price


16


2. Legal framework


17

Group of policies related to advertising


2. Legal framework


Content

18



2. Legal framework

3. Trade agreements

ProductCountry

USA EU ASEAN China Korea Japan Australia NZ

19

EU-Vietnam Free Trade Agreement Import tax on milk and dairy products to Vietnam

Source: VIRAC, GDVC

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

HS code Loại sản phẩm Canada, Mexico and Peru Chile, Japan Australia and New Zealand

Import tariffs for dairy products applied to countries in the TPP

Source: VIRAC, GDVC


3. Trade agreements


20

Impacts of TPP on dairy sector


3. Trade agreements


21


3. Trade agreements

Regional Comprehensive Economic Partnership (RCEP)


Content

22

Part II. World dairy market

1. Dairy industry value chain

2. Input materials

3. Current status of dairy industry

4. Typical countries in the world dairy industry

5. World's top largest dairy companies

Dairy industry value chain and added value by stage

23

Source: VIRAC




Classification of milk and dairy products

24

Source: VIRAC

• Raw milk through the processing stages will become a variety of products.




25

• Liquid milk includes: sterilized milk, pasteurized milk và sterilized reconstituted milk.

• Other milk includes: condensed milk, yogurt, cream...

• Due to the current consumption habit, Vietnam only produces and consumes liquid milk (pasteurized and sterilized milk), yogurt, formula milk. With

the trend of globalization and the integration of Western European culture, Vietnamese people have just started using butter and cheese products, but

the consumption volume is very low.




Content

26



2. Input materials




27

Source: VIRAC, USDA


2. Input materials

Million head

Structure of dairy cows worldwide, 2017e

Million head

Number of dairy cows in the world, 2008-2017e

Content is intentionally removed for demo purposeIn recent years, developing countries have consistently increased milk

production.

In developing countries, some countries have experience in milk

production because dairy and dairy products are their traditional food..

28


2. Input materials

Million unit

Source: VIRAC, USDA

Raw milk production in the world, 2010-2017e

Source: VIRAC, FAO, IDF

Production of dairy cow, 2012-2018f


• Despite the continual scale expansion, Asian countries have reduced their

self-sufficiency due to rapid population growth.

Million tons

29


2. Input materials

Source: VIRAC, USDA

Million tons

Source: VIRAC, IDF

Market share of cow milk production by region, 2017e cow milk production in some areas, 2017e


• The United States is the world's largest producer of dairy cattle, with production in 2017 estimated at 97.84 million tonnes.

• There are differences among countries in the characteristics of milk production and processing.

Cost of milk production in the world 2016 (USD/100kg)

30

NZ

Source: VIRAC, IFCN


2. Input materials


31


2. Input materials

Price of raw milk in the world, 2014 - 9/2017

Source: VIRAC, CLAL

EUR/100kg USD/ton


• Experts predict that in 2018, milk prices in the world market will remain at high level.

32



2. Input materials




Content

33


3. Current status of dairy industry – 3.1. Liquid milk

Million tons

Source: VIRAC, FAO, OECD

Liquid milk production and consumption, 2012 – 2018f


• Liquid milk is the most common one in dairy products.

• Liquid milk supply has exceeded demand in recent years, resulting in a sharp drop in milk price.

• Global liquid milk consumption has been growing slightly and relatively stable.

34



Source: VIRAC, eFeedLink

Kg/person

Source: VIRAC, FAO

Fresh milk consumption per capita, 2008-2023f

Milk consumption per capita growth 2006 - 2025


• Population growth is the driving force behind demand for milk and dairy

products.

35

Export volume is generally relatively stable and tends to decrease

Source: VIRAC, UN Comtrade



Million tons

Source: VIRAC, USDA

Top 10 largest export milk countries in the world by value, 2017

Liquid milk trade, 2008-2023f


36

• Yogurt production value has fluctuated significantly over the years as the production

cost is affected by the economy.

• Yogurt is one of the dairy items that bring high profit margin alongside cheese.

Area 2010 2015

Yogurt production in some areas, 2010 - 2015Unit: Million tons

Source: VIRAC, FAO


3. Current status of dairy industry – 3.2. Yogurt

Source: VIRAC, FAO

Global yogurt production value, 2000 -2017e

Structure of world yogurt consumption, 2015


37

Skimmed Milk Powder

Structure of skimmed milk powder production and

consumption, 2017e

Europe is the largest skimmed milk powder producing and

comsuming country in the world.

Source: VIRAC, USDA


3. Current status of dairy industry – 3.3. Other products (milk powder, cheese, butter)

Million tons

Source: VIRAC, OECD, FAO

Skimmed milk powder production and comsumption, 2011 – 2020f


Source: VIRAC, USDA

38

• Contrary to milk, cheese and butter, export/production ratio of

skimmed milk powder increases up to 50% because it is easy to store

and transport.

• Exports of skimmed milk powder in Europe in 2017 reached 560

thousand tons

• US exports still rocketed despite severe competition in the

international market.

Source: VIRAC, USDA

Million tons




Skimmed Milk Powder

Skimmed Milk Powder Global Trade, 2011 – 2018f

Export structure, 2017e Import structure, 2017e


Source: VIRAC, USDA

39

Source: VIRAC, USDA

Million tons




Whole Milk Powder

Production structure of WMP, 2017e Comsumption structure of WMP, 2017e

Global WMP production and consumption, 2016 – 2020f


40

Source: VIRAC, USDA

Million tons




Whole Milk Powder

Whole Milk Powder Global Trade, 2015 – 2020f

Export and import structure of WMP, 2017e


41

• Cheese comsumption in Europe accounts for 40% of total global cheese comsumption

volume.

• Worldwide production volume of cheese is

growing slowly but sustainably.



Million tons


Cheese

Source: VIRAC, USDA

Global cheese production and comsumption, 2011 – 2018f


Cheese consumption structure, 2017eCheese production structure, 2017e

42

Source: VIRAC, USDAMillion tons




Cheese

Cheese Global Trade 2011 – 2018f

Export structure of cheese, 2017 Import structure of cheese, 2017


43

• Excess supply also occurred with butter but not as clearly as liquid milk.



Million tons


Butter

Source: VIRAC, USDA

Global butter production and consumption, 2011 – 2018f

Consumption structure of butter, 2017


44

World's top 5 biggest butter importing countries, 2016-2017

Source: VIRAC, USDA



Thousand tons


Butter

Source: VIRAC, USDA

Butter Global Trade 2011 – 2018f

Export structure of butter, 2017


• Butter output used in global trade has been fluctuating unevenly over the years.Country

2016

(thousand

tonnes)

2017

(thoudsand

tonnes)

Growth (%)

Market

share

2017

45




Kg/person

Consumption of dairy products per capita, 2017


• In general, consumption of dairy products per

capita in developing countries is much lower than

that of developed countries, especially products

such as cheese and butter.

World milk price is affected by many factors, including supply and demand, policies, input materials,...

46



USD/ton

Source: VIRAC, Global Dairy Trade

Price movement of milk and dairy products, 2010 – 3/2018


47



2. Input materials




Content

Main producing and exporting countries

New Zealand

48


4. Typical countries in the world dairy industry – New Zealand

Kg/person/year

Source: VIRAC, CLAL

Consumption of milk and dairy products per capita of NZ,

2011-2018f

Input materials of NZ dairy industry,

2011– 2017


Source: VIRAC, CLAL

Europe (EU)

Ireland

Netherlands

49


4. Typical countries in the world dairy industry – Châu Âu

Production structure of raw milk, 2017Input materials of Europe dairy industry

2010-2017e


Source: VIRAC, CLAL Source: VIRAC, CLAL, FAO

USA

50


4. Typical countries in the world dairy industry – USA

Kg/person/year

Source: VIRAC, CLAL, OECD, FAO

Input materials of USA dairy industry,

2010 – 2017e

Consumption of liquid milk per capita in USA, 2011-2017


Source: VIRAC, CLAL, OECD, FAO

51


4. Typical countries in the world dairy industry – China

Source: VIRAC, CLAL

liter/person/year

Source: VIRAC, CLAL

Thousand tons

China

Consumption of fresh milk per capita in China,

2010 - 2017

Production and consumption of powdered milk in

China, 2010 - 2017


• China is always a potential market for milk consumption. China's consumption of milk and dairy products equates to less than one-third of the world's

average consumption and has great potentials for future growth.

• In the next decade, cheese and butter are expected to rise sharply.

52



2. Input materials




Content

53



Source: VIRAC, CLAL

World's top 20 largest dairy companies, 2016


2017 2016 Company Headquarters Sale 2016 (billion USD)

54




Company General information

55




Company General information

Part III. Vietnam dairy market

1. History of industry formation and development 7. Import Export

2. Production process 8. Inventory

3. Production technology 9. Price

4. Input materials 10. Distribution

5. Production 11. Competitive Analysis

6. Consumption

56

Content

57

Vietnam has no tradition in the cattle breeding sector, so there are no specialized dairy cow breeds. Dairy cow breeding has only appeared in Vietnam

since the early years of the 20th century.

1954-19601937-19421920-1923


1. History of industry formation and development


58

20011986-19991985-2987 2008-nay


1. History of industry formation and development


59

Content







6. Consumption

Source: VIRAC

60

Production of pasteurized fresh milk:

Production of sterilized fresh milk:


2. Production process


61







6. Consumption

Content

62

UHT pasteurization system

Filling machine system


3. Production technology

• The dairy industry is one of the few industries with relatively high technology

level compared to the world's,


63

Centrifugal separator

Automatic milking system




64

Milk collection equipmentMilk processing equipmentHomogenizerHomogenization preparing

equipment

Some equipments used in pasteurized milk production




65

In powdered milk production, there are two methods applied: dry method and

wet method.

Tower drying system




66







6. Consumption

Content

67


4. Input materials – Domestic raw materials

Number of cow herbs in Vietnam, 2010 – 2017

Thousand heads

Source: VIRAC, MARD

Number of dairy cow herds by region, 2017e

Source: VIRAC, MARD


• Cow breeding continues to develop stably, dairy cows continue to develop

well as some enterprises increased their investment and expanded the scale

of animal husbandry combined with favorable conditions in some localities..

68



Cow milk volume by region, 2015

Source: VIRAC, MARD


• According to the statistics of MARD, the larger the scale of dairy

farming is, the lower the cost of production is,

69

Source: VIRAC



Source: VIRAC, Department of Livestock

Production, GSO

Thousand tons

Domestic production volume of raw milk, 2010 – 2017e


Cow structure by enterprise, 2017e

70

Source: VIRAC, GDVC


4. Input materials – Imported raw materials

Million tons

Import volume of raw milk, 2010 – 2017e

Raw materials structure of milk, 2017e

Source: VIRAC, GDVC

Content is intentionally removed for demo purposeRaw materials imported into Vietnam mainly in the form of powdered milk include: whole

milk powder, skimmed milk powder, whole milk powder with high protein,…

71

Source: VIRAC, Department of Livestock Production


4. Input materials – Fluctuation of raw material price

VND Thousand/kg

Average raw milk price in some countries, 2017

Source: VIRAC, Global Dairy Trade

USD/ton

Price movement of raw milk in the world,

2014 – 3/2018


According to the Department of Price Management, domestic milk price is

affected by world raw milk price, input costs of domestic production (costs

of raw materials, fuel, sales, labor...).

72







6. Consumption

Content

73


5. Production

Source: VIRAC, GSO

Source: VIRAC, GSO

Fixed asset value of dairy sector over the years, 2010 - 2016

VND Billion

Number of enterprises and workers in the dairy industry, 2010 - 2016

Enterprise Person


• The dairy industry is a growing industry associated with fixed assets,

74


5. Production

Thousand tons

Source: VIRAC, GSO

Production volume of milk powder, 2010 –3M/2018e

Source: VIRAC, GSO

Million litersProduction volume of liquid milk, 2010 – 3M/2018e


Domestic production of milk powder depends on imports in three

forms :

75


5. Production

Million litersThousand tons

Source: VIRAC, GSO

Production of liquid milk and powdered milk by month, 2016 – 3M/2018


76







6. Consumption

Content

77

Source: VIRAC, VDA


6. Consumption

Million liters

VND Trillion

Source: VIRAC, VDA

Consumption sales of Vietnam dairy industry, 2010 – 2017e

Milk consumption volume, 2008 – 2020f


• Dairy sales growth was mainly driven by liquid milk and powdered

milk,

78


6. Consumption

liter/person/year

Source: VIRAC, GSO

Source: VIRAC, GSO

VND Trillion

Dairy industry's sales, 2010 – 2017e

Dairy consumption per capita, 2008 – 2017f


• Vietnam is considered as a potential market for milk consumption.

Enterprise Country Brand Targeted customer

79

Some brands of powdered milk in Vietnam


6. Consumption


• According to the Ministry of Industry and Trade, about milk powder, foreign milk accounted for about 75% market share.

• Milk powder group consists of both adult and baby powdered milk.

80


6. Consumption

VND Trillion

Source: VIRAC, VDA Source: VIRAC, VDA, Vinamilk

Sales of powdered milk, 2006 – 2020f Market share of powdered milk for kids, 2016


• Domestic milk powder companies such as Vinamilk and Nutifood are gradually asserting their position in the market by boosting investment to raise

the capacity of milk powder production.

81


6. Consumption

Source: VIRAC, VDA, Vinamilk

Sales of liquid milk, 2010 – 3M/2018e

Source: VIRAC, VDA, GSO

VND Trillion

Market share of liquid milk, 2016


82


6. Consumption

Sales of yogurt, 2010 – 3M/2018e


VND Billion

Market share of yogurt by brand, 2017e

Source: VIRAC


83


6. Consumption


VND Trillion

Sales of condensed milk, 2010 – 3M/2018e

Source: VIRAC, Vinamilk

Market share of condensed milk, 2017e


84







6. Consumption

Content

85


7. Import Export

Source: VIRAC, GDVC

USD Million

Import of milk and dairy products, 2010 – 3M/2018


• Due to the rapid and strong development of domestic dairy industry, Vietnam is reducing its reliance on imported dairy raw materials..

• In the first quarter of 2018, imports of milk and dairy products had a lot of fluctuations.

86


7. Import Export

Import structure of milk and dairy products by HS code, 2017

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Import market for milk and dairy products, 3M/2018


Vietnam now imports milk and dairy products from 17 countries around the

world.

87


7. Import Export

Description of goods under the HS code

HS code Goods description


88


7. Import Export

Source: VIRAC, Vinamilk, GDVC

VND Billion

Export of milk and dairy products, 2010 – 3M/2018e

Vietnam is one of the few Asian milk exporting countries.Content is intentionally removed for demo purpose

89


1. History of industry formation and development 7. Competitive Analysis




5. Production 11. Inventory

6. Consumption

Content

90


8. Inventory

Source: VIRAC, GSO

Ton

Dairy inventory, 2010 – 2017e%


91







6. Consumption

Content

92


9. Price

Type Price (VND/carton) Compared to 2/2018

Retail price of some powdered milk products for kids under six

years old in 3/2018

Source: VIRAC


In the first quarter of 2018, milk powder price tended to stabilize due to

a number of reasons :

93

• According to the assessment, Vietnam is the country with the rapid increase in milk price in the world.


9. Price


94



2. Production process 7. Import Export




6. Consumption

Content

95

• Currently, Vinamilk has the largest and most diversified distribution network in the

dairy industry,

Source: VIRAC

Distribution system of dairy industry


10. Distribution


CRP (Điểm tiếp cận người tiêu dùng là một thước đo đo lường bao nhiêu hộ gia đình chọn mua một thương hiệu (tỷ lệ hộ mua) và mức độ thường xuyên mua (tần suất mua) 96

• The growth of the fast moving consumer goods sector in rural markets was better than

that in urban areas in the period 2014-2015.



10. Distribution


10 most popular beverages in rural Vietnam, 2014

10 most popular beverages in urban Vietnam, 2014


97







6. Consumption

Content

98

• Specific positioning for product brand


11. Competitive Analysis


99

• Value positioning for product brand

• After sales service helps increase the total value to the product brand


11. Competitive Analysis


Part IV. Risk Analysis

1. Industry risk

2. SWOT analysis

100

Content

101

Risk of raw materials

Food safety and hygiene risk

Risk of integration


1. Industry risk


102

Policy risk

Competitive risk


1. Industry risk



1. Industry risk

2. SWOT analysis

103

Content

104


2. SWOT analysis

S WTO


Part V. Industry development zoning

1. Population development zoning

2. Castle breeding industry development zoning

3. Dairy industry development zoning

105

Content

Indicator 2009 - 2014 2014 - 2019

Source: VIRAC, GSO

Forecast for some basic population indicators up to 2019

106

Source: VIRAC, GSO



Million people

Population and population growth forecast in Vietnam,

2008 – 2020f


• According to the General Department of Population and Family Planning,

since 2006, Vietnam has maintained a stable fertility rate of 2.0-2.1 children

(2.04 children in 2017)

107





Content

Dairy cow population's targeted growth in the period of 2010 – 2020fUnit: Thousand heads

108

Source: VIRAC, Department of Livestock Production



Million tons

Source: VIRAC, Department of

Livestock Production

Forecast of fresh milk production, 2009 – 2020f


According to Decision No. 3399 / QD-BCT issued on

28/06/2010, Content on solutions for development of raw

materials for the dairy industry includes:

109





Content

Source: VIRAC, Ministry of Industry and Trade

Development planning for dairy products to 2020, vision to 2025

110




• According to Decision No. 3399/QD-BCT issued by the Ministry of Industry and Trade on 28 June 2010 approved the development plan for dairy

industry in Vietnam to 2020 with vision to 2025.

No Indicator Unit 2010 2015 2020 2025

Part VI. Prospects and forecasts

1. Driving forces of industry development

2. Vietnam Dairy Market Forecast

111

Content

112

Source: VIRAC, GSO



Total population and birth rate over the years, 2010-2017


• Being a country with high population growth rate of 1.2% per year, Vietnam is considered as a potential market for dairy producers..

113




114




Content

115

Source: VIRAC



Million litersliter/person/year

Forecast of milk consumption in Vietnam, 2008 - 2020f


116




Part VII. Enterprise Analysis

1. Enterprise introduction

2. Financial analysis

117

Content

118



NameTotal assets

(VND Billion)

Sales

(VND

Billion)

Productivity Main brandNumber of

factoriesProperties


119



NameTotal assets

(VND Billion)

Sales

(VND

Billion)

Productivity Main brandNumber of

factoriesProperties

120



Vietnam Dairy Products Joint Stock Company (Vinamilk)


121



Nestlé Vietnam Company Limited


122



3A Nutrition Company Limited


123



NutiFood Nutrition Food Joint Stock Company


124



TH True Milk Joint Stock Company


125



Frieslandcampina Vietnam Company Limited


126

Moc Chau Dairy Cattle Breeding Joint Stock Company




127



Mead Johnson Nutrition (Vietnam) Company Limited


128

International Dairy Products Joint Stock Company (IDP)




129



KIDO Frozen Food Joint Stock Company (KDF)


130




Content

131



VND Billion

Source: VIRAC

Net revenue, 2015 - 2016


132




133



VND Billion

Source: VIRAC

Gross profit, 2015 - 2016


134



Source: VIRAC

Gross profit margin, 2015 - 2016


135



VND Billion

Source: VIRAC

Sales expenses, 2015 - 2016


136




VND Billion


Sales expense structure of Vinamilk, 2016Vinamilk's sales and advertising expenses, 2010 - 2016


137

Source: VIRAC



VND BillionAdministrative expenses, 2015 - 2016


138

Source: VIRAC



Debt ratio of enterprises in the industry tended to decrease slightly in 2016 (0.63). Capital structure of enterprises is also in short-term liabilities.

Total liabilities / Total assets, 2015 - 2016


139



Source: VIRAC

Short-term Assets/Long-term Assets, 2015 - 2016

2015 2016

Most of the companies in the group have an inclination for short-term assets (except for Nestlé Vietnam, IDP and KDF).


140

Source: VIRAC



Solvency, 2015 - 2016


141

Source: VIRAC



Indicators for performance efficiency, 2015 – 2016


VinamilkNestlé

Vietnam

Nutrition

3A

Nutifood

Binh Duong

Frieslandca

mpina

Vietnam

TH true

MilkMoc Chau

Mead

Johnson

Nutrition

IDP KDFIndustry

average

142

Source: VIRAC



%

Profit Ratio, 2015 - 2016


Part VIII. Appendix of financial statements

143

Content

BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivables

1. Receivables from customers

IV. Inventory

B. LONG-TERM ASSETS

I. Long-term receivables

1. Long-term receivables from customers

II. Fixed assets

1. Tangible fixed assets

2. Intangible fixed assets

TOTAL ASSETS

A. LIABILITIES

I. Short-term Liabilities

1. Short-term Borrowings and Liabilities

2. Payments to suppliers

3. Taxes and other payables to the State budget

II. Long-term liabilities

2. Long-term borrowings and liabilities

B. OWNER'S EQUITY

TOTAL LIABILITIES AND OWNER'S EQUITY

INCOME STATEMENT

Unit: VND

2015 2016

Net Revenue from Sales and services provided

Cost of goods sold and services provided

Gross Profit from sales and services provided

Financing income

Financial expenses

Interest expenses

Sales expenses

Administrative expenses

Net profits from operating activities

Total Accounting Profit Before Tax

Current Corporate Income Tax Expenses

Deferred Corporate Income Tax Expenses

Profit After Enterprise Income Tax

CASH FLOW STATEMENT

Unit: VND

2015 2016

I. Cash Flow From Operating activities

Net Cash Flow From Operating activities

II. Cash Flow From Investing activities

Net Cash Flow From Investing activities

III. Cash Flow From Financial activities

Net Cash Flow From Financial activities

Net Cash Flow during the fiscal period

144

APPENDIX

Vietnam Dairy Products Joint Stock Company (Vinamilk)


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








145

APPENDIX

Nestlé Vietnam Company Limited


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








146

APPENDIX

3A Nutrition Company Limited


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








147

APPENDIX

NutiFood Nutrition Food Joint Stock Company in Binh Duong Province


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








148

APPENDIX

Frieslandcampina Vietnam Company Limited


BALANCE SHEET

Unit: VND Million

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND Million

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







149

APPENDIX

TH True Milk Joint Stock Company


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016







Net Cash Flow during the fiscal period -9,916,481,100 -29,759,917,200

150

APPENDIX

Moc Chau Dairy Cattle Breeding Joint Stock Company


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








151

APPENDIX

Mead Johnson Nutrition (Vietnam) Company Limited


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








152

APPENDIX

International Dairy Products Joint Stock Company (IDP)


BALANCE SHEET

Unit: VND

2015 2016

A. CURRENT ASSETS





IV. Inventory

B. LONG-TERM ASSETS



II. Fixed assets



TOTAL ASSETS

A. LIABILITIES







B. OWNER'S EQUITY


INCOME STATEMENT

Unit: VND

2015 2016




Financing income

Financial expenses

Interest expenses

Sales expenses







CASH FLOW STATEMENT

Unit: VND

2015 2016








153

APPENDIX

KIDO Frozen Food Joint Stock Company (KDF)


REPORT DISCLAIMER

154

Report disclaimer

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has

produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to

be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organization, or place it on a website for

public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,)

6th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

http://virac.com.vn/

mailto:[email protected]

Thank you !

155

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