Vinamilk, Vietnam’s biggest dairy company, said in an announcement that it has received the offshore investment registration license no 202100911 dated 3 February 2021 from the Ministry of Planning and Investment to approve the company to set up a joint venture company in the Philippines.
Vinamilk will hold a 50% stake in the joint venture, while the joint venture partner (unnamed) will contribute the remaining 50% of capital. The total initial investment capital is USD 6 million.
The entry of Vinamilk into the Philippines will be an interesting story to follow. We have seen Dutch Mill from Thailand establishing a name in yogurt/probiotic drink and Aice from China/Singapore in ice cream. Japan’s Asahi has recently entered into the cultured milk space with the Goodday brand.
The key question is which sub-category would Vinamilk be interested to enter in the Philippines. Our take is organic milk as Vinamilk has a complete production chain for organic milk, which will make organic milk more accessible to the masses. At the moment, Arla is active in organic milk in the Philippines.