Vietnamese dairy giant Vinamilk has been granted the certificate of offshore investment by the Ministry of Planning and Investment to establish a joint venture in the Philippines with an initial investment of US$6 million.
|Vinamilk and its partner establish US$6-million beverages joint venture in the Philippines. Photo: Vinamilk|
Vinamilk and its partner each hold 50% of the capital. The joint venture will import and distribute Vinamilk’s dairy products in the Philippines market.
The Vietnamese dairy giant also announced on February 5 its joint venture with packaged food producer Kido Group Corporation (Kido) to manufacture and distribute ice-cream and non-carbonated soft drinks under the brand Vibev.
The total initial investment of the company is estimated at VND400 billion (US$17.38 million) in the first phase, with Kido holding 49% and Vinamilk 51%. The wide range of Vibev’s products are slated to be officially launched in April this year.
Kido’s representative emphasized this is a new business trend, especially as foreign businesses are ramping up their presence in the Vietnamese market. “We expected that the tie-up will help us capitalize on the Vietnamese beverage market,” a representative from Kido said.
Besides, Vinamilk’s export network of 30 countries and territories will also help Vibeb go global.
Vinamilk has more than half of Vietnam’s dairy market, while Kido leads the ice cream market with a 41% share, according to figures from market research company Euromonitor International.
Last June, the two sides reached an agreement on the joint venture and Vibev was expected to earn revenues of VND2 trillion (US$86.6 million) in the first year of its establishment.