In addition to importing more cooking oil products, Vietnam's domesticcooking oil market is seeing growing competition between the new andexperienced brands.
The Vietnam Vegetable Oil IndustryCorporation (Vocarimex), a cooking oil giant with four subsidiarycompanies and three associated companies, owns the largest chunk ofmarket share in the domestic cooking oil sector.
However, in viewof its falling market share in the recent years, the corporationdecided to sell 24 percent of its shares to Kinh Do Corporation (KDC)and 8 percent to VPBank Securities.
The Kinh Do ConfectionaryCorporation recently spent some more 530 billion VND (24.9 million USD)to buy a 27 percent stake in Vocarimex, boosting its stake in Vocarimexto 51 percent.
Accordingly, the KDC will support Vocarimex in distribution system development, brand name and technology.
Vocarimex'smarket share increased from 50 percent to 95 percent during the 1994 to2000 period, but fell to 90 percent in 2010 and currently stands atabout 80 percent now.
According to the KDC, the country's cookingoil sector can be valued at 22.3 trillion VND (1.04 billion USD) andhas a growth rate of 7 to 9 percent. Vietnamese cooking oil consumptionis about seven to eight kilograms a person per year. The KDC hasforecast a high potential for the market and said it expects consumptionto double by 2015 and triple by 2020.
The Sao Mai Group, whichfocuses on property trading and seafood processing, entered the cookingoil market last year with its Ranee premium fish oil.
The company is also confident about introducing a new oil product made from tra fish.
DeputyDirector of the Sao Mai Group Truong Vinh Thanh told the Dau Tu(investment) newspaper that even though the cooking oil market iscompetitive, the group is still firm on entering the sector becausethere are no domestic or foreign producers making cooking oil from trafish.
However, supplements or food for babies that use tra fish oil are already available in the market, he added.
TheQuang Minh Vegetable Oil Joint Stock Company is also involved in theproduction of cooking oil with many different brands and has a goodreputation in the domestic food market through products, such as Mr Beancooking oil, OilLa cooking oil and Soon Soon cooking oil, which havebeen around since 2011.
During its seven years of operations, theVinaCommodities Joint Stock Company has introduced Otran cooking oil,Eliza cooking oil and Chica cooking oil in the market.
Tran VanToan, President of the management board of VinaCommodities, said thatthe company's goal is to become a leading agricultural product producerin Vietnam and the Asia-Pacific region.
However, domestic cookingoil producers are still dependent on raw material imported from foreigncountries. For example, the country has to import a large amount ofpalm oil from Malaysia and sunflower oil from Europe.
Since 2012,import tax on vegetable oil was removed following trade agreements,which resulted in fierce competition among cooking oil producers.
Productsfrom neighbouring countries, such as Malaysia, Indonesia and Thailand,which have the advantage of planting and production, have led toVietnam's market share reducing and its revenue contracting.
Duringthe 2009 to 2012 period, the market share for domestic production fellfrom 37 percent to 22 percent, while that of imported products rose from33 percent to 51 percent during the same period. Therefore, theMinistry of Trade and Industry decided to tax vegetable oil cookingproducts 5 percent in 2013. However, this was only a temporaryself-defence measure as it only lasted 200 days.-VNA
The Vietnam Vegetable Oil IndustryCorporation (Vocarimex), a cooking oil giant with four subsidiarycompanies and three associated companies, owns the largest chunk ofmarket share in the domestic cooking oil sector.
However, in viewof its falling market share in the recent years, the corporationdecided to sell 24 percent of its shares to Kinh Do Corporation (KDC)and 8 percent to VPBank Securities.
The Kinh Do ConfectionaryCorporation recently spent some more 530 billion VND (24.9 million USD)to buy a 27 percent stake in Vocarimex, boosting its stake in Vocarimexto 51 percent.
Accordingly, the KDC will support Vocarimex in distribution system development, brand name and technology.
Vocarimex'smarket share increased from 50 percent to 95 percent during the 1994 to2000 period, but fell to 90 percent in 2010 and currently stands atabout 80 percent now.
According to the KDC, the country's cookingoil sector can be valued at 22.3 trillion VND (1.04 billion USD) andhas a growth rate of 7 to 9 percent. Vietnamese cooking oil consumptionis about seven to eight kilograms a person per year. The KDC hasforecast a high potential for the market and said it expects consumptionto double by 2015 and triple by 2020.
The Sao Mai Group, whichfocuses on property trading and seafood processing, entered the cookingoil market last year with its Ranee premium fish oil.
The company is also confident about introducing a new oil product made from tra fish.
DeputyDirector of the Sao Mai Group Truong Vinh Thanh told the Dau Tu(investment) newspaper that even though the cooking oil market iscompetitive, the group is still firm on entering the sector becausethere are no domestic or foreign producers making cooking oil from trafish.
However, supplements or food for babies that use tra fish oil are already available in the market, he added.
TheQuang Minh Vegetable Oil Joint Stock Company is also involved in theproduction of cooking oil with many different brands and has a goodreputation in the domestic food market through products, such as Mr Beancooking oil, OilLa cooking oil and Soon Soon cooking oil, which havebeen around since 2011.
During its seven years of operations, theVinaCommodities Joint Stock Company has introduced Otran cooking oil,Eliza cooking oil and Chica cooking oil in the market.
Tran VanToan, President of the management board of VinaCommodities, said thatthe company's goal is to become a leading agricultural product producerin Vietnam and the Asia-Pacific region.
However, domestic cookingoil producers are still dependent on raw material imported from foreigncountries. For example, the country has to import a large amount ofpalm oil from Malaysia and sunflower oil from Europe.
Since 2012,import tax on vegetable oil was removed following trade agreements,which resulted in fierce competition among cooking oil producers.
Productsfrom neighbouring countries, such as Malaysia, Indonesia and Thailand,which have the advantage of planting and production, have led toVietnam's market share reducing and its revenue contracting.
Duringthe 2009 to 2012 period, the market share for domestic production fellfrom 37 percent to 22 percent, while that of imported products rose from33 percent to 51 percent during the same period. Therefore, theMinistry of Trade and Industry decided to tax vegetable oil cookingproducts 5 percent in 2013. However, this was only a temporaryself-defence measure as it only lasted 200 days.-VNA
