Large corporations have been silently pouring their money into otherbusiness fields after they can get a firm foothold in their core fields,the English language news website VietNamNet Bridge reported.
Analystssaid many changes have been made in the sweets, instant noodle,vegetable oil and drink markets in recent months following a series ofmerger and acquisition (M&A) deals.
Masan Consumer reportedlyspent big money to obtain 53.2 percent of Vinacafe Bien Hoa’s sharesand 63.5 percent of Vinh Hao Mineral Water’s shares. Rumour has it thatthe major player has successfully bought a large amount of the Phu YenBrewery & Beverage Company.
Most recently, the informationthat Masan attempted to buy the Tuong An Vegetable Oil Company, a “bigguy” in the field, has helped pushed Tuong An’s share prices up by 80percent.
Masan Consumer has set up Masan Beverage, a subsidiary,which, in the immediate time, is in charge of managing its capital inVinacafe Bien Hoa and Vinh Hao.
Tran Le Nguyen, Chair of Kinh Do,a sweets group, has confirmed that Kinh Do is planning to buy potentialcompanies that make vegetable oil, instant noodles and sauces.
The10 percent annual growth rate of the sweets market cannot satisfy KinhDo. Therefore, the group decided to “go beyond the sweets field” toobtain a growth rate of 20-30 percent.
The strategy to diversifybusiness fields has been implemented by joining hands with the 100percent Taiwanese invested Saigon Vewong, the owner of A One brand, torun an instant noodle project.
Under their cooperation programme,Vewong will make instant noodles, porridge and noodle soup for Kinh Do,while Kinh Do will help distribute Saigon Vewong’s products.
Kinh Do plans to launch the first products of the cooperation programme in the third quarter of the year.
Thesweets manufacturer is also nurturing an ambitious plan to “encroach”on the coffee and vegetable oil land by cooperating with two existingenterprises in the fields.
Some days ago, Vinacafe Bien Hoa,known as a coffee manufacturer, consulted with its shareholders aboutthe plan to expand. If the plan gets the shareholder’s approval, VincafeBien Hoa would trade dairy products and food for children and makesweets.
Nguyen Trung Thang, Chair of the Vietnam Marketing andBusiness Administration Institute, noted that enterprises have to expandtheir production fields, if they want high growth rates. The growthwithin one business field is limited.
He commented that it is awise choice for the enterprises to pour money into the business fieldsthat have close relations to their core fields, not in the real estateor finance investment sectors, of which they have little experience.
However,analysts said it is very difficult for newcomers to find a foothold inunfamiliar markets for them, as the markets become more divided amongmany players.
Masan Consumer, which dominates the sauce market,is believed to be at a disadvantage when entering the drink market,where there are giants like Pepsi, Coca Cola and Tan Hiep Phat.
Analystssaid many changes have been made in the sweets, instant noodle,vegetable oil and drink markets in recent months following a series ofmerger and acquisition (M&A) deals.
Masan Consumer reportedlyspent big money to obtain 53.2 percent of Vinacafe Bien Hoa’s sharesand 63.5 percent of Vinh Hao Mineral Water’s shares. Rumour has it thatthe major player has successfully bought a large amount of the Phu YenBrewery & Beverage Company.
Most recently, the informationthat Masan attempted to buy the Tuong An Vegetable Oil Company, a “bigguy” in the field, has helped pushed Tuong An’s share prices up by 80percent.
Masan Consumer has set up Masan Beverage, a subsidiary,which, in the immediate time, is in charge of managing its capital inVinacafe Bien Hoa and Vinh Hao.
Tran Le Nguyen, Chair of Kinh Do,a sweets group, has confirmed that Kinh Do is planning to buy potentialcompanies that make vegetable oil, instant noodles and sauces.
The10 percent annual growth rate of the sweets market cannot satisfy KinhDo. Therefore, the group decided to “go beyond the sweets field” toobtain a growth rate of 20-30 percent.
The strategy to diversifybusiness fields has been implemented by joining hands with the 100percent Taiwanese invested Saigon Vewong, the owner of A One brand, torun an instant noodle project.
Under their cooperation programme,Vewong will make instant noodles, porridge and noodle soup for Kinh Do,while Kinh Do will help distribute Saigon Vewong’s products.
Kinh Do plans to launch the first products of the cooperation programme in the third quarter of the year.
Thesweets manufacturer is also nurturing an ambitious plan to “encroach”on the coffee and vegetable oil land by cooperating with two existingenterprises in the fields.
Some days ago, Vinacafe Bien Hoa,known as a coffee manufacturer, consulted with its shareholders aboutthe plan to expand. If the plan gets the shareholder’s approval, VincafeBien Hoa would trade dairy products and food for children and makesweets.
Nguyen Trung Thang, Chair of the Vietnam Marketing andBusiness Administration Institute, noted that enterprises have to expandtheir production fields, if they want high growth rates. The growthwithin one business field is limited.
He commented that it is awise choice for the enterprises to pour money into the business fieldsthat have close relations to their core fields, not in the real estateor finance investment sectors, of which they have little experience.
However,analysts said it is very difficult for newcomers to find a foothold inunfamiliar markets for them, as the markets become more divided amongmany players.
Masan Consumer, which dominates the sauce market,is believed to be at a disadvantage when entering the drink market,where there are giants like Pepsi, Coca Cola and Tan Hiep Phat.
