return icon Vietnamnet.vn

FMCG companies eyed by foreign firms

Vietnamese companies leading the fast-moving consumer goods (FMCG) market could be acquisition targets for foreign firms in the near future.
VietNamNet Bridge - Vietnamese companies leading the fast-moving consumer goods (FMCG) market could be acquisition targets for foreign firms in the near future.


{keywords}

Vietnamese brands are dominating the FMCG market



Sagimexco’s Q4 2017 financial report recently released showed revenue of VND290.7 billion and net profit of VND30.5 billion in 2017, significant increases compared with the year before. 

The revenue and profit came mostly from deep-fried shrimp paste production, its core business field. Sagimexco has led the market segment for many years, with its rivals trailing far behind. 

The revenue and profit came mostly from deep-fried shrimp paste production, its core business field. Sagimexco has led the market segment for many years, with its rivals trailing far behind. 

Sai Gon Food has also reported prosperous business results for 2017. The company has the top position in hotpot products and is an exclusive manufacturer of fresh rice gruel.

Asia Brand Power, a newly released report from Kantar Worldpanel, showed that Vietnamese brands are dominating the domestic market. They hold 78 percent of rural market share, or 3.5 times higher than that held by foreign brands, while the figures are 71 percent and 29 percent, respectively, for the urban market.

The success of Vietnamese brands is attributed to the close cooperation with Vietnamese retailers.

A report from Nielsen also showed that Vietnamese brands have advantages in the food and beverage sectors, where they hold 69 percent and 45 percent market share, respectively. 

As for home care and personal care products, multinationals have advantages, but Vietnamese enterprises have seen higher growth rates. 

Vietnamese companies gained a 7 percent growth rate in 2016, higher than the 5 percent in the two years before, and 5 percentage points higher compared with global companies, making up 42 percent of total revenue of the entire FMCG sector.

Ly Kim Chi, chair of the HCM City Food & Foodstuff Association (FFA), confirmed that Vietnamese companies dominate fresh poultry and animal meat, vegetables and fruits.

Risks

The dominance of Vietnamese companies, to some extent, puts them at risk because they could be the targets for foreign giants planning M&As.

Seventy percent of shares of Vietnamese Cau Tre JSC, a well-known brand in the frozen food market, have been taken over by CJ Group. 

The South Korean group took over Ong Kim brand, while Kinh Do Group sold its sweets manufacturing division to Mondelez from the US.

Pham Thi Ngoc Ha, director of San Ha, a poultry meat supplier, said Vietnamese companies that understand domestic consumers well are being eyed by foreign investors. 

She believes that only companies with long-term business development plans can protect their ‘Vietnamese origin’.


RELATED NEWS

Retail modernisation and e-commerce aiding FMCG

Vietnamese using more premium products as incomes rise


Mai Chi

MORE NEWS

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.

Vietnam remains in world’s Top 5 plywood exporters

Vietnam earned US$ 1.1 billion from exporting plywood in the first 11 months of 2022, securing the fifth place in the world’s top five largest plywood exporters, according to the International Trade Center (ITC).

Bui Thanh Nhon returns to Novaland as board chairman

Bui Thanh Nhon, founder of NovaGroup, has officially come back to the property developer Novaland as chairman and legal representative, according to a press release issued this afternoon, February 3.

Over 10,000 rose trees to replace fence at Hanoi park

More than 10,000 rose trees are being planted to replace the fence which has just been removed at Thong Nhat Park in Hanoi.

Nearly 550 trade fraud cases tackled within one month

Customs agencies nationwide detected and handled 543 cases violating customs regulations between December 16, 2022, and January 15, 2023, according to the General Department of Vietnam Customs.
back_to_top