Vietnam’s top dairy company – Vietnam Dairy Products Joint Stock Company (Vinamilk) - has witnessed a strange financial movement, contrary to the strong uptrend of the stock market.

Present in 50 countries and territories, Vietnamese dairy producers are step by step building their positions in the world market.

Singaporean firm F&N Dairy Investment Pte Ltd has filed an offer to purchase more than 17.4 million shares in domestic dairy producer Vinamilk (HoSE: VNM).

 The dairy industry grew 0.5 per cent in market capitalisation in 2019, much lower than the average growth of 7.7 per cent of the VN-Index, according to a report issued recently by SSI Securities Joint Stock Company (SSI).

Many Vietnamese famous brands have fallen into foreign hands or disappeared from the market.

Vinamilk completed the purchase of 79.5 million shares in GTNFoods to increase its holdings to 75 per cent in Moc Chau Milk.

In early 2019, Vinamilk offered to buy shares of GTNFoods, the company which owns Moc Chau milk brand. In December 2019, Vinamilk completed the takeover deal.

The Vietnam Dairy Association forecasts Vietnam's dairy industry will grow from 9-10 per cent next year and local milk consumption per capita will reach 28 litres in 2020.

Domestic stocks managed to recover after three consecutive falling session today, November 12, but still failed to stage a strong rally as foreigners heavily offloaded shares of dairy giant VNM.

More and more foreign dairy producers have arrived in Vietnam as they can see the great potential of the market.

Coca-Cola's announcement that it will enter the dairy sector will increase pressure on Vietnamese producers.

The Vietnam Association of Financial Investors (VAFI) has requested the PM and relevant authorities' approval to build deepwater ports from the proceeds of divesting state ownership in large corporations like Vinamilk, Sabeco, and FPT.

Vietnam has seen a continuous flow of indirect investment from Singapore so far this year through share purchase deals in the stock market.

Ice cream is also a market where local and foreign brands are battling it out for market share.

Vietnam-made dairy products, which have certain advantages in the home market, continue to be prosperous.

The quality of products and the scale of distribution network are the two decisive factors that determine success of every ice cream brand.

Since early 2018 to date, F&N Dairy Investment and Platinum Victory have been competing with each other for the acquisition of 1% of Vinamilk stake, but their respective moves have failed to materialize.

The list of Vietnam’s 50 best-performing companies (Top 50) was announced by the Nhip Cau Dau Tu (Investment Bridge) magazine and Thien Viet Joint Stock Company in Ho Chi Minh City on June 27.

It is expected that the average dairy product demand of Vietnamese will increase to 28 liters per annum by 2020.