Vinamilk Field Trip

Ho Chi Minh International University School of Business Administration Ho Chi Minh International University School of Business Administration REPORT on FIELDTRIP Group: Name Student’s ID Nguy? n Khanh An Tr? n Quang Ngan BAIU08057 Tr? n Minh Thanh BAIU08069 Hu? nh Ng? c Thanh Truc BAIU08078 Nguy? n Hu? nh Qu? c Nh? t Report on Fieldtrip BAIU08214 BAIU08103 Page 1 Ho Chi Minh International University School of Business Administration QUESTION OF REPORT ON FIELDTRIP 1. Describe the factory of Vinamilk. What is the most impressive that you've seen in the fieldtrip? 2.What are the difficulties that Vinamilk may have while exporting to Iraq? Your suggestions to overcome. Some Brief about Vinamilk Corp. Vinamilk is the biggest dairy company in Vietnam. Based on the UNDP 2007 report, it is also the 15th largest company in Vietnam. Established in 1976, Vietnam Dairy Products Joint Stock Company (VINAMILK) has since grown s trongly and become the leading business of the milk processing industry, now occupying 75% of the milk market share in Vietnam. In addition to strong domestic distribution with a network of 183 agencies throughout all 64 of 64 provinces.Vinamilk products are also exported to Iraq. In most western countries it does not meet the local hygiene standards and is therefore not allowed to be imported. VINAMILK is a state owned enterprise in which the government has 50. 01% of the shares and the rest of the shares are currently active trading at the Ho Chi Minh Stock Exchange. Vinamilk main competitor is Dutch Lady Vietnam, a division of Friesland Foods. Factories Thong Nhat Dairy Factory Truong Tho Dairy Factory Dielac Dairy Factory Saigon Milk Dairy Factory Hanoi Dairy Factory Can Tho Dairy FactoryNghe An Dairy Factory Binh Dinh Dairy Factory Also several joint ventures, such as the $45 million -dollar venture with SABMiller PLC to build a brewery in the Binh Duong province. Awards and achievements 1985 – Labour Medal of Third Ranking. 1991 à ¢â‚¬â€œ Labour Medal of Second Ranking. 1996 – Labour Medal of First Ranking. 2000 – Hero of Socialist Labor of Vietnam. 2001 – Labour Medal of Third Ranking. 2005 – Independence Medal of Third Ranking. Report on Fieldtrip Page 2 Ho Chi Minh International University School of Business Administration 2005 – Labour Medal of Third Ranking. 006 – â€Å"Supreme Cup† from Intellectual Property Association and Association of Small & Medium Enterprises, Vietnam. 1995-2007 – Saigon Marketing Newspaper Readers' Choice Awards. 1 – Describe the factory of Vinamilk. What is the most impressive that you've seen in the fieldtrip?  » Th? ng Nh? t Milk factory 12 D? ng Van Bi, Tru? ng Th? Ward, Th? D? c District, HOCHIMINH CITY TEL: (84. 8) 8 960 725 – Fax: (84. 8) 38 963 140 Specialzing in condensed milk, aseptic fresh milk, ice cream, yog urt and drinking yogurt. We are on a trip to Th? ng Nh? t factory.Factory is located in T h? D? c. It seems to be very fresh, don’t have many problem about traffic, polluted†¦ Firstly, we are introduced about their factory, their products and some questions are answer clearly. We realize that they produce a lot of product in that factory. When come to see the place they are working, I see a lot of part of the assembly line. Such as: Getting milk liqid, Sterilizing, Distributing, Adding sugar and other spice. et c†¦ Secondly, they took us to come to see their factory, machine, and explain us all the question about their factory, products†¦The important thing I impressed is that they have very few people, about 2- 3 workers in a part. That mean their factory is highl y automatic by machine, worker plays a role as a runner. + There are many pipes which milk flow in and come to many part of the manufacture. The liquid flow in the pipes about 30 minutes. This is some of our pictures that are allowed to take in some areas. A room have Pressure- cooker to have the milk fresh. An assembly line is running by a worker. It makes the milk-can come to the machine that pour the milk into. A machine pastes the label.Some of the workers arrange them into package, cotto n bucket. Report on Fieldtrip Page 3 Ho Chi Minh International University School of Business Administration All the process we can see is the machine working, can not smell any about milk. The machine is running so softly that seem to be very peaceful for other s living outside the factory. In brief, we want to say that they working in a regulation way, automatically, and clean. 2 – What are the difficulties that Vinamilk may have while exporting to Iraq? Your suggestions to overcome. We have some information about the relationship of Vinamilk and Iraq.First is Vinamilk’s top export markets are Iraq and Cambodia Vinamilk has made ambitious plans after it reported its record results in 2006. Stiff competition and high raw-material costs failed to dampen Vinamilkâ⠂¬â„¢s results. It reported profits of $46 million, or a share price of $0. 28 (up 20. 8 percent over the previous year). As a result, the processor powdered and condensed milk, fresh milk and yoghurt drinks has set targets of 15-20 percent growth of products in 2007. Vinamilk says its major export market is still Iraq, where it maintained an avera ge export value of over $80 million.Meanwhile, Cambodia was its fastest -growing market, reaching a business value of $3 million —up 74 percent compared to 2005. This is some of the difficulties that Vinamilk will face with: Vinamilk doesn’t have their ow n means of transport that will carry their product oversea. Reason: Viet Nam does not have shipping service to transport goods oversea Solution: They will have to sign a contract with a company to s hip goods oversea. Secondly is the time 2003 – 2004, Vinamilk won a contractor with Iraq about supporting milk product. So, the problem is that United Nation permiss them to trade with Iraq.However UN have the rule that goods must have an insurance. Reason: Because of the politics in Iraq is complex, required an insurance for goods Solution: They must sign a contract with an insurance company to have their goods be safety first. Then the product will be regularize to come in Iraq without any problem Third is the complex politics of Iraq and those country in M iddle East. Reason: the war of Iraq and US about mineral -oil Solution: They should study about their culture, the changes of politics situations and then making a decision of exporting. Try to realize the specific charactristics of Iraq’s market.This wil l show us how to react at anytime. Report on Fieldtrip Page 4 Ho Chi Minh International University School of Business Administration Fourth is the quality of milk. Reason: Influence of having melanine (a chemical cause cancer) in milk appear in China. Solution: They must have certification about their producr that it will not have melam ine and others extranous matter so that people will find out the best product to use. Last is the chage of price, finiancial situation in the world Reason: There are a price crisis in the world that make some banks go bankrupt. Solution:In some statistics about milk price, We realize that milk price in Viet Nam is highest in the world. Mr. Tr? n Ng? c Dung. E xpert market researcher of FTA said that: The average milk price in many country of East of Europe and South America is 0,4 USD, In China, North America is 0,8 USD. But in Viet Nam is 0,82 USD/kg. So, Vinamilk can decrease the milk price because they buy the milk from farmer in a lower price than any country. Furthermore, they still have profits if they reduce the price and have an advantage in Iraq’s market **** End of the report. Report on Fieldtrip Page 5