Merger and acquisition

Vinamilk invested US$150 million to build a dairy farm complex in Laos to proactively supply raw materials. (Photo: SGGP) Back to domestic supply Mr. Tran Viet Anh, Vice Chairman of Ho Chi Minh City Union of Business Associations, said that the prices of imported plastic materials delivered in April rose by more than 30 percent compared to the end of last year. In May, the price of ABS plastic pellets set a record high after advancing for 12 consecutive months, up about 130 percent-145 percent, depending on the market. In addition, other plastic materials, such as GPPS and HIPS plastic pellets, also increased from 100 percent to 120 percent. This price increase has stunned many enterprises amid the context that the purchasing power is declining. Mr. Nguyen Dang Hien, Vice Chairman of Ho Chi Minh City Food and Foodstuff Association, also informed similarly but said that there was good news. Previously, food processing enterprises had to import up to 60 percent of raw materials, but since the Covid-19 pandemic broke out in 2020, many enterprises have returned to seek domestically-made raw materials. As one of the largest producers of milk and dairy products in Vietnam, Vietnam Dairy Products Joint Stock Company (Vinamilk) always needs a large amount of fresh milk for production. To take autonomy in the supply, the company has been cooperating with 6,000 dairy farmers and investing in building 13 dairy farms, along with the merger of Moc Chau Milk Company to have a total herd of 150,000 dairy cows. Not stopping there, Vinamilk recently officially put into operation a dairy farm in Laos with up to 8,000 dairy cows. The farm can supply more than 120 tons of milk per day, equivalent to nearly 44,000 tons of milk per year, supplementing a large volume of raw materials for Vinamilk's factories in Vietnam and abroad, helping the company to be more proactive against the imported raw materials. Along with Vinamilk, many enterprises producing food, foodstuff, …

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In a letter sent recently to the city administration, the HCMC Management Authority for Urban Railways (MAUR) said 78 percent of the land has been acquired already, and it would continue with the task to complete it by year end. The Ben Thanh – Tham Luong Metro Line will run 11 kilometers between districts 1 and 12, 9.2 km of it underground, and through the districts of 1, 3, 10, 12, Tan Binh, and Tan Phu. In all 603 households in five districts are affected by the project. Disagreements over compensation had delayed land acquisition for years, causing the project to be rescheduled several times. Districts 1 and 3 through which it will pass are at the heart of the city, and many house owners have been unhappy with the compensation amount of around VND305 million ($13,162) per square meter, which they say is less than half the actual market price of 700-800 million. MAUR has not indicated how it is going to persuade the remaining more than 100 households to hand over their property for the project. Le Van Khoa, director of the line project management board, said last November city officials had to meet with affected households several times to convince them. It is scheduled to start commercial operations in 2026, serving 140,000 passengers a day in the first phase, and 400,000 once it is fully complete. It is now expected to cost VND47.9 trillion ($2 billion) after ballooning from the original VND26 trillion ($1.1 billion). It is part of eight lines planned in the city with a combined length of 220 km and a price tag of nearly $25 billion. …

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Vietnam’s digital economy presents chances for investors, start-ups The newswire techwireasia.com on June 16 ran an article saying that Vietnam has been steadily growing its highly promising digital economy, presenting multiple opportunities for investors, startups, and businesses alike. The author wrote that in recent years, the Southeast Asian region has been seeing rapid and sustained efforts and investment into various digital economy initiatives by both the public and private sectors. Tech giants have been creating waves, most recently the Tokopedia-Gojek merger, and earlier, Grab pushing for a US listing with a valuation of over 40 billion USD. Estimates by Google, Temasek, and Bain & Co predicted that the Vietnamese sector could grow to 52 billion USD by 2025, which comes up to about a sixth of the massive 300 billion USD regional digital economy pie. According to the article, backed by a stable political climate, progressive economic policies, and sustained growth, a lucrative opportunity exists for both local players and investors alike to tap into the country’s potential for economic greatness. Opportunities include e-commerce services, digital finance, online gaming, and tech-enabled services to power Industry 4.0 progress. Like its ASEAN peers, a majority of Vietnamese residents remain underbanked, making digital financial services a highly attractive option for loans and payments. In 2015, the Vietnamese Government announced a ten-year plan for a broad digital transformation of the country, with an ambitious plan to produce 10 startup unicorns valued at over 1 billion USD apiece by 2030. Aiming to incorporate at least 10 percent of digital adoption across all sectors and Internet penetration of 80 percent for all households, the plan appears to be on track. Southeast Asia’s largest unicorn, Grab, has been investing heavily in accelerators for startups around the region from as early as 2018. Collaborating with both …

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