FOREIGN TRADE UNIVERSITY THE FACULTY OF INTERNATIONAL ECONOMICS 🙟🙟🙟🙟🙟 INVESTMENT ECONOMICS PROJECT Diet food for people who do workouts Instructor : PhD. Dinh Hoang Minh Class : KTEE311(1-1920).1 Group Number : 3 Hanoi, September 2019 1 TEAM MEMBER No. Name Student ID 1. Nguyen Phuong Thanh 1714450028 2.
Lai Hien Luong 1714450040 3. La Thi Phuong Uyen 1714450033 4. Nguyen Minh Ha 1714450042 5. Lo Nguyen Phuong Linh 1714450015 6.
Nguyen Hong Hanh 1714450044 7. Nguyen Thi Thuy Tien 1714450039 8. Nguyen Phuong Mai 1714450020 9. Hoang Minh Quyen 1714450023 10.
Luu Thi Hien 1714450041 11. Nguyen Phuong Thao 1714450029 12. Phan Quang Hung 1614450025 13. Nguyen Manh Hung 1614450024 14.
Tran Hoang Lam 1614450027 15. Nguyen Luu Ly 1614450032 16. Nguyen Huu Hoang 1614450023 17. Hoang Nhat Chi 1614450012 2 TABLES OF CONTENTS PART I.
About Us - Optimum Nutrition I. About TH Milk JSC 3 I. About products to invest 4 PART II. MARKET ANALYSIS 5 II.
Overview of host country 5 1. Economy growth and prospects 5 1. Political Stability II. SWOT Analysis of our company Optimum Nutrition 11 II.
Customer demand analysis 13 2. Overall and customer demographics 13 2. Health consciousness and dietary choice 14 II. Incompetence of competitors 22 PART III.
PRODUCT “DIET FOOD AND BEVERAGE” 24 III. Business Model Canvas 24 1. Cost Structure 25 III. Price 29 PART IV.
Strategy of setting price 31 Gullon Maria Diet Cookie 31 IV. Targeted Customer Estimation 32 2. Estimated Consumption of products 33 2. Estimated revenue in 5 years 34 2.
Estimated investment cost 36 IV. Cash flow and investment efficiency 1 3. Net Present Value (NPV) 1 3. Internal rate of Return (IRR) 1 4 3.
Profitability of Investment (PI) 2 3. Discounted Payback period (DPP) 2 PART V. Physical Health Benefits 4 V. Mental Health and Social Health 4 V.
In the short term 6 4. In the long term 7 PART VI. About Us - Optimum Nutrition OPTIMUM NUTRITION was established in 1986 to satisfy consumer demand for consistent quality in sports nutrition. Our company is also known for anticipating ever-changing customer needs and meeting the demands of a dynamic market with innovative products.
Vietnamese Distributors: - Starlite International Group (SIG). - TRUONG THINH TRADING DEVELOPMENT JOINT STOCK COMPANY - Khong the Tin Noi LLC. About TH Milk JSC Company name: TH Milk Joint Stock Company. 166 Nguyen Thai Hoc Street, Quang Trung District, Vinh.
Hanoi City Branch: Floor 2, Dao Duy Anh Building, No. 9 Dao Duy Anh Street, Dong Da District, Hanoi. Ho Chi Minh City Branch: Floor 5, Central Plaza Building, No. 17 Le Duan Street, Ben Nghe District, Plant 1, HCMC.
TH Milk is the first company in Vietnam to receive clean milk certification. In Vietnam, the company has Asia's leading-scale concentrated dairy farming system and is 6 developing dairy farms in Northern border provinces (Ha Giang, Tuyen Quang, Lang Son, Thanh Hoa, …). 5 core principles of TH Milk JSC: 1. For true Happiness.
For community health. Outstanding thinking and harmonious benefits. Successful projects by TH Milk JSC: 1. Clean TH Milk Road.
Healthy Beverage for Health Road. Vegetables and Food for Health. TH School Project. TH Health Care Project.
About products to invest Diet Cookies, High-protein Milk, Greek Yogurt for people who do workouts: Diet Cookies Dietary biscuits act as a fast food before and after workouts to restore muscle and provide nutrients to the body, burning fat. Protein and fiber-fortified bread thanks to its nutritious nuts. High-protein Milk 7 High-Protein milk is an ideal food for the muscles of the exercise people who need a large amount of protein. Milk is easier to drink and use than supplement foods like whey powder or meats.
Greek Yogurt Greek yogurt is rich in protein and vitamins, sugar-free but still has a delicious taste. It is especially recommended for exercise people rather than normal yogurts. MARKET ANALYSIS II. Overview of host country 1.
Economy growth and prospects A mere 30 years ago, Vietnam remained one of the poorest countries in the world represented by the poverty rate of nearly 60% and a poorly – functioning centrally planned economy. Thanks to the shift toward a market economy steered by “Doi Moi”, a series of political and economic reforms, today Vietnam’s dynamic transformation become a phenomenal highlight among the emerging markets and continues to show exceptional growth rate in many years to come. Vietnam’s economy continues to show rocketing pickup in economic activity, backed by a cyclical rise in worldwide demand as well as a recovery in FDI and private sector investment and a continuous change from traditional agriculture to more productive and profitable manufacturing and service industries, demonstrating its attractiveness for future foreign investment. Vietnam’s growth is projected to grow to 6.8% in 2019 with GDP per capita is expected to rise by 5.
According to analysts from the World Bank and the think tank Brookings, Viet Nam’s economic rocket can be explained by three main factors: “First, it has embraced trade liberalization with gusto. Second, it has complemented external liberalization with domestic reforms through deregulation and lowering the cost of doing business. Finally, Viet Nam has invested heavily in human and physical capital, predominantly through public investments.” 9 In the trend of globalization, Vietnam is in a strong position to benefit from economic integration and participation in international trade organizations accompanied by favorable trade agreements that are coming into force such as FTAs by ASEAN (1995), WTO (2007), CPTPP (2019) and various bilateral agreements with the U., Japan, South Korea, the EU (EVFTA), etc. These trade agreements dramatically reduced tariffs and opened much of the economy to foreign investment.
Vietnam has been gradually progressing in enhancing its investment climate as shown by greater results in the World Economic Forum’s competitiveness index (up five places to 55 th in the world), and the 2018 World Bank’s ease of doing business ranking (69 th around the globe, up 31 points since 2014). More than 10,000 foreign companies – including major global players – operate in Vietnam these days, chiefly in export – oriented, labor – intensive manufacturing, indebted to government’s initiatives aiming to ease administrative bureaucracy, reduce corporate income tax and adopt a more pro – investor approach. 10 Vietnam has adjusted its demographic and social change through effective investment in its citizens. Facing quickly growing population, Vietnam makes large public investments in primary education, health care service and spends every effort to ensure their quality.
In terms of human capital index (HCI), Vietnam is ranked 48 out of 157 countries and territories, second in ASEAN and only behind Singapore. Infrastructure, especially power sector and connectivity, gains the most attention. With a rapidly expanding middle class and massive tariff reductions from free trade agreements, Vietnam is poised to experience significant growth in its health and wealthy industry. As a population that is increasingly health conscious, Vietnamese consumers rank health as their most important concern behind only their job and the economy.
Therefore, consumption of low - fat dairy, for instance skim milk and low- fat varieties of yogurt and cottage cheese, is anticipated to increase as customers become more conscious of the need to remain healthy. In 2010, the average Vietnamese person consumed about 15 liters of milk/ year. It is forecast that by 2020, this figure will nearly double, to reach 28 liters of milk/ year/ person. 11 Focusing on milk drinking behavior in Vietnam, in recent years, the demand for milk products has been increasing significantly.
Vietnamese government initiatives designed to boost the average height of citizens by encouraging milk consumption have contributed significantly to the growth of the country's dairy products. Sales of dairy products, which includes white milk, flavored milk, powdered milk and non – dairy milk alternatives, increased from VND 8 trillion ($379 million) in 2008 to VND 55. The market is expected to grow annually by 7.3% (CAGR 2019- 2023), according to Statista. Due to limited local production capacity, Vietnam’s industrial sector is still being built upon the import of raw material.
However, in the latest years, local leaders in dairy industry including TH and Vinamilk have focused on creating raw materials with the establishment of a large dairy cow farm fitted with sophisticated technology implementation, steering clear of foreign dependence. According to the General Statistics Office's preliminary reports, in 2018, the total number of cows all over the country reached 294.4 thousand, increasing by approximately 160 thousand of cows compared to 2010 with an average growth rate of 10. Characterized by its geography and tropical climate with an annual high level of temperature, Vietnam is capable of cow farming. Meadows in Ha Tay, Moc Chau, Ba Vi offer a variety of favorable conditions for 12 growing, feeding and breeding herbs.
As reported by the Department of Livestock Production, Ministry of Agriculture and Rural Development, there has been a sharp rise in the amount of dairy herds in the nation in recent years as big companies are increasing investment in manufacturing infrastructure to expand the scale of animal husbandry to guarantee the quality of raw milk sources aimed at providing customers with quality products and food safety and to make use of raw milk as the primary input of material to serve the National School Milk Program. Recognize the significance of raw milk fields, many companies have actively constructed on – site raw material regions with manufacturing connections with cow farmers to guarantee dairy manufacturing safety, generate employment, decrease reliance on imported milk and dairy goods. Many farms have received certificates from international organizations Farming scheme meets global requirements: G. Organic farms to guarantee that food meets clean, global quality standards for consumers.
In addition, farm building has constructed businesses for dairy farmers connected with processing crops and milk collection. When the supply has met the domestic market, in order to increase the room for development, dairy enterprises have chosen to export abroad, despite different market approaches. According to statistics of the General Department of Customs, in the period of 2016 - 2018, Vietnam's export value of milk and dairy products continued to increase. Specifically, from USD 84.47 million in 2016 to USD 82.65 million in 2017 and USD 129.
Accordingly, the average export value of the whole growth period is 27, 37%. In the first 3 months of 2019, the export value of milk reached US $ 48. In particular, the main markets are Iraq, Hong Kong (China), mainland China, Afghanistan, the Philippines and some other countries such as UAE, Laos, Myanmar, Japan ., as recorded by the Financial Times. In addition to export, Vietnamese dairy enterprises also invest abroad, whereby Vinamilk invests in the dairy industry to the US, New Zealand, Cambodia, Poland, Laos and Myanmar continue to carry out trade promotion to to the EU.
, Africa and South America; TH True Milk invested a project of 13 about 2.7 billion USD in Russia to produce and process milk. Following the signing of the Vietnam-China Milk Export Protocol on 26 April 2019, eight companies have registered to export milk to China so far: Vinamilk, TH True Milk, Nestlé Vietnam, Nutifood, Ba For Milk, Enovi and Friesland Campina Vietnam… Although it is undeniable that Vietnam dairy enterprises are put under a lot of pressure due to heavy dependence on foreign markets, demanding requirements of investment capital and technique, they are working hard on innovations to meet the market’s demands with substantial initiatives. Enterprises in the industry have been constantly investing, constructing, enhancing, innovating techniques and technologies that have been implemented in factories over the previous few years. There have been and will be a number of big dairy producers and processors investing strongly in machinery, applying high-level automation technology at national and global level to enhance productivity, quality, food security, product diversification, maximize efficiency, competitiveness, and deepen the value chain of milk and dairy products on national and international markets.
Population The population of Vietnam is 92.
