Professional Documents
Culture Documents
Investment Economics Report
Investment Economics Report
Investment Economics Report
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TEAM MEMBER
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TABLES OF CONTENTS
PART I. INTRODUCTION 3
1.2. Population 10
II.4. Competitors 16
1.3. Channels 24
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1.4. Customer Relationship 24
III.2. Demographic 26
3.1. Functions 27
3.4. Price 29
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3.4. Profitability of Investment (PI) 2
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PART I. INTRODUCTION
Address: No. 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
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developing dairy farms in Northern border provinces (Ha Giang, Tuyen Quang, Lang
Son, Thanh Hoa, …).
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
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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.
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PART II. MARKET ANALYSIS
II.1. Overview of host country
1.1. 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.
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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.S., 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 55th in the world), and the
2018 World Bank’s ease of doing business ranking (69th 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.
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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.
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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 55.6 trillion
($2.4 billion) in 2019. 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 10.9% per year. 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 growing,
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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.
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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.
1.2. Population
The population of Vietnam is 92.7 million people and is estimated that 60% of it is
under 35 years old (by Nielsen), which currently possesses young population structure.
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Source: CIA World Factbook
The combination of young population structure with the stable growth rate of GDP
as mentioned above plays an important role in promoting the consumption of milk. To be
more specific, the table shows that the proportion of young adults from 20 to 39 years old
is the highest among age groups, which means that it is potential to invest into Vietnam as
Vietnam is in developing period with cornucopia of young labor as well as we could see a
potential market of milk industry. Furthermore, the fast growing of Vietnamese economy
brings benefit to citizens. By 2020, Vietnam’s annual income per capita is projected to
reach 180 million (US$8568). This leads to not only increase in consumer spending, but
also in consumer behavior and preference – including a priority for branded goods and
foreign products. Additionally, in the specific case of milk industry, the higher GDP per
capita, the more Vietnamese care about their health, especially the young adults concern
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about their appearance, which implies the bright future of product for healthy and diet meal,
which would be mentioned as our products.
Vietnam is one of the countries having a high level of economic growth in the world
since the purchasing ability rises gradually, consisting of milk and milk-related product.
These days, the average consumption level of Vietnamese is still lower than that of Asian
area (35kg/person). On the other hand, the production ability of the domestic factories is
not in position to meet the demand. It is undeniable that the milk market in Vietnam is in
growing period. Therefore, with the competitive advantage in technology of a foreign
company, we could be confident with our project.
Vietnam has a strategic location as it is located in the center of ASEAN and also
close to the other big markets in Asian, especially China. It long coast directly accesses to
South China Sea and close to the main shipping routes of the world, which provide perfect
conditions for commerce. The political stability plays an indispensable role in economic
development process in Vietnam, contributing to policies from the government. The stable
political background assists Vietnam to be peaceful and prosperous.
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framework, the rate of unskilled labor is high. Therefore, the establishment and application
of preferable policies to attract capital is necessary to offset the existing limitations. This
is a good new for our company when we decide to invest in Vietnam.
Taking the result of these encouraging policies into account, in recent years, the
reduction of the tax burden and diversification of tax incentives have contributed to
creating a favorable investment environment to attract FDI. Over the past three decades,
the FDI sector has played an increasingly important role in Vietnam’s economy. In
conclusion, the current purpose of preferable and attractive policies of Vietnam is to
increase the FDI capital, contributing to promote economic development. These results
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must be logical reasons for Vietnamese government continue to attract FDI and establish
or amend the law to be suitable with foreign investment.
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+ Good image in fitness community through education and sponsorship.
+ Few competitors in the areas of diet instant foods.
- Threats:
+ Poor sales due to unawareness of customers who do not do workout.
+ Imitations in Vietnam market.
II.3. Customer demand analysis
Vietnam is seeing more interest in gyms and other health-related services as eating
habits change and signs of obesity emerge. Staying healthy and fit is increasingly important
for both the young and old in Vietnam. Rising disposable incomes and awareness of the
benefits of a healthy lifestyle continue to drive the industry forward.
Fitness customers are characterized as the younger population with high willingness
to pay, so long as the quality is ensured. Among those responded to a research report on
fitness conducted by Q&Me, the majority of the fitness-concerned are from 16 to 34 years
old, who should be able to adopt new trends and new products fairly rapidly. In addition,
their household income falls mostly on from VND14mn and above. All of these
demographic factors pave the way for fitness complimentary products to develop and
become familiar.
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The fitness-concerned by age group, Q&Me
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and 53% think they are fat in some way. They have been taken measures to maintain or
enhance their health, as shown in the graph below.
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Choices of dietary foods, Q&Me
Fruits and vegetables understandably topped the chart, both at more than doubling
the 3rd highest (salad), as they generally offer lower carb contents and various necessary
vitamins that are not found much in basic meals. Special food for diet stood at a modest
9.1%; however, it showed that there is still room for the development of this sector. We
can look at the top ingredients and study their nutrients in order to apply those into our
products, offering high-quality dietary dairy foods that are still rare in Vietnamese market.
II.4. Competitors
4.1. Current products:
NESTLÉ FITNESSE BREAKFAST CAKE FOR DIETERS: is a nutritional
supplement that includes vitamins, proteins, fats, minerals, and energy that are calibrated
to suit the daily nutritional needs of the user. . The processed product is very convenient.
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Made from whole grains - the world's favorite food for breakfast for every family.
Cakes also contain important ingredients for nutritional balance, such as dried fruits like
papaya, grapes, pineapples, etc.
Good for diet: rich in dietary fiber, helping to fill for long without craving for
snacks should be suitable for those who need to lose weight. Bread also helps prevent
cardiovascular disease, colon cancer and diabetes effectively. In addition, the product
also contains many vitamins E, B2, B3, B6 and folic acid; Iron, zinc and calcium
minerals are necessary for daily meals, helping to improve health.
Delicious taste, helps diets to be effective: has a delicious taste, does not cause
boredom, so they can be eaten regularly in many meals throughout the day. You can
consume 2 servings daily in the morning and evening (each serving includes 40gam
Fitnesse & Fruit + 125ml of low-fat low-fat milk), combined with a high-fiber diet and
regular exercise. Achieve weight loss effect in a short time.
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The product does not contain Gluten and Cholesterol.
Stable blood sugar: Isomaltulose is a kind of powdered sugar that is digested and
absorbed slowly into the body, does not increase blood sugar suddenly, helps maintain
stable blood sugar.
Good for the heart: MUFA, PUFA are essential unsaturated fatty acids that help
reduce cholesterol & triglyceride levels in the blood, control arthritis, inflammation,
blood pressure, reduce the risk of cardiovascular disease.
Good absorption:FOS / Inulin slows down the absorption of sugar into the
bloodstream, while helping the digestive system function healthy and absorb nutrients.
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Vinamilk Greek Yoghurt is a great calcium supplement solution for women
because each 100g yogurt box contains 160mg of calcium, equivalent to the amount of
calcium in 1kg of beef or 4 boiled eggs. With a refreshing, delicious taste, Vinamilk
Greek yogurt is suitable for making nutritious desserts, or complemented with meals
before and after training!
Naturally fermented with pure Greek strains, containing twice the Protein and 50%
reduction in fat *, helps you gain a toned body and not be afraid to gain weight.
Nestle, the world's largest food and beverage company, is headquartered in Vevey,
Switzerland. Nestlé's current products range from mineral water, baby food, coffee and
dairy products.
In the 1860s, pharmacist Henri Nestlé invented a food for babies who could not be
breastfed. His first success was to save a premature baby who could not be breastfed or
other conventional alternatives. The value of this new product was quickly recognized
since the new Nestlé formula saved the life of a premature baby. Since then, Farine
Lactée Henrie Nestlé milk powder has been widely sold in Europe.
Nestlé's first sales office in Saigon was established in 1912. Here are some
milestones of the company's rapid development in Vietnam:
1992: La Vie Company, a joint venture between Perrier Vittel of Nestlé and a trading
company of Long An was established.
1993: Nestlé officially returns to Vietnam and opens a representative office in Ho Chi
Minh City
1995: Nestlé Vietnam was born. Officially started construction of Dong Nai factory
2002: La La's second factory was put into operation in Hung Yen
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2007: Dielthem was selected as the official distributor for chocolate and confectionery
products
2011: In August, Tri An factory was built, in November the Binh An factory (Gannon)
was bought in Dong Nai
2013: Nestlé Vietnam inaugurated a new NESCAFÉ factory in Amata Industrial Park,
Dong Nai
2013: Nestlé Vietnam's main office moved to a new location at Level 5, Empress Tower,
District 1 from September.
NUTIFOOD VIETNAM
In 1989: Medicinal Research Station changed to Ho Chi Minh City Nutrition Center,
Dong Tam Complex became Dong Tam Food Base, where applied the research topics of
nutrition experts to produce anti-malnutrition products for children and feeding patients
in hospitals. The typical product of this period is Enalaz - the first gastric tube feeding
food in Vietnam, contributing to supporting the treatment of serious patients at hospitals
across the country at a price equal to 1/10 of the product. imported products.
March 29, 2000: Stemming from the success of research and clinical applications of the
City Nutrition Center. City, Dong Tam Nutrition Food Joint Stock Company (original
name of NutiFood) was established.
2001: Products of Dong Tam Nutrition Food Joint Stock Company were voted by the
Vietnamese consumers into the Top 5 Vietnamese high quality products continuously in
the following years.
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In 2006 , the NutiFood Binh Duong Factory expanded (powdered milk + liquid milk) was
certified to meet GMP standards of food, HACCP standards and continuously in the
following years.
In 2008 , NutiFood became a public joint stock company and successfully IPOed in the
stock market.
In 2010 , signed a cooperation agreement with ABS-QE USA to build and monitor the
Quality Management System and to extend it up to date.Joining the Market Stabilization
Program of the City. HCM - Program of Vietnamese goods to the countryside
Year 2012:
● Renamed Dong Tam Nutrition Food Joint Stock Company to NutiFood Nutrition
Food Joint Stock Company and changed the brand identity system, product
packaging
● Selected by the HCMC People's Committee as a Typical Saigon Entrepreneur and
received a Certificate of Merit, a Medal from UNESCO for its contributions to
Youth - Children health.
In 2013
● Put the 2nd NutiFood factory in Pho Noi Industrial Zone - Hung Yen into
operation.
● Signed a comprehensive nutrition sponsorship contract for Hoang Anh Gia Lai
Academy - Arsenal - JMG, nutritional sponsorship for U 19 Vietnam team to
compete internationally. NutiFood nutritionist and chef for the first time
accompanied Vietnamese U 19 players to international competitions until the end
of 2014, creating the attention of the public.
Year 2014
● Signed with Hoang Anh Gia Lai Group in the 120,000 Dairy Project.
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● Began construction of NutiFood Highlands Plant at Tra Da Industrial Park, Ho Chi
Minh City. Pleiku has a processing capacity of 500 million liters of milk / year.
In 2015
VINAMILK
Vinamilk is the largest dairy company in Vietnam. Based on the UNDP 2007 Top
200 largest firms in Vietnam report, it is also the 15th largest company in Vietnam and
the most valuable public company listed in Vietnam. In 2010, it is the first company in
Vietnam to be included in the Forbes Asia's 200 Best Under A Billion list that highlights
200 top-performing small- and mid-sized companies with annual revenue under US$1
billion.
Vinamilk products such as powdered milk and condensed milk are also exported
to the Middle East, Cambodia, the Philippines and Australia. Exports accounted for
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$180m in 2012. Vinamilk’ main competitors are Dutch Lady Vietnam (a division of
Friesland Foods), Nestlé Vietnam, Abbott, Mead Johnson, Friso and Nutifood. In
September 2016 Vinamilk signed a strategic cooperation agreement with Chr. Hansen to
develop probiotics.
Unable to take initiative in the source of raw materials: The source of raw
materials has not been proactively dependent on imported raw materials (60%) so input
costs are strongly influenced by world milk prices and exchange rate fluctuations.
Vinamilk has good Greek yogurt products, but the poor marketing has not created
an effective message to promote to consumers. Vinamilk has not had any message yet for
consumers to understand the difference between Greek yogurt and other yogurt products
on the market. In another hand, Greek yogurt still contains abundant sugar amount
compared to standard Greek Yogurt.
NESTLÉ VIETNAM
Focus on general nutrition demand and the products are not qualified for particular
purposes.
NUTIFOOD VIETNAM
The company is also hard to satisfy customers when offering promotions that are
not reasonable, effective, puzzling and discriminatory against customers.
The image has not yet been widely disseminated, compared to other companies in
the same industry. Products do not make a big difference
Image ads are not really outstanding, lacking competitiveness with other brands.
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Products are mainly for children and elderly which contain no fresh milk (only
milk powder and condensed milk) and too much sugar added.
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PART III. PRODUCT “DIET FOOD AND BEVERAGE”
III.1. Business Model Canvas
1.1. Customer Segment
- Consumers (who are interested in healthy diet or do workout)
- Distributors (supermarket, retail chains,..)
- Fitness Centers.
1.2. Value Propositions
- Nutritious food for people who do workout
- Fast meal with energy sufficiency for people who are busy (students, officers,.)
- Nutritional supplements from daily products for diet people
1.3. Channels
- TH Store Chains
- Supermarket (VinMart, VinMart +, Big C)
- Convenience store (Circle K, Family Mart, 7 Eleven)
- Agency & Retail store
- Social Network, TV Ads, KOLs, POS Marketing, Event.
1.4. Customer Relationship
- Customer service system (Hotline, Email, Fanpage)
- Feedback/ report from retail chains/ distributors
1.5. Revenue Stream
Product sales:
- Direct from customers
- Indirect through distributors
1.6. Key Activities
- Production
- Distribution
- R&D
- Marketing & advertising
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- Regulatory Compliance
1.7. Key Resources
- Brand
- Infrastructure: TH Farm, TH Milk Factory, TH Store
- Partners & Retail Network
- Human Resources: Nutritionists, Scientists,…
1.8. Key Partners
- Packaging: Tetra Pak, SIG Combibloc
- Logistics: Abivin
- Fitness Platform: WeFit, UpBeat…
- National Broadcaster (VTV)
- Social Network Influencers
1.9. Cost Structure
- R&D activities
- Marketing & advertising cost
- Salaries
- Production cost (operation, material)
- Maintenance
- Distribution cost
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III.2. Demographic
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● Easy to take away. Made from organic materials (cow milk, nuts, ...) in order to
use in the day at work or at the gym.
● Healthy food.
● A chain of products familiar to a majority in Vietnam, especially who care for
healthy and fitness.
3.2. Packaging/ Appearance
Diet Cookies
● Color: Bright colors and a fruit image are used as a main image for this product.
● Material: Light cartons.
● Packs: 12 cookies in a pack. The packs are in the shape of cylinder. easy to open
and close the lid in order to fast opening and long using during the day. Bright
colors and a fruit image as the lid of the product. A clean, simple logo with the
letter “D” depicting a cup with a spoon appears on the lid and side.
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product that truly captures the feeling and function of what things used to be like.
With the 200ml bottles will be packed 4 bottles per range
1L and 180ml.
This photo is for illustration purposes only.
Greek yogurt:
● Color: White color as the base added with blue color for texts and images.
● Materials: Plastic.
● Packs: 4 jars per pack. The transparent 100-mL PET jar has a wide-mouth opening
and an aluminum/PET/aluminum closure with an opened cap in clear
polypropylene.
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The products give consumer sense of keeping tracks of their diet plan. Without feeling
tired and ease their temptation to the high sugar food or fast food.
They know exactly calories consumed in the help of table of calories.
3.4. Price
Price for this type of product is determined by visions of the company and the purposes
of the products is that bring the customer
Potential locations: Hanoi and HCMC.
Potential customer segments: Sport players, Officer and students interested in sports and
gym.
We serve our products at a lower price than competitors. But the company caters to
customers who are aware of calories and diet menus. Accordingly, the price is
affordable for people in the range of medium financial level.
The customer segment that the company wants to target is the new customer base. They
are who care about their diet and want to find the food to facilitate the diet which is low
in cost but suitable in the number of calories and protein. The ingredients we use in
production for this product is organically processed with high technology in order to keep
the taste and the number of nutrients.
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PART IV. FINANCIALS
IV.1. Strategy of setting price
As we mention above, price setting depends on many factors. Now we will go
detail into strategy of setting price.
The market share of this products covers people who involve in their health. Therefore, it
is reasonable to set the price a little bit higher normal product. In addition, label of TH
True Milk stands for quality, fresh and bring benefit to society which raise the loyalty of
customers. We can be sure that with this general price, our products will be sold well
after launching.
Each year the price will increase at least 10% as a result of inflation.
In comparison with the price level of some competitors dealing with diet products:
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Gullón Gullon Maria Diet Cookie 94,000 - 159,000
(Unit: people)
From the targeted object, we could then estimate the number of targeted objects who will
choose to consume the products in the first year as follow.
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(Unit: people)
Since the company positively expand the marketing campaign, as well as the good quality
of the products, more and more people would choose to use the product. The estimated
number in each year is as follow:
(Unit: people)
Year 1 2 3 4 5
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packs (360 bottles) per year. And for Greek Yogurt, one person will consume 90 packs
(360 bottles) per year. Based on that information, we would expect the consumption of
each product in the first year as follow:
Year 1 2 3 4 5
Total consumption of
9,600,000 9,924,923 10,073,908 10,358,289 10,699,717
diet cookies
Total consumption of
10,800,000 11,165,538 11,333,146 11,653,075 12,037,182
high-protein milk
ss
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2.3. Estimated revenue in 5 years
By research and estimation, basing on development trend, we could estimate the expected
revenue in the first 5 years taking this project.
Diet cookies
Consumption
9,600,000 9,924,923 10,073,908 10,358,289 10,699,717
per year
Average
consumption 40,000 44,500 48,400 53,240 58,564
price (VND)
Total
Revenue 384,000,000,000 436,696,612,000 487,577,147,200 551,475,306,360 626,618,226,388
(VND)
High-protein milk
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Consumptio
10,800,000 11,165,538 11,333,146 11,653,075 12,037,182
n per year
Average
consumption 15,500 17,050 18,755 20,630.5 22,693.55
price (VND)
Total
Revenue
(billion
VND) 167,400,000,000
190,372,422,900 212,553,153,230 240,408,763,787.5 273,166,391,576.10
Greek Yogurt
Consumption 6,018,591
5,400,000 5,582,769 5,666,573 5,826,538
per year
Average
consumption
price (VND) 27,000 29,700 32,670 35,937 39,530
Total
Revenue
(billion VND) 145,800,000,000 165,808,239,300 185,126,939,910 209,388,296,106 237,919,115,243.7
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Total Revenue (VND)
Year 1 2 3 4 5
Total
697,200,000,00 1,001,272,366,253 1,137,703,733,207
revenue 0 792,877,274,200 885,257,240,340 .50 .80
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● Cost of factory expend: The manufacture factory system of TH True milk
company has been constructed completely for dairy production. Therefore, to
practice this project we only need to expend the factory. This includes construct a
separated area for producing Diet Cookies, High-protein Milk, Greek Yogurt.
● Cost of equipment: Equipment is significantly important in the processes of
production. Each process requires different machines and techniques in order to be
granted in the quality of product.
● Exclusive product registration cost: Each product circulating to the market is the
result of the research and investment. Therefore, the registration of exclusive
protection of products is essential, avoiding the use or imitation of third-party
products that will affect the business process of the manufacturer and the image of
company.
● Recipe security cost: This one is specialized for food industry. Each product has
different recipe. Only when following that, we have perfect taste off product. That
why secure the receipt is essential part of this investment.
4.b Depreciation
From the table in the previous part, we see that fixed assets = 5000 million VND, other
expenses = 13,150 - 5,000 = 8,150. Fixed assets depreciate 10% each year
Unit: Million VND
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4 3645 364.5 1719.5 0 3280.5
After conducting a survey about quoted price of media including TVC, Kenh14, …, we
point out some communication categories and estimated cost for them in the first year as
follows:
TV advertisement 35,587,500,000
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Post on Facebook 365 Post 500,000 182,500,000
Offline 700,000,000
Marketing cost in the first year will equal marketing cost in the second year. For the next
3 year, the budget for marketing activities will reduce 10% each year (in comparison with
the previous year)
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MKT
38,527,000,000 38,527,000,000 34,674,300,000 31,206,870,000 28,086,183,000
Cost
(VND)
4.d Production
After conducting some surveys of prices from supermarkets like Vinmart and some other
suppliers, the team project has estimated the material costs through the years. Besides,
costs such as electricity, water, internet, and other things like cleaning solution are also
calculated into production cost. The plan for production cost is estimated for the first year
only. The following years price are fluctuated among the initial estimation. The estimated
results are shown in the following tables.
Assumption:
● Production cost in each month of a year is fixed
● The products gain reputation in later years, number of customers increases,
therefore, the cost of production increases each year. We assume that the cost
increases by 10% each year.
Particularly:
Year 1:
(Unit: VND)
Name of the expense Amount per month Number of month Total of expense
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Others 150,000,000 12 960,000,000
Year 1 2 3 4 5
4.e Wages
Based on the detail of investment built above, we estimate the cost of employment in the
following year when we take the project.
Assumptions:
● Number of employees in the following years is unchanged.
● The wages of employees who stand for the same position is equal among branch at
the same period.
● Employees could do part-time or full-time, but always complete the work in one
day from 7AM to 5.30PM or 7AM to 11PM depending on position.
● We expect after 1 year launching products in market, there could be a thrive in
revenue. In order to encourage employees and increase productivity, TH True
Milk company will raise wages for 10% annually.
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(unit:VND)
Total 598,500,000,000
Year 1 2 3 4 5
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Cost of selling is the cost which facilitates the selling progress and makes it easier for
product to be distributed to customers. In the first year, the selling cost is estimated as
below.
(Unit: VND)
Due to the economy expand, suppose that the prices goes up in the next 5 years.
Therefore, the selling cost would be estimated:
Year 1 2 3 4 5
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Unit: Million VND
4.h Taxes
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According to Vietnamese law, enterprise taxes is set at 20%. Therefore, we have the
estimated profit and cash flow table:
Unit: (VND)
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ses 0 1 2 3 4
uding
931,680,1
8,150,000,000 658,267,000,000 719,821,150,000 738,456,070,000 854,093,850,000
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IV.3. Cash flow and investment efficiency
3.1. Cash Flow
Year 0 1 2 3 4
Preparatio
n
Fixed asset -
5,000,000,00
0
DWC -
206,550,000,
000
Execution
Cost
(Depreciati -
on 8,150,000,00 658,767,00 720,271,15 738,861,07 854,458,35
included) 0 0,000 0,000 0,000 0,000 932
Closeout
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Liquidation
Receiving
from DWC 206,550,000,000
Tax from
liquidation
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The table above is the estimated cash flow table during the 5-year period
To evaluate the investment efficiency, we use the following indicators: NPV, IRR, IR,
DPP
● Meaning: NPV shows the differences between the real enterprise profit and the
minimum profit the investor required. The higher NPV is, the more profit firm can
gain.
In project selection:
● NPV > 0 → Accept project
● NPV < 0 → Reject project
● Using the formula, data and the estimated interest is 10%, we have NPV =
138,145,115,561.67 > 0
Conclusion: We accept the project.
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● Meaning: IRR is used to estimate the profitability of potential investments. The
higher IRR is, the greater you can gain from that project.
In project selection:
● IRR > r → Accept the project
● IRR < r → Reject the project
● Basing on the cash flow, we have IRR = 15%
Conclusion: We accept the project.
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● Meaning: In project selection:
● DPP > target payback→ Accept the project
● DPP < target payback → Reject the project
● From the data, we calculate DPP: DPP = 3.68 year
Conclusion: We accept the project.
ConclusioN
Because of the strong demand for healthy food, as well as the increase in number of
people who do work out, in reality, the revenue of the project increases each year.
From the above calculations, we could see that the project worth investing. After only
almost two years, the project covers all the cost and results in positive earnings. The
profit of the project increases tremendously after each year.
Both theory and reality indicate that this project will develop well in present and become
more and more desirable.
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PART V. SOCIAL BENEFITS
Upping your fruit and vegetable intake may help protect you from cancer, while
supporting your immune system. Eating enough overall calories per day – ideally as part
of balanced meals and snacks at regular time intervals – can help keep you energized.
Healthy foods can even improve your sleep, which plays an important role in weight
control.
The economic benefits of healthy eating are the value of the population health
improvements that would be realized by shifting a population to an optimal diet, all else
being equal. Shifting the US population to an optimal diet would reduce the prevalence of
not only several risk factors—e.g., obesity, hypertension, high blood cholesterol, insulin
resistance—but also myriad chronic diseases, including coronary heart disease (CHD),
stroke, type 2 diabetes, osteoporosis, and cancers of the stomach, colon, rectum,
esophagus, oral cavity, larynx, and pharynx ..
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When we think of the benefits of eating healthily, most of us tend to think of the long-
term advantages. And this is with good reason, because avoiding diseases and increasing
our longevity is one of the best investments we can make in our future.
But as well as reducing our risk of long-term illnesses like heart disease, cancers, type 2
diabetes and osteoporosis, eating well can have a profound effect on our productivity in
the workplace; For example
Ensures a healthy immune system, which will reduce absenteeism
Improves sleep, leading to greater concentration
Help to improve mental health
A healthy, balanced diet can help maintain a healthy weight, which gives us an improved
ability to take part in physical activities
Increases energy and alertness
These diet food BOOST CREATIVITY AND HAPPINESS AT WORK
For example, it’s been shown that the more portions of fruit and vegetables eaten per day,
the happier, more engaged, and more creative people will be at work. In a study by the
British Journal of Heath Psychology, adults who ate more healthily over a 13-day period
had greater wellbeing and also demonstrated more feelings of meaning and purpose at
work.
Our products contain all nescessary vitamins needed for your life
MAGNESIUM
Specific nutrients such as magnesium (found in leafy greens, steak and dark chocolate)
have been linked to a reduction in anxiety; magnesium has a relaxing effect on muscles.
PHENYLALANINE
Phenylalanine can cross the blood-brain barrier and it stimulates the brain to produce
mood-boosting neurotransmitters such as dopamine. Find it in almonds.
CHOLINE
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This B-vitamin is said to improve reaction time and concentration by boosting the
functioning of neurons. It’s contained in eggs.
Improve longevity
Plenty of research suggests that eating healthy foods can help extend your life and
improve your health. Studies reveal that a healthy diet can help you sidestep ailments that
plague people more as they age, including heart disease, hypertension, cancer, and
cataracts.
As we have already known, producing and transporting the amount of food such as crops,
livestock, fishing are responsible for 20% to 30% of total global greenhouse gas
emissions. Furthermore, the large number of land in our planet is being used to grow our
food. To be honest, a latest research shows that citizens in 28 high-income nations like
the United States, Germany and Japan actually followed the dietary recommendations of
their respective governments, greenhouse gases related to the production of the food they
eat would fall by 13% to 25%. At the same time, the amount of land it takes to produce
that food could drop by as much as 17%. By the way, these findings demonstrate in a
logical fashion that a healthier diet leads to a healthier environment. There would be an
overall reduction in environmental harm if healthy diets were uniformly applied in every
country.
The environmental impacts of food production is also shown on aspect of the stability of
the food supply chain. For example, decreased consumption of meat could have a major
impact on water usage. Almost every Americans currently get about 15% of their protein
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from plant-based sources. Shifting that to 25% could result in enough water savings to
provide two-thirds of California’s water supply.
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PART VI. References
Lock K et al. The global burden of disease attributable to low consumption of fruit and
vegetables: implications for the global strategy on diet. Bull World Health Organ.
2005;83(2):100–8.
World Health Organization, Diet, Nutrition and the Prevention of Chronic Diseases:
Report of a Joint WHO/FAO Expert Consultation, in WHO Technical Report Series No.
916. 2003, Geneva, Switzerland.
https://www.brookings.edu/blog/future-development/2018/04/17/vietnams-
manufacturing-miracle-lessons-for-developing-countries/
https://www.vietnam-briefing.com/news/vietnam-ranked-69th-in-ease-of-doing-business-
rankings.html/?hilite=%27World%27%2C%27Bank%E2%80%99s%27%2C%27Ease%2
7%2C%27Doing%27%2C%27Business%27%2C%27Rankings%27
https://www.worldbank.org/en/country/vietnam/overview
https://www.euromonitor.com/dairy-in-vietnam/report
https://www.statista.com/outlook/40010000/127/milk-products/vietnam
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http://vinanet.vn/thuong-mai-cha/tong-quan-tinh-hinh-xuat-nhap-khau-sua-va-san-pham-
6-thang-dau-nam-2019-715283.html
https://vietnamdairy.vn/en/2019/01/15/nam-2018-nhung-no-luc-cua-nganh-sua-viet-nam/
http://en.vbcsd.vn/detail.asp?id=476
https://vietstock.vn/2009/05/phan-tich-nganh-sua-viet-nam-theo-chuoi-gia-tri-582-
116240.htm?fbclid=IwAR1jV237vsNDpESNSJxITlwQvZEpAUluxHGBB2bxGrhJGm4
aCpByW3XLHtA
https://www.luathongduc.com/10-ly-do-nen-dau-tu-vao-viet-nam
http://baochinhphu.vn/Thi-truong/Nang-cao-chat-luong-dong-von-FDI-vao-Viet-
Nam/374650.vgp
http://www.satra.hochiminhcity.gov.vn/chi-tiet-tin/nen-chinh-tri-on-dinh-tao-cho-viet-
nam-co-duoc-1-nen-hoa-binh-va-thinh-vuong-472
http://duthaoonline.quochoi.vn/DuThao/Lists/TT_TINLAPPHAP/View_Detail.aspx?Item
ID=1717
https://vietnaminsider.vn/vietnam-fitness-services-market-outlook/
https://www.slideshare.net/asiaplus_inc/survey-vietnamese-health-consciousness-and-
fitness-demand-85392567
https://www.slideshare.net/asiaplus_inc/vietnamese-diet
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