UNIVERSITY OF ECONOMICS AND FINANCE

DEPARTMENT OF E-COMMERCE
--------***-------

PROJECT REPORT

VINAMILK

GROUP D

STUDENTS NAME

PHAN NGỌC TIỆP

TRẦN HIẾU LINH
NGUYỄN PHI HÀO

CLASS : B04

LECTURER: PHẠM HỒNG THANH

PART 1: INTRODUCTION TO VINAMILK DAIRY COMPANY ............................. 3
1.An overview of Vinamilk dairy company: ............................................................... 3
2. Some main characteristics of the company ............................................................. 4
2.1. Company formation and development: ................................................................ 4
2.2. The company's vision - mission - core values ...................................................... 5
2.3. Product: Milk ........................................................................................................ 6
2.4. At home and abroad.............................................................................................. 7
3.Operations of foreign subsidiaries ............................................................................ 7
4. Operations of domestic subsidiaries ........................................................................ 8
PART 2 : OPERATING MODE ..................................................................................... 9
1.Store: ......................................................................................................................... 9
2.Retailers ................................................................................................................ 9
3.E-commerce site : ............................................................................................... 10
4.E-commerce Exchange: Tiki, shopee, lazada .................................................... 10
PART 3 : PAYMENT SYSTEM ................................................................................... 11
1. General Analysis.................................................................................................... 11
1.1 PEST analysis .................................................................................................. 11
PART 4: FACTORS AFFECTING THE PAYMENT OF GROUP VINAMILK. ....... 21
I.Factors ..................................................................................................................... 21
1.Buyers ..................................................................................................................... 21
2.Suppliers ................................................................................................................. 22
3 Substitute ................................................................................................................ 22
4.New entrant............................................................................................................. 23
5.CompetitorsE .......................................................................................................... 24
II. Resource allocation .............................................................................................. 25
6.Operating analysis .................................................................................................. 25
7.Performance analysis .............................................................................................. 26
PART 5: PROPOSAL ................................................................................................... 29
PART 1: INTRODUCTION TO VINAMILK DAIRY COMPANY

1. An overview of Vinamilk dairy company:

Vinamilk is the abbreviation of the Vietnamese dairy company, established on the Decision
No. 155/2003 QD-BCN dated 10/2003 of the Ministry of Industry on the transformation of
State-owned enterprises. Vietnam Dairy Company became Vietnam Dairy Products Joint
Stock Company. Business registration license: The first time number 4103001932 issued by
the Department of Planning and Investment of Ho Chi Minh City on 20/11/2003. 8th-floor
number: 0300588569 issued on 12/10/2009. The transaction name in English is: VIETNAM
DAIRY PRODUCTS JOINT STOCK COMPANY

Stock code (Hose): VNM

Head office: 36-38 Ngo Duc Ke, District 1, Ho Chi Minh City

Transaction office: No. 148-186-188 Nguyen Dinh Chieu, District 3, Ho Chi Minh City

Website: www.vinamilk.com.vn

The current charter capital of the company is 1,590,000,000,000 VND (one thousand five
hundred and ninety billion VND).

Chart 1: Vinamilk's charter capital structure

Some key features of the company.

 2. Some main characteristics of the company

2.1. Company formation and development:

1976: Formerly known as Dairy Company, Southern Café, under the General Department of
Food Industry, with 6 units: Thong Nhat Dairy Factory, Truong Tho Dairy Factory, Dielac
Dairy Factory, and 'Bien Café Factory'. Hoa, Bich Chi and Lubico Powder Factory.
1978: The Company was transferred to the Ministry of Food Industry and changed its name to
the United Enterprise of Coffee and Confectionery I.
1992: Officially changed its name to Vietnam Dairy Products Company and was under the
direct management of the Ministry of Light Industry.
1996: Joint-venture with Quy Nhon Frozen Joint-Stock Company established Binh Dinh
Dairy Factory. 2003: Officially transformed into a Joint Stock Company in November 2003
and renamed as Vietnam Dairy Products Joint Stock Company.
2004: Bought Saigon Milk Joint Stock Company, increased its charter capital to VND 1590
billion
2005: Acquired the remaining shares of the joint venture partner in the Binh Dinh Dairy Joint
Venture Company. Inauguration of Nghe An dairy factory on June 30, 2005 (located in Cua
Lo industrial zone - Nghe An). Joint venture with SABmiller Asia B.V Company to establish
SABMiller Vietnam Co., Ltd in August 2005. The first product of the joint venture company
branded Zorok hit the market in mid-2007.
2006: Listed on the Ho Chi Minh City Stock Exchange on January 19, 2006. In November
2006 opened the dairy farm program
2007: Buying controlling stake of 55% of Lam Son Dairy Company in September 2007,
headquarter is located in Le Mon Industrial Park - Thanh Hoa Up to now, the company has
achieved many noble titles and awards. That is:
- Labor Medal Class II (1991); Labor Medal Class I (1996); Labor Hero (2000); Class III
Independence Medal (2005). "Super Cup" High-quality and prestigious Vietnamese goods in
2006 by the Vietnam Association of Intellectual Property & Small and Medium Enterprises
- Top 10 "High quality Vietnamese goods" (from 1995 up to now)
- "Gold Cup - Prestigious Securities Brand" and Vietnam's leading Joint Stock Company
"(2008 by the State Securities Commission of Vietnam - State Bank of Vietnam Securities
Trading Association.
- Vietnam Securities and Industry Trading Company and Thang Long Culture Company) In
2009, the company had many achievements: Saigon Marketing Newspaper awarded the
certificate "High quality Vietnamese goods in 2009" voted by consumers; “Gold Award for
the brand of food safety, hygiene and safety in 2009” provided by the Department of Food
Safety and Hygiene; Saigon Liberation Newspaper awarded certificates and trophy "most
favorite brand in 2008-2009"; Gold Cup "Prestigious Securities Brand 2009" and Award
"Prestigious securities' enterprise in Vietnam stock market"
- Vinamilk is the first and only enterprise of Vietnam to be listed in the list of "Best under a
billion" - 200 best enterprises in Asia by Forbes Asia magazine in 2010. Labor in the
company: currently the company has more than 4000 employees, who are working
wholeheartedly and enthusiastically to contribute to the development of the company. 2.2.
Vision - mission - core values of the company Vision: Vinamilk focuses all its resources to
become the fastest and most sustainable dairy and food company in Vietnam by fighting
product lines with long-term competitive advantages.

2.2. The company's vision - mission - core values

- Vision: Vinamilk focuses all its resources to become the fastest and most sustainable dairy
and food company in Vietnam with the strategy of building product lines with competitive
advantages. Long-term.

-Mission: Vinamilk is constantly diversifying its product lines, expanding its distribution
territory to maintain a sustainable leadership position in the domestic market and maximize
the interests of the company's shareholders. Vinamilk wishes to become the most popular
product in all regions and territories. Therefore, Vinamilk believes that quality, creativity is
the companion of the Company and considers customers as the center and commits to meeting
all customers' needs.

-Quality policy: “Always satisfy and be responsible for customers by diversifying products
and services, ensuring food quality, safety and hygiene with competitive prices, adhering to
business ethics. Joint and statutory. ” (General Director-Mrs. Mai Kieu Lien)

2.3. Product: Milk

Vinamilk is the leading enterprise in Vietnam in the production of milk and dairy products.
Currently, Vinamilk accounts for about 39% of the national market share. Currently, the
company has more than 240 NPPs on the Vinamilk product distribution system and over
140,000 points of sale nationwide. Sales through all Supermarkets nationwide. The Industry's
leading position is well-supported and well-built: Since its inception in 1976, Vinamilk has
built a strong brand name for dairy products in the Vietnamese market. The Vinamilk brand
name has been used since the company's inception and is now a widely known dairy brand in
Vietnam. Vinamilk has dominated the market by focusing on advertising, marketing and
constantly innovating products, and ensuring quality. With a long history in the Vietnamese
market, we have the ability to identify and understand consumer trends and tastes, which
helps us focus our development efforts to characterize our products. Assessed by consumers.
For example, our deep understanding and efforts have helped our Vinamilk Kid product line
become one of the best-selling dairy products for the 6 to 12-year-old children market in
Vietnam. 2007. The company's product portfolio is diversified to meet the increasing demand
of consumers. The company has four major brands, but the main ones are Vinamilk and
Dielac, the Vfresh brand is a new brand with great potential. The dairy product category is:

Liquid milk: - Liquid milk for the family: pure fresh milk, Flex pasteurized fresh milk

- Milk for children: Pasteurized Milk Kid milk

Yogurt: - Drinking yogurt

- Yogurt

- Probi raw yeast yogurt

Powdered milk: -Milk powder for pregnant and lactating mothers: Dielac Mama
- Baby formula: Dielac Alpha Step 1, Dielac Alpha Step 2, Dielac Alpha 123, Dielac Alpha
456

- Milk powder for anorexia and malnourished children: Dielac Pedia

- Milk powder for adults: Vinamilk Calcium, Dielac Sure, Dielac Diecerna Ridielac Alpha
food powder

Sweetened condensed milk: - Sweetened condensed milk

- Condensed milk with Phuong Nam star sugar.

2.4. At home and abroad

3.Operations of foreign subsidiaries

Driftwood Dairy Holding Corporation

In December 2013, Vinamilk bought a 70% stake in Driftwood Dairy Holding Corporation
("Driftwood") and by May 2016, Vinamilk increased its ownership in this company to
100%.
 Driftwood is one of the oldest dairy producers in Southern California, the USA with a
portfolio of products including fresh milk, yogurt, ice cream, and juice. The Company's
customers include schools, restaurants, hotels, distributors, ... in the Southern California
region In 2018, despite the large fluctuations in the US market, Driftwood's total revenue
reached more than 116.2 million USD, equivalent to 2,674 billion VND.

Angkor Dairy Products Co., Ltd.

In January 2014, Vinamilk established a dairy production joint venture in Cambodia called
Angkor Dairy Products Co., Ltd ("Angkormilk") and started to build factories. By October
2015, Angkormilk officially went into commercial production.

In March 2017, Vinamilk increased its ownership to 100% of the shares in Angkormilk.
Angkormilk's current product portfolio includes condensed milk, liquid milk, and yogurt. In
2018, Angkormilk recorded a good growth rate with a total revenue of 39.8 million USD,
equivalent to 915 billion VND, an increase of 98.4% compared to 2017.

In 2019, Angkormilk sets a target of double-digit revenue growth and continues to improve
operational efficiency.

Vinamilk Europe Spóstka Z Ograniczona Odpowiedzialnoscia

In May 2014, Vinamilk established a subsidiary ("Vinamilk Europe") in Poland with 100%
capital owned by Vinamilk. The company's operating objective is to purchase high-quality
raw materials for dairy production activities of Vinamilk and other subsidiaries.

In 2018, Vinamilk Europe purchased and exported 21,000 tons of raw materials to Vinamilk
and other subsidiaries. The revenue recorded in 2018 of Vinamilk Europe is nearly 30.9
million USD, equivalent to 711 billion VND.

Lao-Jagro Development XiengKhuang

In November 2018, Vinamilk completed the purchase of 51% shares of Lao-Jagro

Development XiengKhouang Co.,. Ltd. The principal activities of the company are to raise
dairy cows and trade in agricultural products.

4. Operations of domestic subsidiaries

Vietnam Dairy Cow One Member LLC:

With headquarters: 10 Tan Trao, Tan Phu Ward, District 7, Ho Chi Minh City
The main activities are: Raising dairy cows

Thong Nhat Thanh Hoa Dairy Cow Co., Ltd.:

With headquarters: Quarter 1, Thi Tran Thong Nhat, Yen Dinh District, Thanh Hoa

Province

The main activities are: Producing milk and raising cattle

Vietnam Sugar Joint Stock Company:

With its headquarters: Than Thuy Xuong, Suoi Hiep Commune, Duyen Khanh District,
Khanh Hoa Province

The main activity is: Producing and refining sugar

APIS Joint Stock Company:

With the head office: No. 18A, VSIP II-A Street 27, Vietnam - Singapore II-A Industrial
Park, Vinh Tan Ward, Tan Uyen District, Binh Duong Province

The main activity is: Trading in food ingredients.

PART 2 : OPERATING MODE

1. Store:

Vinamilk has its own store system in many big cities: Ho Chi Minh, Ha Noi, Da
Nang,…It’s more effective for marketing rather than for sale. The store displays a full
range of vinamilk products

2. Retailers

Vinamilk’s products are distributed in many supermarkets, convenience store , grocery

store,… This is main right channel of Vinamilk. vinamilk's sales in this segment are very
large
 3. E-commerce site :

3.1:Vinamilk

Website https://giacmosuaviet.com.vn .

In order to create more sales channels in the context that consumers increasingly learn about
products and buy online, Vietnam Dairy Products Joint Stock Company (Vinamilk) has just
launched the website "Vinamilk eShop - Vietnamese Dairy Dream" at address
https://giacmosuaviet.com.vn/. This is the only official and unique e-commerce website built
and operated by Vinamilk. All products sold on Vinamilk eShop have specific nutritional
information for users to easily search and choose.

Accordingly, in order to create more sales channels in the context that consumers increasingly
learn about products and buy online, Vietnam Dairy Products Joint Stock Company
(Vinamilk) has just launched the website "Vinamilk eShop - Milk Dream. Vietnamese "at the
address https://giacmosuaviet.com.vn/.

4. E-commerce Exchange: Tiki, shopee, lazada

Customers can also buy Vinamilk products on e-commerce sites. These e-commerce
sites have programs to reach a lot of customers, which will increase Vinamilk's brand
awareness.

.
 PART 3 : PAYMENT SYSTEM

 COD ( CASH ON DELIVERY ) : Payment in cash upon receiving the goods .

 Credit Card : Prepay by domestic ATM card
 Prepay by international credit cards such as Visa, Master, JCB
 E - WALLET : Make a prepayment by QR CODE from the Sacombank Pay app of
Sacombank.

1. General Analysis

1.1 PEST analysis

Factor Opportunity Threat

Political Government stability X

Labor force X
International Organization
Participation X
Government policy. X
Incentive policy X
Reduction of import duties X

Economic Low inflation X

GDP increase X
Globalization X X
Per capita income increase X
X
Socio-Cultural Population growth rate X
Age distribution X
The need to improve health

Technological Technology and Infrastructure X

X
Intellectual property

o Political

Vietnam is considered to have the most political stability

Over the past decade, Vietnam has become the center of FDI attraction with a steady annual
growth rate of 10.4% in the period from 2013 to 2019 (reaching 16.12 billion USD in 2019 -
increasing 81%). Also in the past 6 years, Singapore recorded an increase of 63%, while FDI
inflows of Thailand and Malaysia actually decreased. In the ASEAN region, only the
Philippines has a higher rate of FDI increase than Vietnam is 104%, albeit from a lower base,
at $ 3.7 billion in 2013.
 Cash Free Day

Picture 1: Cash Free Day - June 16 is a series of events organized to promote the cashless
process in the economy towards a cashless society in Vietnam. The program was organized by
Tuoi Tre Newspaper under the content direction of the State Bank and with the
companionship of credit institutions in Vietnam.

In 4 months of 2020, domestic payment via bank cards increased by 26.2% in quantity and
15.7% in value; payment via mobile phone channels increased by 189% in quantity and
166.1% in value over the same period last year. Notably, in the first months of 2020, despite
being affected by the COVID-19 epidemic, payment activities still have a significant growth
compared to the same period last year. Transactions via the financial switching and power
clearing system increased 73.36% in volume and 129.47% in value over the same period in
2019

O Labor force

Labor force, total in Vietnam was reported at 57790281 in 2020, according to the
World Bank collection of development indicators, compiled from officially
recognized sources. Vietnam - Labor force, total - actual values, historical data,
forecasts and projections were sourced from the on December of 2020.
However, labor quality is low, mainly in agriculture and rural areas, which have not met the
development requirements: The labor supply in Vietnam today has always had a serious
shortage of highly skilled technical workers. , labor in some service industries (banking,
finance, information and telecommunications, tourism ...) and new industry. The rate of
trained workers is low, skills, skills, physical strength and industrial working style are still
weak, resulting in low competitiveness. The physical condition of Vietnamese workers is at
an average level, both in height, weight as well as in strength, flexibility, not meeting the
working intensity and requirements in using machinery and equipment. according to
international standards. The labor discipline of Vietnamese people in general has not met the
requirements set forth in the industrial production process. A large part of the workforce has
not been trained in industrial labor discipline. Most of the labor force comes from rural areas,
agriculture, heavily bearing the productive style of a small farm, arbitrary in terms of time and
behavior. Employees are not equipped with teamwork knowledge and skills, are incapable of
cooperation and take risks, are afraid to promote initiatives and share work experience.
Government policy
In Vietnam, in 2016, the Government issued a decision to approve the school milk program to
improve nutritional status, contributing to improving the stature of preschool and primary
school children until 2020. Up to now, there has been 26 provinces / cities nationwide have
implemented the IP program with millions of children benefiting.
Vinamilk has pioneered and accompanied a number of provinces to implement the School
Milk program from the 2007-2008 school year with Ba Ria Vung Tau province, followed by
localities such as Bac Ninh, …The representative of Vinamilk said that stemming from the
realization of the importance of the daily diet at school has a great impact on the nutritional
status and development of children at school age- the golden age for development, so far,
businesses continue to accompany and actively implement school milk.
 O International Organization Participation

High-end powdered milk segment is the playground of foreign representatives such as Abbott
and Friesland Campina is expected to continue to grow due to welcoming new middle-class
customers. Meanwhile, in the liquid milk segment, which has been an advantage of the
domestic group in recent years, because more competitive prices will no longer be an
advantage, when the import tax is 0%.

The bigger challenge is that the quality of imported fresh milk is always valued higher than
domestic fresh milk when consumers can easily compare the protein and fat content in 100
ml, which are two weak nutritional components. decisive factor to the quality of fresh milk.

O Economics

Economic factors affecting Vinamilk

According to 2015 statistics, about 72% of the milk consumed by Vietnam must be imported,
of which 50% is raw milk and 22% is finished milk. Therefore, when the exchange rate
changes, it will affect the input costs of Vinamilk dairy enterprises .The impact of the USD /
VND exchange rate on milk selling prices in the period 2014-2016, the exchange rate is
relatively stable, but there are always sudden fevers that vinamilk is unpredictable.
Influence of inflation on Vinamilk
According to 2015 statistics, about 72% of the milk consumed by Vietnam must be imported,
of which 50% is raw milk and 22% is finished milk. Therefore, when the exchange rate
changes, it will affect the input costs of vinamilk dairy enterprises
The impact of the USD / VND exchange rate on milk selling prices in the period 2014-2016,
the exchange rate is relatively stable, but there are always sudden fevers that vinamilk is
unpredictable.
Influence of consumer price index on Vinamilk
The consumer price index in December 2010 compared to December 2009 increased by
11.75%. The average consumer price index in 2010 increased by 9.19% compared to that in
2009. Although the consumer price index was still high, it had a downward trend. The
consumer price index in December 2011 increased by 0.53% over the previous month, much
lower than the growth rate of 1.38% and 1.98% in the same period in 2009 and 2010. The
growth rate of consumer prices (CPI) has decreased since mid-2011 and has fallen sharply in
recent months; CPI rose only 2.6% in the first 4 months of 2012, much lower than the same
period of previous years. The consumer price index (CPI) in September 2012 increased by
2.2% over the previous month. This is the highest increase in months since the beginning of
the year after six months. The consumer price index in September 2012 increased by 5.13%
over December 2011 and by 6.48% over the same period last year. Average consumer price
index in nine months of 2012 increased by 9.96% over the same period in 2011. Tight fiscal
measures, tight monetary policy; strengthening public expenditure management; the
centralized and directed market price management has contributed to curbing inflation; But
the ratio is still high affecting the value of income and purchasing power in the market.
Inflationary

Inflation will affect the raw material prices of enterprises. The increase in the price of raw
materials is the factor that causes the product price to increase; may affect sales in the market.
Price indexes of raw materials, fuels and materials used for production in 2011 increased by
21.27% compared to 2010. In which, indexes of raw materials, fuels and materials used for
production of some industries increased, including food. and copper drink increased 22.75%
Interest rates

The interest rate level has been gradually reduced, the exchange rate is stable, the balance of
payment has been improved. The deposit interest rate cap was reduced from 14% to 12%;
Credit loan interest rates have decreased compared to the beginning of the year, this trend is
being directed to accelerate and flexibly follow market fluctuations and inflation
developments. This is an opportunity for businesses to access preferential loans from banks;
maintain and expand production
Salary and income

In May 2010, the Government increased the minimum wage 730,000 VND / month.
In May 2011, the Government increased the minimum wage to VND 830,000 / month.
In May 2012, the Government increased the minimum wage to 1050,000 VND / month.
Salary increases of workers will make the purchasing power of the country somewhat
However, it also caused Vinamilk to increase spending significantly fees due to increased
salary fund.

SOCIAL, NATURAL, AND HUMAN FACTORS

1. Demographics
- Population size and growth rate: - The average population of the whole country in 2013 was
estimated at 89.71 million people, an increase of 1.05% compared to 2012.

- The relatively fast population growth opens up a large market for Vinamilk milk, creating
opportunities for product consumption and increased revenue.

- Of the total population of the country this year, the urban population accounts for 32.36% of
the total population, increasing by 2.38% against the previous year; rural population is
accounted for 67.64%, increasing by 0.43%.

-> This is a favorable factor for the development of the dairy industry in our country and the
fact shows this great potential with an annual increase of 30% in milk consumption, strongly
concentrated in urban areas.

- The proportion of the population aged 60 and over in our country is in the highest quintile in
the world and is expected to reach 10% of the total population by 2017 (the threshold showing
the structure of the elderly population)

-> Living standards are increasingly improved, this also creates opportunities for dairy
enterprises in a market with great potential and developing like Vietnam.

2. Natural environment –
Vietnam's climate is humid and monsoon tropical, which will create challenges for the dairy
industry. The perishability, easily degenerate ... of milk if not stored and handled in time. This
adversely affects the quality of the milk. From here, there is a requirement for a specific
strategy to preserve milk and produce high quality products. Besides, the nature of the climate
also has many advantages: The climate is very favorable for farming, creating a source of raw
materials for production. - Vinamilk needs to exploit this advantage thoroughly, thereby
creating a sufficient source of raw materials to meet production. This is an opportunity and
also a challenge for Vinamilk. If you can grasp and overcome it, this is indeed a good thing.
This will help Vinamilk reduce costs while the quality of milk remains unchanged.
3. Culture and society
- In Vietnam, consumers have a habit of using sweets as well as canned products or milk-
related products. Access of sources becomes easy through loudspeakers, newspapers lice,
television…. 
-> Therefore, marketing, advertising and product distribution to customers becomes more
favorable. •

- One of the characteristics of Vietnamese people is that they often use what we feel assured
of prestige and quality, so they rarely change, so when Vinamilk builds trust with consumers,
there will be loyal customers to the product. •

The physical characteristic of Vietnamese people is that their weight and height are relatively
lower than in other countries in the world. Therefore, Vinamilk's advertisements always
emphasize the formation of a healthy lifestyle. comprehensively develop human body and
intelligence.

4. Politics
- The stable political situation of Vietnam is decisive in the creation and implementation of
Vinamilk's marketing strategies.

- After the doi moi period, Vietnam officially normalized relations with China in 1992 and
with the United States in 1995 joining the Arsenic bloc in 1995, Vietnam has established
diplomatic relations with 171 countries. The most important turning point was January 11,
2007, that Vietnam officially became the 150th member of the WTO. 

-> The above events have had a great impact on market expansion as well as attracting
investors, increasing revenue, ... in order to make marketing strategies of Vinamilk.

5. Technology

Science-technology factors constantly ensure the development of businesses but also create a
competitive advantage of the business.
- Currently the production technology equipment used by Vinamilk meet international
standards, use modern packaging technology, import technology from famous equipment
suppliers such as: trota Pak (Sweden ), APV (Denmark)

- The lines are synchronous, new generation, modern, automatic or semi-automatic to meet
the requirements of food hygiene and safety.
- Using advanced technology for nurturing the instrument such as Ethernet network,
Bluetooth wireless connection technology, Wi-Fi and remote radio wave identification
technique with RFID tags attached to automatic identification chips, Biosensor systems,
surveillance cameras ... help increase dairy herd output

Momo Payoo
Free for the first 3 times /
Associated bank account month
withdrawal fee From the 4th draw:
Withdraw ≤ 1 million: 3,300
VND 50.000-1 mil : 5.500
1-2 million: 5,000 VND 1 mil-3 mil : 16.500
> 2 million: 0.3% of the 3 mil – 5 mil : 27.500
amount

Other bank withdrawals 3.300+0.5% of the amount

Withdraw money at the 8.000-35.000 Free

deposit / withdrawal point of
the wallet

Transfer money to your Free Free

wallet, to your bank account
 Security service fee
Fee paid by e-wallet
Fee paid by domestic bank
accounts
Way to process payment:
Hosted Payment Page, API
integration (On-site), App.
Monthly fees
Setup fees
Seller's/merchant's fees
Buyer's fees
Chargeback/return fees
Free Free
Free Free
From 0.3% to 1.1%
depending on the fee policy
of each bank.
API Integration API Integration
QR code App
App QR code
Free Free
Paypal 2checkout
Free Free
Standard merchant fee: 2.9% The lowest plan charges
+ $0.30. Micropayment fee: 3.5% + $0.35 per transaction
5% of the transaction.
There's no fee to use PayPal Free
$20 If your reimbursement is less
than 1% of your trade, you
will pay $ 15 per transaction.
If your reimbursement rate is
between 1% -2%, it's a $ 20
fee and if your
reimbursement rate is higher
than 2%, it's $ 45
Intercharge fees 60.0000vnd 2-5 USD
Monthly fees Free Free
Payment types: credit/debit Credit/debit cards, e-wallets, Credit/debit cards, e-wallets
cards, direct debit, internet bank transfer, App Bank transfer
banking, wallets, etc.
Shopping carts supported: Plugins/integrations of E- Plugins/integrations of E-
Plugins/integrations of E- commerce platforms commerce platforms
commerce platforms that are QR code
readily available for the
payment gateway.
Way to process payment: API Integration API Integration
Hosted Payment Page, API QR code
integration (On-site), App.

PART 4: FACTORS AFFECTING THE PAYMENT OF

GROUP VINAMILK.

I. Factors

1. Buyers

METHOD OF ORDERING: ORDERING VIA PHONE NUMBER, OR THROUGH

THE SITE VINAMILK SHOP E-COMMERCE E-SHOP VINAMILK.

PAYMENT METHODS
- COD (Cash On Delivery) Payment in cash upon delivery.
- Pay online by domestic ATM card
- Online payment by international ATM cards (Mastercard, Visa, JCB)

Benefits:
- Free delivery on orders over 300,000
- Delivery of the day when placed before 10am
- Quality assurance
- Full benefits like buying at the Store
- No fees when paying by card

=> According to the survey, customers are mainly large and small branches and will choose
the card payment option because it will be fast, safe, convenient, enjoy incentives and no
extra charges. any fee.

2.Suppliers

Currently, there are vendors that VinID, Grab, GHN, NOW.

Vendors are divided into two areas:
+ Promotion segment: VinID, Grab
+ Delivery service segment: GHN, NOW
- VinID: is the purchase application of Vingroup (One of the leading corporations in
Vietnam).
- Grab: is one of the largest car booking, delivery, etc. applications in Vietnam.
- NOW: As one of the major food delivery and food delivery reviews in Vietnam.
- GHN: Is a large freight unit in Vietnam

3 Substitute

In addition to the commonly used payment methods in this field, users can also use the QR-
CODE e-wallet payment method on the only Sacombank Pay bank's application installed on
their phone.

E-wallets are a new form of payment and are growing up recently. QR-CODE is a form of
payment of e-wallet VNPAY. Integrated on banks' applications. You just need to scan the QR
code to pay quickly.

Sacombank Pay allows scanning QR for payment at all QR accepting points of card
organizations (except American Express) around the globe and QR standard of Napas and
VNPAY.

Because this is a new form, when paying with this method you will receive great deals. You
only need to enter a promotional code that is issued for certain periods.
4. New entrant

Today, there are countless payment methods emerging, especially non-cash payments
(KSTTM). In parallel with this problem, the supply chain (applications that provide non-cash
payment services) appears more and more and is growing.
PAYMENT cashless in Vietnam has not developed as expected, the proportion of
transactions using cash is high. According to the International Data Group (IDG) in 2019,
nearly 40% of the Vietnamese population has a bank account but still 80% of their daily
spending is using cash, 98% use cash when paying cash for less than 100 thousand dong and
nearly 85% of transactions at ATMs are withdrawals
The use of cash is still quite popular in civil transactions of people, especially in rural,
remote and isolated areas; Electronic payment in e-commerce remains low. The main reason
is that the habit of using cash is ingrained in people's subconscious, the fear of approaching
new payment technology, as well as concerns about security, safety and cost. Using electronic
payment methods, the implementation of the trade center is facing many difficulties.
Infrastructure and technical equipment serving the business centers are ineffective, not
commensurate with the potential. Currently, financial institutions (including banks, payment
intermediaries and e-wallets) have built their own payment equipment system at a point of
payment, so they are both wasteful and endless. use common infrastructure. New forms of
payment such as QR Code, biometrics ... started to develop but have not been planned and
evaluated for large-scale deployment
=> The major problem affecting this set a new payment system for Vinamilk. It makes
Vinamilk's business less developed than other dairy businesses in the world. Meanwhile, in
the world was very strong in this field, then Vietnam was just, has been applying.
 5. Competitors

Currently, in the Vietnamese market, Vinamilk is facing big brands, developing brands such
as TH True Milk, Nesle, Abbott, Mead Jonson, ... The most typical is TH True Milk. .

According to a report by an international market research company in the dairy industry, TH

true MILK's (Top of Mind - TOM brand awareness) top awareness index is 27%, and overall
brand awareness is 85%. and loyalty index is 29%. These indicators can be understood that
out of 10 respondents, when it comes to milk, the image of TH true MILK will first appear in
the minds of 3 people, 8-9 brand awareness and 3 speakers. customers are loyal, love and
willing to associate with the brand.
TH's secret is to capture the consumer trends and real needs. Vietnam has to import powdered
milk to prepare reconstituted milk with up to 72% of the annual liquid milk market share
(before TH true MILK was born this figure was 90%). The world's advanced countries
completely use fresh milk. Vietnam's population is nearly 90 million people, the annual fresh
milk consumption is only 6 liters / person (Indonesia 12 liters / person / year). Analyzing
according to the traditional BCG marketing growth matrix model, TH true MILK stands at the
position of "Prime Star".

TH True Milk is now using the same payment methods as Vinamilk's. But in addition, their
QR-CODE payment is more developed than that of Vinamilk. They agree for this payment to
take place for all banks affiliated with VNPAY. Meanwhile, Vinamilk only agreed to allow
one bank, Sacombank.

They are a typical partner of VNPAY, so they will receive more attractive incentives.

=> Therefore, they will be more active in non-cash payments with a higher number of
affiliated banks. Improve sales performance of goods and products, increase revenue
Method Checking Staff Commission Waiting Time
Money
COD 1/100 20% 3-5 days

Card 1/500 16% 2 days

E-Wallet 1/500 10% 2 days

II. Resource allocation

6. Operating analysis

Method Lost ratio Usage rate Successful

(*) (**) rate (***)
COD 20% 90% 80%
Card 10% 8% 90%
E-wallet 0% 2% 100%

COD :
 20% is the percentage of money lost that may be affected by some things such as
problem of the delivery by the delivery of the goods, damaged goods and refunds ...

 90% : Most of the people still choose this form of payment because when they receive
the goods, they will pay the shipping fee to employees
  80% : The success rate here is because when the customer receives the goods, the
company will receive the money. If customers do not receive the goods, or change
their mind about not buying any more making the delivery success rate low 80

E-wallet:
2% : E-wallet used to pay for Vinamilk products are mostly paid for in small quantities at
convenience stores, supermarkets, and e-commerce website( Shopee, Tiki,…)

7. Performance analysis

RANKING

1 E-wallet Speed:10 25
Security:7
Popularity: 8
2 Card Speed:7 25
Security:9
Popularity: 9
3 COD Speed:5 24
Security:9
Popularity:10
 PART 5: PROPOSAL

1 . Improve current payment methods

A) Add other shipping companies such as Lalamove, Supership…
- Different companies will give us many different benefits .
- Transit times are more flexible .

B) Checkout page optimization

+ Provide purchase function without login
+ Function "to save for later" + remind
+ Integrate many payment gateways and forms of payment
+ Show purchase instructions
+ Show purchase instructions
+ Related product suggestions

2 . Edit current payment system

- Add payment method
+ Momo, Moca, Payoo, ZaloPay, Vnmart, Nganluong.vn, VTCPay, BankPlus, …
- Cooperate more with banks

3. Build a new payment system

- Idea and requirement analysis :

+ We will plan to analyze the requirements, design according to the needs of the
business. Our team will receive and analyze your requirements in detail, from which
creative efforts to bring you the best product.

- Design :
+ Our experts will analyze and give completion and handover milestones. The projects
will be outlined clearly and detailed plan to ensure the best quality and completion
time of the project.

- Develope :

+ The payment system will be developed by a seasoned developer and must always
follow the standard software release lifecycle. Before a route is handed over, our
testers check for all errors.

- Upgrade :
+ We will upgrade new features by collecting information and handling all errors
arising during the operation.