FIN201 Question A
.docx
School
HELP University**We aren't endorsed by this school
Course
FIN 201
Subject
Economics
Date
Dec 18, 2024
Pages
4
Uploaded by HighnessBuffalo3153
SECTION AI. Overview of Vietnam's confectionery industry during the period from 2021-2023The confectionery industry in Vietnam is booming in more ways than one. Whereas there is ampleopportunity to manufacture confectionery in Vietnam to export to the world, Vietnam also has afondness for sweet treats. ( Mai Chi Tran, 2023)In Vietnam, there are different kinds of cakes and sweets from local areas which are loved for their tasteby the whole families, especially kids. Local specials include sticky rice cake, dumplings, steamed ricecake or sweet dessert soup. The trend among Vietnamese consumers is to indulge in foreignconfectionery, which increases the attractiveness of confectionery items from different corners of theglobe. More businesses are entering the Vietnamese market to satisfy the growing needs. This articlewill focus on the available opportunities for confectionery production in the Vietnamese market, bothfor local and international markets and then conduct a competitive landscape analysis of theconfectionery industry in the country to detect the status quo and possible growth potential.Over the next five years, the Vietnamese confectionery market is estimated to generate over US$8.5billion in revenue reflecting an annual growth rate of 10.17 per cent (CAGR 2023-2028) and headingtowards remarkable success. Consumption of sugar paste now precedes the intake of cakes and bakedsweets, which are the two other largest according to Statista.Nowadays the Vietnamese confectionery sector is very dynamic and there is huge competition betweenlocal and foreign companies. The ASEAN applies a 0% import duty for candy from ASEAN nations; atthe same time, local confectionery still dominates the market in Vietnam, accounting for about over 90per cent of the total confectionery sales, according to state media. (ANTV, 2023).
II. Some competitors in the confectionery industryThe Vietnam confectionery market is quite competitive with renowned domestic brands like Huu Nghiand Hai Ha, in addition to Nestlé and Orion, among others.To increase their market share, many big businesses have also entered the domestic confectionerybrands business. As seen in the case of Pan Group, as of last year, it has raised its ownership in Bibica to98.3%.The food trading company KIDO also has a 25 per cent stake in the Tho Phat brand of dumplings and istargeting a 76 per cent ownership share in the Hung Vuong Plaza in the years to come.KIDO GROUPHUU NGHI FOOD JOINT STOCKCOMPANYEstablished in 1992 Most recognized Vietnamese food brand Core products: sweet goods, cooking oil, instantnoodles 44.5% share of ice cream market in VietnamMajor brand in Vietnam Products: Staff, Tipo, Daisy Specializes in sugar-coated biscuits and packagedcakes Factories in Hanoi, Binh Duong, and Bach Ninhprovinces Employs over 1500 workersTable 1: Overview about KIDO group and Huu Nghi joint stock companyIII. Overview of BibicaBIBICA Confectionery Joint Stock CompanyMCK: BBCHOSE trading floorIndustry: Food productionCharter capital: 187,526,870,000Number of listed shares: 18,752,687Add: Ly Thuong Kiet, Ward 8, District
Tan Binh, HCM CityTel: 028-39717920 Fax: 028-39717922Email: bibica@bibica.com.vnWebsite: http://www.bibica.com.vnTable 2: Overview of BibicaBBC has its arms in similar sectors like confectionery-malt processing, nutritional powder, milk anddairy, beverage powder, and processed foods. It features both domestic and international operations withoperations that include the importing of raw materials and equipment and the exporting of cakes,candies, malt and other products.98.3 per cent of BBC's shares are owned by PAN Group, which brings access to raw materials andmarkets and allows further dividend sharing.In 2020, the bakery items alone were responsible for 55% of the turnover while the confectionerybrought 40%, and the remaining 5% came from other products. In 2021, the falling bakery and candyproduct sales were more abrupt, but the growth in sales of other products (12%) was supported.BBC owns three plants with a combined capacity of 19,000 tons per year making CBS one of theleading players in the candy and dry cake industry with a notable market share in the market. (Bankstar,2023)REFERENCESMai Chi Tran (2023, August 1st). Making and Selling Confectionery in Vietnam. Retrieved from
https://www.vietnam-briefing.com/news/making-and-selling-confectionery-in-vietnam.html/Statista (2024). Confectionery - Vietnam. Retrieved fromhttps://www.statista.com/outlook/cmo/food/confectionery-snacks/confectionery/vietnamANTV ( 2023, January 8th). Difficulty finding market share for Vietnamese confectionery. Retrievedfromhttps://antv.gov.vn/tin-tuc/kinh-te/gian-nan-tim-thi-phan-cho-banh-keo-viet-474947.htmlKido Group (2024). Introduction | Journey. Retrieved fromhttps://www.kdc.vn/gioi-thieu/chang-duongHuu Nghi food joint stock company (2024). Introduction Category. Retrieved fromhttps://huunghi.com.vn/gioi-thieuBibica (2024). Introduction about Bibica. Retrieved fromhttp://www.bibica.com.vn/Bankstar (2023, February 24th). Report assessing the financial situation of Bibica joint stock company.Retrieved fromhttps://bankstar.com.vn/wp-content/uploads/2023/03/Ba%CC%81o-ca%CC%81o-pha%CC%82n-ti%CC%81ch-BCTC-cu%CC%89a-co%CC%82ng-ty-Bibica-HV.pdfViet Nam Report (2023, September 19th). Top 10 reputable companies in the Food - Beverage industryin 2023. Retrieved fromhttps://vietnamreport.net.vn/Top-10-Cong-ty-uy-tin-nganh-Thuc-pham--Do-uong-nam-2023-10673-1067.htmlViet Nam Report (2022, September 23rd). Top 10 reputable companies in the Food - Beverage industryin 2022. Retrieved fromhttps://vietnamreport.net.vn/Top-10-Cong-ty-uy-tin-nganh-Thuc-pham--Do-uong-nam-2022-10368-1006.html