Opportunity to merge and merge in Vietnam dairy sector from a value chain perspective

Abstract

The retail price of milk in Vietnam is always very high in comparison with the region and the world, while the price of raw milk of the companies traded with farmers is very low. This is a paradox and is explained by many causes and among the many reasons we can see, the Vietnamese dairy market is being occupied by a large glass group. This group of companies has a majority share of the market and has the advantage of negotiating raw material prices with farmers as well as introducing pricing policies in the most beneficial way. This issue will be analyzed through the value chain of the dairy industry to see the benefits companies gain from participating in the value chain of the industry, as well as the reasons for companies in and outside the dairy sector in Vietnam. Nam will continue to expand its investment in this sector through mergers and acquisitions (M & A).