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Vinamilk gets government go-ahead for Cambodian dairy deal

By Mark Astley+

14-Jan-2014

Vinamilk gets government go-ahead for Cambodian dairy deal

The Vietnamese government has given Vinamilk the go-ahead by to pursue its latest international investment – the purchase of a majority stake in Cambodian dairy processor, Angkor Dairy Products.

Vinamilk, Vietnam’s largest dairy manufacturer, announced yesterday that the Vietnamese Ministry of Planning and Investment has granted it an Overseas Investment Certificate for its $23m (€16.8m) investment in Phnom Penh-based Angkor Dairy.

Through the deal, Vinamilk will attain a 51% interest in Angkor Dairy.

Vinamilk’s Cambodian partners will hold the remaining 49% stake.

Angkor manufactures dairy products for the Cambodian market and “has production capacities of 19m litres if liquid milk, of 64m jar of jars and of 80m cans of condensed milk,” Vinamilk said in a statement.

Overseas investment

Vinamilk’s pending interest in Angkor is the latest in the growing line of overseas investments by the dairy processor.

In December 2013, Vinamilk secured an Overseas Investment Certificate from the Ministry of Planning and Investment to acquire a 70% stake in Californian dairy processor, Driftwood Dairy Holdings, for $7m (€5.1m).

Driftwood manufactures a wide range of dairy products, including fresh milk, flavored milk, yogurt, cream cheese, cheese and ice cream for distribution across California.

Earlier in December, Vinamilk was handed a modified Overseas Investment Certificate in connection with its interest in New Zealand-based, Maori-owned dairy processor, Miraka Limited.

Vinamilk increased its investment in Miraka from NZ$12.5m ($10.5m, €7.7m) to nearly NZ$14.5m ($12.2m, €8.9m) - representing equity of 19.3%.

Alongside its foreign investments, Vinamilk has to date exported its products to nearly 30 markets, including Australia, Canada, Russia, Japan and the Middle East. In July 2013, Vinamilk was also granted a license by the US Food and Drug Administration (FDA) to export its products to the US.

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