Cooperation between Vinamilk and Khanh Hoa Sugar JSC

Vietnam Dairy Products Joint Stock Company (Vinamilk) has invested 65% of the shares of Khanh Hoa Sugar Joint Stock Company to set up Vietnam Sugar Joint Stock Company. This cooperation is expected to make a breakthrough.

According to Vinamilk General director Mai Kieu Lien, Vinamilk desired to invest in sugar a long time ago but it wasn’t done. Therefore, Vinamilk has poured about VND1,000 billion to buy 65% of the shares of Khanh Hoa Sugar Joint Stock Company to supply material for its production.

The establishment of Vietnam Sugar Joint Stock Company is considered as a strategic handshake between two top businesses in food industry in Vietnam. The cooperation also creates a new direction for sugar industry in Vietnam, helping sugarcane growers to raise competition competence to integrate the region and the world. It helps Khanh Hoa Sugar Joint Stock Company have output as well as Vinamilk have material source.

Confronting the drastic competition of Thailand, Laos, Cambodia, etc. in sugar industry, Vinamilk plans to apply itsstrategies and advanced management system into Vietnam Sugar Joint Stock Company. The company will raise capacity from 10,000 tons to 15,000 tons of sugarcane/day, refine 2,000 tons/day instead of 1,500 tons/day. In the next 5 years, cost price of sugar will be as low as that in other countries.

Initially, material sugarcane areas of 4 provinces, including Khanh Hoa, Ninh Thuan, Phu Yen and Dak Lak enjoy benefits from this coordination. With good finance, Vinamilk will pour strong investment in farmers in technology, fertilizers, etc. Then, the farmers will become sugarcane workers. Preferential treatment is based on benefits of the company and the farmers. The join of Vinamilk in sugar is expected to bring more benefits for farmers as well as consumers.

At the launching ceremony, General manager of Vietnam Sugar Joint Stock Company Do Thanh Liem, said, “Vietnam’s sugar is changing when Vietnam Sugar Joint Stock Company is established. All the staff and I are delighted to work with Vinamilk, a prestigious and developing company in the country. I believe that the cooperation will bring not only success for Vietnam Sugar Joint Stock Company but a lift to the sugar.”

Pham Quoc Doanh, Chairman of Vietnam Sugar Association, also said that, “The establishment of Vietnam Sugar Joint Stock Company is a successful business re-structuring. This is one of two sugar companies in the country linking sugarcane with processing, forming a stable value chain. The coordination between a sugar company and a nutrition company has opened a new prospect, partly make the market stable and promote the integration and the development of the country’s foodstuff production.”

Dinh Lam

Translated by T.T

Material sugarcane area of Vietnam Sugar Joint Stock Company