[Vnbiz] the milk crisis in VN [SEC=UNCLASSIFIED]

Thu Oct 12 02:38:58 PDT 2006

Dear CACC
First we cannot conclude that's the problem with Vinamilk. We have
Hanoimilk, Dutch lady, Netscafe etc all around as well. No articles have
concluded that it's purely to do with Vinamilk.

But this story is seen as 'positive' to me. This indicates that the stock
market is functioning well and the privatization has worked in favour of
consumers. Look, without VNM being listed (and getting so hot!), noone will
go a great length to dig up such issue; without VNM being privatized, such
articles may die out before it gets to you. This problem must have existed
for ages, why have we never heard of?

There's nothing to be ashamed of, in fact, I'm rather pleased. When you see
problems of corporation all over place, that means competition has done its
job and we're heading toward the better.

For the time being, if it turns out to be Vinamilk only, buy foreign fresh
milk or anything you trust more (like New Zealand UHT milk) and see the Q4
profit of Vinamilk drops severely, and see the share price drops and the
management shakes up, see the shareholders demand the corporation to solve
its issue properly. Hanoimilk is being listed and now, let wait to see the
same thing. Those are the things I want to see and to feel pleased that
finally, stock market and privatisation certainly add value to our society.

For the time being, Vietnam's still Vietnam. Good things don't come your way
easily. Work on it and make it happen. That's my motto though.

Don't you think so?

Great day,

Dzung

On 10/12/06, QuangAnh.Nguyen at dfat.gov.au <QuangAnh.Nguyen at dfat.gov.au>
wrote:
>
>
> [Vietnam Business Forum]
>
>
>
>
>
>
>
> Dear brother Hoanh
>
> Thanks so much for your analysis.
>
> I would like to have only one another comment on this matter: it's really
> ashamed.
>
> Especially given that VNM share became one of the hottest, most profitable
> one on the Vietnamese premature stock market.
>
> All the best
> ----------------------------------------------
> Nguyen Quang ANH
>
>
>
>
>
>
>
>
>
>             "Tran Dinh
>             Hoanh"
>             <tdhoanh at gmail                                             To
>             .com>                      vnbiz at vietlinks.net
>             Sent by:                                                   cc
>             vnbiz-bounces@
>             mail.saigon.co                                        Subject
>             m                          Re: [Vnbiz] the milk crisis in VN
>                                                                     Topic
>
>             12/10/2006
>             11:50 AM
>
>
>             Please respond
>                   to                                        TRIM File Ref
>             vnbiz at vietlink
>                 s.net
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> [Vietnam Business Forum]
>
>
>
>
>
> Dear Brother Quang Anh & CACC,
>
> The mild crisis is actually much more than the deceptive practice of using
> powder milk for "fresh" milk. Probably you realize that the media has
> recently reported that the milk-cow flock of Vietnam is disappearing and
> many farmers have lost their shirts for raising milk cows.
>
> I think the real problem is in Vinamilk. This company, praised as the most
> successful company in Vietnam, has killed the milk-cow flocks. Vinamilk
> does not want to use fresh milk from Vietnamese farmers. It uses powder
> milk in many of its products and do not support farmers to produce fresh
> milk. Please note, Vinamilk was (and probably is, even after going public
> with its stocks,) a state-owned company with an almost monopoly over the
> dairy-product market, such as milk, ice cream, etc.
>
> Normally, fresh milk can survive only when a large company contracts
> thefarmers to raise cows and produce milk, and the companybuys the milk
> from farmers. It is a kind of guarantee-buying contract. That is how
> farmers can survive and the company can have a sure source of supply. But
> Vinamilk has no long-term vision. Its doesn't care. It has no serious
> competition from anyone. It only wants to rely on its monopolistic power
> to gain short-term profits.--using cheap products whenever it can, to gain
> quick money. It doesn't want to invest time and effort in training and
> supporting farmers, and money in investing in fresh-milk facilities.
>
> This fresh milk issue is a huge failure of the government's agriculture
> (un)planning.
>
> Have a great day, brother Quang Anh and all!
>
> Hoanh
>
>
>
> On 10/11/06, QuangAnh.Nguyen at dfat.gov.au <QuangAnh.Nguyen at dfat.gov.au >
> wrote:
> [Vietnam Business Forum]
>
>
>
>
>
>
>
>
>
> Dear CACC
>
> Please see attached an interesting article on the current milk quality
> crisis in Vietnam. In short, as you may see in some other news recently,
> the Government has started an inspection on quality of so-called "fresh
> milk" produced by domestic milk companies (including both foreign invested
> and local invested companies). It is said that a large proportion of the
> "fresh milk" selling in Vietnam market are made from powdered milk...Of
> course, the mill companies can make a lot of $$$ from this intransparent
> process.
>
> This scandal reflect a very unfair relation between the two side:
> producers
> and consumers. The consumer protection legal framework is there, but
> enforcement is quite poor (I remember this issue has been mentioned some
> time ago on our forum).
>
> Regards
>
> ----------------------------------------------
> Nguyen Quang ANH
>
> (See attached file: Nghich ly cua sua.pdf)
>
>
> --
> Tran Dinh Hoanh, LLB, JD
> Attorney of Law
> Washington DC
> _______________________________________________
> To subscribe/unsubscribe, please contact admins at
> vnbizadmin at vietlinks.net
> Info at http://mail.saigon.com/mailman/listinfo/vnbiz
> Archive at http://groups.yahoo.com/group/vnbiz
> Or http://groups-beta.google.com/group/VNBIZforum/
> Or http://mail.saigon.com/pipermail/vnbiz
> Or http://www.tin.le.org/archive
>
>
> _______________________________________________
> To subscribe/unsubscribe, please contact admins at
> vnbizadmin at vietlinks.net
> Info at http://mail.saigon.com/mailman/listinfo/vnbiz
> Archive at http://groups.yahoo.com/group/vnbiz
> Or http://groups-beta.google.com/group/VNBIZforum/
> Or http://mail.saigon.com/pipermail/vnbiz
> Or http://www.tin.le.org/archive
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mail.saigon.com/pipermail/vnbiz/attachments/20061012/21a6a822/attachment.html 