Returning from a recent trip to Vietnam, an article from the International Herald Tribune caught my eye, and for obvious reasons. It reiterates the explicit growth and frenzied pace on display in bustling cities such as Hanoi and Saigon (Ho Chi Minh City), and also underscores the favorable demographic thesis (nearly half of the population of 87m is in the labor force, and the broad, median age is 28.5) underpinning myriad, ongoing projections of an increasing derivitive in the country’s future, consumer-driven growth trends. The population is currently growing at a rate of 1.2 percent/annum.
The piece also mentions Vietnam Dairy Products, or Vinamilk, already the country’s third most valuable company by market cap and which as of last week was up 16.6 percent from the end of 2008, compared with a 3.5 percent loss in the Ho Chi Minh index during the same period. 90 percent of the population lacks the enzyme necessary to process dairy; however, consumers are turning in droves to soya milk, and their consumption patterns correlate neatly with changes in income. The firm expects a 30% increase in sales during 2010, and also to tack on at least ten points to its current market share of 35 percent. That said, the company is also insulated to some degree from regional economic contraction as it continues to spread its influence internationally, servicing such large markets as the U.S., India, the Middle East, Africa, Poland, Germany and Cambodia with a diverse product line that includes milk powder, yogurt, and fresh milk, as well as fruit juice, herbal tea and the aforementioned soya milk.
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