One of the largest dairy milk producers in Southeast Asia, Vietnam Dairy Products, “is in talks to acquire another U.S. company” as it expands its international presence, said Bloomberg. Vinamilk, as the company is known, became sole owner of Driftwood Dairy in California earlier this year.
Vinamilk has operations in New Zealand and Cambodia as well as in the United States and its home country. It exports dairy products to 43 nations, including Canada, Japan, Australia and the United States. In an interview in Ho Chi Minh City, Vinamilk chief executive Mai Kieu Lien told Bloomberg that if the firm wins acceptance in the U.S. market, “it will be a big advantage for us, helping us to penetrate into other markets.” She declined to name the potential purchase or the price.
Created by the combination of three state-owned dairy factories in 1976, Vinamilk received permission in January to remove a provision barring foreigners from owning more than 49 percent of its stock. The government investment arm, the State Capital Investment Corp, owns 45.1 percent of shares at present, said Bloomberg.
Vinamilk purchased 70 percent of Driftwood Dairy, one of California’s largest dairy processors, in late 2014 and bought the remainder of the shares this summer, says Vietnamnet. The news site described the acquisition as a textbook example of how to enter a foreign market. “This expansion marks a significant step forward for Vinamilk in its quest to gain a toehold in global markets such as the U.S. and lights up the pathway for future Vietnamese companies,” said Vietnamnet.