Legal structure: State-owned enterprises are regulated in Chapter IV of the Enterprise Law 2020 including: One-member limited liability company owned by the State with 100% charter capit
INTRODUCTION
Introduction of the report
Currently, Vietnam's dairy industry is making many great developments According to Euromonitor Vietnam's milk market reached a value of 135,000 billion VND in 2020, up 8% compared to 2019, thanks to the rapid growth of the yogurt and drinking milk segment Industries with high growth include liquid milk (+10%), yogurt (+12%), cheese (+11%), butter (+10%) and other dairy products meeting the increasing demand of the market That means that many new dairy brands will appear and create significant competition However, Vinamilk still maintains its position and is always a leading enterprise in the dairy production industry in Vietnam In this study, the author will analyze in depth respect to types, sizes and scope, functions, and organizational structures for the investment plan of the Vietnam Dairy Products Joints Stock Company.
Introduction of the Vinamilk
Vinamilk is the dairy company with the highest market share in Vietnam today with 240,000 traditional retail outlets; 5,400 supermarket channel retail points; 2,400 retail outlets in convenience stores, 12 Global G.A.P standard farms; 132,000 is the total number of cows being exploited (Topi, 2023)
Company Name: Viet Nam Dairy Products Joint Stock Company
• Head Office: No 10, Tan Trao Street, Tan Phu Ward, Quan 7, HCM City
• Email: vinamilk@vinamilk.com.vn
• Website: www.vinamilk.com.vn
Company logo meaning: The main symbol in Vinamilk logo is a combination of stylized letters and round shapes The round shape symbolizes perfection, the fullness of product quality Inside the Vinamilk milk logo is a stylized VNM symbol by connecting with each other softly The upper and lower gliding lines in Vinamilk logo design symbolize cool, nutritious milk droplets (Vinamilk, 2022)
The organizational structure consists of 17 affiliated units and 1 Office Total number of staff - employees: 4,500 people (Vinamilk, 2022)
Main function: Production of milk and dairy products
Over the years, with outstanding efforts, the Company has become one of the leading enterprises in Vietnam in all aspects The Company's achievements have actively contributed to the development of the cause of Industrialization - Modernization of the country.
MAIN CONTENTS
Types, purposes, legal structures of different organizations of 3 business sectors
The public sector is the segment of the economy owned, operated, and controlled by government agencies
It provides services to the public that contribute to societal well-being, such as law enforcement, national defense, public transportation, transit infrastructure, educational institutions, and health services Unlike the private sector, the public sector does not seek to make a profit from its services (MasterClass, 2022)
Organizations in the public sector are motivated by their purpose of providing services to the public at a reasonable cost In contrast, organizations in the private sector are driven by profit The purpose of the public sector is for the benefit to citizens: the interests of the public at large Social goals: democracy, cooperation, job creation, mutual trust Goals laid down by politicians and generally couched in social and financial terms, rather than profit maximization (Trevino, 2022)
According to the Enterprise Law 2020 outlined in Chapter IV, state-owned enterprises are defined as: one-member limited liability companies owned entirely by the state; limited liability companies with multiple members where the state holds over 50% of the charter capital; and joint stock companies where the state owns more than 50% of the charter capital.
Vietnam Oil And Gas Group is a one-member limited liability company owned by the State and holds 100% of charter capital, operating in accordance with the Law on Enterprises (PETROVIETNAM, 2021) PVN's total capital on June 30 , 2021, is 24,564,321,350.898 VND; revenue is 25,193,32,395,700 VND; th the number of employees of the corporation is 700 excluding subsidiaries
PVN's vision is to “Become the leading energy group in the country, the region, with a position in the international arena” With the mission of “Optimizing oil and gas energy sources, sustainable development of new energy sources, contributing to building and protecting the Fatherland”
From the above data, it can be concluded that PVN is CA one-member limited liability company in the a public sector with a large scale
The private sector is the part of the economy owned and controlled by individuals and businesses rather than the government Unlike the public sector, which is funded primarily through tax dollars, the private sector generates revenue from selling goods and services (Hartill, 2021)
Profit-driven organizations in the private sector prioritize financial gain as their primary objective Unlike public or voluntary organizations, private companies focus on personal ambitions such as profit generation, revenue growth, and corporate expansion This profit motive serves as the driving force behind the market economy, underscoring the universal desire for financial gain within the business sector.
Figure 1.Vietnam Oil And Gas Group (PETROVIETNAM, 202 like the private sector Putting profit goals first for the state economic sector is both unreasonable and feasible because the characteristic of the private sector is to take profit as the central factor, which is the absolute driving force to promote development, increase labor productivity and increase the efficiency of production and business activities (Anh, 2019)
Secondly, the private sector also has a purpose for the interest of the owners Comprised of three ownership interests are economic rights, managerial control, and ownership as an asset (MSA, 2018)
According to the Law on Enterprises 2020, there are 4 types of private sector including: Sole trader/proprietorship, partnerships, limited liability companies and joint stock companies
Sole trader/proprietorship: A sole trader/proprietorship is a type of business that does not have legal status, owned by a single individual, and this individual is solely responsible for all his or her assets for all activities of the business (TWIN, 2023)
Partnerships: Partnerships another common type of business in Vietnam is partnership companies A partnership company must have at least two general partners In addition to general partners, it can have capital contributing partners The partnership company will not be allowed to issue any securities to raise capital The partnership company will have legal status when receiving the Enterprise Registration Certificate General partners must be individuals, unlimitedly liable to the company in all their assets Capital contributing partners can be organizations or individuals and only have limited liability to the enterprise to the extent of their contributed capital (FIRM, 2020)
Limited liability companies: Limited liability companies are divided into two types, single-member limited liability companies and limited liability companies with two or more members
• Single-member limited liability company is an enterprise owned by an organization or an individual The company owner is responsible for the company's debts and other property obligations within the scope of the company's charter capital (ThuVienPhapLuat, 2020)
Limited Liability Companies (LLCs) consist of 2-50 members, including organizations and individuals Members are only liable for debts and obligations within the amount of their capital contributions, except as outlined in Clause 4, Article 47 of the Law on Enterprises 2020 Members' contributed capital remains intact unless transferred according to Articles 51-53 of the Law on Enterprises 2020.
Joint Stock Company: According to the provisions of Article 111 of the Enterprise Law 2020, a joint-stock company is a type of business in Vietnam whose charter capital is divided into equal parts called shares
Shareholders will be referred to as shareholders A joint stock company has legal status from the date of establishment A joint stock company has a management structure consisting of the General Meeting of Shareholders, the Board of Management, the Director (General Director), and the Supervisory Board (if there are more than 11 shareholders) Shareholders can be individuals or organizations Shareholders have limited liability for the operation and obligations of the enterprise to the extent of the contributed capital Shareholders can freely transfer shares, except for the cases specified in Clause 3, Article 120 and Clause 1, Article 127 of the Enterprise Law 2020 This type of business requires a minimum of 3 shareholders, and there is no limit to the maximum number of shareholders Joint stock companies are entitled to issue securities to raise capital but must comply with the provisions of the law (FIRM, 2020)
Viet Nam Dairy Products Joint Stock Company: Based on Vinamilk's 2021 financial statements, the state ownership rate is 36.00%, F&N investment group holds 20.04%, Platinum Victory fund holds 10.06% and the rest are other shareholders hold 33.00% (Vinamilk, 2022)
The capitalization on December 31st 2022 is VND 159,546 billion; total consolidated revenue is VND 60,075 billion; the number of employees is 9,506 people (Vinamilk, 2022)
Size and Scope
According to the Degree 80/2021/NĐ-CP usiness size can be understood as the division of business A general understanding of business size is the size of a business unit or organization Enterprises are currently divided into 4 groups: large enterprises Small business Medium business Micro business To determine the size of the business based on 3 criteria: number of employees, total capital, total revenue (ThuVienPhapLuat, 2020)
Agriculture, Forestry and Fishery Industry, Construction Trade, service
• Small business: Binh Minh one-member limited liability company has a total revenue of 9.8 billion in 2018; The total capital is 20 billion and the number of employees is 86 people (Vietnamcompanies, 2021) Through the data mentioned and according to Decree 80/2020/ND-CP, it can be concluded that Binh Minh one-member limited liability company is a small-scale company
• Large interprise: Vietnam oil and gas group has total revenue of the whole Group in 2021 reached 620.2 trillion VND, total assets of PVN by December 31st 2021 were 894.1 trillion VND and the number of employees was nearly 60 thousand people (Petrovietnam, 2022) According to Decree 80/2020/ND-CP, it can be concluded that PVN is a large-scale enterprise
To clarify the size of Vinamilk enterprise, it is necessary to analyze the following factors: capital, revenue, and number of employees
Vinamilk's positive performance in 2021 is reflected in its total consolidated revenue of 61,012 billion VND This represents a milestone for the company, as it exceeded 60 trillion VND for the first time in its history Moreover, this revenue growth of 98.2% compared to the planned target marks the fastest quarterly growth rate Vinamilk has experienced in the past five years.
Total capital: According to statistics as of December 31st 2021 of Vinamilk, the company's total capitalization is VND 180,572 billion, equivalent to 7.9 billion USD (Vinamilk, 2022)
Number of employees: Also from the financial report, Vinamilk has a workforce of over 10,000 people in 35 units across the country (Vinamilk, 2022)
Based on industry-specific standards, enterprises in the construction industry are classified by their annual revenue Micro enterprises typically have revenues below a certain threshold, while small enterprises have revenues within a higher range Medium enterprises have even higher revenues, and large enterprises have the highest revenues, exceeding a specific threshold This categorization system is widely used to define the size and scale of construction companies.
200 billion, total capital of over 100 billion and the number of employees of 200 people or more is a large company Therefore, it can be concluded that Vietnam Dairy Joint Stock Company Vinamilk is a large company
2.2.1 Mission, Vision and Core Value:
Mission: To deliver valuable nutrition to the community with our respect, love, and responsibility Vision: To become a world grade brand in the food and beverage industry, where people put all their trust in nutrient and health products
• Integrity: Integrity and transparency in actions and transactions (Vinamilk, 2022)
• Respect: To have self-respect, to respect colleagues To respect the Company and partners To cooperate with respect (Vinamilk, 2022)
• Fairness: To be fair with employees, customers, suppliers, and other parties (Vinamilk, 2022)
• Ethics: To respect the established ethical standards and act accordingly (Vinamilk, 2022)
• Compliance: To comply with legal regulations, the Company’s Code of Conduct, and the Company’s procedures and policies (Vinamilk, 2022)
Vinamilk's goal is to become one of the 30 largest dairy companies in the world
Vinamilk's shareholders include State Capital Investment and Trading Corporation, F&N Dairy Investments Pte Ltd, First Sentier Investors Global Umbrella Fund Plc - Fssa Asian Equity Plus Fund, General Director Mai Kieu Lien, member of the Board of Directors of Le Thanh Liem b Customer:
• Customers are consumers: This is a group of individual users wishing to use Vinamilk's products
• Customers are organizations/businesses: This is a group of distributors, wholesalers, agents of the company, retailers c Partner:
Partner of Vinamilk is nutrition Group CHR HANSEN Denmark, DSM Switzerland, distributors, resellers, – – Dream Milk Viet store d Explain how the Vinamilk company meets the need of the stakeholders:
Shareholder: Ensure shareholders make a safe, profitable investment in a sustainable way (Vinamilk,
Customer: Provide safe and top-quality products Diversify products and create new values for products to improve and enhance human health Products arecreated at the right price (Vinamilk, 2022)
Partner: Cooperation is developed because of mutual benefit, transparency, and social responsibility
Functions and Organization Structure
The shareholders’ meeting is the most powerful agency, deciding on all important issues of the Company according to Enterprise Law and the company's charter The General Meeting of Shareholders is the agency that approves the chapter of long-term investment policies in developing the company to decide on the capital structure, elect the management board and manage the company's business production
The management association acts as the company's official management agency, wielding the authority to make decisions on all matters pertaining to the company's operations and objectives, excluding those reserved for shareholder meetings It guides existing policies and development, executing resolutions and decisions made by shareholders Through policy formulation and action plans, the management association ensures alignment with the company's business strategy and adapts to its changing production and operational landscape.
Activities of subcommittees on the board of directors:
• Subcommittee on Development Policy: review of contents related to vision, mission, core values and goals Accordingly, work related to considering the scope of operation field, business model, organizational structure, and competitive lucej function have been promoted Directions such as vertical integration, M&A, development investment along with its principles are discussed In addition, contents related to the amendment of internal governance charters and regulations to conform to the newly planned enterprise law, the dividend policy has been initially developed
The risk management subcommittee has collaborated with the Internal Control and Risk Management Department and the consulting unit to effectively implement and prepare for risk management activities Their efforts have focused on integrating risk management practices into the organization's operations, ensuring proactive identification and mitigation of potential risks to protect the organization's assets and reputation.
• Human resources subcommittee: focus on supervising legacy personnel training programs At the same time, the subcommittee has oriented to direct other programs such as talent management, trainee administrators to ensure that the company has a human resource force in accordance with the company's management strategy
• Salary and bonus subcommittee: review and establish a remuneration mechanism for the board of directors Salary and bonus policies with senior managers are also considered, consulting the personnel of professional consultants to make appropriate adjustments The subcommittee also works closely with the human resources subcommittee to complete the mechanism to evaluate the performance of managers at all levels
Appointed or dismissed by the board of directors, is the legal representative of the company, responsible for shareholders meeting, decides all issues related to the day- -day operation of the company.to
3.1.4 Internal control & risk management director:
Elected by shareholders meeting on behalf of shareholders to control all business activities, governance, and operation of the company The Internal control & risk management director inspects, supervises, and recommends making necessary changes at Vinamilk to contribute to increasing the effectiveness of risk management activities and improving the quality of corporate governance
Internal audits are responsible for performing internal audit work as described in the audit plan and program to achieve the set audit objectives
Set business goals, develop business strategies and plans, monitor, and implement business plans Research, build and develop a network of distribution channels, distribution policies, price policies Propose measures on product strategy Coordinate with the planning department to make data and predictions about market demand
The marketing department is a department of the company responsible for marketing One of the main goals of this department is to sell as many products to the company as possible In addition to the important role in advertising products and increasing sales, the marketing department also has the role of promoting the business, thereby building an image for the business
Operating and managing the HR administrative activities of the entire company Set human resource development plans Advising the executive board of human resources administrative activities Develop internal rules and personnel administrative policies for the entire company Advising company employees on the rights and obligations of employees in the company
Prepare, implement, supervise new investment projects, and expand production for factories Manage and supervise the use of machinery, equipment, fixed assets Manage and supervise the basic construction of the whole company Develop, promulgate, and supervise economic and technical norms Research and propose construction design plans for construction quality monitoring projects and monitoring the progress of the factory Monitor the establishment of technical management Prepare bidding organization, to select suitable, quality suppliers that meet the company's standards set for each project
Develop a strategy to develop supply and operation process policies Carry out procurement, supply all fuels and technical materials Perform import capacity work for the whole company, update and accurately and promptly apply relevant regulations and policies promulgated by the state Forecasting market demand helps build a domestic production plan and effective aperture Customer orders, coordinate transfer to the logistics enterprise Coordinate with warehouse employees to monitor customer debts
The finance department has the functions of storing and preparing reports, controlling finances, raising capital and planning for the company
3.1.12 Center for Nutrition Research and Product Development:
Research, manage and operate operations related to new products, processed products, export capacity and improve product quality Responsible for the registration of product announcements for the registration of intellectual property rights at home and abroad Building and monitoring a quality assurance system, according to domestic and foreign standards (ISO, HACCP) Establish supervision and management of technological processes, production processes and quality assurance processes Research and learn about the market, consumer needs and tastes to develop new products that suit consumer tastes
Control the implementation of the company's regulations, policies and procedures set out at departments in the company to detect, prevent and overcome risks, improve, and improve the efficiency of the company Inspection and supervision of functional departments in the company (sales department, human resources department, logistics supply department, finance and accounting department, logistics enterprises, factories, branches) Refer to and propose policies to develop selection control programs and control methods Synthesize periodic and unexpected test results reports for the director Advise the management board of directors on plans to solve the difficulties of departments, to improve the operational efficiency of departments
3.2 Key functions of the Vinamilk:
CONCLUSION
In conclusion, the research paper has provided the necessary information about Vinamilk enterprises Through financial statements, the research paper also analyzed and presented the type, scale, scope as well as an organization chart of the company At the same time, the study also clarified the relationship between functional departments in the company Up to now, Vinamilk has been established for more than 45 years and has made a deep impression not only in the domestic market but also on an international level Vinamilk has made impressive developments in recent times, becoming one of the largest enterprises in Vietnam and the number 1 choice of Vietnamese consumers Surely in the coming time, Vinamilk will realize its vision and conquer the international market with the goal of becoming one of the 50 largest dairy enterprises in the world Realizing that the research paper has analyzed relatively clearly the requirements as well as provided some data about Vinamilk However, due to time constraints, the research has many shortcomings, so there are some proposals for future research directions such as investing time and effort in research, statistics over many years, building strong research groups in the field of economics.