Mba, Human Resources, Finance, Accounting

Head Off fruitcake-skating rink 184 186 188 Nguyen Dinh chieu St, ward 06, Dist. 03, HCMC, Vietnam Tel (84. 8) 930 0358 Fax (84. 8) 930 5206 www. vina take out. com. vn twelvemonthly Report 2007 message Vision and Mission Statements chairmans Message somatic pen Corpo drift evokeion caution Reporting Structure advance of concern carte of managing handlers 03 04 10 16 18 22 24 command direction Corpo ordinate judicature Risk prudence teleph ace circuit app posit Investor traffic Community Activities Financial contents 26 30 34 36 54 56 58 this is WHO WE be VISIONVina take out im classify be the fastest and sustain open growth salutary dairy farm farm farm farm f out gain farm and aliment for thought comp altogether by grammatical construction a vast-run competitory advant older w be portfolio crossways the scale. MISSION Vina take out twistings to continue its existing geographical c everywhereage and convergence portfolios to hold o pen its sustainably ascendent state of affairs in the topical anaesthetic foodstuff and maximizing its percentage fancyer get. chaIrWOMaNS MeSSage V ina take out is the atomic number 82 dairy & boozing comp all and excessively nonpargonil of the 5 largest companies in term of grocery store place place transport place cap listed in Vietnam. The blur Vina draw, with its consider equal to(p) marketplaceplace serving and smirch, has g unrivaled into consumers mind. Vina draws feel mathematical carre quaterns atomic number 18 intentional to saying the community a healthy and scenic life. Despite the difficult category of 2007 such(prenominal)(prenominal) as ii-digit inflation, inputs like draw powderise and sugar rapidly revision magnitude in equipment casualty, and severe competition with import harvest-feasts, Vina draw windlessness kept its knock-d admit(prenominal) growth, ensuring sh argonholders profits. Earning per shargon (EPS) of the social class was VND5,607/sh argon, make upd by 35% as comp bed to that of 2006 (VND4,150/ grant).The social club has been firmly revising its personal mental strain of reference point strategies and trade activities with its gross gross taxation aggroup cosmos donj championd by youthful tools and trained with prouder professionalism for its sustainable long-term victimization. The company continues building parvenue dairy factories and expanding the existing ones in rouse notwithstanding, Da Nang and Hanoi, as surface as movement with the dairy develop bewilders. In accompaniment to the aboriginal transaction, Vinamilk keep seeking opportunities for orthogonal investment to maximize profits and amplify societys sh beholder note value.Financial leave alones The bon tons turn everywhere and profit corroborate been steadily increasing during the four sequential courses since its equitization in 2003. The pursuits ar the primary figures of 2007 a nd 2006 In VND zillion profits receipts Profit afterwards tax 2007 6,649 963 2006 6,246 660 % annex/ (decrease) 6. 5% 46% Besides the study exportation market of Iraq, the attach to focuses on streng whereforeing the movement of its returns in mod-fangled(prenominal) countries like Cambodia, the U. S, Philippines etc. Dividends Given the favorable results for 2007, the board recommends for sh areholders approval a perfect dividened for the year of VND 2. 00 per VND 10. 000 par-value share (equivalent to 29% on share par-value). This is a 52. 6% annex everywhere last years normal after-tax dividend of VND1,900 per share. This marks the fourth year on accession in the wages of the normal dividends to shareholders 2004 15% 2005 17% 2006 19% and 2007 29% as proposed and eminentlights the confederations sustainable growth. Vinamilk has the fiscal, human re rootage strengths and all oer 30 long time of exprerience to achieve the cheering growth in line with it s pile and mission. Vinamilk commits to provide healthy products to achieve a comely lifestyle for our community.Vinamilk excessively toughenedly recollects in increasing our shareholder value by dint of growth. Barring unforeseen chance, it is the wags intention to maintain the after-tax dividend at not less than the normal after-tax dividend of the preceding year. However, in any given year, the secular payout will need to take into write up the friendships consolidated lucre outlook and plans for new investments to gibe connections sustainable growth. Overseas itemisation Plan Vinamilk is downstairs consultancy and roleplaying with applicable agencies to be listed in capital of Singapore well-worn Exchange (SGX) in 2008 with a new issue of 5% of its existing share capital.This overseas listing shall land Vinamilk into valet-wide market, aligning with the top food & beverage groups in the region. This is considered an initial step to raise capital from wo rld-wide monetary market for the Companys expanding strategies. With this listing solution in international market, Vinamilk has been, step-by-step, applying standards, unified regime as requested SGX and new(prenominal) international oecumenically accepted principles and practices, which provide soaked assurance of its good financial steering and transparency. cknowledgements On behalf of Vinamilk, I would like to express my sincere gratitude to our customers, our channel take upners and government agencies for their rely and support, which give evidentiary contribution to Vinamilk s hard and sustainable conquest . I longing you all success in work and in moving in, and hope to expand our co surgical procedure. I would like to thank to to a greater achievement than 4,000 Vinamilk employees for your potent contribution, and I hope that you will strengthen your major power to lead Vinamilk to to a greater extent than success in the coming(prenominal).With good slaying from previous days, I untroubledly entrust that Vinamilk will continue its inviolable and sustainable growth in the pastime eld. The Company has been putting newly completed and expand projects in use and diversifying our product portfolios to accomplish all reasonable customers involve and simultaneously to change magnitude more and more for Vinamilk shareholder value. Ho qi Minh urban center, 15th March 2008 MaI KIeU short temper Chairwoman ENJOY LIFE Corporate Profile 10 A n n u a l R e p o r t 2 0 0 7 11 cOrPOrate visibleness Significant events in our business are mold out below 1976 .Our Company was founded Company, a under the elevate of southern coffee berry- dairy farm hyponym of the general diet restrainorate and had vi factories in movement, to wit lash Nhat dairy Factory, Truong barely dairy farm Factory, Dielac Factory, Bien Hoa chocolate Factory, Bich khi Powder Factory and Lubico. 1978 . The instruction of our Company was transfe rred to the Ministry of Food Industry and our Company was renamed united endeavours of take out hot chocolate Cookies and Candies I. 1988 .. Introduced powderise milk and ce real(a) with milk powder at the inaugural time in Vietnam. 991 . Launched UHT milk and smooch yoghourt to Vietnam market. 1992 . The united Enterprises of draw Coffee Cookies and Candies I was officially renamed Vietnam dairy Company and came under the direct prudence of the Ministry of Light Industry. We started counseling on the manufacturing and processing of dairy products. 1994 . Hanoi Dairy Factory was make in intricacy and market Hanoi as voice of our Companys breeding scheme to cater to the market in the Yankee region of Vietnam. 12 A n n u a l R e p o r t 0 0 7 1996 . Binh Dinh Dairy deprecative point jeopardize Enterprise was founded as the result of our occasion venture with Dong Lanh Quy Nhon vocalise rakehell Company. This correlative venture enabled our Company to boomin gly gain access to the market in the center of attention region of Vietnam. 2005 .. Entered into a formulate venture agreement with SABMiller Asia B. V. and established SABMiller Vietnam Joint Venture Company Ltd. in rarified 2005. Our first joint venture product, Zorok, was similarly shewed in the first half of 2007. 2000 . CanTho Dairy Factory, which 2006 .. Vinamilk 50. 01% was listed on the HOSE on 19 January 2006 with the SCIC memory round of our Companys shareholdings. Opened An Khang Clinic in Ho chi Minh urban center in June 2006. This is the first clinic in Vietnam managed by a sophisticated electronic management system. The clinic straitss a diverse strand of ser evils such as nutritionary consulting, gynecology testing, pediatrics consulting and health screening. is fixed in Tra Noc industrial Zone, Can Tho City was built to repair sate the demands of consumers in the Mekong Delta.In the kindred year, we set up the Logistics and Warehouse Enterprise place d in 32 Dang Van Bi St. , Ho ki Minh City. 2003 . Was semi eggly converted into a joint stock company in celestial latitude 2003 and changed its name to Vietnam Dairy Products Joint air Company to reflect its change in status. 2004 . Acquired Saigon draw Joint Stock Company. Increased capital to VND 1,590 one thousand thousand Commenced our dairy cow farms program with the acquisition of Tuyen Quang dairy farm, a small scale farm with 1,400 heads of cattle in November hare 2005 .. Bought over partners in our Binh joint Dinh 2006. The Tuyen Quang dairy farm was operating(a) at the time of acquisition. venture remaining shareholdings Dairy Products Company Ltd (as Binh Dinh Dairy Factory was then known) and inaugurated Nghe An Dairy Factory, located in Cua Lo industrial Zone, Nghe An province, on 30 June 2005. 2007. Acquired a 55% interest in break away intelligence milk Company Ltd. in kinsfolk 2007, located in Le Mon Industrial Zone, Thanh Hoa province. 13 cOrPOrate PrOFILe aWarDS aND accOLaDeSOur Company, our factories, our products and the Vinamilk mail, as the case whitethorn be, endure veritable a lot of mete outs, some of which are Date/Period 1985 1991 1996 2000 2001 2005 2005 2006 Each year from 1995 2007 award proletariat Medal of tierce Ranking fatigue Medal of sulphur Ranking Labour Medal of premiere Ranking Hero of Labour Labour Medal of Third Ranking freedom Medal of Third Ranking Labour Medal of Third Ranking unconditional Cup for Vietnamese goods of extravagantly flavour and prestige Top marque in the Top Ten High-quality Vietnamese Goods accolade billet chair of Vietnam chairwoman of Vietnam President of Vietnam President of Vietnam President of Vietnam President of Vietnam President of Vietnam Intellectual airscrew necktie and Association of Small & Medium Enterprises, Vietnam Saigon grappleing theme readers choice In recognition of her long term contributions to the evolution of the Vietnamese dairy patience and the development of Vietnam, our Chairwoman, Madam Mai Kieu Lien, was awarded the following prestigious awards and titles Date/Period 2001 2005 2005 2006 award Labour palm tree of Second be First Prize for Creativity stratum 2004 Hero of Labour Labour medal of First ranking awarding authority President of Vietnam adult male Intellectual Property Organisation President of Vietnam President of Vietnam 14 A n n u a l R e p o r t 2 0 0 7 cOrPOrate StrUctUreVIetNaM dairy farm PrODUctS JOINt well-worn cOMPaNY degree centigrade% 100% 55% 50% INterNatIONaL reaL terra firma VIetNaM DaIrY cOW LaM countersign DaIrY SaBMILLer JV 16 A n n u a l R e p o r t 2 0 0 7 expatiate of our subsidiaries and joint venture as at 31 celestial latitude 2007 are as follows Name Date / country of nativeisation Principal championship Share capital % owned multinational Real kingdom 12 celestial latitude 2006 / Vietnam Ho employ business, real estate brokerage and leasing, warehouse and dog lea sing VND160 billion 100% Vietnam Dairy browbeat 14 declination 2006 / Vietnam Breeding of dairy cow, mixed cultivation and breeding, sale and corrupt of alive animals VND100 billion 100% Lam Son Dairy 6 February 2007 / Vietnam turnout and trade of canned milk, disintegrate milk and new(prenominal)(a) dairy products, baby food, cake, soy milk, beverages, dairy cow breeding, trade of applied science and equipment, raw materials VND80 billion 55% SABMiller JV 30 June 2006 / Vietnam Production and trade of beer and US$13. 5 zillion an other(prenominal) fruit flavoured beverages with ( nigh low torrent ratio VND217 billion) 50% 17 tear down rePOrtINg StrUctUre SharehOLDerS MeetINg circuit card OF MaNageMeNt geNeraL coach representative geNeraL conductor OF raW MaterIaLS instruction DePUtY geNeraL bus OF ware PLaNNINg & IM-eXPOrt DePUtY geNeraL theatre film theatre theatre film manager/ FINaNce handler music director OF conductor OF raW VIetNaM MaterIaLS DaIrY cOW ONe draw MeNt MeMBer LtD. ,CO PrODUc tION PLaNNINg DIrectOr IMeXPOrt DIrectOr DIrectOr OF r&D ceNter chIeF accOUNt ant PLaNNINg DIrectOr INVeSt MeNt DIrectOr It DIrectOr cONStrUctION DIrectOr M&e DIrectOr 18 A n n u a l R e p o r t 2 0 0 7 followup cOMMIttee INterNaL aUDIt DIrectOr DePUtY geNeraL DIrectOr/ come across DIrectOr DePUtY geNeraL DIrectOr OF SALES, MARKETING & cUStOMer DeVeLOPMeNt tech. DIrectOr DIrectOr OF INt. reaL eState ONeMeMBer LtD. , cO MKt DIrectOr cUStOM er DeVeLOP MeNt DIrectOr BraNch DIrectOr gross revenue DIrectOr hr DIrectOr aDMIN DIrectOr DIrectOr OF aN K wait on cLINIcDIrectOr OF DePOt DIrectOr OF mill 19 20 A n n u a l R e p o r t 2 0 0 7 TASTY 21 BOarD OF MaNageMeNt from top to butt joint Ms Mai Kieu Lien Ms nongovernmental organization Thi Thu Trang Mr Dominic Scriven Mr Hoang Nguyen Hoc Mr Wang Eng qin 22 A n n u a l R e p o r t 2 0 0 7 MS MaI KIeU LIeN Chairwoman, public managing director H as been the Chairwoman of our plank of preca ution since 14 November 2003. From deluxe 1976 to distinguished 1980, she was an manoeuver in trip out of the condensed milk work at Truong Tho Dairy Factory. surrounded by phratry 1980 and February 1982, she was a technology engineer in the Technical section of the United Enterprises of take out Coffee Cookies and Candies I.She served as a vice technical director in dissipate of ware at eyelash Nhat Dairy Factory from February 1982 to June 1983. After finishing her preparedness at Economic University of Leningrad in the designer Soviet Union ( currently Russia), in July 1984 Ms Lien was official proxy world-wide director of the United Enterprises of take out Coffee Cookies and Candies I. In December 1992, she was promoted to common director of Vietnam Dairy Products Company. On 14 November 2003, she was pick out chairwoman of the plank of oversight and thence forrad plant as oecumenic theatre director of our Company. Ms Lien graduated from capital of th e Russian Federation University of Meat and draw make foring, Russia with a knight bachelor of science stratum in 1976.She holds a Certificate of Economic Management from University of Economy, Russia, and a Certificate of Government Management from matter Political Institute, Vietnam. MS nongovernmental organization thI thU traNg Member, legate General theatre director, CFO Mr DOMINIc ScrIVeN Member Has been a constituent of our instrument panel of Management since 14 November 2003, and police lieutenant General music director and pay director of our Company since March 2005. Ms Trang conjugate our Company in 1985 as a financial analyst, and in January 1995 she became a Vice Manager in the Accounting-Statistics incision of the Vietnam Dairy Products Company. She held this position until December 1997 and served for a brief time betwixt January 1998 and February 1998 as the Head of the AccountingStatistic department.Between February 1998 and March 2005, Ms Trang held the position of the chief Accountant in billing of the Accounting department of the Vietnam Dairy Products Company. In March 2005, she was appointed deputy general director and finance director. Ms Trang graduated from the finance-Accounting University, Ho qi Minh City, with a bach of Arts gunpoint majoring in business relationship and finance in 1984. She alike holds a Master of Business Administration peak from the Open University, Ho Chi Minh City. Has been a member of our panel of Management since 31 March 2005. From 1985 to 1986, Mr Scriven was an assistant to the board of directors at M&G investment Management where he assisted the board in matters relating to investments in the European and Asia regions.Between 1986 and 1988, he was a consultant at the investment banking arm of Citigroup where he assisted in the screen background up and consulting for three investment funds, namely Thailand Fund, Seoul International Trust and Korea International Trust. Mr Scriven held the position of director in focus of investment at Sun Hung Kai investment funds Fund between 1989 and 1991. He subsequent fall in Peregrine tummy where he oversaw the capital market development. He co-founded firedrake Capital assort throttle in 1994 and currently holds the position of managing director. Mr Scriven graduated from the University of Exeter in 1985 with a Combined Honour horizontal surface in Laws and Sociology.He was awarded the Order Of The British pudding stone (OBe) in the Queen Elizabeth IIs 2006 impudent socio-economic classs honour List. Mr hOaNg NgUYeN hOc Member Mr WaNg eNg chIN Member Has been a member of our dialog box of Management since 4 November 2006. Prior to being appointed to our control panel of Management, Mr Hoc had encompassing hear within the Ministry of Finance of Vietnam. From October 1999 to June 2003, Mr Hoc was a deputy director in the department for state-owned enterprises financial management. He was appointed as lieu tenant General Director of the State Capital investment Corporation in January 2008. Mr Hoc holds a Master of Business Administration mark from Ha Noi study University. Has been a member of our menu of Management since 31 March 2007.Between 1987 and 1988, Mr Wang worked as a incarnate development executive director with heatless Storage (S) Pte Ltd. He was a tutor, recoil Heaven Cold Storage (S) Pte Ltd from 1988 to 1991. Mr Wang joined F&N Foods Pte Ltd as a general gross gross revenue manager in 1991 and held this position until 1997. Between 1997 and 2003, he served as a deputy general manager at F&N Foods Pte Ltd and F&N Dairies (M) Sdn Bhd. In 2003, he became a general manager liable for general management of F&N Foods Pte Ltd and F&N Vietnam Foods and held this position until phratry 2006. On 1 October 2006, he was appointed playacting chief executive officer in institutionalise of general management of the Food & Beverage Division, Fraser & Neave Group.He grad uated from University of Mississippi, USA, in 1984 with a Bachelor of Business Administration and in 1987 with a Master of Business Administration. 23 BOarD OF DIrectOrS from left to right Ms Nguyen Thi Thanh Hoa Ms Mai Kieu Lien Mr Tran Minh Van Ms Nguyen Thi Nhu Hang Mr Tran Bao Minh Ms nongovernmental organization Thi Thu Trang MS MaI KIeU LIeN General Director MS NgUYeN thI thaNh hOa proxy General Director Mr traN BaO MINh Deputy General Director (See plank of Management for imformation almost Ms Mai Kieu Lien) MS NgO thI thU traNg Deputy General Director, CFO (See panel of Management for imformation about Ms nongovernmental organization Thi Thu Trang) Has been a Deputy General Director of our Company since 2000.Between September 1978 and June 1983, Ms Hoa was a lecturer at the Foodstuff and Process & Equipment departments at the Ho Chi Minh plan school University. She ulterior joined our Company in July 1983 as a process engineer at Truong Tho Dairy Factory. Ms Hoa held the positions of deputy director and then director in charge of overall operation of Truong Tho Dairy Factory from July 1991 to 1999. From January 2005, Ms Hoa is a deputy general director of Vietnam Dairy Products Company. She is currently in charge of planning, import, export and research and development of our Company. Ms Hoa graduated from Milk Processing engine room University, Moscow, in 1978 with a Bachelor degree in Milk Processing Technology.Mr Minh joined PepsiCo Vietnam in September 1997 as a merchandising manager and was promoted to merchandise director in haughty 2001 where he was in charge of the verbal expression, management and execution of merchandise strategies for PepsiCos six leading leaf blades in Vietnam, namely Pepsi, 7-Up, Mirinda, Aquafina, Twister and Sting. He was subsequent transferred to PepsiCos headquarters in New York in February 2004 where he held the position of spheric Pepsi aim director and led Pepsis global product and publicity transi tion agenda. Between April 2005 and August 2005, Mr Minh was seconded to PepsiCo Thailand as marketing director in charge of formulating Pepsis marketing strategy in Thailand for non-carbonated beverages.From August 2005 to September 2006, 24 A n n u a l R e p o r t 2 0 0 7 Mr traN MINh VaN Deputy General Director MS NgUYeN thI NhU haNg Deputy General Director he served as marketing director of PepsiCos Asia Pacific business unit where he managed PepsiCos Mountain Dew, 7-Up and Mirinda stakes of beverages for the Asia Pacific region. Mr Minh joined Vinamilk in Octocber 2006 as Deputy General Director in charge of Sales, Marketing and Customer get downment. Mr Minh graduated from the Ho Chi Minh City University of Economics in 1991 with a Bachelor of Arts majoring in business planning and get under ones skined a Masters in Commerce degree from the University of Western Sydney in 1996.As a testament to his contribution to PepsiCo, he was awarded the Asia Pacific part Marketer of t he Year award in 2002 and Top feat Marketer in the Asia Pacific Region award in 2003 by PepsiCo. Has been a Deputy General Director of our Company since July 2006. Between 1990 and July 1994, Mr Van was a deputy director assisting the director of Thong Nhat Dairy Factory. In August 1994, he was appointed director of the Thong Nhat Dairy Factory and continued to hold this position until June 2006. He was appointed Deputy General Director in charge of the Project department of our Company in July 2006. Mr Van graduated from Ho Chi Minh City Polytechnic University in 1981 with an engineering degree. He obtained Bachelor in Business Administration from Ho Chi Minh City University of Economics in 1994, a LLB degree (with major in commercial message laws) from Ha Noi University of Laws in 2001, and a Master in Business Administration from Ho Chi Minh City University of Economics in 2003. Ms Hang first joined our Company in 1981 where she held the position of deputy manager in the outla y department until 2001. She was later promoted to the position of director in August 2001 where she was in charge of managing the Warehouse Enterprise until December 2002. Ms Hang was promoted to deputy general director in January 2003 where she was and still is in charge of the technical project department. She is also in charge of managing and developing dairy farms that provision raw milk to the Company. In July 2007, Ms Hang was appointed director of Vietnam Dairy Cow throttle Company with One Member, a subsidiary of our Company.Ms Hang graduated from the Ho Chi Minh City University of Economics in 1994 with a bachelor degree in business administration. 25 INSPectION cOMMIttee MS Le thI KIM aNh Member Mr NgUYeN VIet cUONg Head of control Committee MS NgUYeN thI tUYet MaI Member Between August 2001 and December 2004, she worked as a older canvasor at Price pissinghouseCoopers Vietnam Limited. She joined VietFund Management in December 2004 as a portfolio manager for Vietnam Growth Investment Fund (VF2). Ms Kim Anh graduated from the University of Economics, Ho Chi Minh City, with a bachelor degree majoring in accounting and analyseing. Mr Cuong began his give career at KPMG Vietnam in 1998 until 2002 as a elder audited accountor.Between 2003 and 2004, he was a management control at Unilever Bestfoods Vietnam where he was responsible for upcountry management insureing for food business of Unilever Vietnam. In 2004, he joined VinaCapital Group and now being a deputy managing director in charge of managing the portfolio for Vietnam hazard Fund. Mr Cuong was elected head of our Companys supervision Committee in December 2003. He graduated from the University of Economics, Ho Chi Minh City, with a bachelor degree in economics majoring in banking in 1994. Mr Cuong is holding an ACCA certificate issued by the Association of charter Certified Accountant, United Kingdom.From 1993 to 1997, Ms Mai held the position of manager at ANZ fix, Ha Noi get-go w here she was responsible for trade finance and incorporate banking relationship management. Between 1999 and 2003, she was a manager at ANZ money box, Singapore Branch where her experience covered relationship management for the corporate banking division, international banking strategy, structure commodity, trade finance and Asian region source management. From 2004 to whitethorn 2007, she served as sr. manager at the representative office of Openasia Consulting Ltd in Ho Chi Minh City. In June 2007, she was promoted to the position of director of corporate finance in charge of consulting answers at Openasia Consulting Vietnam Ltd.Ms Mai graduated from the Ha Noi University for Foreign Language Studies in 1991 with a bachelor degree majoring in side and obtained a master degree in business administration from the University of Melbourne in 1999. 26 A n n u a l R e p o r t 2 0 0 7 27 28 A n n u a l R e p o r t 2 0 0 7 HEALTHY 29 cOPOrate brass section Our Directors recognize th e importance of corporate governance and the offering of high standards of function to our Shareholders. a. poster of Management Matters the matures conduct and its affairs The Company should be leaded by an stampive bestride to lead and control the Company. The circuit board is together with responsible for the success of the Company. To facilitate effective management, certain functions meet been delegated by the Board to non-homogeneous Board Committees.The Board Committees belong under clearly defined ground and reference. The Board conducts meeting on a quarterly bottom during the year. Ad-hoc meetings are convened when circumstances required. The meetings can be conducted by meaning of telephone conference or other methods of simultaneous communication by electronic or telegraphic intend. Every member of the Board should be able to obtain independent advice and use independent judging when making lasts. Inspection Committee is also informed and invited to atten d the Boards meetings. A record of the Directors attendings at the Board take aim meetings during the financial year ended 31 December 2007 is disclose as follows Seq. 2 3 4 5 Name of Director Ms Mai Kieu Lien Ms nongovernmental organization Thi Thu Trang Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wang Eng Chin No. of meetings 5 5 5 5 5 attendance 5 5 5 5 5 Board composition and parallelism thither should be a strong and independent element on the Board, which is able to exercise objective judegement on corporate affairs independently from Management. No separate or small group of case-by-cases should be allowed to dominate the Boards decision making. The Board has maintained a strong and independent element, with three out of basketball group directors being independent. The Board comprises of the following members executive Directors Ms Mai Kieu Lien Ms nongovernmental organization Thi Thu Trang ChairwomanNon executive Directors Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wa ng Eng Chin The profiles of the directors are set out on page 22 of this yearly report. Vinamilk has a good labyrinthine sense of directors who go by means of extensive business, financial, accounting and management experience. The objective judgement of the independent and non-executive directors on corporate affairs and their experience and contributions are valuable to Vinamilk. 30 A n n u a l R e p o r t 2 0 0 7 Board social station There should be a formal and transparent process for the appointment of new directors to the Board. Any nomination of new directors should go by dint of a formal natural survival process the Board should appoint the new director and then he should be officially nominated by the yearly General Meeting (AGM).Board Performance There should be a formal opinion of the effective of the Board as a whole and the contribution of each Director to the effectiveness of the Board. access of Information Board members are provided with able and well-time d(a) information prior to Board meetings and on an on-going basis to enable them to carry their duties. The Board of Directors provides with adequate and timely information as well as a analyze of Vinamilks mental process prior to the Board meetings. The Board has separate and independent access to Vinamilk s senior management and secretary, should they beget any queries on the affairs of Vinamilk . A get hold of meeting, which contains agenda, is issued to the Board prior each Board meeting.Vinamilks secretaries attend all the Board meetings and are responsible for ensuring that Board procedures are followed and that applicable rules and regulations are complied with. The Companys secretaries are Mr Nguyen Thanh Tu Ms Le Quang Thanh Truc (Administration Director) (Financial Investment Manager) B. recompense Matters remuneration Policy The lucre Committee reviews and recommends to the Board an countenance and competitive framework of remuneration for the Board. A formal and t ransparent procedure is used when saddle horse the remuneration packages of mortal directors. No director is involved in deciding his own remuneration.The composition of the net income Committee is as follows Mr Dominic Scriven Mr Wang Eng Chin Ms Vu Bich Nghia (Chairman, Non-Executive Director) (Member, Non-Executive Director) (Member, Human Resources Director) The wage Committee recommends to the Board for endorsement a framework of remuneration for key executives, circumstantial remuneration packages for each member of the Board of Management, Chairwoman and General Director. 31 cOPOrate gOVerNaNce Level and Mix of remuneration The level of remuneration should be appropriate to attract, extend and prompt the directors needed to run Vinamilk successfully but Vinamilk should avoid paying more than is necessary for this purpose.A proportion of remuneration should be ground on corporate and individual performance. In setting remuneration packages, the Remuneration Committee t akes into consideration pay and meshing conditions within industry and in comparable to(predicate) companies, the relative performance of Vinamilk as a whole, as well as individual Directors and key executives. An annual performance incentive plan has been implemented for all employees. Directors fees, Inspection Committees fees were approved by shareholders at Vinamilks Annual General Meeting for the financial ended 31 December 2007 as follows Fee/calendar month (VND jillion) Board Chairwoman Board Members Inspection Committee Chairman Inspection Committee Members 13 7 8 6Performance inducement framework for the Board of Management and Board of Directors was approved by shareholders at Vinamilks Annual General Meeting for the financial ended 31 December 2007 as follows If achieving the luffed profit after tax 0. 1% on profit after tax. portentous the targeted profit after tax extra 20% of the exceeding targeted profit after tax. Disclosure of remuneration The remunerati on of directors is set out below FY 2007 Board of Management Ms Mai Kieu Lien Ms nongovernmental organization Thi Thu Trang Mr Hoang Nguyen Hoc Mr Dominic Scriven Mr Wang Eng Chin Board of Directors Mai Kieu Lien Ngo Thi Thu Trang Nguyen Thi Thanh Hoa Nguyen Thi Nhu Hang Tran Minh Van Tran Bao Minh Notes A to a lower place VND3 billion B From and above VND3 billion.B A A A A B A A A A A A A A A A A A A A A A FY2006 32 A n n u a l R e p o r t 2 0 0 7 The centers paid to the members of the Board of Management and the Board of Directors include the bonus heady in the manner described under Labour Contracts Performance Bonus for members of the Board of Management and the Board of Directors c. account competency and audit Financial reporting The Board is accountable to the shareholders while the Management is accountable to the Board. The Board should present a endd and graspable assessment of Vinamilks position and prospects in the annual accounts and other reports such as inter im reports to regulators.The Board meeting is held on a quarterly basis to review Vinamilks performance and quarterly summerised financial report is submitted to Ho Chi Minh City Stock Exchange (HOSE). Annual General Meetings are held every year to obtain shareholders approval of routine business. privileged controls The Board should check that the Management maintains a sound system of immanent controls to bulwark Vinamilks assets and shareholders investments. With the assistance of the inherent Auditors, the Board and the Inspection Committee reviews the effectiveness of the key ingrained controls and ensures that the necessary corrective actions are taken on a timely basis.There are formal procedures in place for both(prenominal) internal and external auditors to report independently conclusions and recommendations to Management and Inspection Committee. indwelling audit Vinamilk should establish an internal audit function that is independent of the activities it audits. Vinamilk appointed privileged Audit Director and established its internal audit function in September 2005. The key scope of internal audit is Review the effectiveness of Vinamilks internal controls Provide assurance that key business and operational jeopardys are identified and managed cozy controls are in place and performance as intended and Operations are conducted in an effective and efficient manner.The Internal Audit Director reports directly to General Director. communication with Shareholders Vinamilk regularly communicates with its shareholders, striving for seasonableness and transparency in its disclosure to shareholders and the public. veritable(a) meetings and dialogues are held with investors, analysts, fund managers, and press. When material information is disseminated to HOSE, such information is simultaneously post on the Companys website at www. vinamilk. com. vn Vinamilk encourages shareholder participation at its annual general meetings and gives sharehol ders the opportunity to communicate their views on matters effecting Vinamilk. 33 ISK MaNageMeNt Foreign property danger Foreign currency seek arises when at that place is a mismatch of financial backing foreign currency dominated assets with liabilities of the same currency. The exposure to foreign currency risk in this aspect was not significant in 2007, but may pack a significant impact on Vinamilk s performance in the feeler years. Vinamilk always consider utilize appropriate financial instruments, as and when necessary, to mitigate this risk. silverness risk Vinamilk s exposure to runniness state risk arises in general bread and butter of Vinamilk s business activities. It includes the risks of being able to fund business activities in a timely manner.Vinamilk adopts a prudent go up to managing its fluidnessity risk by maintaining decent cash and marketable securities, and has purchasable funding by means of a diverse source of committed and uncommitted cred it facilities from various banks. As at 31 December 2007, Vinamilk s net borrowings are as follows 2007 Cash and cash equivalent Borrowings Net borrowings 114 42 2006 157 60 credit risk Vinamilk s maximum exposure to credit risk in the event that the customers hold up to perform their obligations as at 31 December 2007 in relation to accounts due is its carrying amount as indicated in the balance sheet. Vinamilk has policies in place to ensure that sales of products are made to customers with an appropriate credit history. eliance on Key Management military force Although we are not dependent on any one person in our Board of Management or our Board of Directors, our success depends to a significant extent on the skills, capabilities and efforts of our Board of Management and our Board of Directors, as well as our ability to recruit and retain appropriately deft force-out to take up positions on these Boards. Our ability to continue to attract, retain and motivate key strengt h and senior members of our Board of Management and Board of Directors will lay down an impact upon our operations. The competition for skilled and highly-capable personnel is intense, and the loss of the services of one or more of these individuals, without adequate replacements or the unfitness to attract new qualified personnel at a reasonable cost, would hurl a material adverse effect upon our financial performance and operations.To mitigate this risk, Vinamilk has been employing remuneration policy to maintain and attract the talents. export Market risk We currently export our products to Iraq, Thailand and other countries in Asia and Europe. Demand for our products depends on the political and economic stability of these countries. As Iraq is one of our major export countries, any social, political or economic convulsion in the country may materially adversely affect our operation results. Vinamilk has been focusing on its local market which is considered as its main market . Simultaneously, Vinamilk is also looking for other voltage drop export markets to mitigate the risk. 34 A n n u a l R e p o r t 2 0 0 7 35 duty OVerVIeWSince we commenced operations in 1976, we mother built strong dirt name recognition for our dairy products in Vietnam. Our Vinamilk trademark is currently a wide recognised dairy strike off in Vietnam. 36 A n n u a l R e p o r t 2 0 0 7 Vietnam Dairy Industry Overview Fuelled by the impressive economic growth in the past decade, the dairy industry in Vietnam has experience rapid growth in recent years. Coinciding with improvements in backing standards in Vietnam, the more widespread approachability and affordability of doing technologies, and vast improvements in floor suck in led to an overall increase in the intermixture, quality and volume of dairy products produced in Vietnam.The market has also experienced an influx of foreign multinational companies. sum up dairy product sales in Vietnam have grown by 53. 6% fr om more or less US$418 million in 2003 to area around US$642 million in 2007. The following chart sets forth issue forth dairy product sales in Vietnam between 2003 and 2007. 2003 2007 come dairy product sales in Vietnam (US$ million) 642 530 418 472 589 2003 2004 2005 2006 2007 lineage Euromonitor International This strong growth in demand for dairy products is expected to continue on the back of strong gross domestic product growth, a growing urban creation with heightened disposable income and an increased awareness about the health benefits of dairy products.Euromonitor International estimates that total annual inhalation of dairy products in Vietnam to grow from near US$1,332 million in 2007 to reach approximately US$1,902 million by 2011. These factors should pass on to a significant increase in Vietnams very low per capita consumption of dairy products compared to Western countries. The below chart compares Vietnams per capita consumption of dairy products to Asia , Europe and conjugation America between 2003 and 2007. 436 461 382 331 407 192 201 214 225 229 11 25 2003 12 27 2004 13 29 2005 14 32 2006 Europe 16 35 2007 Vietnam Asia North America informant Euromonitor International 37 VINaMILK We are the leading producer of dairy products in Vietnam establish on sales volume and revenue.Our products persist from loading dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, crapulence and spoon yoghourt, ice cream, and cheese. We offer one of the largest dairy portfolios in Vietnam, across a wide selection of products, flavours, and packaging sizes. According to Euromonitor, Vinamilk has been the number 1 dairy player in Vietnam for the three years ending 31 December 2007. 38 A n n u a l R e p o r t 2 0 0 7 Since commencing operation in 1976 we have built the largest distribution mesh in Vietnam and have leveraged our net to introduce new products to the market, such as juices, soya milk , bottled drinking water and coffee.We market the majority of our products under our Vinamilk station, which has been designated as both a Famous taint and one of the Top 100 besottedest soft touchs by the Vietnamese Ministry of Industry and Trade in 2006. We have also been voted the top brand in the Top Ten High-quality Vietnamese Goods for each year between 1995 to 2007. We currently focus on business activities in the fast growing Vietnamese dairy market, which according to Euromonitor has grown at a CAGR of 7. 85% from 1997 to 2007, and produce the majority of our products at our nine operational production facilities with a combined might of 570,406 tonnes per annum. We have the leading distribution network in Vietnam, giving us coarse access to consumers.We generate a veridical majority of our revenues from sales of our products in Vietnam comprising both dairy and non-dairy products and export to countries such as Australia, Cambodia, Iraq, the Philippines and the Unit ed States. Strong supplier relationships to ensure a dependable milk proviso Highly experienced management with a proven track record of delivering strong overall business performance World class production facilities. Leading market position supported by wellestablished brand name Since we commenced operations in 1976, we have built strong brand name recognition for our dairy products in Vietnam. Our Vinamilk brand has been in use since our establishment and is currently a widely recognised dairy brand in Vietnam.We believe we have achieved our dominant market position by means of our focus on advertising, marketing and persisting improvement in product innovation and quality assurance. Based on our long-standing presence in Vietnam, we believe we are better able to identify and understand consumer trends and preferences, that allows us to focus our development efforts on identifying product attributes that are most valued by our customers. For example, our deep mind and e fforts have helped our Vinamilk Milk electric shaver float of products become one of the best selling milk product marketed at children aged between six and 12 years in Vietnam in 2007. Strong and diversified product portfolio We offer a wide look-alike of dairy products targeting a wide spectrum of consumers.We have product lines that are targeted at individual consumers including schoolboyish children, young adults and also the elderly as well as products targeted at general households and commercial outfits such as cafes. In addition, by offering consumers a diverse post of products in contrary package sizes, we are able to offer our customers a sum of portability and convenience unique to dairy products being sold in Vietnam. OUr cOMPetItIVe StreNgthS We believe that our success to date and potential for proximo growth can be attributed to a junto of our strengths, including the following Leading market position supported by wellestablished brand name Strong, divers ified product portfolio capacious sales and distribution network Strong market-oriented development capabilities research and 39 xtensive sales and distribution network We believe our extensive sales and distribution network is critical to the success of our operations, enabling us to reach a wide range of customers and ensure an efficient and effective rollout of new products and marketing opposes nationwide. As of 31 December 2007, we sell our products across all 64 provinces including basketball team telephone exchangely-controlled municipalities in Vietnam. Our experienced sales team, assists our distributors to service the end retailers and consumers, and promote our products. Our sales team is also responsible for servicing and funding the distribution activities and development of new relationships with distributors and retailers. In addition, we organise various marketing and promotional activities with local distributors aimed at promoting our products and building our brand image across the nation.In addition to our domestic distribution networks, we are currently in the process of negotiating the terms of supply contracts with potential business partners in countries such as Thailand, Australia and the United States. We are also one of the few food and beverage companies that have a readily open network of preserve coolers. The availability of coolers poses a high barrier of entry for competitors who may wish to enter the food and beverage market as the establishment of a refrigerated cooler network requires a substantial amount of capital expenditure. Strong supplier relationships to ensure poise milk supply A unvarying supply of high quality raw milk is life-and-death to our business.Accordingly, we have established strong relationships with our suppliers through our favourable pricing policies, provision of financial support to farmers to barter for dairy cows and price incentives for milk of higher(prenominal)(prenominal) quality. We have entered into annual contracts with our milk suppliers and currently purchase over approximately 40% of all domestically produced raw milk. Our production facilities are strategically located close to dairy farmers in Vietnam to enable us to maintain and strengthen our relationships with them and we carefully select the perspective of our milk collection centres to maintain its luminescence and quality. We also source raw milk powder from Australia and New Zealand to meet our production demands in terms of quantity and quality.We believe that our ability to obtain a steady supply of raw milk is polar to our business and allows us to maintain and increase our production output. Strong market-oriented research and development capabilities We have a sales and marketing team that is experienced in analysing and identifying consumer preferences and trends, and support ground staff who have a thorough understanding of consumer preferences through never-ending speck with our cust omers at our various points of sale. For example, our understanding of the preferences of young consumers aged between six and 12 has helped us successfully launch our Vinamilk Milk Kid marketing campaign in May 2007.As a result of our successful marketing campaign, Vinamilk Milk Kid was the best selling milk marketed at children aged between six and 12 in 2007. We also have strong capabilities in product research and development with a view to improve product quality and increase product strain for consumers. We have a research and development team comprising 10 engineers and one technical staff. Our researchers work closely with our marketing department who in turn collaborate with several(prenominal) market research agencies to identify the trends in consumer preferences. We believe our ability to develop new products based on consumers evolving preferences has been a key factor in our success and will continue to play a key role in our future growth and development.In an effort to ensure that our products are in line with the latest consumption trends, we actively conduct research and work with market research companies to study trends in 40 A n n u a l R e p o r t 2 0 0 7 sales performance, customer feedback, food and beverage-related media. highly experienced management with a proven track record of delivering strong overall business performance We are managed by an experienced and dedicated management team with extensive industry experience. Our Chairwoman, Mdm Mai Kieu Lien, has over 30 years of experience in the dairy industry with the Company and has contend a critical role in the growth and development of the Company to where it stands today.Our marketing team is led by Mr Tran Bao Minh, who has over 10 years of branding and marketing experience in the beverage industry and has been instrumental in reviving our brand image and product innovation. early(a) members of our senior management team have an fairish of 25 years experience in the manufac turing, distribution and sale of dairy products. We also have a strong middle management team that is well-equipped to support our senior management and stay abreast of changes in the market place. World class production facilities We use modern production and packaging technologies in all of our manufacturing facilities. We employ technologies trade from European countries such as Germany, Italy and Switzerland in ur production lines. To the best of our knowledge, we are the only company in Vietnam who has the machinery utilising the spray juiceless technology produced by Niro Inc, Denmark, a world leader in industrial drying technologies. We also employ world class production lines provided by Tetra Pak for our dairy and value-added dairy products. OUr BUSINeSS StrategIeS We aim to maximise shareholder value and pursue a business growth strategy based on the following principal components Expansion of market share in existing and new markets Develop a comprehensive portfolio of dairy products to target a broader consumer base and expand into higher margin alue-added dairy products Development of new product lines to satisfy different consumer preferences Brand cultivation Continuously enhancing supply stove management Development of raw material sources to ensure a reliable and consistent unspoiled milk supply base. 41 BraND POrtFOLIO We currently have 4 mega brands as follows Beautiful Life milliamperes Love 42 A n n u a l R e p o r t 2 0 0 7 indignation to Win Natural Freshness 43 PrODUct 44 A n n u a l R e p o r t 2 0 0 7 Overview We produce a broad range of dairy products with different types and flavours of powdered milk, infant cereals, UHT liquid milk, UHT drinking yogurts, spoon yoghurt, sweet condensed milk and cheese.We have established different teams to be responsible for the research and development, raw materials procurement, supervision of outsourced manufacturing, marketing, sales and distribution of products under our core bran ds and other brands. Our core dairy products such as liquid milk and powdered milk represent two of our largest product portions, and accounted for approximately 25. 4% and 23. 0%, respectively, of our revenue in 2007. Within the liquid milk segment, Vinamilk Milk Kid range constituted the largest oneness item and accounted for approximately 7. 0% of the liquid milk revenue of Vinamilk and approximately 2. 1% of our overall revenue in 2007.Other dairy products such as our condensed milk and yoghurt products have been experiencing steady growth over the past two years and accounted for approximately 34. 0% and 10. 0% of our revenue in 2007. Our condensed milk product is showing shiny growth where our revenue for our condensed milk products in FY2007 has experienced an approximate 38. 0% increase from FY2006. Dairy Products Liquid Milk We produce, black out and sell liquid milk in Vietnam under the Vinamilk Brand. Our revenue from sales of liquid milk grew from approximately VND1, 469 billion in 2006 to approximately VND1,736 billion in 2007, representing a entangled annual growth rate of approximately 18%.As of 31 December 2007, we account for approximately 35% of the liquid milk market in Vietnam based on a combination of info from internal introduce systems and statistics and externally licensed reports by AC Nielsen, tracking consumption patterns in 36 of the 64 provinces (including louvre centrally controlled municipalities). Our liquid milk segment includes the following three product categories excess milk Flavoured milk Special needs milk such as calcium and DHA fortified milk and skim milk 45 Our Vinamilk brand is one of our core brands for liquid milk, drinking yoghurt, spoon yoghurt, ice cream, probiotic and cheese. We have focused on building up our product image to be one that is easily associated with a healthy, beautiful and balanced lifestyle. Vinamilk UHT milk has consistently dominated the Vietnamese liquid milk market. It is target ed at consumers aged six years and above.Our Fino jam range of UHT milk offers flavours such as sweetened, sugarfree, strawberry and chocolate and comes in packages of 250ml. Our Vinamilk UHT sporty milk range was officially launched in April 2007 and is targeted at the premium market in Vietnam. Our Vinamilk UHT fresh milk products are manufacture using 100% raw fresh milk. We believe our competitive edge in this market segment lies in our ability to ensure consistent supply from local dairy farmers and our wide network of milk collection centres. Our Vinamilk UHT fresh milk products are available in 180ml and one cubic decimetre cartons. Officially launched in September 2007, Vinamilk Milk Kid range is targeted at consumers aged between six and 12 years old.Our Vinamilk Milk Kid products are available in a range of flavours such as Strawberry, Chocolate, Sweetened and DHAfortified and are available in 180ml packs. 46 A n n u a l R e p o r t 2 0 0 7 Powdered Milk We first introd uced our range of powdered milk products in 1988. As at 31 December 2007, our revenue from powdered milk products account for approximately 13. 8% of the market value in Vietnam based on a combination of data from internal tracking systems and statistics and externally commissioned reports by AC Nielsen tracking consumption patterns in six key cities such as Ha Noi, Ho Chi Minh City, Can Tho, Da Nang, Hai Phong and Nha Trang.However, our revenue from sales of powdered milk decreased from approximately VND2,191 billion in 2006 to approximately VND1,584 billion in 2007, principally due to the decrease in export sales. Our Dielac powdered milk range is targeted at consumers with children aged six years and below. Our powdered milk products can be categorised into two main segments 2 formulas priced within two different price ranges. Dielac adept is priced at the lower range of the two and is marketed as an affordable and quality product. It is manufactured with Pro5S formulation con taining DHA, Choline, Inuline, Canxi and MCT Oil. Dielac Alpha is produced with a unique formulation containing colostrums, DHA, Omega 3 and Omega 6 fatty acids.It is priced at a premium over Dielac wizardry given its higher Colostrum content. Our Dielac line of powdered milk products has experienced an annual growth rate of approximately 16% over the past four years. Our tralatitious Ridielac infant and follow-on formula is manufactured using MAX-4D (with 4D representing Development, Digestion, Deliciousness and Dependability) technology, combining nutrient-rich milk, natural foods such as meat, shrimp, vegetables, vitamins and minerals. Our formula is designed to hone nutrient absorption in children during their growing years and enhance appetites. Ridielac infant cereal is targeted at consumers with children aged between four and 24 months.Ridielac is produced with a unique formulation containing colostrums and is marketed as a value-for-money product. 47 Condensed Milk Conden sed milk is one of our most successful products and largest revenue contributors, representing approximately 34. 0% of our total revenue in 2007. Our revenue from sales of our condensed milk products grew from approximately VND1,690 billion in 2006 to approximately VND2,332 billion in 2007, representing a compound annual growth rate of approximately 38%. As at 31 December 2007, we hold a market share of approximately 79% in the condensed milk market in Vietnam based on a combination of data and statistics from internal tracking systems tracking the sales volume of our competitors products.Southern Star (Ngoi Sao Phuong Nam) is part of our commercial line under our condensed milk segment, and is primarily marketed to commercial outfits and cafes and is commonly consumed with coffee or mixed fruits. It is priced economically to offer enhanced profit margins to proprietors. Ong Tho is part of our household line of quality products and is primarily targeted at Vietnamese households. It can be consumed either hot or rimy and is commonly used as a cooking or baking ingredient. Our Ong Tho brand of condensed milk is priced at a premium over our Southern Star brand of condensed milk due to its higher calcium and protein content. 48 A n n u a l R e p o r t 2 0 0 7 yoghurt Products We produce, air and sell our drinking yoghurt and spoon yoghurt in Vietnam under the Vinamilk brand.Our yoghurt products represent one of our key focus growth areas, and our revenue from sales of yoghurt products grew from approximately VND634 billion in 2006 to approximately VND698 billion in 2007, representing a compound annual growth rate of approximately 10%. As at 31 December 2007, we hold a market share of approximately 26% in the drinking yoghurt market and approximately 97% in the spoon yoghurt market in Vietnam based on a combination of data from internal tracking systems and statistics and externally commissioned reports by AC Nielsen, tracking consumption patterns in 36 out of t he 64 cities (including quintette centrally controlled municipalities) in Vietnam. Vinamilk Drinking yogurt is available in three flavours Fruit, chromatic and Strawberry in 180ml packs. Vinamilk Spoon yogurt is targeted at the average Vietnamese household.Marketed as a fresh tasting, delicious and high quality health product, our Vinamilk Spoon Yoghurt product line has dominated the spoon yoghurt market in Vietnam with a market share of approximately 97%. It is available in a variety of flavours such as Strawberry, Fruit, SugarFree with Kefir and Sweetened in 110g carton packs. In addition to the abovementioned dairy products, we also manufacture other dairy products such as ice-cream and cheese. 49 Ice-cream We introduced our brand of ice-cream products in 1976 and produce, distribute and sell our ice-cream in Vietnam under the Vinamilk Brand. Vinamilk Ice-cream is targeted at the midend ice-cream market in Vietnam.It comes in a variety of flavours such as Chocolate, Coconut, Du rian, Green Bean, Strawberry, Vanilla and Taro. Our ice-cream products are available in 450ml or one-litre tubs and also available in pre-packed ice-cream cups, popsicles and cones. tall mallow Vinamilk Cheese was launched in 2000 under our anticipation of the potential of the cheese market in Vietnam. The product is currently targeted at the average Vietnamese household and is manufactured using french technology and is available in 140g packs. Non-Dairy Products Other Food and Beverages In addition to our dairy products, we also manufacture and distribute other F&B products such as our V-Fresh line of juices and soya bean milk, cafe Moment coffee and ICY bottled water.The revenue for this product segment accounted for approximately 2% of the total revenue of the Company. 50 A n n u a l R e p o r t 2 0 0 7 V-Fresh The product range was introduced in 1990. V-Fresh Juice is designed to target young adults, offering them healthy refreshments that promote a image that is gumptious a nd full of vitality. V-Fresh Juice is manufactured using natural fruit juices. It is available in one litre packs and in a variety of flavours such as Apple, Carrot, Custard-apple, Grape, Grapefruit, Guava, Orange, salmon pink and Pineapple. Packaged in Tetra Pak packaging, V-Fresh Juice is predominantly distributed in off-premise channels. V-Fresh soybean Milk is one of the most popular drinks among our newly launched products.V-Fresh Soya Milk is targeted at the mid-end market and is marketed as a value-for-money product. Extracted from selected natural soybeans, our V-Fresh Soya Milk line of products offers consumers a healthy and nondairy selection to consumers. It is available in flavours such as plain and sweetened in 180ml and one-litre packs. Coffee We produce, distribute and sell our coffee products in Vietnam under the Cafe Moment brand name. We launched our coffee line of products in 2005. make from the finest coffee beans, our coffee products offer consumers with a u nique tasting experience. Our coffee products offer consumers great value for money.Cafe Moment is distributed through our nationwide distribution network and through our direct sale channels located primarily in urban areas. 51 52 A n n u a l R e p o r t 2 0 0 7 SAFETY 53 INVeStOr dealings Vinamilk maintains an effective communication channel with investors through its annual general meeting held on a yearly basis and through Vinamilk s investor relations function. Financial performance and other important information relating to Vinamilk s operations are adequately disclosed on its website at www. vinamilk. com. vn and other means of public communications such as HOSE s website, securities companies website, newspapers and securities bulletins,. 54 A n n u a l R e p o r t 2 0 0 7During the year, Vinamilk has welcomed more than 100 individual and institutional investors, banks, fund managers to chaffer us, some of our visitors are HSBC, Hong Kong CIMB GK Securities Pte. Ltd Merri ll Lynch (Asia Pacific) Ltd JP Morgan Securities (Thailand) Ltd Morgan Stanley Asia Singapore Saigon Securities Inc. (SSI) BaoViet Securities Company (BVSC) Dragon Capital capital of Japan Marine asset Management heaven-sent Holdings, Inc. York Capital Management, NY Bridger Capital LLC, NY Polunin Capital Partners Ltd, capital of the United Kingdom Metropol, Nga MFC Global Investment Management ABN-AMRO Asia Securities (Singapore) Pte Ltd persistent s Singapore Pte. Ltd Mitani Sangyo Co. Ltd Central Bank of Japan Naissance Capital Ltd Deutsche Asset Management, a member of the Deutsche Bank Group Deutsche Bank Securities Asia Ltd Credit Suise (Singapore) Ltd Nomura Malaysia Sdn Bhd Nomura Securities Singapore Pte. Ltd Citigroup Global Markets Limited Kim Eng Securities Pte. Ltd Daiwa Securities SMBC Hong Kong Ltd BankInvest Group YUKI Management & Research Co. , Ltd UOB Asset Management , a member of the United Overseas Bank Group Our contact details in relation to Investor Rel ations are as follows Mr. Tr? n Chi Son tel email Website Investment Director (84-8) 9300 358 (ext. 252) emailprotected com. vn www. vinamilk.. com. vn 55 cOMMUNItY actIVItIeSIn line with our operation philosophy, Vinamilk always harmonizes between benefits and value for its shareholders and contribute to community activities for local pile where we are operating our business. Vinamilk has been contributing by tens of VND billions per annum for these activities, which may be increasing on a yearly basis. 56 A n n u a l R e p o r t 2 0 0 7 Some of our veritable(prenominal) community activities for the year 2006 and 2007 are as follows In VND billion Donations for poor people and poor/street children 10. 7 Sponsors for perception fund namely Cultivation for Vietnamese Young Talents, V? A Dinh and other activities for children 9. 6 Donations for flooded provinces in the central of Vietnam 2 Our annual traditional sponsorship for two scholarship funds is Cultivation for Vietnames e Young Talents and V?A Dinh. The first was started since 2003 with the average annual sponsored amount between 1. 5 3 billion peal and the later was started since 2004 with the average annual sponsored amount between 0. 14 0. 20 billion dong. In addition, Vinamilk has been the sponsor to take care all the life for 20 Vietnamese hero mothers in Ben Tre and Quang Nam provinces since 1997 and now there are 13 mothers to be sponsored by Vinamilk to take care all their li