FOREIGN TRADE UNIVERSITY

THE FACULTY OF INTERNATIONAL ECONOMICS

🙟🙟🙟🙟🙟

INVESTMENT ECONOMICS PROJECT

Diet food for people who do workouts

Instructor : PhD. Dinh Hoang Minh

Class : KTEE311(1-1920).1
Group Number : 3

Hanoi, September 2019

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 TEAM MEMBER

No. Name Student ID

1. Nguyen Phuong Thanh 1714450028

2. Lai Hien Luong 1714450040
3. La Thi Phuong Uyen 1714450033
4. Nguyen Minh Ha 1714450042
5. Lo Nguyen Phuong Linh 1714450015
6. Nguyen Hong Hanh 1714450044
7. Nguyen Thi Thuy Tien 1714450039
8. Nguyen Phuong Mai 1714450020
9. Hoang Minh Quyen 1714450023
10. Luu Thi Hien 1714450041
11. Nguyen Phuong Thao 1714450029
12. Phan Quang Hung 1614450025
13. Nguyen Manh Hung 1614450024
14. Tran Hoang Lam 1614450027
15. Nguyen Luu Ly 1614450032
16. Nguyen Huu Hoang 1614450023
17. Hoang Nhat Chi 1614450012

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 TABLES OF CONTENTS
PART I. INTRODUCTION 3

I.1. About Us - Optimum Nutrition

I.2. About TH Milk JSC 3

I.3. About products to invest 4

PART II. MARKET ANALYSIS 5

II.1. Overview of host country 5

1.1. Economy growth and prospects 5

1.2. Population 10

1.3. Political Stability

II.2. SWOT Analysis of our company Optimum Nutrition 11

II.3. Customer demand analysis 13

2.1. Overall and customer demographics 13

2.2. Health consciousness and dietary choice 14

II.4. Competitors 16

3.1. Current products 16

3.2. Current suppliers 19

3.3. Incompetence of competitors 22

PART III. PRODUCT “DIET FOOD AND BEVERAGE” 24

III.1. Business Model Canvas 24

1.1. Customer Segment 24

1.2. Value Propositions 24

1.3. Channels 24

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1.4. Customer Relationship 24

1.5. Revenue Stream 24

1.6. Key Activities 24

1.7. Key Resources 24

1.8. Key Partners 25

1.9. Cost Structure 25

III.2. Demographic 26

III.3. PRODUCT DETAILS 27

3.1. Functions 27

3.2. Packaging/ Appearance 27

3.3. Added value 29

3.4. Price 29

PART IV. FINANCIALS 31

IV.1. Strategy of setting price 31

Gullon Maria Diet Cookie 31

IV.2. Customer projection 32

2.1. Targeted Customer Estimation 32

2.2. Estimated Consumption of products 33

2.3. Estimated revenue in 5 years 34

2.4. Estimated investment cost 36

IV.3. Cash flow and investment efficiency 1

3.1. Cash Flow 1

3.2. Net Present Value (NPV) 1

3.3. Internal rate of Return (IRR) 1

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3.4. Profitability of Investment (PI) 2

3.5. Discounted Payback period (DPP) 2

PART V. SOCIAL BENEFITS 4

V.1. Physical Health Benefits 4

V.2. Mental Health and Social Health 4

V.3. Environmental Benefits 6

V.4. Employment benefits 6

4.1. In the short term 6

4.2. In the long term 7

PART VI. References 8

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PART I. INTRODUCTION

I.1. About Us - Optimum Nutrition

OPTIMUM NUTRITION was established in 1986 to satisfy consumer demand for

consistent quality in sports nutrition. Our company is also known for anticipating ever-
changing customer needs and meeting the demands of a dynamic market with innovative
products.
Vietnamese Distributors:
- Starlite International Group (SIG).
- TRUONG THINH TRADING DEVELOPMENT JOINT STOCK COMPANY
- Khong the Tin Noi LLC.
- BOCCI Vietnam.

I.2. About TH Milk JSC

Company name: TH Milk Joint Stock Company.

Address: No. 166 Nguyen Thai Hoc Street, Quang Trung District, Vinh.

Hanoi City Branch: Floor 2, Dao Duy Anh Building, No. 9 Dao Duy Anh Street, Dong
Da District, Hanoi.

Ho Chi Minh City Branch: Floor 5, Central Plaza Building, No. 17 Le Duan Street, Ben
Nghe District, Plant 1, HCMC.

TH Milk is the first company in Vietnam to receive clean milk certification. In Vietnam,
the company has Asia's leading-scale concentrated dairy farming system and is

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developing dairy farms in Northern border provinces (Ha Giang, Tuyen Quang, Lang
Son, Thanh Hoa, …).

5 core principles of TH Milk JSC:

1. For true Happiness.
2. For community health.
3. 100% natural.
4. Environment-friendly.
5. Outstanding thinking and harmonious benefits.

Successful projects by TH Milk JSC:

1. Clean TH Milk Road.
2. Herbal Road.
3. Healthy Beverage for Health Road.
4. Vegetables and Food for Health.
5. TH School Project.
6. TH Health Care Project.

I.3. About products to invest

Diet Cookies, High-protein Milk, Greek Yogurt for people who do workouts:

Diet Cookies
Dietary biscuits act as a fast food before and after workouts to restore muscle and provide
nutrients to the body, burning fat. Protein and fiber-fortified bread thanks to its nutritious
nuts.

High-protein Milk

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High-Protein milk is an ideal food for the muscles of the exercise people who need a
large amount of protein. Milk is easier to drink and use than supplement foods like whey
powder or meats.

Greek Yogurt
Greek yogurt is rich in protein and vitamins, sugar-free but still has a delicious taste. It is
especially recommended for exercise people rather than normal yogurts.

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PART II. MARKET ANALYSIS
II.1. Overview of host country
1.1. Economy growth and prospects

A mere 30 years ago, Vietnam remained one of the poorest countries in the world
represented by the poverty rate of nearly 60% and a poorly – functioning centrally planned
economy. Thanks to the shift toward a market economy steered by “Doi Moi”, a series of
political and economic reforms, today Vietnam’s dynamic transformation become a
phenomenal highlight among the emerging markets and continues to show exceptional
growth rate in many years to come.

Vietnam’s economy continues to show rocketing pickup in economic activity,

backed by a cyclical rise in worldwide demand as well as a recovery in FDI and private
sector investment and a continuous change from traditional agriculture to more productive
and profitable manufacturing and service industries, demonstrating its attractiveness for
future foreign investment. Vietnam’s growth is projected to grow to 6.8% in 2019 with
GDP per capita is expected to rise by 5.8%. According to analysts from the World Bank
and the think tank Brookings, Viet Nam’s economic rocket can be explained by three main
factors: “First, it has embraced trade liberalization with gusto. Second, it has complemented
external liberalization with domestic reforms through deregulation and lowering the cost
of doing business. Finally, Viet Nam has invested heavily in human and physical capital,
predominantly through public investments.”

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 In the trend of globalization, Vietnam is in a strong position to benefit from
economic integration and participation in international trade organizations accompanied
by favorable trade agreements that are coming into force such as FTAs by ASEAN (1995),
WTO (2007), CPTPP (2019) and various bilateral agreements with the U.S., Japan, South
Korea, the EU (EVFTA), etc. These trade agreements dramatically reduced tariffs and
opened much of the economy to foreign investment. Vietnam has been gradually
progressing in enhancing its investment climate as shown by greater results in the World
Economic Forum’s competitiveness index (up five places to 55th in the world), and the
2018 World Bank’s ease of doing business ranking (69th around the globe, up 31 points
since 2014). More than 10,000 foreign companies – including major global players –
operate in Vietnam these days, chiefly in export – oriented, labor – intensive
manufacturing, indebted to government’s initiatives aiming to ease administrative
bureaucracy, reduce corporate income tax and adopt a more pro – investor approach.

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 Vietnam has adjusted its demographic and social change through effective
investment in its citizens. Facing quickly growing population, Vietnam makes large public
investments in primary education, health care service and spends every effort to ensure
their quality. In terms of human capital index (HCI), Vietnam is ranked 48 out of 157
countries and territories, second in ASEAN and only behind Singapore. Infrastructure,
especially power sector and connectivity, gains the most attention.

With a rapidly expanding middle class and massive tariff reductions from free trade
agreements, Vietnam is poised to experience significant growth in its health and wealthy
industry. As a population that is increasingly health conscious, Vietnamese consumers rank
health as their most important concern behind only their job and the economy. Therefore,
consumption of low - fat dairy, for instance skim milk and low-fat varieties of yogurt and
cottage cheese, is anticipated to increase as customers become more conscious of the need
to remain healthy. In 2010, the average Vietnamese person consumed about 15 liters of
milk/ year. It is forecast that by 2020, this figure will nearly double, to reach 28 liters of
milk/ year/ person.

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 Focusing on milk drinking behavior in Vietnam, in recent years, the demand for
milk products has been increasing significantly. Vietnamese government initiatives
designed to boost the average height of citizens by encouraging milk consumption have
contributed significantly to the growth of the country's dairy products. Sales of dairy
products, which includes white milk, flavored milk, powdered milk and non – dairy milk
alternatives, increased from VND 8 trillion ($379 million) in 2008 to VND 55.6 trillion
($2.4 billion) in 2019. The market is expected to grow annually by 7.3% (CAGR 2019-
2023), according to Statista.

Due to limited local production capacity, Vietnam’s industrial sector is still being
built upon the import of raw material. However, in the latest years, local leaders in dairy
industry including TH and Vinamilk have focused on creating raw materials with the
establishment of a large dairy cow farm fitted with sophisticated technology
implementation, steering clear of foreign dependence. According to the General Statistics
Office's preliminary reports, in 2018, the total number of cows all over the country reached
294.4 thousand, increasing by approximately 160 thousand of cows compared to 2010 with
an average growth rate of 10.9% per year. Characterized by its geography and tropical
climate with an annual high level of temperature, Vietnam is capable of cow farming.
Meadows in Ha Tay, Moc Chau, Ba Vi offer a variety of favorable conditions for growing,

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feeding and breeding herbs. As reported by the Department of Livestock Production,
Ministry of Agriculture and Rural Development, there has been a sharp rise in the amount
of dairy herds in the nation in recent years as big companies are increasing investment in
manufacturing infrastructure to expand the scale of animal husbandry to guarantee the
quality of raw milk sources aimed at providing customers with quality products and food
safety and to make use of raw milk as the primary input of material to serve the National
School Milk Program. Recognize the significance of raw milk fields, many companies have
actively constructed on – site raw material regions with manufacturing connections with
cow farmers to guarantee dairy manufacturing safety, generate employment, decrease
reliance on imported milk and dairy goods.

Many farms have received certificates from international organizations Farming

scheme meets global requirements: G.A.P, VietGAHP ... Organic farms to guarantee that
food meets clean, global quality standards for consumers. In addition, farm building has
constructed businesses for dairy farmers connected with processing crops and milk
collection.
When the supply has met the domestic market, in order to increase the room for
development, dairy enterprises have chosen to export abroad, despite different market
approaches. According to statistics of the General Department of Customs, in the period of
2016 - 2018, Vietnam's export value of milk and dairy products continued to increase.
Specifically, from USD 84.47 million in 2016 to USD 82.65 million in 2017 and USD
129.68 million in 2018. Accordingly, the average export value of the whole growth period
is 27, 37%. In the first 3 months of 2019, the export value of milk reached US $ 48.6
million. In particular, the main markets are Iraq, Hong Kong (China), mainland China,
Afghanistan, the Philippines and some other countries such as UAE, Laos, Myanmar, Japan
..., as recorded by the Financial Times. In addition to export, Vietnamese dairy enterprises
also invest abroad, whereby Vinamilk invests in the dairy industry to the US, New Zealand,
Cambodia, Poland, Laos and Myanmar continue to carry out trade promotion to to the EU.
, Africa and South America; TH True Milk invested a project of about 2.7 billion USD in

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Russia to produce and process milk ... Following the signing of the Vietnam-China Milk
Export Protocol on 26 April 2019, eight companies have registered to export milk to China
so far: Vinamilk, TH True Milk, Nestlé Vietnam, Nutifood, Ba For Milk, Enovi and
Friesland Campina Vietnam…

Although it is undeniable that Vietnam dairy enterprises are put under a lot of
pressure due to heavy dependence on foreign markets, demanding requirements of
investment capital and technique, they are working hard on innovations to meet the
market’s demands with substantial initiatives. Enterprises in the industry have been
constantly investing, constructing, enhancing, innovating techniques and technologies that
have been implemented in factories over the previous few years. There have been and will
be a number of big dairy producers and processors investing strongly in machinery,
applying high-level automation technology at national and global level to enhance
productivity, quality, food security, product diversification, maximize efficiency,
competitiveness, and deepen the value chain of milk and dairy products on national and
international markets.

1.2. Population

The population of Vietnam is 92.7 million people and is estimated that 60% of it is
under 35 years old (by Nielsen), which currently possesses young population structure.

Table: Vietnam age structure

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 Source: CIA World Factbook

The combination of young population structure with the stable growth rate of GDP
as mentioned above plays an important role in promoting the consumption of milk. To be
more specific, the table shows that the proportion of young adults from 20 to 39 years old
is the highest among age groups, which means that it is potential to invest into Vietnam as
Vietnam is in developing period with cornucopia of young labor as well as we could see a
potential market of milk industry. Furthermore, the fast growing of Vietnamese economy
brings benefit to citizens. By 2020, Vietnam’s annual income per capita is projected to
reach 180 million (US$8568). This leads to not only increase in consumer spending, but
also in consumer behavior and preference – including a priority for branded goods and
foreign products. Additionally, in the specific case of milk industry, the higher GDP per
capita, the more Vietnamese care about their health, especially the young adults concern

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about their appearance, which implies the bright future of product for healthy and diet meal,
which would be mentioned as our products.

The consumption level of milk of Vietnamese citizens is dramatically increasing. It

was 3.7kg/person in 1995, went up to 6kg/person in 2000 and in 2007, it was about
12.3kg/person. Until 2020, the average consumption level of milk is estimated to increase
to 20kg/person.

Vietnam is one of the countries having a high level of economic growth in the world
since the purchasing ability rises gradually, consisting of milk and milk-related product.
These days, the average consumption level of Vietnamese is still lower than that of Asian
area (35kg/person). On the other hand, the production ability of the domestic factories is
not in position to meet the demand. It is undeniable that the milk market in Vietnam is in
growing period. Therefore, with the competitive advantage in technology of a foreign
company, we could be confident with our project.

1.3. Political Stability

Vietnam has a strategic location as it is located in the center of ASEAN and also
close to the other big markets in Asian, especially China. It long coast directly accesses to
South China Sea and close to the main shipping routes of the world, which provide perfect
conditions for commerce. The political stability plays an indispensable role in economic
development process in Vietnam, contributing to policies from the government. The stable
political background assists Vietnam to be peaceful and prosperous.

It is obvious that Vietnam is a developing country, which is encouraging the foreign

direct investment (FDI) from the foreign countries. As a result, the Vietnamese government
established many preferable policies to attract FDI capital and promote the investment in
areas or domains where the government directs the investment activities. Since Vietnam is
in the process of transforming into market economy, investment environment still remains
disadvantages, namely less developed infrastructure, insufficiency of uniformity in legal

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framework, the rate of unskilled labor is high. Therefore, the establishment and application
of preferable policies to attract capital is necessary to offset the existing limitations. This
is a good new for our company when we decide to invest in Vietnam.

In terms of specific policies, the investment law in 2014 stipulated 13 groups of

domains and 3 types of area to encourage investment and assigned the government to
specify the fields and eligible for tax incentives. Accordingly, the specific level of tax
incentives is prescribed in tax law. The preferable regulations on attracting the FDI are
specified in the following legal documents:

Investment Law 2014

Law on Enterprise Income Tax amended 2013

Law on Export and Import Tax 2016

Decree No.118/2015/ND-CP of the government detailing and guiding the implementation

of a articles of the Investment Law

Decree No.123/2017/ND-CP amended a number of articles on collection of land use fees,

collection of land rents and water surface rents

Decree No.57/2018/ND-CP on mechanisms and policies to encourage enterprises to invest

in agricultural and rural areas

Law on Non-agricultural Land Use 2010

Taking the result of these encouraging policies into account, in recent years, the
reduction of the tax burden and diversification of tax incentives have contributed to
creating a favorable investment environment to attract FDI. Over the past three decades,
the FDI sector has played an increasingly important role in Vietnam’s economy. In
conclusion, the current purpose of preferable and attractive policies of Vietnam is to
increase the FDI capital, contributing to promote economic development. These results

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must be logical reasons for Vietnamese government continue to attract FDI and establish
or amend the law to be suitable with foreign investment.

II.2. SWOT Analysis of our company - Optimum Nutrition

- Strengths:
+ World’s Protein Powder Supplement Best Sellers since 1986. After more than 30
years of development, Optimum Nutrition has become a leading brand in the world,
always at the forefront of developing, researching and manufacturing high-quality,
well-controlled, high quality sports nutrition products. Optimum Nutrition is also
the first brand to launch instant, easy-to-use powder products. To date, Optimum
Nutrition's products have been distributed to more than 70 countries around the
world including Vietnam. Accordingly, we can supply excellent materials for TH to
produce the diet foods.
+ Wide range of products: whey, casein, plant, eggs, blended.
+ Big market share: since we were the first fitness supplement brand in Vietnam since
2007, our products and brand have been popular with Vietnamese customers while
our company competitor Herbalife stepped in since 2009 and do not focus on
exercising segment. Other whey powder brands such as Combat and MuscleTech
are newcomers and gain small market share due to low price.
+ Knowledgeable and experienced staffs and fitness experts.
+ Supply chain management and local know-how in Vietnam.
+ Big investment fund and high-technology manufacture.
- WEAKNESS:
+ Unawareness of general customers who do not do work-out. Accordingly,
our unique selling point is less worthier to them.
+ High product prices compared to Vietnamese income level.
+ Product samples are not available since the products take time to take effect.
+ Marketing scale is not sufficient compared to other competitors’.
+ Products are not widely sold in supermarkets and groceries.
- Opportunities:
+ Cooperate with nutrition brands in Vietnam to co-produce unique diet
products sold in supermarkets and groceries.
+ Stable demand for our products at the gyms, studios and fitness centers

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 + Good image in fitness community through education and sponsorship.
+ Few competitors in the areas of diet instant foods.
- Threats:
+ Poor sales due to unawareness of customers who do not do workout.
+ Imitations in Vietnam market.
II.3. Customer demand analysis
Vietnam is seeing more interest in gyms and other health-related services as eating
habits change and signs of obesity emerge. Staying healthy and fit is increasingly important
for both the young and old in Vietnam. Rising disposable incomes and awareness of the
benefits of a healthy lifestyle continue to drive the industry forward.

3.1. Overall and customer demographics

Vietnam now accounts for the largest portion (30 percent) of all fitness facilities
among the six major members of the ASEAN.Data from Germany-based market research
firm Statista showed that the revenue in the Vietnamese fitness segment could amount to
$60 million in 2019 and is expected to show an annual growth rate of 7.4 per cent, resulting
in a market volume of $80 million by 2023. The fitness market’s largest segment is
wearables with a market volume of $49 million in 2019. In Southeast Asia, Vietnam has
the highest percentage of household GDP spent annually on health and fitness.

Fitness customers are characterized as the younger population with high willingness
to pay, so long as the quality is ensured. Among those responded to a research report on
fitness conducted by Q&Me, the majority of the fitness-concerned are from 16 to 34 years
old, who should be able to adopt new trends and new products fairly rapidly. In addition,
their household income falls mostly on from VND14mn and above. All of these
demographic factors pave the way for fitness complimentary products to develop and
become familiar.

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 The fitness-concerned by age group, Q&Me

The fitness-concerned by income levels, Q&Me

3.2. Health consciousness and dietary choice

The rising market size of fitness products is driven by consumers’ high health
consciousness. In Vietnam, it has been witnessed that the obesity rate has increased over
the past five years. The obesity rate has grown at a CAGR of 8.4% during the period 2013-
2018. In the future it is anticipated that obesity will reach 3.6% by the year 2023. On the
flip side, the research by Q&Me showed that 79% of people care about their body shapes,

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and 53% think they are fat in some way. They have been taken measures to maintain or
enhance their health, as shown in the graph below.

Choices of health maintaining activities, Q&Me

As observed, apart from the normal convention of maintaining health by refraining

from smoking and alcohol, drinking more water, and sleeping better, more than half of
people have taken up exercises and diet. Specifically, people tend to have more of the
ingredients below in their diet.

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 Choices of dietary foods, Q&Me

Fruits and vegetables understandably topped the chart, both at more than doubling
the 3rd highest (salad), as they generally offer lower carb contents and various necessary
vitamins that are not found much in basic meals. Special food for diet stood at a modest
9.1%; however, it showed that there is still room for the development of this sector. We
can look at the top ingredients and study their nutrients in order to apply those into our
products, offering high-quality dietary dairy foods that are still rare in Vietnamese market.

II.4. Competitors
4.1. Current products:
NESTLÉ FITNESSE BREAKFAST CAKE FOR DIETERS: is a nutritional
supplement that includes vitamins, proteins, fats, minerals, and energy that are calibrated
to suit the daily nutritional needs of the user. . The processed product is very convenient.

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 Made from whole grains - the world's favorite food for breakfast for every family.
Cakes also contain important ingredients for nutritional balance, such as dried fruits like
papaya, grapes, pineapples, etc.

Good for diet: rich in dietary fiber, helping to fill for long without craving for
snacks should be suitable for those who need to lose weight. Bread also helps prevent
cardiovascular disease, colon cancer and diabetes effectively. In addition, the product
also contains many vitamins E, B2, B3, B6 and folic acid; Iron, zinc and calcium
minerals are necessary for daily meals, helping to improve health.

Delicious taste, helps diets to be effective: has a delicious taste, does not cause
boredom, so they can be eaten regularly in many meals throughout the day. You can
consume 2 servings daily in the morning and evening (each serving includes 40gam
Fitnesse & Fruit + 125ml of low-fat low-fat milk), combined with a high-fiber diet and
regular exercise. Achieve weight loss effect in a short time.

DIABET CARE: is a premium product providing special nutrition for people

with diabetes and pre-diabetes

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 The product does not contain Gluten and Cholesterol.

Stable blood sugar: Isomaltulose is a kind of powdered sugar that is digested and
absorbed slowly into the body, does not increase blood sugar suddenly, helps maintain
stable blood sugar.

Increasing resistance: vitamins A, E, C, Zn are important components that help the

body enhance resistance, fight the attack of pathogenic bacteria to help the body stay
healthy, limit the progression developing complications of diabetes.

Good for the heart: MUFA, PUFA are essential unsaturated fatty acids that help
reduce cholesterol & triglyceride levels in the blood, control arthritis, inflammation,
blood pressure, reduce the risk of cardiovascular disease.

Good absorption:FOS / Inulin slows down the absorption of sugar into the
bloodstream, while helping the digestive system function healthy and absorb nutrients.

VINAMILK GREEK YOGHURT

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 Vinamilk Greek Yoghurt is a great calcium supplement solution for women
because each 100g yogurt box contains 160mg of calcium, equivalent to the amount of
calcium in 1kg of beef or 4 boiled eggs. With a refreshing, delicious taste, Vinamilk
Greek yogurt is suitable for making nutritious desserts, or complemented with meals
before and after training!

Naturally fermented with pure Greek strains, containing twice the Protein and 50%
reduction in fat *, helps you gain a toned body and not be afraid to gain weight.

4.2. Current suppliers

NESTLÉ VIETNAM

Nestle, the world's largest food and beverage company, is headquartered in Vevey,
Switzerland. Nestlé's current products range from mineral water, baby food, coffee and
dairy products.

In the 1860s, pharmacist Henri Nestlé invented a food for babies who could not be
breastfed. His first success was to save a premature baby who could not be breastfed or
other conventional alternatives. The value of this new product was quickly recognized
since the new Nestlé formula saved the life of a premature baby. Since then, Farine
Lactée Henrie Nestlé milk powder has been widely sold in Europe.

Nestlé's first sales office in Saigon was established in 1912. Here are some
milestones of the company's rapid development in Vietnam:

1992: La Vie Company, a joint venture between Perrier Vittel of Nestlé and a trading
company of Long An was established.

1993: Nestlé officially returns to Vietnam and opens a representative office in Ho Chi
Minh City

1995: Nestlé Vietnam was born. Officially started construction of Dong Nai factory

2002: La La's second factory was put into operation in Hung Yen

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2007: Dielthem was selected as the official distributor for chocolate and confectionery
products

2008: Establishment of Special Nutrition Division

2011: In August, Tri An factory was built, in November the Binh An factory (Gannon)
was bought in Dong Nai

2013: Nestlé Vietnam inaugurated a new NESCAFÉ factory in Amata Industrial Park,
Dong Nai

2013: Nestlé Vietnam's main office moved to a new location at Level 5, Empress Tower,
District 1 from September.

10/2014: Nestlé inaugurated a factory worth US $ 37 million at Nestlé Binh An factory

NUTIFOOD VIETNAM

In 1989: Medicinal Research Station changed to Ho Chi Minh City Nutrition Center,
Dong Tam Complex became Dong Tam Food Base, where applied the research topics of
nutrition experts to produce anti-malnutrition products for children and feeding patients
in hospitals. The typical product of this period is Enalaz - the first gastric tube feeding
food in Vietnam, contributing to supporting the treatment of serious patients at hospitals
across the country at a price equal to 1/10 of the product. imported products.

March 29, 2000: Stemming from the success of research and clinical applications of the
City Nutrition Center. City, Dong Tam Nutrition Food Joint Stock Company (original
name of NutiFood) was established.

2001: Products of Dong Tam Nutrition Food Joint Stock Company were voted by the
Vietnamese consumers into the Top 5 Vietnamese high quality products continuously in
the following years.

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In 2006 , the NutiFood Binh Duong Factory expanded (powdered milk + liquid milk) was
certified to meet GMP standards of food, HACCP standards and continuously in the
following years.

In 2008 , NutiFood became a public joint stock company and successfully IPOed in the
stock market.

In 2010 , signed a cooperation agreement with ABS-QE USA to build and monitor the
Quality Management System and to extend it up to date.Joining the Market Stabilization
Program of the City. HCM - Program of Vietnamese goods to the countryside

Year 2012:

● Renamed Dong Tam Nutrition Food Joint Stock Company to NutiFood Nutrition
Food Joint Stock Company and changed the brand identity system, product
packaging
● Selected by the HCMC People's Committee as a Typical Saigon Entrepreneur and
received a Certificate of Merit, a Medal from UNESCO for its contributions to
Youth - Children health.

In 2013

● Put the 2nd NutiFood factory in Pho Noi Industrial Zone - Hung Yen into
operation.
● Signed a comprehensive nutrition sponsorship contract for Hoang Anh Gia Lai
Academy - Arsenal - JMG, nutritional sponsorship for U 19 Vietnam team to
compete internationally. NutiFood nutritionist and chef for the first time
accompanied Vietnamese U 19 players to international competitions until the end
of 2014, creating the attention of the public.

Year 2014

● Signed with Hoang Anh Gia Lai Group in the 120,000 Dairy Project.

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 ● Began construction of NutiFood Highlands Plant at Tra Da Industrial Park, Ho Chi
Minh City. Pleiku has a processing capacity of 500 million liters of milk / year.

In 2015

● Began construction of NutiFood Vietnam Factory in Kien Khe Industrial Cluster,

Ha Nam with a processing capacity of 200 million liters of fresh milk and 31,000
tons of powdered milk, the largest factory in the North.

VINAMILK

Vinamilk is the largest dairy company in Vietnam. Based on the UNDP 2007 Top
200 largest firms in Vietnam report, it is also the 15th largest company in Vietnam and
the most valuable public company listed in Vietnam. In 2010, it is the first company in
Vietnam to be included in the Forbes Asia's 200 Best Under A Billion list that highlights
200 top-performing small- and mid-sized companies with annual revenue under US$1
billion.

The company was established in 1976 as the state-owned Southern Coffee-Dairy

Company, to nationalize and take over the operations of three previously private dairy
factories in South Vietnam: Thống Nhất (belonging to a Chinese company), Trường Thọ
(formerly owned by Friesland Foods, best known for its production of condensed milk
that was widely distributed across the South) and Dielac (Nestlé). It was renamed United
Enterprises of Milk Coffee Cookies and Candies in 1978. It became the Vietnam Dairy
Company, formally established in 1993. In 2003, following its IPO to the Ho Chi Minh
Stock Exchange, the company legally changed its name to Vietnam Dairy Products Joint
Stock Company (Vinamilk). The principal activities of the Vinamilk are to produce and
distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream,
cheese, fruit juice, coffee and other products derived from milk.

Vinamilk products such as powdered milk and condensed milk are also exported
to the Middle East, Cambodia, the Philippines and Australia. Exports accounted for

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$180m in 2012. Vinamilk’ main competitors are Dutch Lady Vietnam (a division of
Friesland Foods), Nestlé Vietnam, Abbott, Mead Johnson, Friso and Nutifood. In
September 2016 Vinamilk signed a strategic cooperation agreement with Chr. Hansen to
develop probiotics.

4.3. Incompetence of competitors

VINAMILK

Unable to take initiative in the source of raw materials: The source of raw
materials has not been proactively dependent on imported raw materials (60%) so input
costs are strongly influenced by world milk prices and exchange rate fluctuations.

Vinamilk has good Greek yogurt products, but the poor marketing has not created
an effective message to promote to consumers. Vinamilk has not had any message yet for
consumers to understand the difference between Greek yogurt and other yogurt products
on the market. In another hand, Greek yogurt still contains abundant sugar amount
compared to standard Greek Yogurt.

NESTLÉ VIETNAM

Focus on general nutrition demand and the products are not qualified for particular
purposes.

NUTIFOOD VIETNAM

The cost of product development and communication is huge

The company is also hard to satisfy customers when offering promotions that are
not reasonable, effective, puzzling and discriminatory against customers.

The image has not yet been widely disseminated, compared to other companies in
the same industry. Products do not make a big difference

Image ads are not really outstanding, lacking competitiveness with other brands.

29
 Products are mainly for children and elderly which contain no fresh milk (only
milk powder and condensed milk) and too much sugar added.

30
PART III. PRODUCT “DIET FOOD AND BEVERAGE”
III.1. Business Model Canvas
1.1. Customer Segment
- Consumers (who are interested in healthy diet or do workout)
- Distributors (supermarket, retail chains,..)
- Fitness Centers.
1.2. Value Propositions
- Nutritious food for people who do workout
- Fast meal with energy sufficiency for people who are busy (students, officers,.)
- Nutritional supplements from daily products for diet people
1.3. Channels
- TH Store Chains
- Supermarket (VinMart, VinMart +, Big C)
- Convenience store (Circle K, Family Mart, 7 Eleven)
- Agency & Retail store
- Social Network, TV Ads, KOLs, POS Marketing, Event.
1.4. Customer Relationship
- Customer service system (Hotline, Email, Fanpage)
- Feedback/ report from retail chains/ distributors
1.5. Revenue Stream
Product sales:
- Direct from customers
- Indirect through distributors
1.6. Key Activities
- Production
- Distribution
- R&D
- Marketing & advertising

31
- Regulatory Compliance
1.7. Key Resources
- Brand
- Infrastructure: TH Farm, TH Milk Factory, TH Store
- Partners & Retail Network
- Human Resources: Nutritionists, Scientists,…
1.8. Key Partners
- Packaging: Tetra Pak, SIG Combibloc
- Logistics: Abivin
- Fitness Platform: WeFit, UpBeat…
- National Broadcaster (VTV)
- Social Network Influencers
1.9. Cost Structure
- R&D activities
- Marketing & advertising cost
- Salaries
- Production cost (operation, material)
- Maintenance
- Distribution cost

32
 III.2. Demographic

Customer: Anyone who is interested in fitness and diet

Gender: Male and Female
Age: 16-34
Income: 14 million VND/month and above
Demography
Location: Big cities (Hanoi, HCMC, Da Nang,...)
Lifestyle: Active, energetic
Hobbie: Engage in fitness activities
Highly concern about health and nutrition.
Incentives to Intend to lose/maintain weight or stay in shape.
consume Following a special diet.
Demand for low-calorie food to support work-out activities.

III.3. PRODUCT DETAILS

3.1. Functions
● Instant supply of energy after a hard-working day or after the gym.
● Products made in form of healthy snack food so they help satiate the appetite of
those who keep fit and want to stay in shape. They still have something at hand to
nibble when they are hungry or long time do not have cookies.

33
 ● Easy to take away. Made from organic materials (cow milk, nuts, ...) in order to
use in the day at work or at the gym.
● Healthy food.
● A chain of products familiar to a majority in Vietnam, especially who care for
healthy and fitness.
3.2. Packaging/ Appearance

Diet Cookies
● Color: Bright colors and a fruit image are used as a main image for this product.
● Material: Light cartons.
● Packs: 12 cookies in a pack. The packs are in the shape of cylinder. easy to open
and close the lid in order to fast opening and long using during the day. Bright
colors and a fruit image as the lid of the product. A clean, simple logo with the
letter “D” depicting a cup with a spoon appears on the lid and side.

This photo is for illustration purposes only.

High-protein milk:
● Color: Bright color with the green base in order to show how the organic the
products is.
● Materials: Cartons made from wax or plastic-coated paper board
● Packs: Use for both size 200 ml and 1L. The packs are in the shape of cube with
retro look for milk packaging, which allows consumers to and get excited for a

34
 product that truly captures the feeling and function of what things used to be like.
With the 200ml bottles will be packed 4 bottles per range

1L and 180ml.
This photo is for illustration purposes only.

Greek yogurt:
● Color: White color as the base added with blue color for texts and images.
● Materials: Plastic.
● Packs: 4 jars per pack. The transparent 100-mL PET jar has a wide-mouth opening
and an aluminum/PET/aluminum closure with an opened cap in clear
polypropylene.

This photo is for illustration purposes only

3.3. Added value

35
The products give consumer sense of keeping tracks of their diet plan. Without feeling
tired and ease their temptation to the high sugar food or fast food.
They know exactly calories consumed in the help of table of calories.

3.4. Price
Price for this type of product is determined by visions of the company and the purposes
of the products is that bring the customer
Potential locations: Hanoi and HCMC.
Potential customer segments: Sport players, Officer and students interested in sports and
gym.

We serve our products at a lower price than competitors. But the company caters to
customers who are aware of calories and diet menus. Accordingly, the price is
affordable for people in the range of medium financial level.

The customer segment that the company wants to target is the new customer base. They
are who care about their diet and want to find the food to facilitate the diet which is low
in cost but suitable in the number of calories and protein. The ingredients we use in
production for this product is organically processed with high technology in order to keep
the taste and the number of nutrients.

36
PART IV. FINANCIALS
IV.1. Strategy of setting price
As we mention above, price setting depends on many factors. Now we will go
detail into strategy of setting price.
The market share of this products covers people who involve in their health. Therefore, it
is reasonable to set the price a little bit higher normal product. In addition, label of TH
True Milk stands for quality, fresh and bring benefit to society which raise the loyalty of
customers. We can be sure that with this general price, our products will be sold well
after launching.

Price list of new products

Products Price range (VND)

Diet cookies 40,000 - 50,000

High-protein milk 15,000 - 26,000

Greek Yogurt 20,000 - 35,000

Each year the price will increase at least 10% as a result of inflation.

In comparison with the price level of some competitors dealing with diet products:

Competitors Products Price range (unit: VND)

Vinamilk Walnut milk 12,000 - 24,000

Walnut Yogurt 34,000 - 49,000

Vinamilk Greek Yogurt 34,000 - 49,000

37
 Gullón Gullon Maria Diet Cookie 94,000 - 159,000

Nutifood Nuti Nutrition cereal 69,500 - 100,000

Aloe vera yogurt 7,000 - 10,000

Nuti yeast Drinking Yogurt 19,000 - 25,000

IV.2. Customer projection

2.1. Targeted Customer Estimation

According to a nutrition investigation on 17,213 people aged 25-64 from 64 provinces

throughout the country, the percentage of people who are over-weighted (with BMI > 23)
is 16.3%. Also, there are about 30.3% of the population takes part in working out
activities (According to baotintuc and viendinhduong).

(Unit: people)

Targeted Over-weighted Working-out Others (student, officer,

object people people people who follow low
calories diet, …)

Estimated 15,500,000 28,700,000 30,5000,000

number of (approximately
(approximately (approximately 31%
people 16,3%
30,3% population) population)
population)

From the targeted object, we could then estimate the number of targeted objects who will
choose to consume the products in the first year as follow.

38
 (Unit: people)

Targeted customer Obese people Working-out people Others Total number

Estimated number 80,000 120,000 60,000 260,000

Since the company positively expand the marketing campaign, as well as the good quality
of the products, more and more people would choose to use the product. The estimated
number in each year is as follow:

(Unit: people)

Year 1 2 3 4 5

Estimated number 260,000 268,800 272,835 280,537 289,784

2.2. Estimated Consumption of products

Now for each kind of product, the people who are over-weighted tend to consume diet
cookies, the people who often work out will prefer High-protein milk and others are
willing to consume Greek Yogurt. Each product should be used with different frequency.
For example, an over-weighted person used diet cookies only 1-2 times per day, and 7
days per week. One small pack can be used in 3 days. of Therefore, in a year, that person
will consume 120 small packs. For high-protein milk, each customer will consume 90

39
packs (360 bottles) per year. And for Greek Yogurt, one person will consume 90 packs
(360 bottles) per year. Based on that information, we would expect the consumption of
each product in the first year as follow:

Product Number of people using Frequency Total consumption

product per year per year

Diet cookies 80,000 120 9,600,000

High-protein 120,000 90 10,800,000

milk

Greek Yogurt 60,000 90 5,400,000

Continually, we estimate the total consumption per year as the following:

Year 1 2 3 4 5

Total consumption of
9,600,000 9,924,923 10,073,908 10,358,289 10,699,717
diet cookies

Total consumption of
10,800,000 11,165,538 11,333,146 11,653,075 12,037,182
high-protein milk

Total consumption of 6,018,591

5,400,000 5,582,769 5,666,573 5,826,538
Greek Yogurt

ss

40
 2.3. Estimated revenue in 5 years
By research and estimation, basing on development trend, we could estimate the expected
revenue in the first 5 years taking this project.

Diet cookies

Year 1 Year 2 Year 3 Year 4 Year 5

Consumption
9,600,000 9,924,923 10,073,908 10,358,289 10,699,717
per year

Average
consumption 40,000 44,500 48,400 53,240 58,564
price (VND)

Total
Revenue 384,000,000,000 436,696,612,000 487,577,147,200 551,475,306,360 626,618,226,388
(VND)

High-protein milk

Year 1 Year 2 Year 3 Year 4 Year 5

41
 Consumptio
10,800,000 11,165,538 11,333,146 11,653,075 12,037,182
n per year

Average
consumption 15,500 17,050 18,755 20,630.5 22,693.55
price (VND)

Total
Revenue
(billion
VND) 167,400,000,000
190,372,422,900 212,553,153,230 240,408,763,787.5 273,166,391,576.10

Greek Yogurt

Year 1 Year 2 Year 3 Year 4 Year 5

Consumption 6,018,591
5,400,000 5,582,769 5,666,573 5,826,538
per year

Average
consumption
price (VND) 27,000 29,700 32,670 35,937 39,530

Total
Revenue
(billion VND) 145,800,000,000 165,808,239,300 185,126,939,910 209,388,296,106 237,919,115,243.7

42
 Total Revenue (VND)

Year 1 2 3 4 5

Total
697,200,000,00 1,001,272,366,253 1,137,703,733,207
revenue 0 792,877,274,200 885,257,240,340 .50 .80

2.4. Estimated investment cost

4.a Initial cost

In this investment, we estimate initial costs depending on current conditions, researches

and trend of development.

(Unit: Million VND)

Cost Detail Budget

Cost of factory expand ● Rent 8,000

● Architectural design
● Construction
● First-level office

Cost of equipment ● Specific machines

● Installation cost 5,000
● Others

Exclusive product ● Cost of products registration 50

registration protection

Recipe security ● Protect the recipe of products 100

Total initial cost 13,150

43
 ● Cost of factory expend: The manufacture factory system of TH True milk
company has been constructed completely for dairy production. Therefore, to
practice this project we only need to expend the factory. This includes construct a
separated area for producing Diet Cookies, High-protein Milk, Greek Yogurt.
● Cost of equipment: Equipment is significantly important in the processes of
production. Each process requires different machines and techniques in order to be
granted in the quality of product.
● Exclusive product registration cost: Each product circulating to the market is the
result of the research and investment. Therefore, the registration of exclusive
protection of products is essential, avoiding the use or imitation of third-party
products that will affect the business process of the manufacturer and the image of
company.
● Recipe security cost: This one is specialized for food industry. Each product has
different recipe. Only when following that, we have perfect taste off product. That
why secure the receipt is essential part of this investment.

4.b Depreciation

From the table in the previous part, we see that fixed assets = 5000 million VND, other
expenses = 13,150 - 5,000 = 8,150. Fixed assets depreciate 10% each year
Unit: Million VND

Year Fixed asset Depreciation Cumulative New Fixed asset

(beginning) depreciation investment (closing)

1 5000 500 500 0 4500

2 4500 450 950 0 4050

3 4050 405 1355 0 3645

44
 4 3645 364.5 1719.5 0 3280.5

5 3280.5 328.05 2047.55 0 2952.45

4.c Marketing cost

After conducting a survey about quoted price of media including TVC, Kenh14, …, we
point out some communication categories and estimated cost for them in the first year as
follows:

Communication Category Amount Unit Price ( Total ( VND)

VND)

News and Magazine (top banner) 1,200,000,000

Mp3.zing.vn 3 Month 158,000,000 474,000,000

Suckhoedoisong.vn 3 Month 50,000,000 150,000,000

Eva.vn 3 Month 52,000,000 156,000,000

Kenh14.vn 3 Month 140,000,000 420,000,000

TV advertisement 35,587,500,000

VTV3, VTV1 1095 Camp 32,500,000 35,587,500,000

Content Marketing 234,500,000

45
 Post on Facebook 365 Post 500,000 182,500,000

Video ( Youtube + Facebook) 52 Video 1,000,000 52,00,000

Social Media 805,000,000

Campaign 1. Brand - Video 365 Camp 1,000,000 365,000,000

(Youtube)

Campaign 2. Trade - KOLs 1 Video 50,000,000 50,000,000

1 Post 25,000,000 25,000,000

Running ads 365 Camp 1,000,000 365,000,000

Offline 700,000,000

Event 2 Camp 350,000,000 700,000,000

Total expense (VND) 38,527,000,000

Marketing cost in the first year will equal marketing cost in the second year. For the next
3 year, the budget for marketing activities will reduce 10% each year (in comparison with
the previous year)

Year 1 Year 2 Year 3 Year 4 Year 5

46
MKT
38,527,000,000 38,527,000,000 34,674,300,000 31,206,870,000 28,086,183,000
Cost
(VND)

4.d Production

After conducting some surveys of prices from supermarkets like Vinmart and some other
suppliers, the team project has estimated the material costs through the years. Besides,
costs such as electricity, water, internet, and other things like cleaning solution are also
calculated into production cost. The plan for production cost is estimated for the first year
only. The following years price are fluctuated among the initial estimation. The estimated
results are shown in the following tables.
Assumption:
● Production cost in each month of a year is fixed
● The products gain reputation in later years, number of customers increases,
therefore, the cost of production increases each year. We assume that the cost
increases by 10% each year.
Particularly:
Year 1:
(Unit: VND)

Name of the expense Amount per month Number of month Total of expense

Material 800,000,000 12 9,600,000,000

Internet 20,000,000 12 240,000,000

Electricity 100,000,000 12 1,200,000,000

47
 Others 150,000,000 12 960,000,000

Total expense of year 1: 12,840,000,000

Estimated production cost within 5 years:

Year 1 2 3 4 5

Total 12,840,000,000 14,744,000,000 15,618,400,000 16,680,240,000 16,948,260,000

expense

4.e Wages

Based on the detail of investment built above, we estimate the cost of employment in the
following year when we take the project.
Assumptions:
● Number of employees in the following years is unchanged.
● The wages of employees who stand for the same position is equal among branch at
the same period.
● Employees could do part-time or full-time, but always complete the work in one
day from 7AM to 5.30PM or 7AM to 11PM depending on position.
● We expect after 1 year launching products in market, there could be a thrive in
revenue. In order to encourage employees and increase productivity, TH True
Milk company will raise wages for 10% annually.

Estimated Wage in one years

48
 (unit:VND)

Position Number of Wage per Wage per Total wage

employees month year

General 1 40,000,000 480,000,000 480,000,000

Manager

Department 5 30,000,000 360,000,000 1,800,000,000

Manager

Warehouse 15 15,000,000 180,000,000 2,700,000,000

manager

Worker 5,000 7,000,000 84,000,000 420,000,000,000

Shipping staff 2,000 5,000,000 60,000,000 120,000,000,000

Sale 1,000 4,500,000 54,000,000 54,000,000,000

Total 598,500,000,000

Estimated Wage in following 5 years

( \Unit: VND)

Year 1 2 3 4 5

Total 598,500,000,000 658,350,000,000 724,185,000,000 796,603,500,000 876,263,850,000

cost

4.f Cost of selling

49
 Cost of selling is the cost which facilitates the selling progress and makes it easier for
product to be distributed to customers. In the first year, the selling cost is estimated as
below.
(Unit: VND)

Name of expense Amount per month Month Total

Tools 50,000,000 12 1,200,000,000

Insurance 200,000,000 12 2,400,000,000

Transporting 100,000,000 12 1,200,000,000

Customer service 100.000,000 12 1,200,000,000

R&D 200,000,000 12 2,400,000,000

Total cost: 8,400,000,000

Due to the economy expand, suppose that the prices goes up in the next 5 years.
Therefore, the selling cost would be estimated:

Year 1 2 3 4 5

Total 8,400,000,000 8,200,150,000 9,005,370,000 9,603,240,000 10,381,810,000

cost

4.g Total cost

50
 Unit: Million VND

Cost Year Year 1 Year 2 Year 3 Year 4 Year 5

0

Initial cost 8150

Fixed assets 5000

Marketing 38,527 38,527 34,647.3 31,206.87 28,086.183

cost

Cost of 12,840 14,744 15,618.4 16,680.24 16,948.26

production

Wages 598,500 658,350 724,185 796,603.5 876,263.85

Cost of 8,400 8,200.15 9,005.37 9,603.24 10,381.81

selling

Depreciation 500 450 405 364.5 328.05

Total cost 13,150 658,267 719,821.15 738,456.07 854,093.85 931,680.103

(not include
dep)

Total cost 13,150 658,767 720271.15 738,861.07 854458.35 932,008.053

(included
dep)

4.h Taxes

51
According to Vietnamese law, enterprise taxes is set at 20%. Therefore, we have the
estimated profit and cash flow table:

Unit: (VND)

52
ses 0 1 2 3 4

ue 0 826,200,000,000 939,579,570,400 1,049,052,977,130 1,187,003,871,030 1,348,2

uding
931,680,1
8,150,000,000 658,267,000,000 719,821,150,000 738,456,070,000 854,093,850,000

e tax -8,150,000,000 167,933,000,000 219,758,420,400 310,596,907,130 332,910,021,030 416,5

33,586,600,000 43,951,684,080 62,119,381,426,000 66,582,004,206,000 83,304,2

r tax -8,150,000,000 134,346,400,000 175,806,736,320 248,477,525,704 266,328,016,824 333,2

53
 IV.3. Cash flow and investment efficiency
3.1. Cash Flow

Year 0 1 2 3 4

Preparatio
n

Fixed asset -
5,000,000,00
0

DWC -
206,550,000,
000

Execution

Revenue 826,200,00 939,579,57 1,049,052,9 1,187,003,8

0,000 0,400 77,130 71,030 1,348,201,135,376

Cost
(Depreciati -
on 8,150,000,00 658,767,00 720,271,15 738,861,07 854,458,35
included) 0 0,000 0,000 0,000 0,000 932

Depreciatio 500,000,00 450,000,00 405,000,00 364,500,00

n 0 0 0 0 328,050,000

Tax 33,786,600, 59,331,800, 91,341,362, 10,878,185, 163,326,083,055

000 520 519 9265

Closeout

54
Liquidation

Receiving
from DWC 206,550,000,000

Tax from
liquidation

CF - 31,146,400, 58,444,899, 117,440,93 117,742,81 164,819,004,166.24

219,700,000, 000.00 360.00 6,272.00 3,002.80
000.00
(Unit: VND)

55
The table above is the estimated cash flow table during the 5-year period
To evaluate the investment efficiency, we use the following indicators: NPV, IRR, IR,
DPP

3.2. Net Present Value (NPV)

● Definition: Net present value is the difference between the present value of total
revenue and that of total investment; or the present value of total cash flow of the
project.
● Formula:

● Meaning: NPV shows the differences between the real enterprise profit and the
minimum profit the investor required. The higher NPV is, the more profit firm can
gain.
In project selection:
● NPV > 0 → Accept project
● NPV < 0 → Reject project
● Using the formula, data and the estimated interest is 10%, we have NPV =
138,145,115,561.67 > 0
Conclusion: We accept the project.

3.3. Internal rate of Return (IRR)

● Definition: Internal rate of return is the rate of return at which total revenue is
equal to total investment.
● Formula:

56
 ● Meaning: IRR is used to estimate the profitability of potential investments. The
higher IRR is, the greater you can gain from that project.
In project selection:
● IRR > r → Accept the project
● IRR < r → Reject the project
● Basing on the cash flow, we have IRR = 15%
Conclusion: We accept the project.

3.4. Profitability of Investment (PI)

● Definition: Profitability of Investment is the ratio between the present value of
total revenue and that of total investment.
● Formula:

● Meaning: In project selection:

● PI > 1→ Accept the project
● PI < 1 → Reject the project
● From the data, we calculate PI: PI = 1.628
Conclusion: We accept the project.

3.5. Discounted Payback period (DPP)

● Definition: Discounted payback period is the duration that the present value of
total revenue is just enough to cover that of total investment.
● Formula:

57
 ● Meaning: In project selection:
● DPP > target payback→ Accept the project
● DPP < target payback → Reject the project
● From the data, we calculate DPP: DPP = 3.68 year
Conclusion: We accept the project.

ConclusioN
Because of the strong demand for healthy food, as well as the increase in number of
people who do work out, in reality, the revenue of the project increases each year.
From the above calculations, we could see that the project worth investing. After only
almost two years, the project covers all the cost and results in positive earnings. The
profit of the project increases tremendously after each year.
Both theory and reality indicate that this project will develop well in present and become
more and more desirable.

58
PART V. SOCIAL BENEFITS

V.1. Physical Health Benefits

It's no surprise that eating well affects your body in positive ways. A study published in
Progress in Cardiovascular Diseases in 2015 analyzed the effects of three diets: a
Mediterranean diet supplemented with nuts, a Mediterranean diet supplemented with
olive oil and a low-fat, calorie-restricted diet. The most health benefits emerged from the
Mediterranean diets, which improved blood pressure levels, insulin sensitivity,
inflammation and other markers of heart disease.

Upping your fruit and vegetable intake may help protect you from cancer, while
supporting your immune system. Eating enough overall calories per day – ideally as part
of balanced meals and snacks at regular time intervals – can help keep you energized.
Healthy foods can even improve your sleep, which plays an important role in weight
control.

The economic benefits of healthy eating are the value of the population health
improvements that would be realized by shifting a population to an optimal diet, all else
being equal. Shifting the US population to an optimal diet would reduce the prevalence of
not only several risk factors—e.g., obesity, hypertension, high blood cholesterol, insulin
resistance—but also myriad chronic diseases, including coronary heart disease (CHD),
stroke, type 2 diabetes, osteoporosis, and cancers of the stomach, colon, rectum,
esophagus, oral cavity, larynx, and pharynx ..

V.2. Mental Health and Social Health

YOU CAN IMPROVE YOUR PRODUCTIVITY AT WORK THROUGH using these
healthy diet food

59
When we think of the benefits of eating healthily, most of us tend to think of the long-
term advantages. And this is with good reason, because avoiding diseases and increasing
our longevity is one of the best investments we can make in our future.

But as well as reducing our risk of long-term illnesses like heart disease, cancers, type 2
diabetes and osteoporosis, eating well can have a profound effect on our productivity in
the workplace; For example
Ensures a healthy immune system, which will reduce absenteeism
Improves sleep, leading to greater concentration
Help to improve mental health
A healthy, balanced diet can help maintain a healthy weight, which gives us an improved
ability to take part in physical activities
Increases energy and alertness
These diet food BOOST CREATIVITY AND HAPPINESS AT WORK
For example, it’s been shown that the more portions of fruit and vegetables eaten per day,
the happier, more engaged, and more creative people will be at work. In a study by the
British Journal of Heath Psychology, adults who ate more healthily over a 13-day period
had greater wellbeing and also demonstrated more feelings of meaning and purpose at
work.

Our products contain all nescessary vitamins needed for your life
MAGNESIUM
Specific nutrients such as magnesium (found in leafy greens, steak and dark chocolate)
have been linked to a reduction in anxiety; magnesium has a relaxing effect on muscles.
PHENYLALANINE
Phenylalanine can cross the blood-brain barrier and it stimulates the brain to produce
mood-boosting neurotransmitters such as dopamine. Find it in almonds.
CHOLINE

60
This B-vitamin is said to improve reaction time and concentration by boosting the
functioning of neurons. It’s contained in eggs.
Improve longevity
Plenty of research suggests that eating healthy foods can help extend your life and
improve your health. Studies reveal that a healthy diet can help you sidestep ailments that
plague people more as they age, including heart disease, hypertension, cancer, and
cataracts.

V.3. Environmental Benefits

It seems that having a habit of healthy diet isn’t just good for your health but it can also
reduce significantly your impact on the environment.

As we have already known, producing and transporting the amount of food such as crops,
livestock, fishing are responsible for 20% to 30% of total global greenhouse gas
emissions. Furthermore, the large number of land in our planet is being used to grow our
food. To be honest, a latest research shows that citizens in 28 high-income nations like
the United States, Germany and Japan actually followed the dietary recommendations of
their respective governments, greenhouse gases related to the production of the food they
eat would fall by 13% to 25%. At the same time, the amount of land it takes to produce
that food could drop by as much as 17%. By the way, these findings demonstrate in a
logical fashion that a healthier diet leads to a healthier environment. There would be an
overall reduction in environmental harm if healthy diets were uniformly applied in every
country.

The environmental impacts of food production is also shown on aspect of the stability of
the food supply chain. For example, decreased consumption of meat could have a major
impact on water usage. Almost every Americans currently get about 15% of their protein

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from plant-based sources. Shifting that to 25% could result in enough water savings to
provide two-thirds of California’s water supply.

V.4. Employment benefits

Creating jobs is an iMportant goal in the country's economic development strategy. The
project's contribution to this goal is assessed by the team as follows:

4.1. In the short term

Creating jobs for food processing workers, helping them to have stable jobs and earn
more income.

4.2. In the long term

- Expanding business model, creating retail stores and taking delivery,
thereby creating a large amount of work for workers
- Expanding the scale of the food industry, thereby, developing and
promoting clean farm business models to create food supplies.
- Create high quality human resources to research and develop healthy
products

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PART VI. References
Lock K et al. The global burden of disease attributable to low consumption of fruit and
vegetables: implications for the global strategy on diet. Bull World Health Organ.
2005;83(2):100–8.

World Health Organization, Diet, Nutrition and the Prevention of Chronic Diseases:
Report of a Joint WHO/FAO Expert Consultation, in WHO Technical Report Series No.
916. 2003, Geneva, Switzerland.

August McLaughlin, November 28, 2018, healthyeating.sfgate.com, “How Does Eating

Healthy Affect Your Physical, Mental & Social Health?”

Hartmann C, Dohle S, Siegrist M. Importance of cooking skills for balanced food

choices. Appetite. 2013

Drewnowski A, Almiron-Roig E. Human perceptions and preferences for fat-rich foods.

In: J.-Montmayeur P, Coutre JL editors. Fat detection: taste, texture, and post ingestive
effects. 2010. p. 265–266.

https://www.brookings.edu/blog/future-development/2018/04/17/vietnams-
manufacturing-miracle-lessons-for-developing-countries/

https://www.vietnam-briefing.com/news/vietnam-ranked-69th-in-ease-of-doing-business-
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https://www.worldbank.org/en/country/vietnam/overview

https://www.euromonitor.com/dairy-in-vietnam/report

https://www.statista.com/outlook/40010000/127/milk-products/vietnam

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http://vinanet.vn/thuong-mai-cha/tong-quan-tinh-hinh-xuat-nhap-khau-sua-va-san-pham-
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https://www.slideshare.net/asiaplus_inc/vietnamese-diet

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