Singapore-based F&N Dairy Investments and Platinum Victory, a subsidiary of Hong Kong-based Jardine Matheson, announced their unsuccessful attempts to acquire 17.41 million shares of Vinamilk, equivalent to 1% of the company stake.

Both companies cited unfavorable market conditions for failing to buy such amounts, and renewed their attempts to buy 1% stake of Vinamilk, starting July.

The transaction period for F&N Dairy Investment is scheduled from July 10 to August 8, and from July 4 to August 2 for Platinum Victory, via put-through transactions and order matching transactions on Ho Chi Minh City Stock Exchange (HoSE).

Since early 2018 to date, F&N Dairy Investment and Platinum Victory have been competing with each other for the acquisition of 1% of Vinamilk stake, but their respective moves have failed to materialize.

F&N Dairy Investment is a 100%-owned subsidiary of Fraser & Neave, a group backed by Thai tycoon Charoen Sirivadhanabhakdi. The fund is currently the second largest shareholder at Vinamilk, holding 301 million shares or 17.31% stake,  after State Capital Investment Corporation (SCIC) with 36%.

Meanwhile, Platinum Victory currently holds 10.62% stake of Vinamilk, following its purchase of VND9 trillion (US$386.31 million) for 3.3% stake of the dairy company in November 2017.

Vinamilk shares closed on July 5 at VND126,200 (US$5.42) apiece, taking its market capitalization to nearly VND220 trillion (US$9.44 billion), which is Vietnam’s fourth largest company on HoSE in terms of market capitalization, following Vingroup, Vinhomes and Vietcombank.

In previous shareholders meeting, Vinamilk stated Vietnam’s dairy industry has huge potential for development, given a large-scale market with a population of over 90 million.

Currently, per capita milk consumption in Vietnam stands at 19kg/person/year, which is quite low compared to regional countries, including 22.5kg in China, 26.7kg in Malaysia, 31.7kg in Thailand, and 40.1kg in South Korea.

Vietnam’s dairy industry posted revenue of over VND100 trillion (US$4.4 billion) in 2017, an increase of 10% over the previous year, with Vinamilk commanding a market share of around 55%, according to Viet Dragon Securities Company (VDSC).

The local dairy market is expected to double its size by 2020, reaching US$8.2 billion as Vietnam’s population is projected to increase by five million people, and personal income and dairy consumption are foreseen to increase at 15% and 7% compounded annual growth rate, respectively.