December 8, 2006

 

Vinamilk shares set price record despite labelling violations

 

 

Vinamilk's shares (VNM) have set a record in price despite the fact that Ministry of Health inspectors have discovered violations by the company in product labelling.

 

The Vietnam News Bridge reported that VNM shares yesterday traded at the record price of VND115,000 per share (US$7.15), up by VND5,000 (US$0.31) or 4.55% over the previous transaction. The 515,800 shares that were traded has amounted to 12.58% of the total traded shares.

 

Vinamilk has put 59 million shares into transaction on the stock market amounting to VND1,590 billionl (US$99.37million). The total shares, as of December 6 market value, are worth VND18.29trillion (US$1.14billion), making Vinamilk the biggest company in Vietnam's stock market.

 

Inspectors from the Ministry of Health have earlier declared that Vinamilk had violated laws on labelling products. Its 'sugar-free sterilised fresh milk' has been being labelled as 'pure fresh sterilised milk'.

 

In addition, customers have found Vinamilk yoghurt product with two labels that contains different information.

 

Despite the negative publicity, many foreign investors are still buying Vinamilk shares and are ready to pay high prices for the shares.

 

Vinamilk holds 75 percent of the country's dairy market and has seen consistently high growth rates in recent years.

 

Vinamilk will list its shares on the Singaporean stock market in 2007.

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