Enhancing Presence and Forging New Connections
Vinamilk’s dairy export revenue surged in the first six months of 2024 with a growth rate of over 37%, continuing the upward trend since 2023. This remarkable performance highlights the effectiveness of their international business operations, achieved through a combination of trade support and promotion measures, enhanced brand presence, and the exploration of new customer opportunities.
The company’s successful trade promotion activities have significantly contributed to their international business results over the past period.
Mr. Vo Trung Hieu, Vinamilk’s International Business Director, shared his insights: “Participating in international exhibitions and fairs is a regular activity for Vinamilk. We focus on introducing our international-quality products and services to global partners. Many are surprised to learn that Vietnam can produce dairy products that meet a wide range of high standards, taste delicious, and are competitively priced.”
In just the first six months of this year, several new names have been added to Vinamilk’s export market, spanning across Australia, South America, and Africa. Along with expanding into new markets, the company also deepens relationships with long-standing strategic partners, such as those in the Middle East, where collaborations have endured for 10-20 years.
“When we visited Vinamilk’s factory, we were impressed by their closed-loop process, adhering to international standards from start to finish, with a high level of automation. Additionally, their packaging is environmentally friendly, and consumers in our market often reuse the milk cartons,” shared Mr. Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East, after touring the company’s children’s milk powder factory.
Import partners are impressed by their first-hand experience of Vinamilk’s Vietnam-based milk powder factory.
Product Quality Remains the Key to Market Success
Vinamilk has come a long way since exporting their first product, Dielac infant formula powder. Today, they offer nearly 400 types of products exported to 61 countries, with quality standards remaining the biggest hurdle in any market, especially for food and beverage products. Recently, Vinamilk added another item to their export portfolio—yogurt to the US market—shortly after obtaining FDA approval for this product.
Consistent quality and adherence to international standards are prerequisites for export enterprises.
However, many countries have unique and specific standards, presenting challenges for businesses aiming to enter those markets. Vinamilk, with its 13 factories boasting various international certifications, is well-positioned to overcome these hurdles. These include FSSC 22000 (Dutch International Food Safety Management System Certification), BRC (British Retail Consortium Standard), SMETA (Sedex Members Ethical Trade Audit), FDA (US), HALAL (certification for Muslim countries), Organic EU (European Organic Standard), and GMP (US Good Manufacturing Practice standards), to name a few.
Mr. Mai Ba Dung, Director of the Saigon Dairy Factory (Vinamilk), which produces exports for the demanding markets of Australia and New Zealand, shared his insights: “Our factory currently provides 683 million chilled products for export annually. Each product that leaves our facility undergoes a rigorously controlled process adhering to over nine standards, both Vietnamese and international. As a producer of chilled products, we invest in every stage, from raw material procurement and processing to intelligent cold storage systems that sense temperature, ensuring optimal product quality.”
Unlocking New Competitive Advantages and Leveraging FTAs
The trend towards sustainable development has become a focal point in global trade. In Australia and New Zealand, Vinamilk’s compliance with stringent environmental packaging requirements has allowed them to enter the supply chains of the region’s largest international supermarket chains, including Costco, Woolworths, and Foodstuff. In these two markets, Vinamilk recorded revenue growth of over 50% compared to the same period last year.
Vinamilk’s drinking yogurt, which does not require a straw and has easily recyclable packaging, has been exported to the Oceania region.
Furthermore, the comprehensive utilization of FTAs signed by Vietnam has provided Vinamilk with a competitive edge in sales and boosted their export growth. According to the company, their current rate of obtaining the C/O certificate of origin for preferential tax treatment stands at over 53%, significantly higher than the average of 37.35% as per the summary of the Ministry of Industry and Trade. As an example of effective FTA utilization, Vinamilk highlights the markets of Japan and Canada, with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Both markets recorded revenue growth of approximately 40% compared to the same period in 2023, despite their high standards for imported goods.
“Moving forward, we will continue to focus on new markets with high potential, such as Africa and South America. However, to take advantage of FTAs, we must meet requirements related to product origin, which entails adjustments to our raw material sources and production lines,” added Mr. Hieu.
With over 26 years of experience in exporting dairy products, Vinamilk has achieved a cumulative export turnover of more than 3.3 billion USD, offering over 300 SKUs across various categories, including condensed milk, milk powder, and yogurt.
“Vinamilk’s Heartwarming Back-to-School Gift: 200,000 Boxes of Nutrition for Children.”
On the joyous occasion of the ‘National Back to School Festival’ on September 5, 2024, Vinamilk, the leading Vietnamese dairy company, partnered with the Vietnam Children’s Fund to donate nearly 200,000 boxes of fresh milk to students as part of their 2024 initiative. This heartwarming gesture is a testament to Vinamilk’s commitment to nurturing the future generations of Vietnam and ensuring their healthy development.
Vinamilk – Vietnam’s Premier FMCG Company: 12 Consecutive Years in Forbes Vietnam’s Top 50 Listed Companies.
For 12 consecutive years, Vinamilk has consistently ranked among the top 50 best-listed companies, and it stands alone as the only representative from the dairy industry and the fast-moving consumer goods (FMCG) sector to boast such an impressive record. This remarkable achievement offers a compelling insight into why Vinamilk continues to be a magnet for investors.
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Feeling bloated and uncomfortable? It’s time to give your digestive system a delicious treat with Probi’s drinkable yogurt packed with live and active probiotics. Probi is a trusted brand known for its delicious and healthy yogurt drinks that not only taste amazing but also help improve digestion. With a variety of mouth-watering flavors to choose from, Probi is the perfect way to beat that bloated feeling and get your gut back on track! Join us as we explore the wonderful world of Probi and uncover the secrets behind its delightful flavors.
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