Vinamilk’s dairy export revenue has seen a remarkable surge in the first half of 2024, with a growth rate of over 37% compared to the previous year. This continues the upward trajectory from 2023, showcasing the effectiveness of their international business strategies. This success is attributed to a combination of supportive solutions, trade promotions, enhanced brand presence, and the exploration of new customer groups and opportunities.
The effective trade promotion activities have had a significant impact on Vinamilk’s international business results over the past year.
Mr. Vo Trung Hieu, Director of International Business at Vinamilk, 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, offering delicious and competitively priced options.”
In just the first six months of this year, Vinamilk has expanded its export market to include new regions such as Australia, South America, and Africa, in addition to its existing 61 markets. While exploring new opportunities, Vinamilk also deepens its relationships with long-term strategic partners, such as those in the Middle East, with whom they have been collaborating for 10-20 years.
“When we visited the Vinamilk factory, we were impressed by the closed-loop process, from input to output, adhering to international standards and a high level of automation. Additionally, your packaging is environmentally friendly, and our consumers often reuse the milk cartons in our market,” shared Mr. Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East, during his visit to the children’s powdered milk factory.
Import partners were impressed by their visit to Vinamilk’s Vietnam powdered milk factory.
Product Quality Remains the Key to Market Success
According to statistics, Vinamilk has come a long way since its first exported product, Dielac-branded infant formula. Today, they offer nearly 400 export products to 61 countries, with quality standards remaining the biggest hurdle in any market, especially for food and beverage products. Recently, Vinamilk added yogurt to its export portfolio to the US market after obtaining FDA approval for this product.
Production capacity, consistent quality, and adherence to international standards are prerequisites for export businesses.
However, many countries have unique and specific standards, presenting a challenge for companies aiming to enter those markets. Vinamilk’s advantage lies in its system of 13 factories with various international standards that facilitate exports, including FSSC 22000 (Dutch International Food Safety Management System Certification), BRC (British Retail Consortium Standard), SMETA (Sedex Members Ethical Trade Audit), FDA (US), HALAL (Islamic Countries Standard), Organic EU (European Organic Standard), and GMP (US Good Manufacturing Practices), to name a few.
Mr. Mai Ba Dung, Director of the Saigon Dairy Factory (Vinamilk), which produces exports to 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 factory undergoes a controlled process with over nine standards, both Vietnamese and international. As a factory specializing in chilled products, we invest in every stage, from raw material intake and processing to intelligent cold storage systems that sense temperature, to ensure optimal product quality.”
Unlocking New Competitive Advantages and Leveraging FTAs
The trend towards sustainable development is also gaining prominence in world 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 products, which do not require straws and have easily recyclable packaging, have been exported to the Oceania region.
Furthermore, Vinamilk has effectively leveraged the FTAs that Vietnam has signed, creating a competitive advantage and boosting export growth. According to the company, the current rate of obtaining the C/O certificate of origin to enjoy tax incentives at Vinamilk is over 53%, higher than the average of 37.35% as summarized by the Ministry of Industry and Trade. An example of effective FTA utilization shared by the company is the Japanese and Canadian markets, with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Specifically, both markets recorded revenue growth of about 40% compared to the same period in 2023, despite their high standards for imported goods.
“We plan to continue focusing on new markets with high potential, such as Africa and South America. However, to take advantage of FTAs, we need to meet requirements related to origin and make changes to our raw material sources and production lines,” added Mr. Hieu.
To date, Vinamilk has over 26 years of experience in exporting dairy products, with over 300 SKUs across various categories, including condensed milk, powdered milk, and yogurt, achieving a cumulative export turnover of more than 3.3 billion USD.
“Vinamilk Elevates Vietnamese Dairy’s Competitive Edge with Quality Assurance for Global Exports.”
Vinamilk’s international business ventures are not just positively contributing to its business performance, but are also taking the pride of Vietnamese brands to the global stage. With a continuous expansion into new export markets and an increasingly diverse range of products that meet the highest global standards, Vinamilk is firmly establishing “Made in Vietnam” dairy products on the world map.
“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.
“Beat the Bloat: Try Probi Live Yogurt Drink for Better Digestion”
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.
Which Milk Reigns Supreme: Vinamilk or TH True Milk?
Introducing two powerhouse dairy brands in the Vietnamese market: Vinamilk and TH True Milk. As prominent players in the industry, these two have likely sparked a dilemma for many consumers. If you’re torn between these dairy giants, why not delve into a comparative exploration to aid your decision-making process?
