DEEP CONNECTIONS AND INCREASED VISIBILITY
Vinamilk’s export revenue surged in the first half of the year, continuing the upward trend since 2023. This success highlights the effectiveness of combining support and trade promotion measures, thereby increasing brand presence, seeking opportunities, and developing new customer groups.
Vinamilk’s export market has expanded to include new destinations in Oceania, South America, and Africa, bringing the total number of countries the company has reached to over 60. This also showcases the successful exploitation of international trade promotion activities to seek partners and explore new markets.
Mr. Vo Trung Hieu, Vinamilk’s International Business Director, added: “Participating in international exhibitions and fairs is a regular activity for Vinamilk. We focus on introducing our international partners to Vinamilk’s products and services that meet international quality standards. Many partners are surprised to learn that Vietnam can produce dairy products that meet a series of high standards, taste delicious, and are competitively priced.”
In addition to seeking opportunities in new markets, the company has also deepened its relationships with long-term strategic partners. Mr. Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East, shared his experience after visiting Vietnam and Vinamilk’s infant formula factory: “We were truly impressed by Vinamilk’s closed-loop process, from input to output, all applying international standards and a high level of automation. Furthermore, your packaging is environmentally friendly, and your milk cartons are often reused by consumers in our market.”
MAXIMIZING FREE TRADE AGREEMENTS (FTAs)
Fully exploiting the FTAs that Vietnam has signed has created a competitive advantage and supported the growth of Vinamilk’s exports. Currently, the rate of obtaining certificates of origin (C/O) for preferential tax treatment at Vinamilk has reached over 53%, higher than the average of 37.35% (according to statistics compiled by the Ministry of Industry and Trade).
An example of effective FTA utilization, as shared by the company’s representative, is the Japanese and Canadian markets, leveraging the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Specifically, both markets recorded revenue growth of approximately 40% compared to the same period in 2023, despite their high standards for imported goods.
“The number of FTAs now covers almost all major markets, and there is still ample room for growth,” said Mr. Hieu. “As planned, we will continue to focus on new markets with high potential, such as Africa and South America. However, it is essential to understand that to take advantage of FTAs, we need to meet requirements related to rules of origin, which may entail changes in raw material sources and production lines.”
RISING PRODUCT QUALITY DEMANDS
Quality standards remain the most significant barrier in all markets, especially for food and beverage products, and particularly in developed countries. For instance, Vinamilk recently started exporting yogurt to the US market immediately after obtaining FDA approval (US food safety standards) for this product. However, many countries also apply unique sets of standards, which poses a challenge for businesses aiming to unlock these markets.
Vinamilk has the advantage of owning 13 factories with numerous international standards that facilitate exports, such as FSSC 22000 (International Food Safety Management System Certification – Netherlands), BRC (British Retail Consortium Standard), SMETA (Sedex Members Ethical Trade Audit), FDA (USA), HALAL (Islamic Countries Standard), Organic EU (European Organic Standard), and GMP (Good Manufacturing Practices – USA)…
The trend towards sustainable development is becoming a focal point in world trade. In Australia and New Zealand, by meeting stringent environmental packaging requirements, Vinamilk has been able to supply products to the region’s largest international supermarket chains, including Costco, Woolworths, and Foodstuff. In both markets, Vinamilk recorded revenue growth of over 50% compared to the previous year.
In 2024, Vinamilk aims to achieve a revenue target of VND 63,163 billion, with its international business and overseas branches expected to increase their contribution. To date, Vinamilk has over 26 years of experience in exporting dairy products, with more than 300 types of products in various categories, including condensed milk, milk powder, and yogurt. The cumulative export turnover has exceeded 3.3 billion USD.
According to experts, to achieve the export targets for 2024, flexible and innovative trade promotion activities, combining traditional and modern promotion methods, will be a driving force. Additionally, international standard production capacity, consistent product quality, and the ability to capture new consumption trends will be the factors for long-term and sustainable growth.
Vinamilk: Impressive nearly 20% growth in Q4/2023 export revenue
Vinamilk has announced its financial report for Q4 2023, recording a consolidated total revenue and after-tax profit of VND 15,630 billion and VND 2,351 billion, respectively. This represents an increase of 3.6% and 25.8% compared to the same period last year. For the full year, the consolidated total revenue and after-tax profit reached VND 60,479 billion and VND 9,019 billion, completing 95% of the revenue target and 105% of the profit target.
Attracting talented individuals is challenging, but retaining them is even more difficult.
Not only is it about salary and benefits, but employees nowadays also have increasing desires for their working environment. Among them, what used to be considered as “additional perks” such as comprehensive healthcare programs, learning and development opportunities, and an environment to explore new things… are now being prioritized.
