Deep Connections and Heightened Presence: Elevating Vinamilk’s Global Footprint
Vinamilk’s export revenue surge in the first half of 2024, building on the momentum from 2023, underscores the effectiveness of combining support and trade promotion initiatives. This strategic approach has enhanced the brand’s presence, unlocked new opportunities, and fostered the development of fresh customer relationships.
 Q2 2024 export-driven revenue serves as a prominent highlight
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Vinamilk’s export market landscape has expanded to include new entrants from regions such as Australia, South America, and Africa, pushing the total count of countries within its reach to over 60. This expansion testifies to the successful exploitation of international trade promotion activities to seek out partners and tap into untapped markets.
Mr. Vo Trung Hieu, Vinamilk’s International Business Director, sheds light on this aspect: “Participating in international exhibitions and fairs is a regular feature for Vinamilk. These platforms offer us a valuable opportunity to showcase our internationally acclaimed products and services to prospective global partners. Many are taken by surprise when they learn that Vietnam is capable of producing dairy products that meet a myriad of stringent standards, offering delectable flavors at highly competitive prices.”
In tandem with exploring new market avenues, Vinamilk has also been cultivating its longstanding strategic partnerships, fostering deeper connections. Mr. Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East, expresses his sentiments following a visit to Vietnam and a tour of Vinamilk’s infant formula plant: “We were truly impressed by the closed-loop process employed at the Vinamilk factory, encompassing everything from input to output and adhering to international standards with a high level of automation. Moreover, your packaging is environmentally friendly, and our consumers often reuse the milk cartons.”
Import partners are impressed during their visit to Vinamilk’s Vietnam Powdered Milk Factory
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Harnessing the Power of Free Trade Agreements (FTAs)
The strategic exploitation of FTAs that Vietnam has signed on to has bestowed upon Vinamilk a competitive edge in sales, catalyzing its export growth trajectory. Presently, the rate of CO (Certificate of Origin) issuance for preferential tax treatment at Vinamilk surpasses 53%, dwarfing the average of 37.35% as per the Ministry of Industry and Trade’s aggregated data.
Illustrating the effective utilization of FTAs, Vinamilk highlights the markets of Japan and Canada, beneficiaries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Both these markets have witnessed a remarkable surge in revenue, climbing by approximately 40% compared to the same period in 2023, despite their stringent standards for imported goods.
“The current array of FTAs covers nearly all major markets, and there remains ample room for growth,” adds Mr. Hieu. “Moving forward, we intend to intensify our focus on burgeoning markets like Africa and South America. However, it’s imperative to understand that leveraging FTAs necessitates meeting requirements pertaining to origin, which may entail adjustments in raw material sources and production lines.”
Navigating the Ever-Rising Quality Benchmarks
Quality standards remain the most formidable barrier across all markets, particularly for food and beverage products, and this challenge is amplified in developed countries. For instance, Vinamilk recently commenced exports of yogurt to the US market following the attainment of FDA (US food safety certification) for this product. However, certain nations implement unique sets of standards, posing additional hurdles for aspiring exporters.
Vinamilk’s robust advantage lies in its possession of 13 factories boasting a multitude of international certifications that facilitate exports, including FSSC 22000 (International Food Safety Management System Certification – The Netherlands), BRC (British Retail Consortium Standard), SMETA (Sedex Members Ethical Trade Audit), FDA (USA), HALAL (Certification for Islamic Countries), Organic EU (European Organic Certification), and GMP (US Good Manufacturing Practices), to name a few.
The global trade arena is witnessing a paradigm shift towards sustainable development, and Vinamilk has adeptly risen to the occasion. In Australia and New Zealand, by satisfying the stringent environmental packaging requirements, Vinamilk has successfully integrated itself into the supply chains of the region’s largest international supermarket chains, including Costco, Woolworths, and Foodstuff. Both these markets have witnessed a remarkable revenue upswing, with growth rates surpassing 50% compared to the previous year.
For the year 2024, Vinamilk is poised to attain a revenue target of VND 63,163 billion, with its international business and overseas branches projected to contribute significantly to this figure. With over 26 years of experience in exporting dairy products, boasting a diverse portfolio of over 300 products across condensed milk, milk powder, yogurt, and more, Vinamilk has accumulated total export turnover of more than USD 3.3 billion.
To accomplish the export targets set for 2024, experts advocate for agile and innovative trade promotion endeavors, blending traditional and modern approaches. Additionally, they underscore the enduring growth drivers: internationally accredited production capabilities, uniform product quality, and a keen sense of evolving consumer trends.
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.
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