Accordingly, Vinamilk is the first dairy company in Vietnam to be successfully registered in the list of organisations and individuals allowed to export milk to the EAEU.
The EAEU is a common market consisting of five countries including Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan, and is an economic region with good growth figures. With a gross domestic product (GDP) of US$1.9 trillion and a population of 183 million (in 2018), the 2015-established union is an area with great development potential.
Thanks to active instructions from the Department of Animal Health under the Vietnamese Ministry of Agriculture and Rural Development, together with its thoughtful preparations and great production potential, including 13 modern factories and 12 large-scale high-tech dairy cow farms that meet international standards, Vinamilk has passed all surveys and met the strict standards of EAEU countries, becoming the first Vietnamese dairy business to gain approval for exports to the five EAEU member nations.
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Modern production lines at Vinamilk's factories.
Many years ago, Vinamilk had made its first approaches to consumers in Russia and Kazakhstan to introduce its soft drinks derived from tropical fruits, which are Vinamilk’s strength. It was also the company’s methodical step to survey the market and explore the tastes of consumers.
The EAEU market is considered to have a great demand for Vietnam’s strong commodities, including agricultural products. Moreover, the free trade agreement between Vietnam and the EAEU, which came into effect in late 2016, has opened up great trade opportunities between the relevant countries. According to statistics, the import-export turnover between Vietnam and the EAEU reached US$4.9 billion in 2018. In the first nine months of 2019, the figure reached US$3.7 billion and was estimated to have amounted to US$5 billion for the whole year, of which Russia accounted for the largest proportion with more than 90%.
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Vinamilk participates in the Gulffood, the world's largest annual food & beverage trade exhibition, in Dubai, UAE and successfully signs a milk export contract worth US$20 million there.
Therefore, it can be said that becoming the first Vietnamese dairy business licensed for exports to the EAEU is not only significant for Vinamilk but also to Vietnam’s dairy industry in general, as it has opened the door for Vietnamese milk to penetrate into a new market with great potential.
However, in terms of another aspect, Russia and the EAEU countries have been known for their long-standing and highly developed dairy cow farming industry. So, there are still many challenges meaning the Vietnamese group must apply the right strategies in order to effectively exploit the market.
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The batch of Ong Tho sweetened condensed milk exported by Vinamilk to China in April 2020.
Mai Hoai Anh, Executive Director - International Sales at Vinamilk, said: “Vinamilk has more than 20 years of experience exporting to 53 countries and territories. In many markets, dairy products are always competitive items, so initially, there will certainly be numerous difficulties. Yet, Vinamilk will prepare well to devise appropriate approach strategies with our strong products to effectively exploit this market.”
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Vinamilk's soy bean and milk tea products have reached consumers in the Republic of Korea.
In the context of the economy in Vietnam and the world suffering from the impacts of the COVID-19 pandemic, with an effective business strategy and great resilience in the opening months of 2020, Vinamilk has been rated by Forbes Vietnam as one of the “Top 50 best-listed companies” in 2020 for the eighth consecutive time. Currently, Vinamilk is also the only Vietnamese company in the Top 50 largest dairy companies in the world in terms of revenue, and is moving very close to the Top 30 according to its strategic goals.
