Strong export performance
Exports have helped Vinamilk become one of the few companies to ‘turn the tide’ amid difficult conditions. In 2023, the dairy giant reported net export revenue exceeding 5 trillion VND, a 4.4% growth from the previous year. This contributed to an overall net revenue increase of 0.7%, reaching 60.369 trillion VND. In Q4 2023 alone, net export revenue surged by 19.3% year on year.
The year 2023 was eventful for Vinamilk, starting with the signing of major contracts for the Middle East market at the Gulfoods Dubai exhibition. Later, the company expanded to China, Japan, and the Republic of Korea, strengthening trade promotion activities in these regions. A highlight of Q3 2023 was a memorandum of understanding with two leading companies in China’s dairy and agricultural product import and distribution sector.
Although specific figures haven’t been disclosed, Vinamilk representatives have reported positive growth in Q1 exports this year. At the end of Q1 2024, Vinamilk had fulfilled a large order of over 300 containers of infant formula and nutritional powders for export to the Middle East.
Several securities companies predict that exports will remain a bright spot for Vinamilk this year. KB Securities (KBSV) forecasts that, as the global economy recovers, demand will rise among Vinamilk’s major export markets (Southeast Asia and the Middle East), especially as Middle Eastern consumers are increasingly favouring Vinamilk products.
Leveraging strengths for growth
Vinamilk’s export growth is still driven by its primary markets, including the Middle East, Japan, the Republic of Korea, China, and Southeast Asia.
In the Middle East, for instance, export revenue has nearly doubled over the past decade, with further growth potential. After years of leading the infant formula segment, Vinamilk has expanded its product portfolio in this market to include 50 SKUs, with premium items like specialised formulas, adult powder, and nutritional products. Recently, Vinamilk has been collaborating with partners to strengthen the medical channel for its specialised products and explore new sales methods, such as livestream selling, to better engage customers.
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A solid production foundation, flexible product development capacity and dedicated service are the “three pillars” for Vinamilk’s export sector. |
In Asia, Vinamilk’s condensed milk, fresh milk, and yogurt products have also seen positive growth as consumer demand rises. In China, following a new partnership agreement, Vinamilk’s first shipment of durian-flavoured yogurt hit the shelves in late 2023. Prior to this, its flagship product, Ong Thọ condensed milk, entered major supermarket chains in Guangzhou.
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Vinamilk’s durian-flavoured yogurt is exported to the Chinese market. |
Future potential
Although dairy is not yet a dominant export for Vietnam, shifting global consumption trends present significant opportunities. Vinamilk is actively expanding its market share in high-income regions in Asia and exploring new, promising markets in Central and South America and the Caribbean.
According to KBSV, Vinamilk products are well-received in developed markets due to consistent production quality and adherence to ESG standards. For example, in Australia, which enforces strict ‘green’s import policies, Vinamilk products use HDPE (recyclable packaging) without plastic straws and with easier-to-open caps to reduce plastic waste. As a result, Vinamilk’s products are now available in major retail chains in Australia such as Costco, Woolworths, Coles, Aldi, and Foodstuff, with an annual sales growth of over 10%.
Vinamilk leverages its nationwide network of farms and factories, many certified for carbon neutrality, as a competitive advantage in exports and to position itself as a leader in sustainable production. Additionally, the free trade agreements Vietnam has signed serve as a springboard, facilitating Vinamilk’s entry into potential markets.
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Many new products have been added to Vinamilk’s export portfolio to meet the needs of new markets such as Australia and New Zealand. |
With over 25 years of export experience, Vinamilk products are now available in more than 60 countries, including the United States, Japan, the Republic of Korea, Singapore, New Zealand, Australia, China, and all Southeast Asian nations, with cumulative export turnover exceeding 3.2 billion USD.
