Vinamilk remains leader in liquid milk market in Vietnam

According to Nielsen Vietnam, Vinamilk was the top producer of liquid milk in the Vietnamese market for three consecutive years from February 2018 to January 2021. In a rapidly growing and highly competitive market, what are the factors that help Vinamilk maintain its top position, especially during the Covid-19 pandemic?

A modern Vinamilk production line, with an annual capacity of 800 million litres
A modern Vinamilk production line, with an annual capacity of 800 million litres

Broad and constantly updated portfolio of products

The Vietnamese dairy market is becoming more and more diverse in terms of product types, but liquid milk and powdered milk remain the two largest sectors, with Vinamilk seeing comprehensive growth in both segments and remaining a market leader for many years.

In its portfolio, Vinamilk has nearly 250 types of products, including 50 types of liquid milk that meet the nutritional needs of almost all consumers. According to Vinamilk’s chief marketing officer Phan Minh Tien, liquid milk is its core product with a major level of investment. Besides ensuring the quality and nutritional value of its products, Vinamilk will focus on diversifying its liquid milk products in order to cater to consumers of different ages and segments ,developing premium products selectively.

“At the same time, Vinamilk will continue to develop its dairy farms with world-leading quality standards and increase farm sizes so as to proactively secure fresh and nutritious sources with exceptional quality. This is one factor that helps increase Vinamilk’s competitiveness in this sector, especially in regards to imported products”, said the Vinamilk representative.

New products are constantly being introduced by Vinamilk, with many unique improvements covering all segments from medium-grade to premium products. In addition to introducing new products, Vinamilk also focuses on strengthening its traditional products by modifying the packaging, diversifying the flavours and introducing low-sugar and skimmed milk.

Developing dairy farms in terms of both quantity and quality

As a leader in the liquid milk market for many consecutive years, Vinamilk has demonstrated its clever corporate direction in proactively securing its milk raw material by expanding its cow numbers while enhancing output and quality at the same time.

The cows managed by Vinamilk can currently produce more than 1 million litres of raw milk per day. Its system of 13 farms are constantly being expanded and applying advanced technologies that meet global and European standards. Vinamilk is planning to increase the number of cows under its management to 170,000 by 2022-2023.

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Vinamilk currently has 13 dairy farms throughout Vietnam, meeting international standards.

Large farming zones allow Vinamilk to be proactive in producing its lines of fresh milk. Recently the company developed an ecological farming model called “Vinamilk Green Farm” with three farms in Thanh Hoa, Quang Ngai and Tay Ninh Provinces. In this model, farms are equipped with the most ideal conditions but are also environmentally friendly.
The system of ecological farms is providing the material for the Vinamilk Green Farm product line, which belongs in the premium segment. With such a breakthrough, it is expected to breathe new life into the company and help reinforce Vinamilk’s top position in the liquid milk market.

Extensive and multi-platform distribution network

Shopping convenience plays an important role in consumers’ buying decisions, especially in the markets of fast-moving consumer goods, drinks and nutritional products. Vinamilk currently boasts a distribution network of 240,000 traditional retail outlets and another 7,800 modern outlets, and counting.

Recently, its distribution network entitled “Vietnamese Dairy Dream” reached the threshold of 500 stores in all 63 provinces and cities. The retail website launched in 2016 at is also proving to be effective, especially during the social distancing period due to Covid-19.

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Vinamilk has upgraded its retail website and mobile app in recent years.

As the whole dairy industry records negative growth after one year of pandemic impacts, Vinamilk still affirms its strength with stable business performance. According to recent statistics, the company has jumped six places to number 36 in the top 50 dairy companies in the world. It shows its internal strengths are being utilised by Vinamilk at the right time in the domestic market to create momentum for expanding to international markets.