Vinamilk outlines future of dairy industry

Nguyen Quang Tri, Marketing executive director of Vinamilk, shared the highlights of the company's journey of development over the last 47 years at the 2023 Global Dairy Congress held in London with the theme "Reimagining Dairy".

During the congress, Vinamilk Super Nuts was honored for "Best Dairy Alternative 2023" at The World Dairy Innovation Awards 2023. This marks the first time the company attended this event, demonstrating its commitment to product innovation and development in the industry.

This is the third time Vinamilk presented at this global congress as the sole representative from ASEAN. With Vietnam’s population set to reach the milestone of 100 million people, Tri highlighted at the beginning of his presentation that this opportunity is a mark of great potential and dynamism for the dairy industry.

Nguyen Quang Tri, marketing executive director of Vinamilk. Photo courtesy of Vinamilk

Despite starting with limited resources for dairy development such as modern factories and large-scale dairy farms, the Vietnamese dairy industry finally has a new look after nearly half a century.

A prime example of this transformation is the Dielac brand, launched 34 years ago. It was the first Vietnamese baby formula to be exported and has since become Vinamilk's main export product.

During its development journey, Vinamilk has crossed many major milestones, including a US$100 million investment in 2013 to build the first infant formula mega factory with an annual capacity of 54,000 tons. This investment marked a breakthrough in both the capacity and quality of the product for Vinamilk.

Vinamilk is continuing to expand cooperation and invest in factories and farms with an estimated investment of $600 million planned for future market demands.

Recently, Vinamilk has cooperated with the world's leading nutrition experts groups, such as DSM, CHR Hansen, Gnosis, Kanematsu, AKK and Beneo, to develop world-class nutrition solutions that meet the latest-update international standards.

In 2023 all of Vinamilk's formula products have won the "Purity Award," the U.S. award for purity and safety standards for food based on more than 400 important criteria.

As one of the largest dairy companies in Vietnam, Vinamilk ranks also among the top 40 dairy companies in the world in terms of revenues and is among the 10 most valuable dairy brands (6th position) with the best systems in the world.

The company operates farms and factories across the country, exporting dairy products to nearly 60 countries and territories. The dairy industry in Vietnam is undergoing a strong transformation into a sustainable and constantly innovating one.

Richard Hall, chairman of the 16th Global Dairy Conference, said he was inspired by the journey of Vinamilk and the Vietnamese dairy industry in general.

"I am fascinated by the story of Vinamilk’s CEO and the company, from the early beginning in very difficult circumstances. They have created a world-ranking business. They are developing amazing products, taking care of social problems, and all the health and well-being issues. And now, they are reaching into the world of dairy."

Piercristiano Brazzale, president of the International Dairy Federation (IDF), said Vinamilk is a large, dynamic, innovative, and efficient company in Vietnam. The IDF also has welcomed Vietnam to join the organization and cooperate with Vietnam and Vinamilk to further develop the dairy industry, he said.

Piercristiano Brazzale (C), president of the International Dairy Federation. Photo courtesy of Vinamilk

Vietnam's dairy industry has grown to be worth over US$5 billion, however, it still holds a lot of potential for further development. Despite being one of largest dairy producers in Southeast Asia, per capita dairy consumption in Vietnam remains low at 27 liters per person per year, compared to Thailand’s 35 liters and Singapore’s 45 liters, as of 2021.

Nevertheless, a report by Research and Markets forecasts per capita dairy consumption in Vietnam to grow at 4% annually and reach 40 liters by 2030.

The Dairy Research Network’s report indicates that global production has been on the rise and demand of dairy products is expected to be 35% higher by 2030. This trend is particularly evident in developing countries, where people are becoming increasingly accustomed to consuming milk.

Hall highlighted that the health benefits of dairy products and ingredients are also creating opportunities for the development of the industry. However, he also warned that achieving sustainable development is a pressing challenge and an urgent requirement for the dairy industry in the context of the global response to climate change.

Richard Hall (R), chairman of the Global Dairy Conference, observed at Vinamilk's dairy products. Photo courtesy of Vinamilk.