Vinamilk tailors strategy for exporting to win

Recently, Vietnam Dairy Products Joint Stock Company (Vinamilk) was named in the List of Reputable Exporters of 2019 by the Ministry of Industry and Trade (MoIT) for the category of milk and dairy products.

The list, which comprises 268 companies in various sectors, was based on recommendations by related agencies on the basis of criteria set by the MoIT like minimum export turnover, reputation among foreign customers and fulfillment of customs, taxation and environmental obligations.

The certificate enables enterprises to boost their global profile and expand markets.

Building trust for overseas expanding

Already the leading dairy company in Vietnam in terms of market share, in the last decade Vinamilk has invested in expanding its international business to boost growth, especially Asia due to economy potential and increasing urbanization.

Vinamilk's exports sees rapid growth since 1998.

The company has been carefully researching specific markets, taking advantage of strengths in product quality and invest in modern distribution channel to create the trust of foreign partners and deepen its footprints throughout the region.

In South Korea, Vinamilk has cooperated with partners to customize specific business strategy, from choosing the trending soy-based nut drink products to leveraging e-commerce retail platform, for instance. This strategy has enabled Vinamilk and its partner to react quickly and effectively to social distancing measures caused by the pandemic.

Vinamilk products on shelves in Singapore. Photo courtesy of Vinamilk.

With its high-quality dairy products, Vinamilk organic and 100-percent fresh milk brand products have also been exported to one of the wealthiest economies in the region, Singapore. The company is also the first Vietnamese company that is granted export permission of milk products to Eurasian Economic Union territories (EAEU).

Whilst the first half year’s importing activities stumbled on various challenges due to Covid-19, Vinamilk closing multiple large contracts not only helps maintain the company’s growth momentum but also serves as great inspiration for many others.

The results, were not unexpected as, since late 2018, with realistic anticipation of potential difficulties of the domestic market, especially with the commission of the EU-Vietnam Free Trade Agreement (EVFTA), Vinamilk has actively transformed its Export function into the International Sales Department, which will reinforce the firm's strategy for market expansion.

In the first half of 2020, Vinamilk’s export revenues were an impressive $106 million, an increase of 7.3 percent year-on-year.

Solid foundation of Vinamilk’s strengths

"We always consider ourselves a part of the value chain. As long as we get the pricing, quality and services right, we will win the exporting markets. There are obviously challenges at the penetrating point as competition is fierce, however, playing by our strengths upon entry will eventually ensure success," Mai Kieu Lien, CEO of Vinamilk, said.

She also attributed part of the Vinamilk's recent success in international markets to its proactiveness. This includes investing in modern production infrastructure, being proactive in raw material procurement and maintaining a strong domestic ground for overseas expanding.

A warehouse of Vinamilk in HCMC. Photo courtesy of Vinamilk.

This Vietnam dairy manufacturer is the owner of Asia's largest international standard farm system with 12 farms across the country. After the successful acquisition of Moc Chau Milk in 2019, Vinamilk's cow herd has increased to 150,000 heads, with the daily raw milk output reaching over one million liters. Vinamilk is not only able to fulfill demands of Vietnam's consumers but enabling the company to penetrate foreign markets.

Regarding production facility, Vinamilk’s 13 factories across the country are equipped with modern, automated machinery imported from G7 countries and Europe ensuring product quality to meet international standards.

With a sustainable development strategy and continuous investments in dairy farm and factory systems, Vinamilk has created the foundation for its growth and expansion both in Vietnam and overseas.

Vo Trung Hieu, International Business Director of Vinamilk (R), receives the Asia Export Award in Singapore in 2019. Photo courtesy of Vinamilk.

In December 2019, Vinamilk was the only Vietnamese dairy company to receive the Asian Export Awards in Singapore. The award is a recognition of products and services sold by Asia’s leading exporters that have significantly enhanced their business on the regional export scene.