Vinamilk's export promotion strategy plays an important role

Positive highlights from the export sector

Vinamilk's Q3 and 9-month business results bulletin for 2023 show that this "giant" recorded quite positive performance indicators in the context of slowing growth in domestic purchasing power of goods and consumer services. In the first 9 months, total consolidated revenue and profit after tax reached VND 44,848 billion and VND 6,669 billion, respectively, completing 71% and 77% of the yearly plan.

Of which, the foreign market contributed VND2,384 billion in net revenue in the third quarter and VND7,218 billion in the nine months. The export segment recorded a positive highlight when reporting net revenue in the quarter reaching VND1,246 billion, up 5% over the same period.

Vinamilk's Ong Tho condensed milk products are distributed and consumed in the Chinese market.

According to Mr. Vo Trung Hieu - Director of International Business of Vinamilk - the driving force for this growth comes from traditional markets and the export processing sector of condensed milk products.

“ Some traditional markets such as Africa and the Middle East are facing many difficulties, but Vinamilk still strives to accompany import partners in business activities, trying to provide adequate goods, ensuring the best quality and price.

In addition, we have taken appropriate and timely steps to capture sales advantages in the quarter in the export product processing activities of our strengths in some markets ,” Mr. Hieu emphasized.

Positive outlook for the final months of the year

Statistics from state management agencies show that the country's merchandise export turnover has gradually improved over the quarters. Specifically, export turnover in the first quarter of 2023 decreased by 11.9%; in the second quarter it decreased by 11.8% but in the third quarter it only decreased by 1.2% compared to the same period in 2022. Given this development, experts believe that world demand is showing signs of recovery and Vietnam's export situation will be more vibrant in the last months of the year.

Agreeing with this optimistic assessment, Vinamilk’s representative also expects that Vinamilk’s net revenue from export activities will continue to increase by 5% in the fourth quarter. However, in order to “reap the fruits” in foreign countries, Mr. Hieu said that it is impossible to just sit and wait, but must have synchronous solutions to stimulate the market.

Accordingly, in the remaining months of 2023, Vinamilk plans to continue developing its key export product groups, especially products under the Ong Tho and Ngoi Sao Phuong Nam brands. In particular, product development (such as changing packaging specifications, diversifying flavors, etc.) will be based on trends and consumption habits in each locality, in order to better meet the needs of local consumers.

Along with product development, Vinamilk also continuously participates in activities to support the business of existing distributors as well as actively seek new customers. In the first 9 months of this year, Vinamilk has participated in many trade promotion activities, fairs, and large exhibitions in regions and markets such as the Middle East, Japan, Korea, China, Southeast Asia, etc.

Combined with that, other customer care activities help Vinamilk sign and successfully implement contracts with a total value of more than 100 million USD.

Vinamilk participates in Gulfood Fair in Dubai - one of the largest food fairs in the world.

Most recently, the leading unit in the Vietnamese dairy industry signed a memorandum of understanding with two major partners in importing and distributing dairy and agricultural products in China to export yogurt products to the billion-people market. According to the plan, the first batch of Vinamilk durian-flavored yogurt will be on shelves in China around the end of November or early December.

Previously, Ông Thọ condensed milk - Vinamilk's main product in the Chinese market - has just officially appeared at the Quang Bach supermarket chain - the largest retail chain in Guangzhou with more than 17 supermarkets.

Mr. Vo Trung Hieu - Vinamilk International Business Director (far left) - signed a memorandum of understanding on yogurt distribution cooperation with two Chinese partners.

In the coming time, Vinamilk will continue to participate in trade promotion activities to expand the exploitation of key traditional market groups; at the same time, develop new market groups such as South America, the Caribbean, West and South Africa. The latest countries to record the appearance of Vinamilk products are Chile and Saudi Arabia, bringing the total number of export markets of the enterprise to 59 countries and territories.

Bao Anh

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