Vinamilk's export sector thrives thanks to key markets

Vinamilk's export segment in 2023 will increase in both revenue and number of markets, with positive results forecast for the first quarter of 2024. In addition to the large contribution from traditional key markets, many new markets have been explored.

Vinamilk continuously appeared at many major international fairs in key markets such as Dubai, China...

Continued to be highly regarded for exports

The export sector has helped Vinamilk become one of the few businesses that have successfully "turned the corner" when the general situation is facing many difficulties. In 2023, the "giant" of the dairy industry announced that net revenue from export activities reached more than 5,000 billion VND, an increase of 4.4% over the previous year, helping Vinamilk's net revenue increase by 0.7% to 60,369 billion VND. In the fourth quarter of 2023 alone, net export revenue made a strong breakthrough with a growth rate of 19.3% over the same period in 2022.

Looking back, it can be said that 2023 is an exciting year for Vinamilk, starting with contracts signed at the large Gulfoods Dubai fair for the Middle East market. Next are China, Japan, Korea... with a series of consecutive trade promotion activities of this enterprise. In the third quarter of 2023, the highlight is the signing of a memorandum of understanding for cooperation with 2 leading enterprises in the field of importing and distributing milk and agricultural products in China.

Although specific figures have not been shared, a Vinamilk representative said that export growth in the first quarter of this year remained positive. At the end of the first quarter of 2024, Vinamilk also completed a large order of more than 300 containers of infant formula and nutritional powder for export to the Middle East.

Many securities companies predict that export activities will become a bright spot for Vinamilk this year. KB Securities (KBSV) predicts that in 2024, when the global economy recovers, consumption demand in Vinamilk's major export markets (Southeast Asia, Middle East) will increase again, especially the Middle East market, which increasingly favors Vinamilk's milk.

Exploiting the right strengths for growth

Currently, the growth momentum of Vinamilk's export revenue still comes from key and key markets such as the Middle East, Japan, Korea, China, Southeast Asia...

For example, in the Middle East, export revenue from this market has nearly doubled over the past 10 years, and there is still a lot of room for growth. After many years of dominating the market in the imported infant formula segment, Vinamilk has expanded its product portfolio here to 50 SKUs, with many products R&D specifically for this market in the high-end segment such as specialized milk powder, adult milk powder, nutritional powder... Recently, Vinamilk and its partners have promoted the medical channel for specialized lines and e-commerce, testing new forms such as livestream sales... to better reach customers.

A solid production foundation, flexible product development capabilities and dedicated service are the “three-legged stool” for Vinamilk’s export sector.

In the Asian market, sales of condensed milk, fresh milk and yogurt products also grew positively as Vinamilk products are increasingly popular with consumers. Positive signals from China, after the signing ceremony of the cooperation agreement, Vinamilk's first batch of durian-flavored yogurt was on shelves in China in late 2023. Previously, Ong Tho condensed milk - Vinamilk's main product in the billion-people market - was also officially available at a large supermarket chain in Guangzhou.

Vinamilk durian flavored yogurt exported to the Chinese market.

There is still a lot of potential.

Although milk is not yet a strong export product of Vietnam, with the rapid change in consumption trends in the world, there is still a lot of room for businesses to exploit. Vinamilk is also stepping up its market share expansion activities in high-income markets in Asia and some potential new markets such as Central and South America and the Caribbean.

According to KBSV, developed markets also welcome Vinamilk products thanks to its production capacity, consistent quality and compliance with ESG (Environmental, Social, Governance) standards. For example, in the Australian market - a region that has established "green fences" in imports - Vinamilk's products all use HDPE packaging (easily recyclable packaging) and do not have plastic straws, and have easier-to-open lids to reduce plastic waste in the environment. Thanks to that, the product has been present at major supermarket chains Costco, Woolworths, Coles, Aldi, Foodstuff... with sales growth of more than 10%/year.

The system of farms and factories covering the whole country, including units that meet "green" standards or carbon neutral certification... is being utilized by Vinamilk as a competitive advantage when exporting, anticipating the trend of shifting production from large countries to Vietnam.

Many new products have been added to Vinamilk's export portfolio to meet the needs of new markets such as Australia and New Zealand.

Along with efforts from businesses, the FTAs ​​that Vietnam has signed continue to be a lever to help Vietnamese export products have a wider path to potential markets.

With over 25 years of experience in exporting milk, Vinamilk's products are now present in more than 60 countries such as the US, Japan, Korea, Singapore, New Zealand, Australia, China... and all Southeast Asian countries, with a total cumulative export turnover exceeding 3.2 billion USD.

NL

Source: https://baothanhhoa.vn/mang-xuat-khau-cua-vinamilk-khoi-sac-nho-cac-thi-truong-chu-luc-212075.htm