*After impressing in 2022 with its continuous brand upgrade in the world market , in 2023 Vinamilk continues to resonate with awards. honor of the dairy industry global In terms of business, the company also recorded positive results in the context of the general market facing many difficulties. Using the word "bumper harvest" is probably not too much for Vinamilk, sir?
I think the word "bumper harvest" is appropriate to refer to the awards that Vinamilk has achieved. Earlier this year, all of Vinamilk's infant formula brands, which were also the first brands in Asia, received the Purity Award from the non-profit organization Clean Label Project (USA). To receive this award, the product must undergo a very rigorous test with about 400 different criteria. Only 30% of the products worldwide that participated met all the criteria set by this organization and received the award. In addition, Vinamilk Green Farm & 100% Organic fresh milk also received the Clean Label Project's safety and purity certification. These are the first two fresh milk products in the world to receive this certification.
Previously, 8 Vinamilk products received the international "Superior Taste Award" from the International Taste Institute. This is a very meaningful award because the Superior Taste Award is considered the Michelin in the food and beverage industry. Notably, 2 of these products, Ong Tho condensed milk and Vinamilk Super Nut 9-nut milk, achieved the highest rating, 3 stars.
Immediately after that, two products, Vinamilk Super Nut 9-nut milk and Vinamilk Green Farm fresh milk, were named in the gold award of the Monde Selection - the leading quality award in the food and beverage industry in the world.
Most recently, Vinamilk Super Nut 9-nut milk became the champion in the category "Best Dairy Alternative 2023" at The World Dairy Innovation Awards 2023.
These are all very prestigious awards in the global food industry and demonstrate that "made in Vietnam" products are on par with the world's leading products.
*Vietnam is behind in the dairy industry compared to the world, but nearly 50 years since its establishment, Vinamilk has conquered many impressive milestones: Top 40 largest dairy companies in the world in terms of revenue, 6th largest dairy brand globally with a brand value of 3 billion USD, Most valuable food brand in the ASEAN region (announced by Brand Finance - the world's leading organization in brand valuation). What do you say about this impressive journey and achievements?
-Last month, I had a friend who came back to Vietnam from the US and bought some boxes of Vinamilk yogurt to bring over there to eat. Proud? Very proud. Initially, Vinamilk's goal when exporting was to serve the overseas Vietnamese community. But now, the brand has spread to local consumers and is developing very well.
Actually, exporting raw products or doing processing is much easier. But Vinamilk has chosen its own path, exporting under its own brand, even though this path is many times more difficult. It is not easy for a Vietnamese brand to be present in 59 countries and territories, including famously difficult markets such as the US, Japan, Korea, etc.
To do that, from the beginning we believed that: A prestigious, quality product, becoming the leading milk brand of a country, is enough to convince foreigners to try and choose. On the contrary, if Vinamilk is present in Japan, Korea, America, ... then Vinamilk's trust and international class in the domestic market will also increase a lot.
We are not a country with a long history of dairy farming, dairy products are not Vietnam's strength, but Vinamilk is determined to change Vietnam's position on the world milk map.
*On that journey, in your opinion, what is the most important factor?
-Conquering foreign or domestic markets depends on three decisive factors: product quality, price and service quality.
Regarding product quality, Vinamilk strictly adheres to and pioneers in applying the most advanced international standards in the production process and input materials, such as: Global gap, Organic, ISO 9001, FC 2000, ISO 17025... However, that is just a ticket, a passport to be able to go abroad. The next barrier is flavor. Each region has a different taste, so when exporting to any market, we always have to have a market development and R&D team in advance, working with partners in the host country to research their habits and culinary culture. For example, when Vinamilk's Ông Thọ condensed milk goes to China, some places use it as a soft drink, some places use it as a dip with steamed buns. We have to know that to adjust and reduce accordingly. Therefore, even though it is Ông Thọ milk, the flavor in Guangdong will be different from that in Guangxi, the sweetness or protein content may be changed. Similarly, recently, during a market survey, we found that Chinese people are very fond of, if not crazy about, durian. So, batches of Vinamilk durian-flavored yogurt specifically for the Chinese market were created and exported to this country of a billion people.
The next factor is price. Exporting certainly has lower profit margins than domestic because of high costs. But when you decide to conquer the market, in the early stages of penetration, you have to accept low profit margins to spread the brand effect.
In terms of service quality, we have an international sales team working with partners to research the market. We listen to consumer feedback and adjust our products accordingly. The distribution system is also closely monitored, not just delivering the product and then depending on the distributor; but directly monitoring the product's journey.
It is easy to say, follow the right principles and procedures, but to do it is a very difficult story. But Vinamilk's character is to choose to do difficult things. More importantly, product quality and determination will make it happen.
*The world economy is in trouble. Even essential industries such as milk and food are facing the possibility of declining sales. What plans does Vinamilk have to overcome the current period? How do you assess the future of the domestic milk industry as well as the global market?
-The milk market in Vietnam is increasingly under competitive pressure. Although Vinamilk is the market leader, with a market share that many people consider to be at a safe distance from the second-placed unit, we cannot be subjective.
Another challenge is that today's consumer needs are increasingly fragmented and inconsistent: people abstain from sugar, some groups like sweets, young people prefer modernity... Therefore, businesses must have a new approach to customers, differentiate, personalize, and tell stories that are suitable for each person. Above all, the current economy is very difficult, and purchasing power is also greatly affected.
However, we believe that these are only disadvantages in the medium and short term. In the long term, Vinamilk believes that the Vietnamese dairy industry still has many opportunities to exploit for development. First, the average milk consumption per capita in Vietnam is still low compared to neighboring countries. Specifically, according to Research and Markets, the average milk consumption per capita in Vietnam is only 27 liters/person/year, compared to 35 liters/person/year in Thailand and 45 liters/person/year in Singapore. That shows that our market still has great potential.
Second, the gap in milk consumption between rural and urban areas is still very large. This is also a room for growth.
Another opportunity is that every year there are over 1.5 million children born in Vietnam. This is the group that needs the most nutritional supplements in the future and is a huge growth potential for the dairy industry.
Besides, although the epidemic has caused the market to decline, in return, after Covid-19, people tend to pay more attention to and use nutritional products that are beneficial to health. The market has an additional group of adults with higher purchasing power, more stable income, and more health care. There is also a group of GenZ consumers - young people who are currently interested in a clean, green lifestyle, and sustainable development. Vinamilk will pioneer in exploring these segments. Those are opportunities. Once you see the opportunity, you will know how to take advantage of it, exploit it, and grow.
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