Milk export revenue in the first 6 months of the year increased by more than 37%, continuing the growth momentum from 2023, contributing positively to Vinamilk’s operations.
Up to now, the dairy giant has been exporting products abroad for more than 26 years, with a total accumulated turnover of more than 3.3 billion USD, with more than 300 product codes in the condensed milk, powdered milk, and yogurt industries. The unit has continuously increased its export market, diversified products, and met many world standards, affirming that “made in Vietnam” milk has a place in the international market.
According to businesses, effectiveness in international business operations is the result of trade promotion, increasing brand presence, finding opportunities and developing new customer groups.
Explaining this strategy in more detail, Mr. Vo Trung Hieu, Director of International Business of Vinamilk, said that participating in international exhibitions and fairs is a regular activity. Here, businesses focus on introducing their products and services to partners.
“Many partners are surprised to know that Vietnam can make dairy products with a series of high standards, delicious taste and very competitive prices,” said Mr. Hieu.
Mr. Vo Trung Hieu, International Business Director of Vinamilk (right), introduces Vinamilk products to partners at an international trade promotion event. Photo: We Nam
In just the first 6 months of this year, in the list of 61 export markets of Vinamilk, many new names appeared from the Oceania, South America and Africa regions. Besides new markets, strategic partners and long-term cooperation are being developed in depth by the enterprise. For example, in the Middle East, where there are partners who have worked with Vinamilk for 10-20 years.
From the first export product, Dielac infant formula, Vinamilk has now developed nearly 400 types of products for the international market. Recently, the company exported yogurt to the US market, right after receiving FDA (US Food and Drug Administration) certification for this product.
In export activities, product quality standards are always the biggest barrier to any market, especially for food and beverage products. Many countries have their own specific standards, which are also barriers that businesses need to overcome.
Vinamilk’s advantage to “unlock” the market is the system of 13 factories that meet international standards to support exports. Some prominent standards are: FSSC 22000 (International Food Safety Management System Certification – Netherlands), BRC (British Standards), SMETA Social Responsibility Standards, FDA (USA), Standards for Muslim countries HALAL, Organic EU (European Organic Standards), GMP (American Good Manufacturing Practices).
Checking products before exporting. Photo: We Nam
Mr. Mai Ba Dung, Director of Saigon Milk Factory (Vinamilk), said that this place produces products for export to “difficult” markets such as Australia and New Zealand. The factory produces 683 million cold products for export each year, and the control process includes more than 9 Vietnamese and international standards.
“With the characteristics of a cold product factory, we invest from the stage of receiving raw materials, processing, to the system of smart cold storage, temperature sensors… These factors ensure preservation conditions, helping the product to have the best quality,” said Mr. Dung.
Mr. Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East, said he was “impressed” when visiting Vinamilk’s infant formula factory. He commented that the closed process, from input to output, applies international standards and is automated. He also appreciated Vinamilk’s environmentally friendly packaging. Milk cartons are often reused by consumers in the Middle East market.
Import partners visit Vinamilk’s Vietnam Powdered Milk Factory. Photo: We Nam
The trend of sustainable development is becoming the focus of world trade. In Australia and New Zealand, Vinamilk has joined the supply chain of the largest international supermarkets there, such as Costco, Woolworths, and Foodstuff, thanks to meeting the requirements for environmentally friendly packaging. In these two markets, this year the company recorded revenue growth of more than 50% compared to the same period last year.
In addition, the free trade agreements (FTAs) that Vietnam has signed also support Vinamilk’s export growth. According to the company representative, the rate of granting certificates of origin (C/O) to receive tax incentives is currently over 53%, higher than the average of 37.35%, according to the summary data of the Ministry of Industry and Trade.
An example of effective FTA utilization shared by businesses is the Japanese and Canadian markets, with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Specifically, business revenue in these two markets both recorded growth of about 40% compared to the same period in 2023.
Mr. Hieu added that in order to exploit markets with FTAs, it is necessary to meet the requirements of origin. Along with that is the change in raw material sources and production lines to meet related requirements. According to the plan, Vinamilk will also continue to promote new markets with great potential such as Africa and South America…