The following are advantages:
Domestic market
Vinamilk, the leading company in Vietnam’s milk and dairy product sector, holds a substantial 39% share of the market nationwide. We possess an expansive distribution network comprising over 220 distributors and more than 140,000 outlets spanning across Vietnam. Additionally, our products are accessible in all major supermarket chains across the country. Competitive advantages
We attribute our current and future success to the following combined strengths:
• Holding the leading position in the industry, backed by a successful brand building strategy
• Offering a wide range of products
The company’s extensive distribution network and strong supplier relationships guarantee the delivery of high-quality milk. Additionally, their demonstrated ability to conduct market research and develop products in response to market demand is evident through impressive business results that reflect the efficiency of their management team.
Since our establishment in 1976, we have been using the brand name Vinamilk which has now become widely recognized in Vietnam. Our significant market share growth is a result of our effective advertising and marketing campaigns, ongoing product development efforts, and the exceptional quality of our dairy products. Furthermore, we possess state-of-the-art manufacturing equipment and technology that adhere to international standards.
Thanks to our years of experience attending the Vietnamese market, we can identify consumer trends and tastes. This helps us develop products with popular characteristics. For example, in 2007, our understanding of market demand allowed Vinamilk Kid to become a leading product for children aged 6 to 12.
The assortment of our products caters to diverse consumer demands. We have a selection of products tailored for different customer groups, including children, adults, and seniors. Moreover, we offer products suitable for families and businesses like cafeterias. Additionally, our range encompasses convenient portable milk products available in various packaging sizes.
The following are drawbacks or downsides:
Strategies:
We have established stable relationships with suppliers through our assessment policy to ensure a source of high-quality milk material. In our commitment to quality, we assist farmers financially by purchasing dairy-producing cows and commit to buying their high-quality fresh milk at the highest price. Each year, we sign agreements with milk suppliers, with approximately 40% of our milk material being sourced domestically. Our strategically located factories near milk cow farms enable us to maintain and strengthen these relationships with suppliers.
We carefully choose the location for our milk purchase centers to ensure the freshest and highest-quality milk. Additionally, we import milk powder from Australia and New Zealand to meet both quantity and quality needs. Maintaining stable milk material sources is crucial to our business as it helps us increase productivity. Our highly qualified and experienced marketing and sales staff analyze consumer trends and tastes to develop products that align with market demand. They also assist direct salespersons in understanding customer preferences through regular contact across various outlets. For instance, our understanding of 6 to 12 year-old children’s tastes led to the successful introduction of the marketing campaign called Vinamilk Milk Kid in May 2007. As a result, Vinamilk Milk Kid became the best seller in the market for children aged 6 to 12 in December 2007. Furthermore, we focus on improving the quality of existing products and expanding our product range into different types.
Our research and development division, comprising of 10 engineers and a technical officer, works closely with our marketing division. The marketing team shares updates on current consumer trends and preferences based on market research findings. We recognize the importance of meeting consumers’ increasingly demanding tastes in order to ensure our success and future growth.
To stay ahead of the latest trends, we actively collaborate with market research companies to study sales activities, gather consumer feedback, and analyze media related to the food and beverage industry. Moreover, our strong management team has proven its capabilities through our successful business results.
Vinamilk is led by President Mai Kieu Lien, who has 30 years of experience in the milk industry and has been instrumental in the company’s growth. The marketing team, headed by Mr. Tran Bao Minh with 10 years of marketing experience and expertise in brand building, has successfully restored the brand image and implemented a product revolution. Additionally, the senior management team brings an average of 25 years of experience in manufacturing, distribution, and sales.
We have a dedicated junior management staff who assist our senior staff and contribute to the company’s development with their youth and enthusiasm. We utilize the latest technology from European nations such as Germany, Italy, and Switzerland in our manufacturing and packaging processes. Our assembly line incorporates the eject-desiccation technology from Niro Denmark, a world-leading company in industrial desiccation technology. This technology is also used by companies like Dutch Lady (part of Friesland Foods), Nestle, and New Zealand Milk. Additionally, we employ the international standard assembly line provided by Tetra Pak for the production of dairy products and other high-value products. We have a comprehensive distribution system and membership program.
Vinamilk is the dominant player in Vietnam’s milk and dairy product manufacturing industry, with a 75% market share across the country. The company boasts a distribution system of over 200 distributors and more than 140,000 outlets within Vietnam. Furthermore, our products are available in all supermarket chains nationwide. In 1976, our company, originally called Southern Coffee-Dairy Company and a subsidiary of the General Food Directorate, was established. At that time, we operated six factories: Thong Nhat Dairy Factory, Truong Tho Dairy Factory, Dielac Factory, Bien Hoa Coffee Factory, Bich Chi Powder Factory, and Lubico.
In 1978, the Ministry of Food Industry took over the management of our Company and renamed it United Enterprises of Milk Coffee Cookies and Candies I.
In 1988, powdered milk and cereal with milk powder were introduced for the first time in Vietnam.
1991: Introduced UHT milk and spoon yoghurt to the Vietnamese market.
In 1992, the United Enterprises of Milk Coffee Cookies and Candies changed its name to Vietnam Dairy Company and came under direct management by the Ministry of Light Industry. The company’s primary emphasis shifted to producing and processing dairy products.
In 1994, our Company constructed the Hanoi Dairy Factory in Hanoi with the aim of expanding and nurturing the market in northern Vietnam.
1996: The establishment of Binh Dinh Dairy Joint Venture Enterprise occurred through our collaboration with Dong Lanh Quy Nhon Joint Stock Company. This partnership facilitated our Company’s successful entry into the market in the central region of Vietnam.
In 2000, the Can Tho Dairy Factory was constructed in the Tra Noc Industrial Zone, Can Tho City, with the aim of satisfying the needs of consumers in the Mekong Delta. Additionally, we established the Logistics and Warehouse Enterprise at 32 Dang Van Bi St., Ho Chi Minh City during the same year.
2003: In December of that year, the company underwent a formal conversion into a joint stock company and subsequently changed its name to Vietnam Dairy Products Joint Stock Company, aligning with its new status.
In 2004, the Saigon Milk Joint Stock Company was acquired and the share capital was increased to VND 1,590 billion.
In 2005, we purchased the remaining shares of our joint venture partner in Binh Dinh Dairy Products Company Ltd (formerly known as Binh Dinh Dairy Factory). Additionally, on June 30th, 2005, we established Nghe An Dairy Factory in Cua Lo Industrial Zone, Nghe An province.
In August 2005, we formed a joint venture with SABMiller Asia B.V. to establish SABMiller Vietnam Joint Venture Company Ltd. In the first half of 2007, we successfully launched our first joint venture product, Zorok.
Vinamilk became listed on the HOSE on 19 January 2006, with the SCIC having around 50.01% ownership of our Company’s shares.
Opened An Khang Clinic in Ho Chi Minh City in June 2006, making it Vietnam’s first clinic with an advanced electronic management system. The clinic provides a wide array of services including nutritional consulting, gynecology testing, pediatrics consulting, and health screening. Additionally, we initiated our dairy cow farms program in November 2006 through the acquisition of the Tuyen Quang dairy farm, which already had 1,400 cows. At the time of acquisition, the Tuyen Quang dairy farm was actively operational.
2007: In September of that year, the company acquired a 55% stake in Lam Son Milk Company Ltd., which is situated in Le Mon Industrial Zone, Thanh Hoa.
Strength:
+ Brand, with a market share of 75%.
+ Network-wide distribution in 64 cities.
+ Offers diverse products at competitive prices.
+ Utilizes an advanced production line.
+ Leaders demonstrate strong management capacity.
+ Offers a diverse product portfolio with 150 product categories and maintains good relationships with partners.
+ Employs a team experienced in marketing and product research.
2. Lack of strength
Products are primarily focused on the domestic market. Marketing activities of companies are mainly in the south.
3. Have the
The government has approved 2000 billion for the dairy industry’s development project in 2020. Additionally, we have actively invested in power supply stable materials and constructed buildings to meet businesses’ needs. Furthermore, we are looking to expand our market and learn from the experiences of other businesses through WTO initiatives.
4. Thach consciousness
The economy is facing instability due to inflation, economic crisis, and the emergence of more competitors as a result of the World Trade Organization (WTO). Furthermore, there is increasing political instability worldwide.
