Ong Tho condensed milk attracts the market in China

The “product of the people,” Vinamilk, attracts many visitors and expands new business opportunities as soon as this market becomes active after a long time of the zero-COVID policy.

The International Small and Medium Enterprises Fair (CISMEF) is an annual fair held in Guangzhou, the third largest city in this country of billions of people. This year's 18th iteration has over 5,000 domestic & international participants.

First time attending this fair, Vinamilk focuses on the main product line, the Ong Tho condensed milk. Vinamilk is determined to approach the international business segment in the next six months.

The appeal of the Vietnamese “dairy brand of the people”

At this international fair in Guangzhou, Vinamilk’s booth offers a compelling focal point when focusing on only one product line – the Ong Tho condensed milk – an iconic Vinamilk brand since it was established nearly 50 years ago. Many visitors, including current business partners and potential customers, come to Vinamilk’s booth to directly exchange product information. Visitors can also experience drinks made from Ong Tho condensed milk with diverse flavors, such as Vietnamese milk tea and milk coffee, which Chinese youth love.

Vinamilk introduced condensed milk products to the international market nearly 20 years ago. As one of the strong conventional products, up to now, more than 3,700 containers of condensed milk (equivalent to 250,000 tons) have been exported to 35 countries and territories, raising 235 million USD value of export revenue for Vinamilk.

In the first six months of 2023, Vinamilk has participated in many trade activities, large fairs, and exhibitions in regional markets such as the Middle East, Japan, Korea, China, and Southeast Asia. By combining customer relations activities, Vinamilk has successfully signed and implemented contracts with a total value of over 100 million USD.

Particularly in China, although the Vinamilk brand was only officially established there in 2019, and Ong Tho condensed milk arrived in this market in 2020 during COVID-19, the products are trusted and imported continually by partners.

In Guangzhou, via partners knowledgeable about Vietnamese products and the Chinese market, the Ong Tho condensed milk enters various distribution channels, mainly in the wholesale channel, domestic customers, restaurants, milk tea shops, and coffee shops. Consumers also choose Ong Tho condensed milk to make drinks and desserts at home.

Milk coffee, smoothies, and desserts using Ong Tho condensed milk are flavors of memories, especially for Vietnamese expatriates. Vietnamese people overseas become a special connection to introduce the product more widely, not only in China but also in other countries such as Japan, Korea, Canada, etc.

This year, Vinamilk Ong Tho condensed milk also makes an impressive presence. It is Vietnam’s first dairy product to receive three stars from the international award Superior Taste Award 2023 in Belgium. This product was evaluated by a jury of more than 200 experts of prestigious chefs and sommeliers from Le Guide Michelin and Gault & Millau.

According to Vinamilk’s partner in China, two main factors help the Ong Tho condensed milk to grow steadily. “Firstly, Vietnamese dishes and beverages are increasingly popular and loved in China. Secondly, Ong Tho condensed milk has a distinctive, delicious taste. With a consistent quality for many years, the product has a reputation for consumers to purchase and use,” commented Mr. Ha Hai Nam, director of a product distribution unit.

Focusing on critical products, developing niche markets

Condensed milk is Vinamilk’s main product line, with a monthly output of nearly 15,000 tons (equivalent to 1.3 million cans of milk per day), and it is also the most popular condensed milk brand locally.

Right from the beginning of exporting, Vinamilk selected Ong Tho condensed milk out of over 250 products, carefully catering to large and challenging markets such as China.

Not only in China but also in many other countries, this product introduces Vietnamese brands to the market and, strategically guarantees Vinamilk’s stable quality. The enterprise, via strategic partners, will strengthen market endeavors and stabilize export activities, even during challenging periods such as the pandemic and the world’s economic fluctuations in the past two years.

Regarding the advantages of Vietnamese dairy products and the potential to access international markets, Mr. Vo Trung Hieu, International Sales Director of Vinamilk, said it is necessary to always focus on core products and add more to their values. At the same time, it is crucial to invest in new products and develop niche markets with professional customer services.

“Vietnamese products & brands becoming more present to international consumers is also the key to efficient exporting to all Vietnamese businesses. Especially as we are entering markets that already have regular activities and high requirements for consumer products in general and food in particular,” Mr. Hieu added.

With the strategy of entering international markets with a commitment to deliver quality, reasonable cost, and good service, Vinamilk is currently a dairy enterprise with vigorous and practical activities in the export segment, with total export revenue reaching 3 billion USD with dozens of products being exported to nearly 60 countries and territories around the world.