Vietnamese dairy industry ready to join global retail chain

Promoting exports through multi-national retail and distribution chains

The Vietnam International Sourcing Expo 2024, which spanned from June 6 to June 8, 2024, facilitated direct engagements with over 300 distribution channels and buyers from 60 countries and territories, along with nearly 10,000 visitors.

During the event, exhibition booths belonging to Vietnamese dairy businesses, such as Vinamilk, have attracted considerable attention from international customers despite not being a dominant player in the dairy industry. As the sixth largest dairy brand globally, with an established product presence in 60 countries and territories, Vinamilk received an influx of visitors and potential customers during the event.

In addition to existing business partners from the Middle East, Africa, among others, various leading global retail chains such as Walmart (USA), Aeon (Japan), Woolworths (Australia), Cosmo Sourcing (Finland), East Asia Food (Southeast Asia), and West Zone (Dubai) have shown interest in Vinamilk's products. Several partners have initiated one-on-one discussions with Vinamilk to promote negotiations and trade agreements. This achievement have demonstrated businesses' efforts in introducing Vietnamese dairy products into the global supply chain.

"The expo presented an excellent opportunity by attracting numerous major international buyers to Vietnam, each with specific needs and demands. As a result, connections between businesses and buyers are more focused and effective. In addition to direct meeting with existing major partners, various buyers have taken the initiative to visit Vinamilk's factories and farms," shared Vo Trung Hieu, IB Director of Vinamilk.

A new mindset to meet new demands and global distribution chain requirements

According to Vinamilk, a dairy company with 25 years of global export experience, businesses must first establish credibility in their domestic market before establishing a sustained presence in foreign markets. Subsequently, they can foster parnership with foreign companies, and share brand stories internationally.

Service, price, and quality are the keys to the success of Vinamilk's branded products, including Dielac, Alpha, Ong Tho, and Ngoi Sao Phuong Nam. Notably, several products among this group have earned "brand-love" from consumers, as demonstrated in the Middle Eastern market.

"2024 marks our 10th anniversary of cooperation with Vinamilk, and their cooperation is invaluable. During this trip to Vietnam, I also visited Vinamilk's factories and farms. After observing the manufacturing process firsthand, I understand why Vinamilk consistently delivers high-quality products on time and meets all our market demands. This has enabled us to successfully market Vinamilk's products for the past ten years; and we expect to continue for many years to come," shared Zia Ahmad Mohd Asmail, a representative of Vinamilk's major partner in the Middle East.

However, businesses must adopt a different mindset in order to participate in the global supply chain alongside other leading retailers. Other essential criteria include large-scale production capacity; enhanced price competitiveness; price stability amidst market, logistics and exchange rate fluctuations; and compliance with sustainability standards in the supply chain.

With significant production capacity including 15 farms and 16 factories domestically and internationally, complemented by over 250 product varieties and comprehensive export services, Vinamilk products feature a high level of competitiveness and stable pricing. Over the years, Vinamilk's export products have recorded positive growth rates in various foreign markets such as Australia, New Zealand, which are known for their strengths in the dairy industry. Vinamilk also plans to expand into South America and Africa in the near future.

Vinamilk possesses a significant advantage by pioneering sustainable development trends during its early stages of growth. Notably, Vinamilk was the first company in Vietnam to achieve carbon neutrality for both its factories and farms in accordance with PAS2060:2014 standards.

During the Seminar on "Boosting exports to key markets: opportunities for Vietnamese agricultural and food products in the international distribution system", major partners praised Vinamilk for its efforts in achieving carbon neutrality in accordance with international standards across three of its subsidiaries.

"The positive feedback signals that they are willing to collaborate with Vinamilk in incorporating these 'green' certifications into product packaging as a way to communicate with consumers, given the rapidly growing sustainable consumption trends," Director Hieu noted.

Amid the growing global impact of "green" consumption trends, experts suggest that businesses should promptly invest in sustainable development to enhance long-term value and advantages with a focus on Vietnam's underdeveloped sectors and industries.