Vinamilk: A special and distinctive national brand

Notably, Vinamilk's key export products such as Ong Tho Condensed Milk, Dielac Powdered Milk for Children and Vinamilk Yogurt are all recognized as National Brands. This truly marks a pioneering journey in bringing Vietnamese brands to the world while continuously enhancing their value.

At a supermarket in the populous market of China, Mrs. Luong Tieu Phuong walked straight to the dairy section and picked up several cans of Ong Tho condensed milk, placing them in her shopping cart as a routine. Mrs. Phuong shared: "This condensed milk has a distinctive fragrance and is not too sweet, so my family often uses it to eat with steamed buns or mix it with coffee and bubble tea".

Vinamilk’s condensed milk has officially entered the global market nearly 20 years ago and is now available in 35 countries around the world. These include not only Japan, South Korea and Taiwan, but also Southeast Asian countries and even regions as far as Africa and South America. Over this period, the product has generated more than 233 million USD in export revenue for Vinamilk, which is equivalent to nearly 184.000 tons of product.

One young South Korean shared his experience at an international trade fair in his country, saying, "I’m not a business customer of Vinamilk, but I know that Vinamilk is here today, so I wanted to come and say that I really like your products. I use Vinamilk’s condensed milk to make my coffee with milk every day". This statement highlights how Vinamilk, as a national brand of Vietnam, has gradually become a beloved and familiar product in kitchens across different countries.

The only dairy brand honored as a National Brand for 16 consecutive years

Recently, Vinamilk has once again been recognized as a National Brand for the 2024-2026 period, with 10 of the company’s renowned product lines being acknowledged for this prestigious title. This achievement reinforces Vinamilk’s position as the only dairy enterprise in Vietnam to maintain the National Brand distinction for an impressive 16 years in a row. By consistently contributing to the overall value of Vietnam’s national brand, Vinamilk has proven its strong impact on the global dairy industry. Currently, it ranks among the Top 10 most valuable dairy brands in the world and is also recognized as one of the Top 5 most sustainable dairy brands globally (according to Brand Finance 2023).

Unique products - International quality

Vinamilk has not only achieved remarkable success with its traditional product, Ong Tho Condensed Milk, but the company now offers an impressive portfolio of 387 SKUs for export. With its presence in 62 markets, ranging from Asia and Europe to the Middle East and Africa, the total cumulative export value of Vinamilk has surpassed 3.4 billion USD. While this figure may not compare to other strong export industries such as textiles, footwear or seafood, it holds significant meaning when considered in the context of a country that once lacked advantages in dairy farming, had no established dairy processing industry, and relied almost entirely on imports. In this light, Vinamilk’s journey is truly one to be proud of.

Reflecting on nearly 30 years of global expansion, Mrs. Mai Kieu Lien, the CEO of Vinamilk, has concluded that the three essential factors for successfully entering any market - whether domestic or international - are: Quality, service and price.

For Vinamilk, quality is considered the most crucial "key" to success in every market. The company ensures that its factories and farms strictly follow and often lead the way in implementing, the most advanced international standards in both production processes and raw material sourcing. These include prestigious certifications such as Global GAP (for farmed fish), FDA (USA), HALAL (for Muslim countries), Organic EU (European Organic Standards) and GMP (Good Manufacturing Practices in the USA).

Vinamilk is also one of the few companies globally that holds prestigious international quality awards and certifications. These include being the first fresh milk in the world to achieve the Clean Label Project certification, which guarantees its purity. Additionally, Vinamilk’s powdered milk for children has earned the Purity Award, which recognizes the product’s exceptional quality, safety and transparency of raw materials after successfully passing rigorous testing with over 400 criteria.

However, these accomplishments are just the starting point for international expansion. The next critical factor, and one that truly determines the success of a food product in any market, is its taste. This element is what ultimately drives consumer acceptance and brand loyalty, regardless of geographic location.

Every country and market has its own distinct consumer habits and taste preferences. When entering a new market, Vinamilk’s market development and R&D teams take the lead, working closely with local partners to thoroughly understand the local habits, culture and culinary preferences. For instance, when exporting baby food powder to the Middle East, Vinamilk made sure to incorporate dates into the product, as dates are a highly nutritious fruit and are very popular in that region. Similarly, for bottled coconut water, the way it’s consumed varies by market: some places use it as a drink, while others use it as an ingredient for cooking. As a result, Vinamilk offers different packaging options for its coconut water, such as different sizes of bottles and cartons, tailored to the specific needs of each market.

Another crucial factor for Vinamilk’s international success is its pricing strategy, which plays a significant role in both its competitiveness and its ability to build trust with consumers worldwide. In times when the prices of raw materials and global logistics costs rise, many companies opt to maintain their prices while reducing the weight of the product in order to preserve profit margins. However, Vinamilk has consistently worked hard to honor its commitments to both partners and consumers, ensuring that the quality and value of its products remain intact despite market fluctuations.

When it comes to service, Vinamilk’s international business team always collaborates closely with partners throughout the entire process - starting from market research, listening to consumer feedback, and making adjustments to the products to better suit local preferences. Today, Vinamilk is fully capable of providing a complete range of international business services to its partners. This includes everything from custom R&D for tailored products to designing brand images, packaging, marketing strategies and international communications - all adapted to meet the specific demands and characteristics of each market in order to fully leverage its potential.

Vinamilk understands that every product it introduces to the global market represents the national brand, which is why the company makes continuous investments to ensure its brand is well-represented wherever it goes. Through its partners, the company closely monitors the entire process, from distribution to brand protection and customer experience, ensuring that it goes beyond merely bringing products to foreign borders.

Proactively building new competitive advantages: Sustainable development

The growing trend of green consumption and the focus on sustainable development are no longer seen as niche markets, but rather as the "new rules of the game" in global trade. This shift has created a need for businesses to quickly adapt and align themselves with these changing demands. Products that demonstrate responsibility, such as those made through green production processes, sustainability and environmental friendliness, are now positioned for easier access to international markets. These products also enjoy special advantages and incentives from the importing countries.

Looking at it from this perspective, Vinamilk can be considered a company that was ahead of the curve. Back in 2012, Vinamilk took the initiative to begin publishing its sustainability reports according to international standards. At that time, Vietnam had no mandatory regulations for companies to disclose such reports. However, Vinamilk's proactive approach in this regard allowed the company to be well-prepared to provide sustainability-related reports whenever requested by international partners.

When the Vietnamese government, along with nearly 150 other countries, committed to achieving net-zero emissions by the middle of this century, Vinamilk was among the first companies to publicly declare its commitment to this goal. Following this declaration, the company progressively announced the first of its units to achieve carbon neutrality in accordance with the international PAS 2060:2014 standard.

These proactive efforts have greatly contributed to Vinamilk being ranked among the top 5 most sustainable dairy brands globally, and it remains the leader in sustainability within Vietnam. Furthermore, Vinamilk’s commitment to sustainability has garnered high recognition, with the company surpassing many well-known global dairy brands in terms of sustainability awareness and practices.

“Sustainability is becoming a crucial trend. Vinamilk is at the forefront of promoting sustainable development within the food industry, effectively meeting the growing demand of consumers who are increasingly conscious about their food choices. Thanks to this commitment, Vinamilk has remained the most popular and trusted brand among consumers", stated Alex Haigh, the CEO of Brand Finance for the Asia-Pacific region, a well-known brand valuation firm from the UK.

According to Brand Finance’s report, the value of Vietnam’s national brand has experienced remarkable growth, with an impressive 102% increase between 2019 and 2023. By 2023, the total value of Vietnam’s brand reached 498.13 billion USD, propelling the country to 33rd place among the 121 strongest national brands in the world. This achievement not only marks a significant milestone in solidifying Vietnam’s national brand on the global stage but also highlights the exceptional efforts of Vietnamese businesses in boosting the country’s international standing and competitiveness in the global marketplace.