Vinamilk: Milk ‘made in Vietnam’ ready to face international qualities

Constantly increasing export markets with diverse products that possess many world-level standards, Vietnam Dairy Products Joint Stock Company (Vinamilk) is affirming the position of milk "made in Vietnam" in the international market.

More presence and new connections

Vinamilk's milk export revenue has improved in the first six months of 2024 with a growth rate of more than 37%, continuing the growth momentum from 2023 to the present, thus demonstrating the effectiveness of international business operations. This is considered the result of a process of combining trade support and promotion solutions, increasing brand presence, finding opportunities and developing new customer groups.

In just six months, many new names have appeared in the list of 61 export markets of Vinamilk from Australia, South America and Africa. In addition to new markets, strategic partners and long-term cooperation are developed in depth by the enterprise. For example, there are partners in the Middle East who have worked with Vinamilk for 10 - 20 years.

“When visiting Vinamilk’s factory, we were really impressed by the closed process, from input to output, all of which are applied to international standards and highly automated. In addition, your packaging is also environmentally friendly, milk cartons are often reused by consumers in our market,” said Inam Ahmad Zia Ahmad, Vinamilk’s partner in the Middle East region during his visit to Vinamilk’s Vietnam Powdered Milk Factory.

Developing nearly 400 types of products for export

From the first exported product, Dielac powdered milk, Vinamilk has developed nearly 400 types of products for export to 61 countries as of date. While quality standards are always the biggest barrier for all markets, especially for food and beverage products, Vinamilk has recently exported another product, yogurt, to the US market right after achieving the relevant FDA (US food safety standards).

One thing to note is that many countries have their own specific standards, so businesses need to overcome important barriers when they want to "unlock" the market. In the case of Vinamilk, it is an advantage as it owns a system of 13 factories with many international standards supporting exports such as FSSC 22000 (Food Safety Systems Certification - Netherlands), BRC (British Standards), Sedex Members Ethical Trade Audit (SMETA), Halal (Standards for Muslim countries), Organic EU (European Organic Standards), and GMP (Good Manufacturing Practices - USA).

Saigon Milk Factory - Vinamilk focuses on products that are exported to the "difficult" markets of Australia and New Zealand. "The factory currently provides 683 million cold products for export each year. Each product leaving the factory will need to go through a controlled process with more than 9 standards both at Vietnamese and international levels. Having the characteristics of a cold product factory, investment is methodical from the stage of receiving raw materials, processing, to the system of smart cold storage and temperature sensors. This will ensure storage conditions to help products attain the best quality," said Mai Ba Dung, Director of Saigon Milk Factory.

Unlocking new competitive advantages and leveraging FTAs

The trend of sustainable development has also grasped the full attention of the world trade scene. In Australia and New Zealand, Vinamilk has joined the supply chain of the largest international supermarket chains in the Oceania region, such as Costco, Woolworths, and Foodstuff, thanks to meeting strict requirements for environment-friendly packaging. In these two markets, Vinamilk records revenue growth of more than 50% compared to the same period last year.

Vinamilk leverages the FTAs ​​that Vietnam has signed to create sales advantages and support its export growth. According to the business representative, the rate of granting certificates of origin to receive tax incentives at Vinamilk is currently over 53%, higher than the average of 37.35% according to data compiled by the Ministry of Industry and Trade.

The effective utilization of FTA in the Japanese and Canadian markets is a prime example specifically the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Vinamilk has recorded revenue growth of approximately 40% compared to the same period in 2023 in these two markets despite having high standards for imported goods.

“As for the plan, we will continue to further promote new markets with great potential such as Africa and South America. However, to make the most of markets with FTAs, it is essential to meet the requirements of origin and make changes in raw materials and production lines to be able to meet related standards,” said Vo Trung Hieu, Director of International Business, Vinamilk.