After 47 years of development, Vietnam Dairy Products Joint Stock Company (Vinamilk) has been the market leader in the domestic liquid milk segment in Vietnam. The company has not only maintained its national brand for many consecutive years, but also gained a foothold on the map of the world dairy industry. Vinamilk is now on the list of the Top 40 largest dairy companies globally in terms of revenue (according to Plimsoll Statistics, UK) and Brand Finance ranks it 6th among the Top 10 most valuable milk brands in the world with a brand value of 2.8 billion US dollars.
Building Core Competency towards Sustainability
Established in 1976, from a dairy enterprise with humble beginnings, Vinamilk has strived to overcome all barriers and challenges to grow significantly and has become a national dairy brand which is selected by consumers of all ages. The company currently manages more than 50 units both at home and abroad, including 15 farms and 17 factories, 13 subsidiaries, joint ventures and associates. In Vietnam, the company has a system of factories and farms at the largest scale in the local dairy industry.
Vinamilk's farms are invested in and built in an environmentally friendly manner and in line with a sustainable business development strategy, namely Vinamilk eco-farms (Green Farm) in the provinces of Tay Ninh, Quang Ngai, Thanh Hoa and Vietnam's first European-standard organic farm in Da Lat.Vinamilk is the first business with a Vinamilk Nghe An Dairy Factory and Vinamilk Nghe An Dairy Farm achieving carbon neutrality according to PAS2060:2014 standards.
To meet production needs, Vinamilk's factories are built and equipped with advanced automation technology to meet world quality standards, such as FDA, Organic EU, HACCP and Halal. Notably, Vietnam Vinamilk Dairy Factory, called a ‘mega factory’, is the most modern and largest one in Vietnam and in the region with a huge capacity of 800 million litres/year, pumping up the company’s total fluid milk production to 1.4 billion litres/year. In the next five years, Vinamilk will increase its production capacity with a total investment of up to 600 million US dollars for large projects such as Hung Yen Dairy Factory and Moc Chau Milk Paradise.
Pioneering in sustainable development, Vinamilk was the first dairy enterprise in Vietnam to participate in the Pathways to Dairy Net Zero (a global initiative of the Dairy Industry on Net Zero) and the first dairy enterprise in Asia to cooperate with the World Dairy Sustainable Development Framework (DSF) to carry out a program to assess and identify key aspects of sustainable development at Vinamilk in particular and in the Vietnamese dairy industry in general.
In 2023, Vinamilk announced its roadmap towards Net Zero and detailed action plans such as reducing greenhouse gas emissions by 15% by 2027, reducing and neutralizing emissions by 55% by 2035, and moving towards Net Zero by 2050, joining the Vietnamese government's pledge at the UN Climate Change Conference in Glasgow (COP26).
Vietnamese Products of International Quality
As an enterprise producing nutritional products to serve a large number of consumers, Vinamilk has paid much attention to sustainable development and early invested in the three main pillars - nature, people and products.
Identifying the quality of products is the core value and key to its success, Vinamilk has established strategic cooperation with the world's leading nutrition groups, such as Chr. Hansen, DSM, Beneo and AKK to develop dairy products with international standards for domestic and foreign consumers.
Vinamilk has confirmed its position in the world dairy industry through winning prestigious global awards and high assessments. In 2023, Vinamilk was the first company in Asia to win the US’ Purity Award for its optimal gold infant power. To attain the award on purity and food safety standards, the company’s product had to undergone a rigorous process of screening and testing to ensure compliance with 400 strict criteria.
The company’s 100% Green Farm and Organic fresh milk products have been certified by Clean Label Project (CLP). CLP is a US-based non-profit organization conducting tests and evaluation of products with a series of strict criteria on residues of heavy metals, microplastics, as well as other harmful chemicals in products, which can affect consumers' health. This is an unequivocal confirmation of Vinamilk’s world-class quality.
Vinamilk’s dairy products are the first ones in Vietnam that were rated three stars in terms of taste at the Superior Taste Award after the voting of a jury panel of more than 200 professional taste experts of the Belgium-based International Taste Institute. At the World Dairy Innovation Awards 2023, Vinamilk’s Super Nut, a plant-based milk alternative, won the Best Dairy Alternative 2023 Award - one of the most competitive categories - with 10 nominations at the 16th Global Dairy Congress held in London from June 21-22.
Taking Vietnamese Milk to the World with a New Position
Along with developing the domestic market, the largest dairy company in Vietnam has actively seized opportunities to expand its business in international markets through investment in its subsidiaries abroad with the aim of gradually increasing revenue, towards the goal of becoming one of the Top 30 largest dairy companies in the world.
Over the years, Vinamilk has continuously promoted investment in its foreign subsidiaries, such as Driftwood (US), Lao-Jagro Development (Laos), Angkormilk (Cambodia) and Del Monte - Vinamilk (the Philippines). These projects are expected to enhance the comprehensive, sustainable and long-term cooperation relationship between Vietnam and other countries, contributing to creating great progress for the dairy industry and dairy farming in Southeast Asia.
Vinamilk's investment projects have so far seen positive results, even during the difficult times caused by the pandemic of COVID-19 and the recent economic crisis. The Lao-Jagro dairy farm complex has almost completed its phase 1, importing more than 1,000 dairy cows from the US to Laos. This project has an estimated investment capital of up to 100 million US dollars. This "Vietnam-Laos-Japan" cooperation project has great significance in terms of economics and politics, contributing to the development of local agriculture. In Cambodia, Vinamilk continued to invest an additional 42 million US dollars in its factory and farm after Vinamilk's Angkor dairy factory showed operational efficiency, bringing about many economic benefits.
Besides investing in its foreign subsidiaries, Vinamilk has enhanced export activities. In addition to the traditional market of the Middle East, Vinamilk has promoted its business activities in major markets such as Japan, Canada, South Korea, Australia and China. The company’s products are available in most Southeast Asian countries. The total value of exports accounts for 15% of Vinamilk's revenue and continue to increase in both output and value.
In recent years, Vinamilk has participated in many major conferences and forums of the world dairy industry as the representative of Vietnam's dairy industry, thereby, bringing Vinamilk's brand and the image of Vietnam's dairy industry to the people and business communities around the world.
Bài: Đặng Kim Phương - Ảnh: Lê Minh, Đặng Kim Phương/ Báo ảnh Việt Nam và Tư liệu Vinamilk
