US door opens for Việt Nam powder milk

January 19, 2018 - 09:00

Việt Nam Nutrition Food JSC (Nutifood) signed a contract with Delori Foods International on Thursday in HCM City to export its milk products to the US market.

Nutifood has became the first Vietnamese firm to export powdered milk products to the US. — VNA/VNS Photo Mỹ Phương
Viet Nam News

HÀ NỘI — Việt Nam Nutrition Food JSC (Nutifood) signed a contract with Delori Foods International in HCM City on Thursday to export its milk products to the US.

It was the first time Việt Nam’s milk powder have entered such a demanding market, thanks to its high quality and competitive prices.

Under the contract, Delori will distribute high quality PediaPlus dissolved milk powder for malnourished children to more than 300 supermarkets in California.

NutiFood had to meet the strict requirements of the US Food and Drug Administration (FDA) to receive an import licence.

Nutifood’s plants were also independently tested by Michelson Laboratories to make sure it met export conditions.

Trần Thanh Hải, CEO of Nutifood, said it had taken the company more than a year to finish negotiations with Delori and fully comply with the FDA.

He said the FDA carried out many strict check-ups on Nutifood’s plants.

“We are proud to become one of  the first Vietnamese firms conquering the market,” he said.

The company’s export revenue to the US market in the first year is expected to reach US$20 million and increase by $100 million each year over the next five years.

Its revenue in the local market is VNĐ10 trillion (US$) a year.

Delori intends to secure widespread distribution for its products in supermarkets across the US.

Tạ Hoàng Linh, director of the Department for the Europe and America Markets under the Ministry of Industry and Trade, said Việt Nam exported many key products to the US.

However, they were traditional products, such as garments and textiles, timber furniture, machines and electronic equipment.

Meanwhile, food and items relating to people’s health have accounted for a small portion of Việt Nam’s export structure.

Linh said Việt Nam took twelfth place in US exports and was twenty seventh among countries importing from the US. It is the sixteenth largest trade partner of the US.

Trần Quang Trung, chairman of Việt Nam Milk Association, said Việt Nam hoped to export milk products worth $120-130 million a year.

However, with the strong investment of local companies in 2017, the turnover reached $300 million.

The exports were mainly yogurt and liquid milk to the Middle East, Myanmar and Cambodia.

Vietnamese firms have also promoted their investments in world dairy farms to provide milk products to both Việt Nam and foreign markets. — VNS