The domestic market plays an important role in Vinamilk's development strategy.

HÀ NỘI — Vietnam Dairy Products Joint Stock Company (Vinamilk) was honoured in the list of ‘Top 50 best listed companies’ by Forbes Vietnam Magazine.

Vinamilk is the only nutrition business of Việt Nam named on the list.

This is the 8th time Vinamilk held a high position on the list for eight consecutive years, reflecting the effective business strategies Vinamilk has identified, namely: investment in modern infrastructure to serve production, taking initiative in fresh milk material areas and expanding domestic and foreign markets.

In 2019, Vinamilk achieved more than VNĐ56.3 trillion in net revenue, an increase of 7.1 per cent year-on-year.

Vinamilk has invested in a large dairy farm in Laos' Xieng Khouang Plateau.

 Domestic market promotion

The domestic market plays an important role in Vinamilk's development strategy.

The firm maintained a domestic market share of over 50 per cent and a growth rate of consolidated revenue and after-tax profit in the period 2015-19 at 8.8 per cent and 8 per cent, respectively.

At the beginning of this year, in compliance with the regulations of COVID-19 pandemic prevention and thanks to appropriate strategic adjustments, Vinamilk has still stood firm in the face of difficulties caused by the pandemic.

2019 is a year of many great and significant steps in developing fresh milk material areas of Vinamilk. The company has continuously launched projects such as the inauguration of the Tây Ninh dairy farm with comprehensive 4.0 technology application, starting the first phase of the Laos farm project on a scale of 20,000ha with 100,000 cows, putting into operation the No 2 farm of the Thống Nhất Thanh Hóa Dairy Complex, building organic dairy farms and investing in many other projects.

A corner of Vinamilk Tây Ninh dairy farm.

With such strong investment, Vinamilk is currently holding Asia’s largest international-standard dairy farming system in terms of number of farms.

By the end of last year, Vinamilk completed the M&A deal to own 75 per cent of GTNfoods’ charter capital, thereby officially participating in operating Mocchaumilk from January 1, 2020, and setting up a strategy to develop a high-tech dairy hub in the northern province of Sơn La.

The company’s total scale of cow herd has reached more than 150,000 cows, producing approximately 1,200 tonnes per day. This figure is expected to continue increasing in the future.

Vinamilk products on display at supermarkets in China.

Vinamilk has also focused on investment in the quality of dairy farms, standardising farms following international standards such as Global GAP and EU Organic, which helps Vinamilk ensure raw material resources for its production, meeting domestic quality standards and exports as well.

Forbes Vietnam has identified that the companies in the “List of 50 best listed companies in 2020” are all enterprises with strong foundations and expected to have resilience in the context of Việt Nam’s economy facing the most challenges in the last ten years due to the impact of the COVID-19 pandemic.

Despite the serious impact of the outbreak, especially in the peak period of March and April, Vinamilk still gained positive business results. In the first quarter of this year, revenue increased by 7.3 per cent compared to the same period last year, reaching VNĐ14.2 trillion.

Potential export markets
According to Forbes Vietnam, the sustainable development, position of the company in the industry, corporate governance quality and the prospect of industry development are qualitative criteria that determine the presence of businesses in the Top 50.

In April, Vinamilk completed the production to export the first batch of Ông Thọ condensed milk to China, only two months after it received an official export code from China.

A customer buying organic VInamilk products in Singapore. — Photos Vinamilk

Vinamilk has also begun exporting the first shipments of a $20 million contract to the Middle East market in the second quarter of this year, which was signed early this year.

Good news from potential export markets is that Vinamilk's seed milk and milk tea products have been officially available at major Korean e-commerce sales sites since early this month. They are expected to be welcomed by Korean consumers.

Vinamilk is a huge but always flexible ‘machine’. With the right strategic orientation, effective, proactive and creative corporate governance to overcome difficult times and find development opportunities, Vinamilk has regularly recorded its name in the domestic and foreign reputation rankings such as Asia300’s top 50 largest listed companies and Forbes Asia’s 200 Best over A Billion List.

Vinamilk is currently the only Vietnamese company in the Top 50 largest dairy companies in the world in terms of revenue and is very close to the Top 30. — VNS