Vinamilk is in the Top 50 best listed companies in Vietnam for the 8th time

Firmly in the domestic market with the right strategy

In 2019, Vinamilk achieved VND 56,300 billion in net revenue, up 7.1% compared to 2018, maintaining a domestic market share of over 50%, the compound growth rate of consolidated revenue and consolidated profit after tax in the period 2015 - 2019 was 8.8% and 8% respectively. In early 2020, in compliance with Covid-19 epidemic prevention regulations, thanks to the solidity of production and business resources and appropriate strategic adjustments, Vinamilk has stood firm in the domestic market.

The strategy of sticking to the domestic market has helped Vinamilk develop stably and overcome the impacts of the Covid-19 pandemic. Photo: PV

Continuing to hold a high position in the list of “50 best listed companies in Vietnam” for 8 consecutive years reflects the effectiveness of the business strategy that Vinamilk has determined, which is: investing in modern infrastructure to serve production, being proactive in raw material areas and sticking closely to the domestic market to reach out to the world.

2019 is a year that has witnessed many major advances, which are of key significance in Vinamilk's strategy of developing fresh milk raw material areas. The company has continuously launched projects such as the inauguration of the Tay Ninh dairy farm applying comprehensive 4.0 technology, starting the first phase of the farm project in Laos with an expected scale of 20,000 hectares with a herd of 100,000 cows, putting into operation farm No. 2 of the Thong Nhat Thanh Hoa dairy complex, implementing the construction of an organic dairy farm and investing in the development of many other farm projects. With such strong investment, Vinamilk is currently the company that owns the largest international standard dairy farm system in Asia in terms of the number of farms.

At the end of 2019, Vinamilk completed the M&A deal to own 75% of GTNfoods' charter capital, thereby officially participating in the management of Mocchaumilk from January 1, 2020 and launching a strategy to develop a high-tech dairy capital in Son La province. To date, the total scale of the herd of cows providing milk has reached more than 150,000 heads, the total output of raw fresh milk has reached approximately 1,200 tons/day and continues to increase. In addition to developing scale, investing in standardizing farms according to international standards such as Global GAP, EU Organic is helping Vinamilk ensure raw materials for the production of quality products domestically and meeting the standards of the export market.

The Dairy Farm Complex project invested by Vinamilk in Xieng Khouang Plateau, Laos started phase 1 in early 2019. Photo: PV

Forbes Vietnam commented that the companies in the "List of 50 best listed companies in 2020" are all businesses with solid foundations, expected to have resilience in the context of Vietnam's economy facing the most challenges in the past 10 years due to the impact of Covid-19.

In fact, despite the impact of Covid-19, especially during the peak period of March - April 2020, Vinamilk still recorded positive business results: In the first quarter of 2020, revenue increased by 7.3% compared to the same period in 2019, reaching 14,153 billion VND, of which the domestic business segment alone grew by 7.9%, recording net revenue of 12,092 billion VND. This shows that sticking to the domestic market not only brings stable growth but also serves as a solid support and "rear" to help many businesses overcome difficult times like the recent Covid-19 pandemic.

Actively explore potential export markets

According to Forbes Vietnam, the level of sustainable development of the enterprise, the company's position in the industry, the quality of corporate governance and the industry's development prospects are the qualitative criteria that determine the presence of enterprises in the Top 50 in the final evaluation round.

Vinamilk Tay Ninh dairy farm applies comprehensive digital revolution 4.0 and modern technology from the US, Japan, and Europe in breeding and management. Photo: PV

In the first months of 2020, Vinamilk demonstrated this stability with its "three-legged tripod" position, which is to stabilize operations under pandemic prevention conditions, closely follow the domestic market and actively develop export opportunities. This not only helps the company achieve stable growth in the domestic market in the long term but also creates momentum and development potential when expanding internationally.

Specifically, in April 2020, Vinamilk completed production to export the first batch of Ông Thọ condensed milk to China, just 2 months after receiving the official export code from the neighboring country. In the second quarter of 2020, Vinamilk will begin exporting the first shipments of the $20 million contract to the Middle East market that the Company signed at the beginning of the year. Good news continues to come from potential export markets when Vinamilk's nut milk and milk tea products have officially appeared on major Korean e-commerce sites since early June with good expectations of the reception of consumers in this country.

Fresh milk products, including Vinamilk's Organic fresh milk, have been available in the Singapore market and have been well received by consumers.

It can be said that Vinamilk, although a giant machine, is always flexible. With the right strategic orientation, effective corporate governance, and proactive, creative ways to overcome difficult periods, thereby finding development opportunities, Vinamilk has regularly recorded its name in prestigious domestic rankings such as the Top 50 best listed companies and foreign rankings such as Asia300 - List of Asia's best listed companies, List of 200 best listed companies with revenue over 1 million USD announced by Forbes Asia... Currently, Vinamilk is the only Vietnamese company in the Top 50 largest dairy companies in the world in terms of revenue and is getting very close to the Top 30.

Vinamilk branded milk products appear in many modern supermarket chains in China such as Thien Hong, Hop Ma (Hema under Alibaba). Photo: PV