Vinamilk is continuously rated as one of the most effective businesses in Vietnam.

Mr. Do Thanh Tuan - Director of External Relations of Vinamilk Company (front row, 5th from left) - at the "Top 50 most effective business companies in Vietnam" award ceremony. Photo: PV

Previously, Vinamilk was also honored by Forbes Vietnam in the ranking of the 50 best listed companies in 2020 on the Vietnamese stock exchange.

The announcement ceremony was held in the context of the Covid-19 pandemic having many negative impacts on the production and business of enterprises around the world, so the common point of many awaited rankings is to make comments on the stability and adaptability of enterprises in the context of many new challenges, in addition to evaluating business results as usual.

Aiming to maintain growth amid challenges

According to Nhip Cau Dau Tu, the Top 50 most effective businesses in Vietnam of the year have demonstrated superiority in all criteria of business results and corporate governance capacity in the last 3 years. Speaking about the rankings, the evaluation council commented:“The Top 50 will especially honor many companies with larger scale, higher capitalization, strong growth rate, worthy of being the pride of the country."

Vinamilk Company – received the 24th Certificate of High Quality Vietnamese Goods. Photo: PV

For Vinamilk, the levers to help the company achieve its goals include: 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. In 2020, Vietnam's leading dairy company still sets a positive growth target in the context of the general economy being strongly affected by Covid-19.

Specifically, Vinamilk recorded positive business results in the first quarter of 2020 with consolidated revenue growing by 7.3% over the same period in 2019, reaching VND 14,153 billion. In the second quarter of 2020, the parent company's domestic and export revenue is estimated to grow by 12% and 26% respectively compared to the first quarter of 2020. Accordingly, consolidated revenue and profit after tax are estimated to grow cumulatively in the first 6 months of 2020 by 7% and 3% respectively compared to the same period in 2019. The cash dividend ratio continues to be maintained at a high level, reaching 74% of profit after tax in the 2019 fiscal year.

Vinamilk always focuses on investing in modern production technology and constantly innovating, bringing consumers new nutritional solutions of international quality. Photo: PV

In addition to its domestic business achievements, up to now, Vinamilk is also the only dairy enterprise in Vietnam licensed to export dairy products to the Russian Federation and countries of the Eurasian Economic Union (EAEU) after a series of impressive export contracts to international markets such as the Middle East, China, Korea... even at times when the world economy was strongly affected by Covid-19.

Brands most chosen by Vietnamese consumers

When the international business situation is greatly affected and trade is limited, the domestic market will be the "pillar" of any enterprise. Ms. Mai Kieu Lien, General Director of Vinamilk, shared about the company's development strategy: "Vinamilk's operating motto for the past decades has been to walk on two legs, the domestic leg must be solid before considering expanding abroad". And this strategy has been consistently implemented by Vinamilk.

Despite being affected by Covid-19, in the first months of 2020, Vinamilk still achieved many impressive export results.Photo: PV

With more than 220 types of products, a diverse distribution system covering the whole country, and continuously launching new products, Vinamilk has been surveyed and voted as a High-Quality Vietnamese Goods Enterprise for 24 consecutive years, as well as surpassing many "heavyweight competitors" at home and abroad to become the brand most chosen by Vietnamese consumers in the past 8 years (*)

Vinamilk's revenue growth in the last 3 years.

Assessing this result of Vinamilk, in the Brand Footprint report on the Vietnamese market, Kantar Worldpanel in June 2020 commented:“This domestic manufacturer has reached more than 80% of Vietnamese households thanks to advertising and communication activities emphasizing the nutritional value of their products as well as constantly renewing their image with many new products launched to meet new consumer needs."

Business size as of December 30, 2019.

Dynamically innovating in all major segments including liquid milk, infant formula, drinking yogurt, condensed milk, etc., Vinamilk has continuously led the domestic market in both output and sales for many consecutive years. The above market research results not only show the "resilience" of the enterprise in the context of increasingly fierce competition, but also prove that consumer trust will be the key to helping the enterprise stand firm in the face of fluctuations and maintain growth.

HH