Vinamilk – More than a decade of making a mark in the top 50 most effective businesses in Vietnam

On December 1, Vinamilk was honored in the ranking of "50 Most Effective Companies in Vietnam 2022" announced by Nhip Cau Dau Tu Magazine at the Investment Conference with the theme "Vietnam's Economy - The Brightest Star". Since the first time the Top 50 ranking was announced (2011) until now, only 5 enterprises have been consecutively honored in all years, of which, Vinamilk is the only Food and Beverage enterprise to be present for 11 consecutive years.

Mr. Le Thanh Liem - Vinamilk's Chief Financial Officer represented the recipient of the award "50 Most Effective Companies in Vietnam" 2022. Photo: PV

Over a decade of building a sustainable foundation

In the discussion sessions at this year's Investment Conference, the prominent keywords that can be mentioned are the "sustainability and resilience" of enterprises - the factor that is believed to help enterprises overcome the "turbulent zone" and is also what investment waves "look for" in the recovery period. According to the Organizing Committee, for more than 10 years, the Top 50 has witnessed the continuous growth of the Vietnamese economy, including the proud development journey of Vietnamese enterprises, the "bright stars of the economy", especially even during the volatile period due to the Covid-19 pandemic.

With its leading position in the dairy industry in Vietnam, Vinamilk has continuously maintained its presence in the Top 50 most effective businesses, confirmed by its growth in revenue, profit, brand value... especially its stability and sustainability in business.

Mr. Murli Maiya, Managing Director of JP Morgan's Asia-Pacific Financial Services Division, congratulated Vinamilk on its outstanding results for 11 consecutive years in the Top 50. Photo: PV

Mr. Le Thanh Liem - Vinamilk's Chief Financial Officer said: "Over the past 11 years, Vinamilk has continuously innovated and pioneered ESG practices to become the largest dairy company in Vietnam and among the Top 36 largest dairy companies in the world in terms of revenue. In addition to the achievements in efficiency in production and business activities, what Vinamilk is always proud of is that the company's development is always closely linked to the development and expansion of the Vietnamese dairy industry to the world as well as contributing to improving the health, physique and stature of Vietnamese people".

In 2010, Vinamilk recorded revenue of VND16,081 billion and after-tax profit of VND3,615 billion. More than 10 years later, Vinamilk's revenue increased nearly 4 times, reaching VND61,012 billion - surpassing the VND60,000 billion mark for the first time. On the stock market, VNM is still the favorite "blue-chip" of foreign financial institutions as well as domestic financial and securities organizations for its transparency, sustainability and strength in corporate governance.

Vinamilk has contributed to building the Vietnamese dairy industry as well as improving the stature of Vietnamese people. Photo: PV

Accumulated in the first 9 months of 2022, Vinamilk completed 70% of the yearly plan with total revenue reaching 44,994 billion VND, brand value officially reaching 2.8 billion USD, in the Top 10 most valuable milk brands globally.

Vinamilk's revenue chart from 2011 - 2021.

Preparing for the future

Vinamilk's journey over the past decade is part of an outline of an impressive development path of the Vietnamese dairy industry in many aspects, in terms of scale, quality, standards and position in the world.

Currently, Vinamilk has 13 domestic factories with large-scale investment and world-leading technology application and 3 factories abroad. Notably, in the last 10 years, Vinamilk has invested in the first 2 milk "super factory" projects in Vietnam, namely Vietnam Milk Factory and Vietnam Powdered Milk Factory. With the largest scale and the most modern in Asia, these factories have contributed to creating a major breakthrough in supply capacity for the company in the following development stage.

Vietnam's super milk factory applies 4.0 technology, has large capacity, and currently produces more than 800 million liters of milk/year. Photo: PV

At the same time, Vinamilk also showed its strategic vision to proactively source raw materials by continuously building "million dollar" dairy farms such as in Nghe An, Thanh Hoa, Tay Ninh, Quang Ngai... meeting international standards such as Global GAP, European Organic with many outstanding models such as "Dairy Cow Resort", "Vinamilk Green Farm Ecological Farm".

Thanks to increased investment in farms, Vinamilk's milk output has increased significantly, strengthening its self-sufficiency in raw fresh milk. By the end of 2021, fresh milk output (including purchases from farmers) and the number of cows had nearly tripled compared to 2011, equivalent to nearly 400,000 tons and 160,000 cows.

Chart of raw fresh milk production and Vinamilk's cow herd in 2011 and 2021.

During this period, Vinamilk also promoted the international market and continuously launched M&A projects and foreign investments. Currently, Vinamilk has 3 subsidiaries: Driftwood (USA), Lao-Jagro Development (Laos), Angkormilk (Cambodia) and the joint venture Del Monte - Vinamilk (Philippines). The company also exports many products to many countries and major markets in the world such as: USA, Japan, Korea, Middle East... with accumulated revenue to date reaching more than 2.6 billion USD.

Vinamilk Green Farm ecological farm system is an outstanding result of Vinamilk in implementing its sustainable development strategy.

Mr. Le Thanh Liem said that in the period of 2022-2026, Vinamilk will continue to focus on improving corporate governance, applying technology and digital transformation to increase business efficiency, exploiting existing advantages and potentials. At the same time, the company will continue to develop fresh milk raw material areas, focusing on building a system of GREEN FARM ecological farms, improving production and supply capacity in the Vietnamese and foreign markets, to meet the increasing domestic and export demand.

Perspective of Moc Chau Milk Paradise project started by Vinamilk and its member company Moc Chau Milk in May 2022.

Specifically, major projects being implemented by Vinamilk with its member companies include: Hung Yen Dairy Factory (VND 4,600 billion), Moc Chau Milk Paradise (VND 3,150 billion), Angkormilk Farm and Factory in Cambodia (VND 1,100 billion), Lao-Jagro Dairy Farm Complex in Laos (VND 3,750 billion)... Combined with the expansion of other existing factories, it is expected to help Vinamilk's production capacity increase by more than 20%, creating new growth drivers for the upcoming strategic stages.