Vinamilk and its multi-billion dollar investment move.

(Baonghean.vn) - By utilizing the world's most advanced technology in production, Vinamilk is getting closer to its dream of achieving $3 billion in revenue in the coming years.

Modern processes are being applied by the Vietnamese dairy company in the production of powdered milk, liquid milk, and yogurt – three product lines that generate significant revenue for the company. This is also an important foundation for CEO Mai Kieu Lien's confidence in achieving a revenue target of $3 billion in the coming years.

Vinamilk recently inaugurated its $23 million Angkor Milk factory in Cambodia last May. This is the first milk production plant in the land of temples.

Most recently, Vinamilk inaugurated the $23 million Angkor Milk factory in Cambodia. This is the first milk production plant in the land of temples. In phase one, Angkor Milk operates with a capacity of 19 million liters of liquid milk, 64 million yogurt cups, and 80 million cans of condensed milk per year. In phase two, by 2024, the factory will increase its capacity to 38 million liters of liquid milk and 192 million yogurt cups per year to serve the needs of the people of Cambodia and the region. The main product is sweetened condensed milk under the Best Cow & Captain brand.

This project marks another significant step forward for Vinamilk, not only in terms of investment but also in adopting world-leading technology – similar to the entire chain of factories Vinamilk has built and developed in Vietnam over the past 40 years.

After 23 years of investing in a professional industrial yogurt production system, Vinamilk's production line now supplies up to 6.5 million yogurt cups per day to Vietnamese consumers.

Few would have expected that a company established in 1976, based on the acquisition of three dairy factories left behind by the old regime – Thong Nhat Dairy Factory, Truong Tho Dairy Factory, and Dielac Powdered Milk Factory – would experience such remarkable growth compared to other companies of the same period. As of 2016, it is also the company with the largest market capitalization on the Vietnamese stock exchange, exceeding $8.5 billion.

One of the turning points marking Vinamilk's strong growth in revenue and market share was three years ago, with the establishment of two mega-factories with a total investment of nearly 5,000 billion VND, funded entirely by the company's own capital, in Binh Duong.

After 23 years of investing in a professional industrial yogurt production system, Vinamilk's production line now supplies up to 6.5 million yogurt cups per day to Vietnamese consumers.

The Vietnam Powdered Milk Factory, built on an area of ​​6 hectares in the Vietnam-Singapore Industrial Park (Binh Duong province) with an investment of 2,000 billion VND, commenced operations on April 22, 2013, after more than a year of construction. Company leaders acknowledged that the early start of this mega-project is part of their ambition to become one of the 50 largest dairy companies in the world.

In addition to its state-of-the-art milk powder production line, the Vietnamese milk powder factory boasts a completely closed-loop, 100% automated process from processing to canning and packaging, ensuring food safety and hygiene for consumers. Furthermore, the company has invested in a barcode-based traceability system from raw materials to finished products to facilitate easy tracing in case of any product-related complaints. With a capacity of 54,000 tons of milk powder per year, the factory meets a large portion of domestic consumer demand and exports.

Explaining this investment, Ms. Mai Kieu Lien stated: "Milk and coffee are two things Vietnam can export well." She shared that 25 years ago, when Vinamilk restored the Dielac 1 milk factory, all powdered milk for children in Vietnam had to be imported. However, currently, Vinamilk alone holds 30% of the powdered milk market share.

After 23 years of investing in a professional industrial yogurt production system, Vinamilk's production line now supplies up to 6.5 million yogurt cups per day to Vietnamese consumers.

When this factory became operational, it helped Vinamilk achieve revenue of over 31,000 billion VND and after-tax profit of over 6,500 billion VND, an increase of 12% in 2013.

Along with powdered milk, Vinamilk also put into operation its mega-factory (specializing in liquid milk production) in My Phuoc 2 Industrial Park, Binh Duong province, not long after, with the expectation of providing domestic consumers with the best dairy products and exporting them abroad.

The first impression upon entering this factory, spanning over 20 hectares, is its tranquility, a stark contrast to the bustling pace typically found in large-scale production areas. Only a few workers operate the facilities, thanks to self-operating robots, automated production lines, and smart warehouses. This minimizes human interaction, ensuring the finished milk product is always absolutely hygienic.

The factory, with a capacity of 400 million liters of milk per year in phase 1 and to increase to 800 million liters of milk per year in phase 2, was invested in by the company with approximately 2.4 trillion VND, of which the majority of the cost was spent on using the world's most advanced integrated and automated technology previously developed by Tetra Pak (Sweden).

Mr. Bert Jan Post, CEO of Tetra Pak Vietnam, assessed that the project boasts world-leading automation and integration, with 100% automation from raw material input to finished product warehousing. The robotic system, controlled by a central computer system, will be responsible for transferring aseptic paper rolls to the filling machine and automatically transporting finished products to the smart warehouse. Thanks to the combination of advanced processing technology, UHT sterilization technology, and aseptic filling technology, the product can maintain its fresh taste for 6 months without preservatives.

Few people know that, as early as 1976, Vinamilk began producing its first yogurt product, utilizing leftover condensed milk from the production pipeline of the Truong Tho Dairy Factory. At that time, production was mostly spontaneous, so the product was only for internal use. Through experimentation, in 1993, Vinamilk invested in a professional industrial yogurt production system from advanced countries, gradually establishing this product line to dominate the domestic market.

Vinamilk's Vietnam liquid milk factory is one of two mega-factories invested in Binh Duong, with a total investment of over 2,400 billion VND, most of which is spent on using the world's most advanced integrated and automated technology, previously built by Tetra Pak (Sweden).

Vinamilk currently has 13 factories in Vietnam, and 3 factories in the US, New Zealand, and Cambodia. Of these, 11 produce yogurt, along with many other products for specific market segments such as Probi yogurt, Susu yogurt for children, and Probeauty yogurt for women. With a capacity of up to 6.5 million cups per day, after 23 years of investing in a professional industrial yogurt production system, Vinamilk's production line is now supplying yogurt to nearly 85% of Vietnamese consumers.

After nearly 40 years as Vietnam's leading nutrition corporation and 18 years of export experience worldwide, Vinamilk not only meets the growing domestic demand but is also taking steps to realize its ambition of globalizing its brand.

Thanks to the completion of the 100% acquisition of Driftwood shares last May, Vinamilk gains several thousand billion VND in revenue annually from this US-based company. Notably, among its successful overseas investments is the Miraka factory in New Zealand. Besides exploiting the abundant and high-quality fresh milk resources from this agricultural nation in the Southern Hemisphere, the company has received over 2 million NZD in dividends from the factory since 2012.

With over 6 billion dairy products of various types serving consumers nationwide annually, and products present in more than 43 countries worldwide in recent years, the Vietnamese dairy company's goal of becoming one of the 50 largest dairy companies in the world with a revenue of $3 billion in the coming years will no longer be a dream.

PV