VIETNAM DAIRY PRODUCTS JSC

(VINAMILK) IN PACKAGED FOOD

(VIETNAM)
Euromonitor International
November 2017
VIETNAM DAIRY PRODUCTS JSC (VINAMILK) IN PACKAGED FOOD (VIETNAM) Passport I

LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1 Vietnam Dairy Products JSC (Vinamilk): Key Facts ..................................... 1
Summary 2 Vietnam Dairy Products JSC (Vinamilk): Operational Indicators .................. 1
Competitive Positioning ................................................................................................................ 1
Summary 3 Vietnam Dairy Products JSC (Vinamilk): Competitive Position 2017............ 2

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VIETNAM DAIRY PRODUCTS JSC

(VINAMILK)
STRATEGIC DIRECTION
 Becoming one of the 50 leading milk manufacturers across the world is the vision of Vietnam
Dairy Products JSC (Vinamilk). The company continually invests in its core businesses,
including milk and yoghurt products. Vinamilk is also a trendsetter in dairy thanks to frequent
launches of new product developments and vigorous marketing activities, while continuously
refining its product quality and packaging and expanding its distribution network in both local
and international markets.
 In 2016, the company continued to invest heavily in building factories in Cambodia, New
Zealand, the US and in establishing a subsidiary in Poland. As at the end of 2016, Vinamilk
had 10 farms and 13 factories in Vietnam, besides three factories in the US, New Zealand
and Cambodia and a subsidiary in Poland. Over the forecast period, it is planning to promote
exports in new markets such as Thailand, Myanmar and Africa.
 Vietnam Dairy Products JSC (Vinamilk) is a joint-stock company.
 The company’s core business is the manufacture of dairy products such as powder milk,
drinking milk, yoghurt and ice cream. Besides packaged food, the company also participates
in soft drinks and hot drinks.

KEY FACTS
Summary 1 Vietnam Dairy Products JSC (Vinamilk): Key Facts
Full name of company: Vietnam Dairy Products JSC (Vinamilk)
www: www.vinamilk.com.vn
Activities: Manufacturer and distributor of dairy, hot
drinks and soft drinks
Source: Euromonitor International from company reports, company research, trade press, trade sources

Summary 2 Vietnam Dairy Products JSC (Vinamilk): Operational Indicators

Year end December 2015 2016
Net sales VND40.2 trillion VND46.9 trillion
Net profit VND7.8 trillion VND9.3 trillion
Source: Euromonitor International from company reports, company research, trade press, trade sources

COMPETITIVE POSITIONING
 In 2017, Vietnam Diary Products JSC (Vinamilk) retained its leading position within packaged
food with a 17% value share. The company also led baby food with a 28% value share and
dairy with a 49% value share. The company also offers ice cream, ranking second within ice
cream and frozen desserts with a 9% value share in 2017. Indeed, the company focuses on
only dairy products such as baby food, dairy and ice cream, and has established a strong

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reputation over the years. Its brand is a household name in Vietnam and has a strong
following of consumers due to its brand equity. Moreover, one of its competitive advantages
over international companies and brands, despite their known product quality, is that
Vietnamese consumers tend to have a preference for their local businesses. Besides, with its
strong financial budget, the company invests heavily in marketing and promotional activities
through both online and traditional media channels. As a result, the company gradually
increased its value share of packaged food towards the end of the review period, which was
despite the strong competition.
 Vinamilk ruled in all categories of baby food, with a 44% value share in dried baby food and a
26% value share in milk formula in 2017. The company’s strong positions in these categories
are indicative of its success in winning over the trust of many locals, who are particular about
food safety and hygiene, and also shows the quality of its baby food.
 In dairy, the company has a very strong presence and it leads in many categories, thus
helping it to maintain its value share of overall packaged food. Vinamilk even led in shelf
stable milk with a 56% value share in 2017, in fruited yoghurt with an 84% value share, in
plain yoghurt with an 85% value share, and condensed milk with an 82% value share. One of
the reasons for its strong performance is due to its diverse product portfolio and strong
marketing activities.
 Vinamilk mainly positions itself in the mid-range of the market, appealing to the mass of
consumers who favour quality products at reasonable prices. Nevertheless, towards the end
of the review period, the company paid more attention to the premium segment, particularly
reaching out to consumers who are willing to spend from first-tier cities such as Ho Chi Minh
City and Hanoi. For example, in 2015, it launched Twin Cows, a premium brand in ice cream
with four flavours including Green Tea, Tiramisu, Chocolate and Vanilla.
 Its leadership extends beyond educational efforts and increasing its consumer base, as it is
also an innovator. The company could be seen as the trendsetter within dairy in Vietnam. At
the end of 2016, Vinamilk launched a new product in organic milk that was claimed to come
from the very first 100% organic farm in Vietnam to meet European standards, located in the
city of Da Lat. In line with the rising awareness of organic products in the country, this product
quickly became available in most distribution channels, including both modern and traditional
outlets.

Summary 3 Vietnam Dairy Products JSC (Vinamilk): Competitive Position 2017

Product type Value share Rank
Packaged food 17.3% 1
Baby food 28.2% 1
Baked goods - -
Breakfast cereals - -
Confectionery - -
Dairy 49.3% 1
Edible oils - -
Ice cream and frozen 9.1% 2
desserts
Processed fruit and - -
vegetables
Processed meat and seafood - -

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Ready meals - -
Rice, pasta and noodles - -
Sauces, dressings and - -
condiments
Savoury snacks - -
Soup - -
Spreads - -
Sweet biscuits, snack bars - -
and fruit snacks
Source: Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

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