Name: Nguyen Ha Nam

Student ID: 1915530524

KINH TẾ KINH DOANH - KTEE312.3

Homework Exercise 2

Chosen Company: Vinamilk

→ Company Annual Report: Vinamilk’s Annual Report 2020: Sustainable into the Future.

1. Objective:
The Chairwoman of Vinamilk noted in the message to Valued Shareholders: ”The
Board of Directors believe that Vinamilk will surely surpass every obstacle, conquer every
target and make remarkable achievements for its 45th anniversary.”
The message from CEO also indicated that: “We believe that Vinamilk will move into
2021, the final year of the strategic period 2017-2021, with great confidence and high
determination to achieve growth and to reach new heights.”
Vinamilk has established a comprehensive Primary Objectives concentrating on three
major factors with the primary goal to preserve its No. 1 position in the Vietnamese market
and to reach the Top 30 largest global dairy firms in terms of revenue.
- Lead In Applying Highly Applicable Innovations:
- Focus on the dairy industry and dairy-related products, which is the core
business of Vinamilk.
- Continue to promote product R&D with the focal points of innovating,
expanding and diversifying the product portfolio to match with the
ever-changing tastes and demands of consumers, as well as offering a variety
of convenient and rich experiences.
- Strengthen The Leading Position In Vietnam's Dairy Industry:
- Prioritize the domestic market which still has great growth potential.
- Focus more on higher segments with high value-added products, especially in
urban areas.
- Expand market penetration and coverage in nonurban areas, where growth
potential is still immense, with mainstream product lines.
- Continue to build a capable domestic distribution system, increase market
share and maintain Vinamilk's leading position in the market.
- Become The Most Valuable Dairy Company In Southeast Asia:
 - Stay prepared for M&A activities and expand business relationship with
partners in all three directions of horizontal, vertical and combined integration.
- Prioritize M&A opportunities with dairy companies in other countries with the
aim of expanding markets and increasing sales.
- Continue to penetrate new export markets with the strategy of transforming
the traditional export model into forms of extensive cooperation with
distribution partners in new key markets.

2. Corporate Social Responsibility:

Regarding the Sustainable Values of Vinamilk, bearing in mind that enterprises can
only sustainably develop in a healthy community, Vinamilk has actively carried out corporate
social responsibility programs, especially during the toughest moments of the COVID-19
pandemic. To realize the goal of sustainable development, Vinamilk has successfully built
the basic infrastructure and developed a modern, centralized livestock farming model, thus
creating "Sustainable Values" and getting ready to "Move Forward". This is demonstrated
through:
- The dairy farm system meets the standards of ISO 9001:2015 and Global GAP. Dalat
Organic Dairy Farm gets the first EU Organic certification in Vietnam. Milk quality is
carefully monitored to ensure the best quality and compliance to strict standards of
food hygiene and safety.
- Vietnam Dairy Cow and BS TNTH Company are recognized as High Tech
Agricultural Enterprises.
- BSVN's milk production in 2020 increased by 6% compared to 2019.
- BS TNTH's profits increased by 442.8% compared to 2019.
Not Only Contributing To The Local Economy’s Development, Vinamilk Also Keeps
On Demonstrating Corporate Social Responsibility Through Activities To Raise Nutrition And
Health Care Awareness And Create A Clean And Green Environment For The Community.
Vinamilk Actively Promotes CSR Programs Amidst The Covid-19 Pandemic.
As in the context of COVID-19, Vietnam's resilience against the COVID-19 pandemic
has been globally recognized and appreciated. As a recognized corporation for a heightened
sense of social responsibility, in 2020 the entire Vinamilk corporation, along with affiliates
and subsidiaries, contributed nearly VND 40 billion to support state-sanctioned COVID-19
relief and prevention measures, protecting at-risk workers in the front line and vulnerable
communities affected by the pandemic.
Difficulties caused by the pandemic did not undermine Vinamilk's determination to
implement major CSR programs such as the 'Stand Tall Vietnam' Fund and the 'A Million
Trees for Vietnam' Fund. The ‘Stand Tall Vietnam’ Milk Fund, established in 2008 by the
Vietnam Child Protection Fund, under the Ministry of Labor, War Invalids and Social Affairs
and Vinamilk's constant companionship, has brought millions of glasses of milk to children all
over the country in order to fulfil the mission of "letting every child drink milk every day".
During the Covid-19 pandemic, the ‘Stand Tall Vietnam’ Milk Fund brought 1.7 million
glasses of milk to 19,000 children living in social protection centers and houses in remote
areas in 27 provinces and cities, timely providing nutritional care to the children and
enhancing their immune system to prevent disease.
In addition, Vinamilk also completed the prescribed target with 1,121,000 trees
planted in 2020, the 'A Million Trees for Vietnam' Fund was honored as one of the Top 10
Best Environmental Activities in the Global CSR Awards 2020. Vinamilk has also actively
accompanied the implementation of the School Milk Program in 23 provinces and cities
across the country. Eventually, Vinamilk was honored as the Best Overall CSR Excellence
by the Global CSR Awards 2020.
Pioneering In Bringing Optimal Nutrition For The Development Of School-Age
Children. The pandemic and natural disasters in 2020 caused a lot of burdens for
disadvantaged families and children. In particular, the lack of nutritious meals and
educational playgrounds for children was among the major challenges. The School Milk
program, in which Vinamilk cooperates with provinces and cities to bring nutritious milk to
students across the country, has been greatly supported by the Government and localities.
Implemented in the form of socialization, the program has contributed to reducing the
financial burden for many families, especially, bringing nutritional care opportunities to the
poor, disabled or ethnic children, providing them with free milk fully sponsored by the State
budget and Vinamilk. In 2020, School Dairy Program held the outstanding activities such as:
Conferences On Ensuring Food Safety, School Milk Day In Vinh Long.
With its role and responsibility to the community and society, Vinamilk has always
actively accompanied the Government and localities across the country in the prevention of
the Covid-19 epidemic. Specifically:
- In 2020, Vinamilk supported COVID-19 relief and prevention measures by the
Government and the community by donating a total of nearly VND 40 billion to
front-line social workers.
- Of which, VND 12.5 billion was dedicated to nutritional care for disadvantaged
children affected by COVID-19.
- Vinamilk employees participated in fundraising activities and contributed daily
salaries to CSR programs initiated by the Company.
- In 2020, Vinamilk's Driftwood Dairy Factory in the US donated nearly 23,000 liters of
milk through the Food Bank charity in Los Angeles, valued at USD 21,000.
Following Valuable Initiatives For The Community And The Country, Vinamilk Was
Honored By The Global CSR Award 2020 As The Most Socially Responsible Enterprise In
Vietnam.