(Baochinhphu.

vn, 2020)

(NLD.COM.VN, 2021)

According to reliable articles, Total Vietnam's GDP trend increased. Specifically, in 2020, it increased by
2.91% and 2.58% in 2021. That means that the per capita income of the people increases, and the
demand for consumer products or food increases, including milk.( ....) On the other hand, according to
Vinamilk's annual report, in 2020, Vinamilk's total revenue reached VND 59,723 billion and VND 61.012
billion in 2021, up 2.2% compared to 2020 despite being severely affected by the covid epidemic.
Economic factor has a positive impact on businesses.
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With more than 45 years of establishment and development, Vinamilk is a strong and
long-standing dairy brand in Vietnam and has high recognition among consumers not
only in the country but also abroad. Vinamilk's brand value was "valued" by Forbes
Vietnam at more than $2.4 billion, equivalent to more than VND55 trillion,
accounting for more than 20% of the total value of the Top 50 leading brands in
Vietnam in 2020. Total brand value The brand name of this year's list reached more
than 12.6 billion USD, an increase of 22% compared to the 2019 list. Vinamilk is also
in the Top 10 most valuable dairy brands globally in 2021 with 8th position according
to the annual report. of Brand Finance and is also rated as one of the three most
potential milk brands in the world.
Strong brand image: With more than 45 years of establishment and development, Vinamilk is a strong
and long-standing dairy brand in Vietnam. It has high recognition among consumers in-country and
abroad. ( Vinamilk, 2021). Vinamilk's brand value was "valued" by Forbes Vietnam at more than $2.4
billion, equivalent to more than VND55 trillion, accounting for more than 20% of the total value of the
Top 50 leading brands in Vietnam in 2020. Total brand value the brand name of this year's list reached
more than 12.6 billion USD, an increase of 22% compared to the 2019 list. (BrandsVietNam, 2020).
Vinamilk is also in the Top 10 most valuable dairy brands globally in 2021 with 8th position according to
the annual report of Brand Finance and also rated as one of the three most potential milk brands in the
world. (Vinamilk, 2021).

Importing raw materials is difficult: The covid 19 pandemic has brought many difficulties and challenges
consciousness related to the state of anhydrous the scarce supply of raw materials and materials input
and import of raw materials due to the disruption of the global supply chain. This makes it difficult to
import raw materials because of shipping in the country increased by about 20%, and foreign growth of
about 500% has contributed to costs pushing the cost of raw milk production to increase. ( Vinamilk,
2021)

Strong financial performance: Vinamilk has great financial capacity, stability and financial autonomy. In
2021, Vinamilk's total consolidated revenue is 61,012 billion VND, up 2.2% compared to 2022 and
surpassing 60 trillion VND for the first time and completing 98.2% of the plan. (Vinamilk, 2021). Besides,
according to market research company Plimsoll - UK announced in March, Vinamilk has many times
appeared in prestigious rankings such as position 36 in "Top 50 leading dairy companies in the world on
revenue". According to Brand Finance, Vinamilk is the only representative of Southeast Asia in the "Top
10 most valuable global dairy brands in 2021". (VnExpress, 2021).

Vinamilk always puts the health and safety of employees on top, always values employees, and creates a
comfortable working environment for them. (Vinamilk, 2021). According to the "List of 100 best places
to work in Vietnam 2020" announced by Anphabe and market research company Intage, for the third
consecutive year, Vinamilk maintains the No. 1 position as the best workplace in Vietnam. In addition,
Vinamilk also set up a "hat-trick" when leading in two other rankings, "Top 50 Vietnamese enterprises
with attractive employers brand" and "Best workplace in the fast consumer industry ''. (TUOITREONLINE,
2020).
In 2021, Vinamilk decided to import more than 2,100 purebred HF dairy cows from the US to a
new farm in Quang Ngai. According to Vinamilk's partner in the US, this is a healthy cow breed,
especially with good adaptability to the climate conditions in Vietnam. After getting used to the
"new home" and stabilizing about health, the average milk production can reach over 11,000
liters/head/year. Milk source contains many nutrients with high protein and fat content. Vinamilk
has come up with the best solution for Vinamilk that solve the dependence situation of 70% of
raw materials on foreign countries. Specifically, after being hit affected by the Covid pandemic
and disrupted global supply chains, raw material prices and transportation costs skyrocketed.
This decision has helped the company solve Vinamilk's current difficult situation if it wants to
achieve the desired revenue next year.
VNDirect expert emphasized: '' With the operation of a new farm in Quang Ngai with an area
of 100 hectares, a total investment of 700 billion VND, plus a plan to welcome purebred dairy
cows imported from the US in 2021, VNM expects to increase the rate of autonomy in input
materials will increase to over 50% in 2022 and 60% in the following years,”
Vinamilk's decision will help the company gradually become self-sufficient in raw materials to
meet the increasing demand for domestic consumption and export. Vinamilk in the future will no
longer be dependent on the price of input milk materials to increase sharply and then suddenly
decrease with unpredictable fluctuations like before. Being self-sufficient in raw materials in the
future helps Vinamilk reduce adverse effects on production, input costs, and profitability of the
company.

This business decision of Vinamilk is considered on the strength of financing and stable capital. The
decision has goals improve the Vinamilk's weaken about its dependence on dairy materials from abroad