Team member: Pham Duong Khanh, Do Thi Hong Hanh, Ta Tuan Hung

Company name: Vinamilk

1. PESTEL Forces:

Political Factor:
- Vietnam has a stable political institution and is a peaceful country without war or
terrorism. The government has policies to support the milk industry and has reduced
foreign trade barriers to attract investment.

Economic Factors:
- Vietnam experiences a high inflation rate, leading to increased production costs.
However, the country's GDP is growing, providing business opportunities.
- Being a member of the WTO allows for attracting foreign investment, but it also poses
challenges for local companies to compete with foreign competitors. The rising income
and improved living standards in Vietnam contribute to the high demand for milk
products, especially organic ones.

Social Factors:
- The level of education and awareness about the benefits of milk is increasing. Parents
are concerned about their children's health and are willing to purchase milk products.
The rising living standards in Vietnam also drive the demand for milk, as people focus on
improving their health and beauty.
- However, there is still a significant portion of the population, particularly in rural areas,
that does not have a habit of drinking milk. Milk consumption per capita in Vietnam is
relatively low, and there is still a high percentage of malnourished children.

Technology Factor:
- Vinamilk is the only company in Asian which has automatic milking system G.A.P
certification.
- Rapid high temperature sterilization technology.
- Technology of milk powder cans.
- New modern equipment in the field of product packaging diversification
- Quality management technology product quality management according to ISO

Environment Factors:
- Natural environment: the tropical monsoon climate is a challenge for dairy farm (Cows
produce milk most in the temperature range of 5-21°C)
- Frequent flood disaster
- Environment issues: pollution from dairy farms create problems.

Legal Factors:
 - Vinamilk must ensure the production, which are safety and healthy for customers by
using modern systems. Company should follow the rule of food safety.
- Vietnam has many different tax rates so it will make difficult for any company. It also
affects the price decision of company.

2. PESTEL forces that the company must anticipate in the future:

Political:
- Government regulations and policies related to the dairy industry, including quality
standards, labeling, and food safety regulations.
- Trade policies and international trade agreements affect the import and export of dairy
products.
- Political stability and potential changes in government that may impact business
operations.
Economic:
- Fluctuations in exchange rates, as Vinamilk may import raw materials or export
products.
- Economic growth and consumer purchasing power, which can affect demand for dairy
products.
- Inflation rates and cost of living, influence production costs and pricing strategies.
Social:
- Changing consumer preferences and dietary habits, such as a shift towards plant-based
alternatives or healthier options.
- Increasing awareness of environmental and sustainability issues, leads to demand for
eco-friendly packaging or production practices.
- Demographic trends, including population growth, aging populations, and urbanization,
affect consumer demographics and market segments.
Technological:
- Advancements in dairy processing technologies, automation, and robotics that may
impact production efficiency and cost-effectiveness.
- Digitalization and e-commerce trends, influencing marketing and distribution strategies.
- Innovation in product development, such as new formulations or functional foods, to
meet evolving consumer needs.
Environmental:
- Environmental regulations related to sustainability, waste management, and carbon
emissions that may impact production processes and supply chain.
- Climate change and its potential effects on agriculture, including availability and pricing
of raw materials.
- Consumer demand for environmentally friendly and ethically sourced products.
Legal:
- Intellectual property laws and regulations to protect brand names, trademarks, and
patents.
- Employment laws and regulations, including labor rights and occupational health and
safety standards.
- Legal requirements and restrictions on advertising and marketing practices.