Vinamilk promotes investment and exploits foreign markets

2023-06-09 11:34:28

Promote activities of foreign branches

Despite the difficult and complicated post-Covid-19 economic situation, in order to expand revenue and achieve the set target for the period 2022 – 2026, Vinamilk continues to promote investment in foreign branches. such as Driftwood (USA), Lao-Jagro Development (Laos), Angkormilk (Cambodia) and Del Monte – Vinamilk (Philippines).

Driftwood became a subsidiary of Vinamilk in December 2013. By May 2016, Vinamilk raised its ownership rate in this company to 100%. Driftwood is one of the oldest dairy manufacturers in Southern California (USA) with a product portfolio including fresh milk, yogurt, ice cream, juice. The Company’s customers include schools, restaurants, hotels, distributors… in the Southern California area. In 2022, Driftwood recorded double-digit growth in revenue, positively contributing to the Group’s consolidated revenue results.

Driftwood is Vinamilk’s second overseas investment

After Driftwood, in January 2014, Angkormilk – a wholly owned subsidiary of Vinamilk was granted an investment license to build a dairy factory in Phnom Penh. Two years later, Vinamilk and Angkormilk inaugurated a factory with the most modern international standards in terms of technology, environment and food safety. This is also the first dairy factory in Cambodia with a total area of ​​nearly 3 hectares, initial investment capital of 23 million USD, designed capacity of 59 million liters of pasteurized fresh milk per year, 144 million units of dairy products. sour, condensed milk/year. Every year, the factory produces about 50 million liters of milk of all kinds to the market, creating jobs for more than 500 workers in Cambodia.

In November 2022, Angkormilk announced that it would increase the total investment capital for projects in Cambodia to 42 million USD. Accordingly, Vinamilk – Angkormilk will invest in a dairy farm according to the world’s advanced technology, aiming to produce milk in the next 2 to 3 years, with the output of raw fresh milk reaching over 4,000 tons/year. . This will be a typical farm for the high-tech dairy industry in the Kingdom of Cambodia.

The company is also planning to expand the factory area at Angkormilk factory, increasing the production capacity to 90 million liters of all kinds per year, to meet the increasing demand for milk of the Cambodian market.

Prime Minister Pham Minh Chinh visits Angkormilk’s booth at the Vietnam – Cambodia Trade and Investment Promotion Forum 2022

For Lao-Jagro, Vinamilk officially became the parent company in July 2018 and created a new turning point with the development of a dairy farm complex project in Laos on a planned area of ​​5,000 hectares, with a scale of 5,000 hectares. herd of 24,000 cows. The long-term orientation is to develop a farm complex of 20,000 hectares with 100,000 cows. This is the result of cooperation between enterprises of three countries, Laos, Vietnam and Japan, aiming to form an international standard raw milk material area to supply the Vietnamese market and the Asian region.

Lao Jagro super farm in Laos with a scale of up to 100,000 cows

Del Monte – Vinamilk joint venture is the newest member in the system of member companies of Vinamilk. In August 2021, Vinamilk and its partner Del Monte Philippines, Inc. announced Del Monte – Vinamilk Joint Venture with a total investment capital of 6 million USD in the first phase. Vinamilk and its partners contribute 50% each. Currently, Del Monte products are available at more than 100,000 retail points in the Philippines.

These projects are considered as new milestones in the development of Vinamilk and its subsidiaries and affiliates abroad as well as enhancing the comprehensive, sustainable and long-term cooperation relationship between Vietnam and Vietnam. South and other countries, contributing to bring great strides to the dairy and dairy industry in Southeast Asia.

In 2022, foreign branches will continue to be the growth engines for Vinamilk’s international business. For Driftwood, revenue recorded a growth of over 30% thanks to the diversification of distribution channels to compensate for the main channel of schools, which has not yet recovered to pre-Covid-19 levels. In addition, Driftwood maintained the introduction of some Vinamilk products into the US market. For Angkormilk, revenue recorded a growth of over 10% in 2022 thanks to the development of new products and increased distribution activities.

By the end of the first quarter of 2023, net revenue of foreign branches reached VND 1,203 billion, continued to grow 11.3% over the same period last year thanks to the stable performance of Driftwood in the US and AngkorMilk in Cambodia with growth rates. revenue was 7% and 11% respectively compared to last year

Maintain and actively seek export opportunities

Besides investing in foreign branches, Vinamilk is also active in export activities. The enterprise has explored the dairy export segment since 1997 with the main market being countries in the Middle East. Currently, this sector is contributing nearly 85% to Vinamilk’s total revenue from export business.

“We have been cooperating with Vinamilk for more than 6 years and imported products from Vinamilk for distribution at the Foodstuff supermarket chain, New Zeland. We always believe in the quality of service, facilities and product quality produced by the company. All of them meet not only the regulations of the importing country but also the high requirements on time and delivery quantity of the retail chain system.” Mr David Swain – Remarkable Foods Limited- New Zealand.

At Gulfood, customers from the Middle East who know Vinamilk through international rankings have actively come to seek trading opportunities with enterprises.

In addition to the Middle East, Vinamilk also promotes business activities in major markets such as Japan, Canada, Korea, Australia, China… and present in most Southeast Asian countries… Up to now, the products Vinamilk’s products have set foot in 58 countries and territories, with total accumulated export turnover so far has exceeded 3 billion USD.

Up to this point, Vinamilk has completed most of the orders under contracts worth more than 100 million signed at the beginning of the year and expects more growth in the last 6 months of 2023.

“Although challenges due to large fluctuations in 2022 remain, Vinamilk has achieved positive results in early 2023 as dozens of contracts with a value of up to USD 100 million have been performed. This makes special economic sense in the context of general export difficulties, not to mention dairy products are not Vietnam’s strong agricultural products”, said Mr. Vo Trung Hieu, International Sales Director. at Vinamilk said.

Condensed coconut milk production line for export to Japan market

It can be said that these export contracts not only have economic value but also show the flexibility and the right strategy of enterprises in identifying potential markets, making key investments, especially in the dairy industry – the industry has less advantages compared to other agricultural products of Vietnam.

Vinamilk also actively participates in trade promotion events in traditional and potential regions and markets such as Gulfood Dubai Fair, Foodex Japan, FHA Singapore Fair, Thaifex… Besides, Vinamilk’s representative added. finding opportunities to expand and explore export markets, these are also activities to contribute to enhancing the country’s brand name in the dairy industry.

As a result, the business recorded Revenue from Foreign Markets in the first quarter of 2023, growing by 9.4% over the same period in 2022, reaching VND 2,428 billion. In which, net export revenue grew by 7.5% over the same period, reaching VND 1,225 billion in the first quarter of 2023.