Global Strategy
of Vinamilk
How Vinamilk succeed in the
international market ?
We are group 8
Phan Thi Thu Thao Do Thi Thanh Tuyen Nguyen Thuy Truc Linh Nguyen Khanh Minh Chau
Table of contents
01 02
Market The key factor
entry modes to success
03 04
The solutions Recommendations
VIETNAM DAIRY PRODUCTS
JOINT STOCK COMPANY
BRIEF
INTRODUCTION
LEADING NUTRITION GROUP IN VISION: to become a world grade brand
VIETNAM in food and beverage industry, where
people put all their trust in nutrient
and health products.
CEO&FOUNDER: MAI KIEU LIEN
WORLD’S TOP 40 DAIRY PRODUCERS
CEO&FOUNDER: MAI KIEU LIEN
LEADING NUTRITION GROUP IN
VIETNAM
WORLD’S TOP 40 DAIRY PRODUCERS
PRODUCTS FOR HUMAN
GLOBAL OUTREACH: ~ 60 COUNTRIES
& TERRITORIES
01
Market
Entry Modes
Speaker: Do Thi Thanh Tuyen
I. EXPORTING
Which market in the
early days ?
EXPORTING
MIDDLE EAST
IRAQ (1998)
AD DIS
UN’s oil-for-food Potential Strict Political
program Markets standards risks
Lack of big
Great
dairy
demand
producers
EXPORTING
MIDDLE EAST
- 2010-2015, Vinamilk sales growth
rate was about 38%
- at Gulfood Fair 2016 Vinamilk signed
a $12.5M contract to export baby milk
powder products
II.
JOINT VENTURE
Which country is its first
oversea investment project
?
JOINT VENTURE
MIRAKA Milk Factory in New Zealand
- High – quality material area
- Stable political economy system
- First step to enter European market
JOINT VENTURE
MIRAKA Milk Factory in New Zealand
- 8/2011, Miraka went into operation
- 2010-2015, Vinamilk increased its
ownership from 19,3% to 21,83%
- 2014, Miraka earned $164 million in
revenue, a year-on-year rise of 51%
=> Provide huge financial support for later foreign projects.
III.
WHOLLY OWNED
SUBSIDIARY
THE US MARKET
- Fast economic growth
- World largest market
- Advanced technology, educated
workforce
- Benefits of making things in the US
Driftwood Dairy Holding Corporation
THE US MARKET
- 5/2016, Vinamilk officially owned
100% of stake.
- Main products: dairy products and
fruit juice
- Total revenue in 2015: $119m
Driftwood Dairy Holding Corporation
CAMBODIA POLAND
Angkor Dairy Factory Vinamilk Europe Spólka Z Ograniczona
Odpowiedzialnoscia (Closed)
02
The key factors
to success
Speaker: Nguyen Khanh Minh Chau
Goal
Maintaining the NO.1
position in Vietnam market
BECOME
ONE OF THE 30
LARGEST DAIRY COMPANIES
IN THE WORLD
How did Vinamilk
achieve that goals?
1. Understand the
world economy and market
Domestic market:
● The dairy market is currently relatively
saturated
● Vinamilk has NO.1 position in most
areas => not much space for expanding
its market share
1. Understand the
world economy and market
The word market:
● Global demand for dairy is expected to
increase by 2.5 percent - Deloitte
● During Covid 19 pandemic:
Demand for products from nature, plant-
based continue to grow as consumers
become more aware of the health benefits
1. Understand the
world economy and market
The word economy:
● Today international trade is a
fundamental and essential part of
economic activity.
● Lower barriers to trade and investment
=> foster foreign market entry to
recover from Covid-19 pandemic.
IT’S TIME TO GO
Global
2. Appreciate culture differences
UNDERSTANDING
The market’s diverse needs
is the crucial foundation of R&D
2. Appreciate culture differences
Ridielac infant cereal with
vitamin A help African children tackle
the challenge of vitamin A deficiency
2. Appreciate culture differences
Vinamilk x VinaKorea Co., Ltd.
Vinamilk's soymilk is exported to
South Korea due to the trend
using soy-based nut drink
products in this country.
3. Significant investment for global expansion
3. Significant investment for global expansion
Angkor Milk
Cambodia factory
Vinamilk has three factories in the U.S., New
Zealand, and Cambodia
3. Significant investment for global expansion
Vinamilk Farm
in Laos
3. Significant investment for global expansion
Vinamilk x Del Monte
a leading producer and distributor
of F&B products in the Philippines
Vinamilk's exports increased 7.4%
to 5,561 billion VND in 2020 thanks to its first batch
of Ong Tho condensed milk exported to China
International Achievements
2000
Mercury is the
closest planet to
the Sun
1995
Despite being red,
Mars is actually a
cold place
03
The solutions
Speaker: Nguyen Thi Truc Linh
Phan Thi Thu Thao
Vinamilk’s approaches for
international business
environment
Export Market
ABOUT EXPORT
KEY EXPORT BUSINESS
PRODUCTS More than 40 countries
●
worldwide, which includes the
Power Milk ● Soya drink
● Condensed product ● Milk drink
South East Asian, the Middle
● Cereal ● Beverage East, Africa and other
countries.
1.M&A
Be ready for M&A activities & expand strong cooperation with partners.
Angkor Dairy
Cambodia USA Driftwood Dairy
Products
Holding
Company
Corporation
Limited
Lao-Jagro
development Laos New Zealand Miraka
Holdings
Xiengkhouang
Limited
Co., Ltd
2.R&D
Conducting a wide range of market studies covering all aspects: packaging design,
consumer flavor and taste preferences
Example:
● In the Korean market: soymilk and milk tea
=>One of South Korean's top imported brands by sales volume
● E-commerce websites: 11St, eBay and soon on 7-Eleven and GS25 outlets.
● The Vietnam Dairy Products JSC is stepping up R&D to
create innovative products enriched with local flavors to
satisfy the diverse range of global tastes.
EXAMPLE:
MIDDLE EASTERN, JAPAN PHILLIPINE
Pros & Cons
Evaluation
Mergers and Acquisitions
❖ Revenue
2020 Vietnam’s dairy industry had negative growth of -6% (AC
Nielsen)
Vinamilk recorded growth in export revenue reaching VND
5,56 trillion, up 7,5 percent compared to 2019
1-6/2021 Vinamilk recorded double-digit growth, reaching VND
2,77 trillion, up 13,1% compared to 2020
Mergers and Acquisitions
❖ Remarkable events
The first dairy company in
Vietnam to be licensed to export
to EAEU countries
The first batch of Ong Tho
condensed milk to China
3 lines of Vinamilk branded soya
milk and milk tea to Korea
Mergers and Acquisitions
Competition from domestic business of target markets
New Zealand
The initial step to Vinamilk global
strategy
The world's 8th largest milk producer
Miraka - 1% dairy market shares in 2017
Mergers and Acquisitions
Strict standards to meet, maintain & improve
Prepared a profile includes information
from the farm to the final product
(cow origin, veterinary control
procedures, sampling,...)
All information must be in English &
Chinese
Double standards – European Organic (EU
Organic) and Chinese Organic
Organic fresh milk launched at Shanghai Global Food Trade Show
M&A plays A PIVOTAL ROLE in EXPAND DISTRIBUTION
SYSTEM, AND INCREASE BRAND AWARENESS
making Vinamilk
THE MOST VALUABLE DAIRY COMPANY IN SOUTHEAST
ASIA
Research & Development
❖ Vinamilk made great journey towards sustainable
development
VIETNAM'S TOP 10 SUSTAINABLE BUSINESSES IN 2016
❖ More active in market research activities to gain
advantages over domestic competitors
❖ F&B Trend in Nutrition, Health benefit after economic
recession due to pandemic
- Organic milk, application of biotechnology,...
- Focus on elderly, the sick, and children segments
TOP 300 MOST DYNAMIC ASIAN COMPANIES
Nikkei Asian Review magazine (Japan) 2016 - 2020
THOROUGH R&D
Vinamilk can CREATE ITS OWN UNIQUE VALUE
& MINIMIZE RISKS of international investment
04
Recommendations
Speaker: Do Thi Thanh Tuyen
Understanding of target markets
Pros and cons vs long run profit
potential
International Market Fair
Exporting and Joint venture first
International agreements
References
● https://www.vinamilk.com.vn/baocaophattrienbenvung2021/challenging-en.ht
ml#tab-page-3
● https://www.vinamilk.com.vn/en/distribution/export-market
● https://www.vinamilk.com.vn/en/news-events/2114/vinamilk-makes-a-strateg
ic-move-for-market-expansion-in-south-korea
● https://www.vinamilk.com.vn/en/outstanding-achievements
● https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/ConsumerBus
iness/ie_Dairy_Industry_Trends_and_Opportunities.pdf
● https://www.vinamilk.com.vn/en
● https://vietnammoi.vn/vinamilk-dong-cua-cong-ty-con-o-ba-lan-sau-6-nam-ho
at-dong-2020231114235222.htm
● https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1281/lien-tiep-mo-rong-da
u-tu-vinamilk-hai-trai-ngot-o-n
● https://www.vinamilk.com.vn/en/news-events/1338/vinamilk-banking-on-thai-
sales-potential
● https://vir.com.vn/vinamilk-raises-stake-in-new-zealands-miraka-company-35
853.html
● https://www.vinamilk.com.vn/vi/thong-cao-bao-chi/1251/chuyen-xuat-ngoai-d
au-tien-cua-vinamilk
Thanks!
for listening to our presentation.
Feel free to ask us if you have
any questions.
