Group project ib 351 s group sea vinamilk international business

2023

VINAMILK’S
INTERNATION
AL BUSINESS
Group: SEA

Dr. David Saiia
Mrs. Ho Bach Thu


TABLE OF CONTENTS
I. Overview about Vinamilk

II. Vinamilk's international business
III. Conclusion: Evaluating Vinamilk's
international business results


I. Overview about Vinamilk
1.1 Company Introduction
• NAME: Vietnam Dairy Products Joint
Stock Company (VINAMILK)
• ADDRESS: 10 Tan Trao, Tan Phu
Ward, District 7, Ho Chi Minh City,
Vietnam.
• WEBSITE:
/>• PHONE: (028) 54 155 555
• EMAIL:

I. Overview about Vinamilk
1.2 Development history
• VISION: To become a world grade brand in food
and beverage industry, where people put all
their trust in nutrient and health products.
• MISSION: To deliver the valuable nutrition to
community with our respect, love and
responsibility.
• CORE VALUES: Becoming Vietnam's leading
symbol of trust in nutritional and health
products serving human life
• There are 5 core values of Vinamilk includes:
Integrity, Respect, Fairness, Ethics, Compliance.


I. Overview about Vinamilk
1.3 Development history


I. Overview about Vinamilk
1.4 Products


I. Overview about Vinamilk
1.4 Products


I. Overview about Vinamilk
1.5 Market
• Domestic market:

- Urban: Concentrated in Ho Chi Minh City and
Hanoi, 30% of Vietnam’s population.
- Rural: High population, 70% of Vietnam’s
population.
• International market:
- Vinamilk exports milk and other products to
over 31 countries.
• Market by age:
- Children: 25% of the population, main
consumers of liquid milk.
- Adults: 66% of the population, income-earning
workers and main decision makers.


II.VINAMILK’S
INTERNATIONAL
BUSINESS


II. Vinamilk's international
2.1 Export of Vinamilk products
• Main export products include: powdered milk,
condensed milk, nutritional powder, soy milk,
liquid milk, and soft drinks.
• Total export turnover from 1997 to present:
about 2 billion USD
• First Half of 2020 Export Revenue: $106
Million, up 7.3% over the same period the
previous year.

2.2 EASTERN ASIA (CHINA)

2.2.1 PESTEL analysis of Eastern Asia (China).

P

E

• China-Vietnam: good diplomacy and economy.
• Eight Vietnamese dairy companies (20 factories) get codes to export to China
• China: world’s second largest economy and biggest milk importer
• Yogurt: fastest growing segment, $73 billion revenue by 2029, 15% annual growth.
• Chinese people: daily yogurt consumption, trust foreign dairy products.

S

• VNM: produce quality yogurt for Chinese market, cooperate with leading partners.
• Chinese partners: import, distribute, comply, promote VNM products
• VNM: Vietnam’s leading dairy company in technology and innovation

T

• 13 factories and 7 farms certified by Global G.A.P
• Dairy products achieve international standards: ISO, FSSC, BRC, Halal, Organic.
• Yogurt products: heat sterilized, naturally fermented, no preservatives, hygienic and safe.
• Products: achieve China’s standards on hygiene, safety, quality, packaging and labeling.

L

• Taxes and fees: apply when exporting to China.
• Legal risks: commercial disputes, intellectual property rights, unfair competition.
• VNM: environmental and social responsibility.

E

• Energy saving, emission and waste reduction in production.
• Social activities: support the poor, orphans, elderly and disabled.
• Dairy farming development: provide cows, feed, medicine and technical support to farmers


2.2.2 VNM's international business
strategy of Eastern Asia (China)
Introducing international business
strategy:
• Sept 21, 2019: the "Vietnamese dairy
product launch program in China“.
This is a stepping stone for VNM to move
towards evil strategies in the Chinese
market.


Main export products

Fresh
milk

Yogurt

Condensed milk

2.2.2 VNM's international business strategy of
Eastern Asia (China)
Global production and supply chain management:
• Products are launched with retail
supermarkets: Hema, Tianhong, Xiangjiang
Baihuo, Haorunjia, Dennis Department Store
- the largest supermarket chain in Henan.
• Private stores on the e-commerce site Tmall
(of Alibaba), Daily Fresh, Lucky and Fresh.
• In 2020, Vinamilk exported the first batch of
condensed milk to the Chinese market
• In 2023, Vinamilk signed a cooperation
agreement with two businesses to export
yogurt products.


2.2.2 VNM's international business
strategy of Eastern Asia (China)

Marketing Strategy:
Announcing the brand identity logo in
China


2.3 MIDDLE EAST

2.3.1 PESTEL analysis of the Middle East (Emirate of Dubai).
P

• Stable political policies and regulations of the Dubai government can create favorable
conditions for Vinamilk.
• The government's trade and investment policies may affect Vinamilk's expansion and
development in Dubai.

E

• Dubai's economy is growing rapidly, GDP growth and high income.
• Global economic impacts and fluctuations may affect the economy and people's
consumption needs for the dairy industry in general and Vinamilk in particular.

S

• The consumer culture and eating habits of Dubai residents affect VNM's ability to access
and market dairy products
• The middle class's demand for quality dairy products can create opportunities for VNM.

T

• Create favorable conditions for VNM in transportation, warehousing and market access.
• Production technology and quality management processes can affect VNM's
competitiveness.

L

• Laws on import and export, quality and food safety regulations may affect VNM's business
activities in Dubai.
• Tax policies, labor regulations and intellectual property rights are also legal issues that need
attention.

E

• VNM needs to comply with regulations on environmental protection and sustainable
development.


2.3.2 VNM's international business strategy of The
Middle East (Emirate of Dubai).

Introduce international
Business strategy
Strategy focuses on
differentiation:
The goal: to create customerspecific products that satisfy
customer needs in ways that
competitors cannot.

Market expansion strategy:
Gulfood Dubai: one of the world’s
largest food industry fairs, with over
125 countries and territories and
over 5,000 booths.
Vinamilk’s participation: tens of
millions in Contracts Signed


2.3.2 VNM's international business
strategy of The Middle East
(Emirate of Dubai).

Entry strategy and
strategic alliances
• Vinamilk's Entry into 43 Foreign Markets
• Middle East Challenges in Late 1990s-2000s
• Middle East Sales Growth 2010-2015: 38%
• Gulfood Fair 2016, Dubai: Market Expansion Opportunity


2.3.2 VNM's international business strategy of The
Middle East (Emirate of Dubai).
Global production and supply
chain management
• Middle East: a capable market,
contributing more than 85% of
VNM’s export revenue since
2000s.
• Vinamilk: active in trade
promotion events such as Gulfood
Dubai 2023, Foodex Japan Fair,
FHA Singapore Fair, etc.


2.3.2 VNM's international business strategy of The
Middle East (Emirate of Dubai).

Global marketing and r&d
• Marketing: VNM uses multi-channel marketing
strategies for the Middle East region. These
include:

- Advertising on mass media and social networks.
- Cooperating with local distributors.
- Organizing events and promotions.