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In 2023, the fast-moving consumer goods industry recorded a modest increase of 2% YoY, while the dairy industry saw a slight decline of 1%. Vietnam's economy fell under the impact of the global economic situation, resulting in a decrease in total demand. Many of Vietnam's major trading partners experienced slowed
growth due to contractionary monetary policy, elevated inflation, geopolitical instability, food security concerns, climate change, and more. According to the General Statistics Office, the growth of purchasing power for goods and services after excluding price factors slowed down significantly each quarter in 2023. In particular, the cumulative
value increased by 10.3% in 3 months, 8.4% in 6 months, 7.3% in 9 months, and 7.1% in 12 months. Additionally, there was no longer as much support from pricing factors for dairy industry growth as in last year.
For domestic consumers, income and employment instability reigned as top concerns. Changes in consumer habits were evident through the preference for products or shopping channels with enticing promotional programs, affordable alternatives, or larger packs to stretch their budgets.
According to Euromonitor's report, infant formula market in Vietnam hit a rough patch in 2023 due to economic hardship and a declining birth rate. Plus, infant formula is yet considered by the locals as a newborn staple. This, coupled with its price point, creates a significant barrier for low-income consumers. Therefore, other cost-effective alternatives such as breast milk or homemade complementary foods could be preferred during this period of economic strain.
The story of the liquid milk category last year wasn't much different due to the significant impacts of inflation and the rising cost of living. In fact, many Vietnamese have yet to form a habit of drinking milk daily. Besides, there is another group of consumers
favoring other alternatives such as nut milk or plant-based milk, which is benefiting from trends towards health, sustainable lifestyles, and wellness.
On the other hand, yogurt was able to maintain its growth, serving as a flexible option for meal preparation and light snacking. It is also highly valued for its protein-rich content, digestive support, and immunity enhancement. The coffee culture continues to thrive in Vietnam, characterized by a distinctive drink made through a combination of coffee and condensed milk. Besides, condensed milk showcases its versatility via a wide range of application, either in beverages and dishes, such as milkshake and desserts, or in traditional cuisine.
The rise of healthy living remains a major driving force for the Vietnam's dairy industry. Recently, organic fresh milk, infant formula as well as fat-free or sugar-free yogurt, are taking on a higher profile. To keep up with these trends, dairy companies are actively promoting
awareness of health and nutrition among consumers. Moreover, a great number of newly launched products shift their focus on wellbeing and healthy lifestyle.
In response to the low birth rate, the Government has made great efforts to boost childbirth through public campaigns, initiatives, draft laws, and incentives. Several measures have been piloted with according to the Government's Decision, including discouraging late marriage and late childbirth; promoting the ideal of two children per married couple along with responsible parenting practices; or piloting and scaling up incentives for couples with two children in regions experiencing low birth rates, etc. Recognizing the evolving needs of modern parents, many infant formula brands are investing in enhancing product quality, convenience, and nutritional values.
In 2023, the “Stand Tall Vietnam” Milk Fund solidified its position as the largest and most established child nutrition program. In addition to delivering substantial health benefits through nutrition, the program seeks to develop societal awareness of the importance of nutrition in children's development, and subsequently promote a healthy lifestyle among children, which enables them to pursue their dreams and be well-prepared for the future.
With the mission “For every child to drink milk every day”, the Milk Fund has been a consistent provider of nutritious milk to disadvantaged children in mountainous areas and distant islands, as well as those with special circumstances in shelters and care facilities across the country.
In early 2023, Vinamilk launched a project to plant more than 1,000 trees in support of the “Planting Trees for Net Zero” initiative by the Ministry of Natural Resources and Environment. This marks the beginning of a 5-year collaboration (2023-2027) with a budget of VND 15 billion. Vinamilks direction in the near future is to establish more “Vinamilk Net Zero Forests” across Vietnam, an important component in achieving the broader goal of Net Zero by 2050.
In August 2023, with a budget of nearly VND 4 billion, Vinamilk partnered with Gaia Nature Conservation and Mui Ca Mau National Park to launch a 25-ha mangrove reforestation program at Mui Ca Mau National Park. Additionally, Vinamilk gave five patrol boats and more than 4,200 nutritional goods to Mui Ca Mau National Park patrols and employees.
In 2023, Vinamilk continued the sponsorship of 500 million VND for a program run by MD1 World (USA) in association with Children's Hospital in Ho Chi Minh City, which aims to provide heart surgeries for children and facilitate knowledge transfer between Vietnamese doctors and pediatric heart surgeons from the U.S. and Canada. Vinamilk started this activity in 2019, and has since contributed over 1.2 billion VND to help more than 34 children have access to a healthy life.
Vinamilk also partnered with the Association for Sponsoring Poor Patients in Ho Chi Minh City to provide underprivileged children with free congenital heart operations. Since becoming involved in this endeavor in 1995, Vinamilk has helped nearly 1,300 economically challenged patients receive heart and eye procedures. Many of these patients are children with congenital heart abnormalities who now have the opportunity to live healthily.
Physical and mental health activities for the elderly continued to be one of the key focuses of Vinamilk in 2023. A noteworthy initiative was the series of events titled “Eat Well, Sleep Well, Live Well,” held from September to December 2023, organized by Vinamilk in collaboration with the Association of the Elderly across 10 provinces and cities. In this program, tens of thousands of elderly individuals received free health check-ups and consultations on nutrition, medical care, and preventive measures against common age-related ailments such as osteoporosis, cardiovascular issues, and diabetes.
In October 2023, Vinamilk worked with the Hanoi Department of Culture and Sports and the Hanoi Association of Outdoor Health for the Middle-aged and Elderly to organize the Senior Health and Fitness Day. As an annual event supported by Vinamilk since 2018, it provides a platform for seniors to perform physical exercises and share information about exercises that are helpful to them. With the participation of over 2,000 seniors in 2023, the goal is also to encourage everyone to be more active.
Of special note was the collaboration between Vinamilk and VTV on the reality TV show “A Date with Youth.” As VTV's first program targeting a senior audience, it not only provides a fresh reality show for the elderly but also incorporates meaningful messages for all generations about maintaining a positive lifestyle. The program quickly became a sensation on VTV, and then across social media platforms.
In the 4th year of collaboration with the Vietnam Chief Nursing Club, Vinamilk continued to raise awareness about the importance of nutritional care for over 1,000 healthcare professionals nationwide, contributing to improving treatment efficiency for millions of people. This collaboration, initiated in 2020, focuses on two main activities:
• Updating and reprinting Health Communication Education on Nutrition Care for Patients guideline;
• Organizing training on nutritional care for patients for club members across Vietnam.
Through insights shared by leading experts from nutrition departments or nursing units of top hospitals such as Cho Ray, National Children’s Hospital, Military Hospital 175, and Ho Chi Minh City Medicine and Pharmacy University, nurses and healthcare staff have been updated with in-depth knowledge of nutritional care and treatment for specific patient groups such as inpatient malnourished children, children with diarrhea, cardiovascular patients, chronic kidney disease patients, and cancer patients. This has improved their professional skills and confidence in performing practical nursing duties and providing nutritional advice for patients.
The program is implemented in collaboration with 04 provinces including Bac Ninh province, Lang Son province, Hau Giang province, Ca Mau province and 01 partner is Ha Quang company.
Other community activities
In 2023, Vinamilk expanded the program to various meaningful community activities, including:
• Giving Mid-Autumn Festival gifts to underprivileged children and Khmer children in Dong Nai and Vinh Long provinces.
• Sponsoring the RMIT's volleyball tournament of 16 Southern universities.
• Caring for the Heroic Vietnamese Mothers in Ben Tre and Quang Nam provinces. On special occasions such as the Commemoration of War Invalids and Martyrs Day (July 27) and Tet Holiday, Vinamilk’s union representatives always pay a visit to mothers and their families to express gratitude for their contributions to the country.
• Visiting and gifting children at 2 orphanages in Go Vap and Binh Thanh districts.
According to the 2023 ranking of the top 100 most valuable brands in Vietnam by Brand Finance (the world's leading independent brand valuation consultancy based in the UK), Vinamilk led the Top 10 Highly Sustainable Brands, which helped push the brand value to over 3 billion USD (from over USD 2.8 billion in 2022).
Vinamilk's contributions to sustainable development are also highly regarded on the international landscape. In the Brand Finance Food & Drink 2023, Vinamilk was the sole representative from Southeast Asia to enter the top 5 Most Sustainable Dairy Brands globally.
Specifically, Vinamilk ranked fifth in the top 10. with a sustainability perceptions value of USD 253 million. As for the sustainability perceptions score (which is based on a 10-point scale), Vinamilk topped the chart with 5.75 points, outperforming many brands from nations with developed dairy sectors, like China, France, Japan, and others. Taking into account Vietnam's relatively new dairy sector, particularly in terms of sustainable development, this result is exceedingly favorable.
Vinamilk safeguarded the 6th position in the top 10 Most Valuable Dairy Brands globally and the 2nd position in the Top 10 Strongest Dairy Brands. It is evident that, alongside value and strength, the “sustainable development” factor of the brand is a highlight in this year’s report, as this trend is gaining momentum internationally.