Overcoming covid-19 pandemic, Vinamilk exports sweetend condensed milk to China

Despite being operated under strict requirements complying with Covid-19 epidemic prevention and social isolation regulations, within 2 months since being officially granted the transaction code and export license to China at the end of February 2020, on 16 April 2020, Vietnam Dairy Joint Stock Company ("Vinamilk” or "The Company”) has managed to completed the production stage to export "Ông Tho” sweetened condensed milk to China for the first time while this country is still under tight epidemic control measures.

After signing an USD 20 million milk export contract at Gulfood Dubai expo earlier this year, the official export of sweetened condensed milk (or condensed milk) to China is indeed a positive signal for Vinamilk as well as the Vietnamese dairy industry in general, contributing to Vietnam’s export turnover in the situation of slowing export in the 1Q2020 due to the Covid-19 pandemic.

As for Vinamilk, the company has been closely cooperating with Chinese partners in diversifying export portfolio including dairy and beverages products since the successful launch event in China in October last year. Currently, although tight control measures for COVID-19 remain in place across China, Vinamilk’s partners in China still carry out importing plan of other Vinamilk products, including "Ong Tho” condensed milk – a signature product of Vinamilk which is loved by consumers both at home and abroad.

According to Vinamilk’s representative, in China, the import condensed milk trend has much growth potential. Particularly, China’s import volume of this product almost doubled in the 4 years from 2016 to 2019. Meanwhile, condensed milk is one of the key product lines of Vinamilk and has been exported by the company since 1997-1998. Up to now, this product is available in 30 countries including high-end markets such as USA, Canada, Japan, South Korea... with accumulated export volume reaching over 208,000 tons, being the trusted brand by international consumers and partners.

Therefore, this is an opportunity for Vinamilk to increase export sales in China, simultaneously taking Vietnam to the top 5 largest dairy exporters of condensed milk to China in volume term.

Mr. Vo Trung Hieu – Vinamilk’s International Business Director added: "Although Vinamilk has to ensure adequate supply for domestic demand in the context of epidemic prevention and social distancing, the company keeps focusing on product research, implementing production plans that fulfill export orders in general and for the Chinese market in particular. China remains a potential market with the population of 1.4 billion and Vinamilk has made strategic plan to increase market penetration, aiming to double the export volume in the period of 2020-2021.”

Vinamilk’s first condensed milk batch to export to China was produced at Thong Nhat Dairy Factory which is one factory with vast experience in producing condensed milk for export to developed markets such as the US and Japan.
"With large production capacity, modern processing technology, operated under international quality management standards, Vinamilk is fully able to meet large orders from the "toughest” markets in the world” – Vinamilk’s representative added. Currently, 5 out of 13 Vinamilk factories across the country are producing condensed milk products, meeting the needs of domestic and export markets. The plants are equipped with modern automatic machinery imported from G7/ Europe.

As the leading dairy company in term of market share, in recent years, Vinamilk has continuously invested in expanding international business activities to boost growth. Vinamilk’s export revenue in 2019 increased by nearly 15% year-on-year. Up to now, Vinamilk has exported products to 53 countries and territories. With many outstanding achievements on international business, Vinamilk won the Asian Export Award in 2019.

In the context of the global economy and Vietnam being seriously affected by the epidemic, import-export of agricultural products in particular, this event has indicated the effectiveness of a sustainable, long-term business strategy. With the support and guidance from the management authorities, especially from the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, it is the initiative and good preparation of businesses that will bring opportunities to sustaining growth, thereby contributing significantly to promoting the economy to overcome pandemics and be ready for recovery.