Ho Chi Minh City University of Economics and Finance

Faculty of Economics

FINAL REPORT
SALES MANAGEMENT

“VINAMILK COMPANY STRATEGY IN 2025 - 2030”

Lecturers: Doctor Ho Han Dan

Class: MGT1107E.A14E
GROUP 5

Name ID
Nguyen Thanh Nhat Khang 215018735
Trinh Duy Ngoc Hieu 215018644
Le Van Tien 215019098
Nguyen Quoc Huy 215018695

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 THANK YOU

Dear Mr. Ho Han Dan,

On behalf of Group 5, I would like to express our deepest

gratitude for your unwavering guidance and support
throughout our learning journey and in completing the essay
on Vinamilk's development strategy for the 2025-2030
period.

Your insightful instructions and invaluable feedback have

been instrumental in deepening our understanding of
Vinamilk's strategic direction, enabling us to produce a
comprehensive and well-structured essay. We are
particularly grateful for your unwavering dedication, as you
consistently made yourself available to address our queries
and provide encouragement during our studies.

We wholeheartedly commit to continuing our academic

endeavors with renewed vigor and dedication, striving to
achieve excellence in our studies and future careers.

Wishing you the best of health, happiness, and continued

success in your endeavors.

Sincerely,

On behalf of Group 5

Nguyen Thanh Nhat Khang

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 INSTRUCTOR’S COMMENTS
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Ho Chi Minh city, April 13, 2024

Sign

Ho Han Dan

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 TABLE OF CONTENTS
Contents
TABLE OF CONTENTS...........................................................................................4
SUMMARY................................................................................................................6
PART 1: INTRODUCTION.....................................................................................7
1. General Information.....................................................................................7
2. History of Vinamilk.......................................................................................9
3. Organizational Structure............................................................................11
4. Company Leadership..................................................................................12
5. Company culture.........................................................................................14
6. Outstanding product...................................................................................16
7. Market..........................................................................................................16
Part 2: Company vision 2021 - 2025.......................................................................18
1. Vision............................................................................................................18
2. Mission..........................................................................................................18
3. Core Values..................................................................................................18
4. Business Philosophy.....................................................................................18
Part 3. Situation Analysis........................................................................................19
Part 4. External audit STEEPLE...........................................................................20
1. Social.................................................................................................................20
2. Technology........................................................................................................21
3. Economic...........................................................................................................22
4. Ethical...............................................................................................................23
5. Political..............................................................................................................25
6. Legal..................................................................................................................26
7. Environmental.................................................................................................27
Part 5: Corporate Goals..........................................................................................29
Part 6: Proposed Strategies.....................................................................................30
6.1. International Business Strategy..................................................................30
6.2 New Product Development Strategy............................................................30
6.3. Product Quality Enhancement Strategy.....................................................31
6.4. Price Competition Strategy..........................................................................32

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 6.5. Distribution Strategy....................................................................................32
6.6. Social Value Creation Strategy....................................................................32
Part 7: Strategic Deployment Schedule for the 2025-2030 Period......................34
Part 8: Risk Management........................................................................................36
International Business Strategy:.........................................................................36
New Product Development Strategy:.................................................................36
Product Quality Enhancement Strategy:...........................................................36
Price Competition Strategy:................................................................................37
Distribution Strategy:..........................................................................................37
Social Value Creation Strategy:..........................................................................37
Part 9: Conclusion....................................................................................................39

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 SUMMARY
This essay presents a comprehensive overview of Vinamilk's development strategy for the
period of 2025-2030. The strategy is meticulously crafted to leverage Vinamilk's existing
strengths while effectively responding to emerging market trends and evolving consumer
demands.

Key Elements of the Essay:

Introduction to Vinamilk: Delves into Vinamilk's rich history, remarkable growth

trajectory, current market position, and notable achievements.

Business Environment Analysis: Provides a thorough examination of both macro-

environmental and micro-environmental factors influencing Vinamilk, encompassing
economic, political, social, technological, market, and competitive aspects.

Internal Assessment of Vinamilk: Scrutinizes Vinamilk's strengths, weaknesses,

opportunities, and threats, laying the foundation for strategic decision-making.

Vinamilk's Development Strategy 2025-2030: Elaborates on the three core pillars of the
strategy:
1. Enhancing Core Value: Focuses on elevating product quality, brand development,
technological innovation, and effective governance.
2. Market Expansion: Aims to expand domestic and international market share,
venturing into promising new markets.
3. Sustainable Development: Emphasizes social responsibility, environmental
protection, and sustainable growth practices.

Strategy Performance Evaluation: Analyzes the potential benefits and challenges associated
with the strategy, while providing forecasts for its effectiveness during the 2025-2030
period.
Conclusion: Reiterates the significance of the 2025-2030 development strategy for
Vinamilk's future and expresses high expectations for the company's continued success.

The essay is meticulously compiled using credible sources, including Vinamilk's financial
reports, reputable news articles, market research findings, and expert opinions.

The primary objective of this essay is to provide readers with a comprehensive

understanding of Vinamilk's development strategy for 2025-2030, enabling them to assess
the company's growth potential and future prospects.

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PART 1: INTRODUCTION
1. General Information
 Company Name: Vietnam Dairy Products Joint Stock Company.
 Abbreviation: Vinamilk.
 Stock Code: VNM.
 Charter Capital: VND 20,899,554,450,000.
 Headquarters:
o Address: No. 10, Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh
City.
o Phone: (028) 54 155 555 - Fax: (028) 54 161 226.
o Email: vinamilk@vinamilk.com.vn
o Website: https://www.vinamilk.com.vn/vi
www.youtube.com/user/Vinamilk
 Subsidiaries:
o Hanoi Branch: Floor 11, Tower B, Handi Resco Building, 521 Kim Ma,
Ngoc Khanh Ward, Ba Dinh District, Hanoi.
o Da Nang Branch: Floor 7, Post Office Building, 271 Nguyen Van Linh,
Vinh Trung Ward, Thanh Khe District, Da Nang City.
o Can Tho Branch: 77 - 77B Vo Van Tan, Tan An Ward, Ninh Kieu
District, Can Tho City.
o Cu Chi Fresh Milk Processing Center: Lot B14,1, B14,2, D4 Street, Dong
Nam Industrial Park, Hoa Phu Commune, Cu Chi District, Ho Chi Minh
City.
o An Khang Clinic: 184-186-188 Nguyen Dinh Chieu, Ward 6, District 3,
Ho Chi Minh City. This is an e-clinic (e-clinic) invested by Vinamilk. All
departments are data-connected and allow online access, increasing
benefits and convenience for patients.
o Ho Chi Minh City Warehousing Enterprise: 32 Dang Van Bi, Truong Tho
Ward, Thu Duc District, Ho Chi Minh City.
o Hanoi Warehousing Enterprise: Km 10/ National Highway 5, Duong Xa
Commune, Gia Lam District, Hanoi City.
o Tien Son Milk Factory: Tien Son Industrial Park, Hoan Son Commune,
Tien Du District, Bac Ninh Province.
o Nghe An Milk Factory: Sao Nam Street, Nghi Thu Ward, Cua Lo Town,
Nghe An Province.
o Lam Son Milk Factory: Le Mon Industrial Park, Thanh Hoa City, Thanh
Hoa Province.
o Da Nang Milk Factory: Lot Q, Street 7, Hoa Khanh Industrial Park, Hoa
Khanh Bac Ward, Lien Chieu District, Da Nang City.
o Binh Dinh Milk Factory: 87 Hoang Van Thu, Qui Nhon City, Binh Dinh
Province.

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 o Dielac Milk Factory: Hanoi Highway, Bien Hoa I Industrial Park, Binh
An Ward, Bien Hoa City, Dong Nai Province.
o Vietnam Milk Powder Factory: No. 9 Tu Do Boulevard, VSIP1 Industrial
Park, Thuan An Town, Binh Duong Province.
o Vietnam Soft Drinks Factory: Lot A, NA7 Street, My Phuoc II Industrial
Park, My Phuoc Town, Ben Cat District, Binh Duong Province.
o Vietnam Milk Factory: Lot A-4-CN, A-5-CN, A-6-CN, A-7-CN, My
Phuoc 2 Industrial Park, Ben Cat District, Binh Duong Province.
o Saigon Milk Factory: Lot 1-18, G1 Area - Tan Thoi Hiep Industrial Park,
Huong Lo 80, Hiep Thanh Ward, District 12, Ho Chi Minh City.
o Truong Tho Milk Factory: 32 Dang Van Bi, Truong Tho Ward, Thu Duc
District, Ho Chi Minh City.
o Thong Nhat Milk Factory: 12 Dang Van Bi, Truong Tho Ward, Thu Duc
District, Ho Chi Minh City.
o Can Tho Milk Factory: Lot 46, Tra Noc I Industrial Park, Tra Noc Ward,
Binh Thuy District, Can Tho City.
 Business Registration Certificate:
o Business Registration Certificate No.: 0300588569. Date of issue:
20/11/2003. Issuing authority: Ho Chi Minh City Department of Planning
and Investment.
 Business Lines:
The Company is authorized to plan and carry out all business activities in
accordance with the Company's business lines as published on the National
Business Registration Portal and the Company's Charter, in compliance with
applicable laws and regulations, and to take appropriate measures to achieve the
Company's objectives. Specifically, these business lines include:
o Production and trading of milk and dairy products: This is Vinamilk's
core business area, where it has established a strong brand reputation. The
Company produces and distributes a wide range of dairy products,
including fresh milk, condensed milk, powdered milk, yogurt, and other
dairy-based products.
o Healthcare services: Vinamilk operates a chain of multidisciplinary
clinics, providing healthcare services to the community.
o Fruit juices and beverages: The Company produces and distributes fruit
juices and various refreshing beverages, catering to the growing demand
for healthier drink options.
o Financial investments: Vinamilk engages in strategic financial
investments to diversify its business portfolio and generate additional
revenue streams.
o Logistics and packaging: The Company provides logistics and
packaging services to support its own operations and those of its partners,
ensuring efficient product distribution and maintaining product integrity.

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 o Technical support for farmers: Vinamilk offers technical support to
farmers engaged in dairy cattle rearing and crop cultivation, promoting
sustainable agricultural practices and improving milk quality.
The Company may engage in other business lines permitted by law and
approved by the General Meeting of Shareholders.

2. History of Vinamilk.
1976 - Establishment
 On August 20, 1976, Vinamilk was founded on the basis of taking
over three dairy factories left behind by the previous regime:
o Thong Nhat Milk Factory (formerly Foremost factory).
o Truong Tho Milk Factory (formerly Cosuvina factory).
o Dielac Milk Powder Factory (formerly Nestle' Milk Powder
Factory) (Switzerland).
2003 - Joint Stock Conversion and Name Change to Vietnam Dairy
Products Joint Stock Company
2006 - Listed on the Ho Chi Minh Stock Exchange (HOSE)
2009
 Built the third Nghệ An dairy farm.
 Thong Nhat, Truong Tho, and Saigon milk factories were awarded the
"Green Enterprise" Certificate by the Ministry of Natural Resources
and Environment for their environmental protection achievements.
2010
 Vinamilk built the fourth dairy farm in Thanh Hoa.
 Vinamilk was awarded the Second-Class Independence Medal by the
State.
 Vinamilk applied new technologies and installed modern machinery
and equipment for all milk factories.
 In addition, Vinamilk also established nutrition and health counseling
centers nationwide and launched over 30 new products.
 Vinamilk entered into a joint venture with a specialized whole milk
powder producer in New Zealand, with a capacity of 32,000
tons/year.
 In addition, Vinamilk invested in the US and opened more factories
in many countries, with export turnover accounting for 15% of
revenue and continuing to increase.
2012
 Inauguration of many modern factories.
 Built the fifth dairy farm in Lam Dong.
2013
 Started construction of the Tay Ninh and Ha Tinh dairy farms.
 Inauguration of the Binh Duong super milk factory.
2015
 Started construction of the Thong Nhat - Thanh Hoa dairy farm.
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  Increased stake in Miraka Milk Company in New Zealand.
2016 - 40 Years of Vietnamese Excellence
 Vinamilk Organic Fresh Milk products meet USDA standards.
 Vinamilk's ownership of Driftwood increased to 100%.
 Inauguration of the Angkormilk milk factory invested by Vinamilk.
 Official launch of the Vinamilk brand in Myanmar and Thailand.
2017
 Inauguration of the Organic Dairy Farm.
 Launch of 100% Organic Fresh Milk.
 Ranked in the Global 2000 list.

2018
 Inauguration of the Thong Nhat - Thanh Hoa high-tech dairy farm
complex.
 Pioneered the launch of the first 100% A2 Fresh Milk product in
Vietnam.
2019
 Inauguration of the Tay Ninh Dairy Farm.
 Started construction of the Vinamilk Lao-Jagro Organic Dairy Farm
Complex in Laos.
 Ranked in the Top 200 companies with revenue over $1 billion in
Asia Pacific (Best over a billion).
2020 - Moc Chau Milk officially becomes a member of Vinamilk
2021 - Celebrating the 45th Anniversary
 Announced a joint venture in the Philippines market.
 Launched the Green Farm farm system and high-quality Vinamilk
Green Farm fresh milk products.
 Contributed 50% to establish a joint venture with Del Monte
Philippines, Inc. (DMPI) - a leading food and beverage company in
the Philippines and has been officially distributing products to
consumers there since Q4/2021.
 November
o Announced that the total investment capital for projects in
Cambodia will be increased to USD 42 million (equivalent to
nearly VND 1,100 billion) and plans to build a dairy farm with
raw milk production of over 4,000 tons/year.
2022
 March
o Contributed 50% to establish a joint venture with Del Monte
Philippines, Inc. (DMPI) - a leading food and beverage company
in the Philippines and has been officially distributing products to
consumers there since Q4/2021.
 May
o Together with Moc Chau Milk, started construction of the
"Ecological Farm, High-Tech Dairy Cows" and received the
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 Investment Policy Approval Decision for the Moc Chau High-
Tech Milk Processing Factory, officially building the Moc Chau
Dairy Paradise Complex.
 July
o Received 1000 purebred HF cows imported directly from the US
to the Lao-Jagro Farm.

3. Organizational Structure.
Vinamilk's organizational structure is meticulously crafted to ensure efficient
operations and effective collaboration among departments. It clearly defines the
responsibilities of each individual and team, enabling the company to achieve its
goals seamlessly. This well-structured organization fosters a cohesive environment
where departments work in harmony, contributing to the overall strength and
success of Vinamilk.

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4. Company Leadership.
Vinamilk's leadership team comprises a group of experienced and qualified
individuals dedicated to steering the company towards continued growth and
success. The composition of the Board of Directors and Executive Management at
the time of this strategic plan is as follows:
 Board of Directors:
N.O Full name Position Appointment period
1 Mr. Nguyễn Hạnh Phúc Chairman 26/04/2022
of the board
2 Ms. Mai Kiều Liên Executive 26/04/2022
member
and General
Director
3 Mr. Alain Xavier Cany Non- 26/04/2022
executive
member
4 Mr. Michael Chye Hin Fah Non- 26/04/2022
executive
member
5 Ms. Đặng Thị Thu Hà Non- 26/04/2022
executive
member
6 Mr. Đỗ Lê Hùng Independent 26/04/2022
member
7 Mr. Lê Thành Liêm Executive 26/04/2022
member
and Chief
Accountant
8 Mr. Lee Meng Tat Non- 26/04/2022
executive
member
Ms. Tiêu Yến Trinh Independent 26/04/2022
member
Mr. Hoàng Ngọc Thạch Non- 26/04/2022
executive
member
 General Director: Ms. Mai Kiều Liên
 Chief Accountant: Mr. Lê Thành Liêm
 Head of Finance Department: Mr. Trần Chí Sơn
 Director of Foreign Branch Management: Ms. Lê Quang Thanh Trúc
 Head of Investor Relations (IR): Mr. Đồng Quang Trung

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  Executive Board:
N. Executive board Date of birth Qualification Date of appointment
O member
1 Ms. Mai Kiều 01/09/1953 Technology 20/11/2003
Liên engineer for
processing
milk and dairy
products
2 Ms. Bùi Thị 24/07/1962 Bachelor of 01/08/2014
Hương Economics -
Business
Administratio
n and Trade
Unions,
Bachelor of
Russian
Literature.
3 Mr. Nguyễn 02/11/1964 Chemical and 09/09/2009
Quốc Khánh Food
Engineer,
Bachelor of
Business
Administratio
n
4 Mr. Nguyễn 30/01/1971 Doctor of 05/07/2021
Quang Trí business
administration
5 Mr. Lê Hoàng 22/10/1964 Electrical 01/02/2022
Minh Engineer -
Automatic
control
6 Mr. Đoàn Quốc 2/9/1974 Engineer 01/09/2023
Khánh specializing in
Automation
7 Mr. Lê Thành 22/08/1973 Master of 01/02/2005
Liêm Finance and
International
Trade,
Bachelor of
Economics

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5. Company culture

Corporate Culture: Vinamilk's Journey

Established in 1976, Vinamilk has undergone 44 years of formation and

development, becoming the company with the largest market capitalization in
Vietnam from 2014-2017, surpassing even real estate and financial enterprises. By
2020, Vinamilk had ascended to the 4th position in terms of market capitalization,
becoming the No. 1 company in the consumer goods manufacturing industry and
one of the Top 50 Dairy Companies in the world. In addition to its strategic
initiatives, Vinamilk's corporate culture has played a significant role in its
remarkable achievements.

In 2015, TOPPION had the privilege of partnering with Vinamilk in its culture-
building journey, implementing the BSC/KPIs system, and conducting Leader
Mindset training. During this collaboration, we had the opportunity to:

 Assess Vinamilk's corporate health using the 7S model, implementing

Vinamilk's culture measurement and evaluation.
 Define the appropriate Vinamilk culture for the new era; communicate the
change in leadership model according to the new culture; and organize
programs to disseminate the culture throughout the entire system and
subsidiaries.
 Establish a BSC/KPIs-based strategy execution governance system.
 Coach the capabilities of the key team to operate the culture and KPI system.

Characteristics of Vinamilk's Culture

Level 01 - Surface Level of VINAMILK's Culture:

This level encompasses the tangible elements of Vinamilk's culture, those that can
be readily observed and experienced when interacting with the company. These
elements are highly visible yet often difficult to fully comprehend. Examples
include:

 Primary Colors: Blue and white. These colors are prominently featured in:
o The company's logo
o Cultural spaces (office décor style)
 Cultural Symbols: Upon entering Vinamilk's lobby, one encounters a 5m2
Vinamilk Cultural Ship model sailing towards the vast ocean (chosen by the
leadership team as a cultural symbol during the new phase of the
collaboration with TOPPION). Each sail represents a core value.

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Traditional Song: Corresponding to the cultural ship symbol, Vinamilk has a
traditional song titled "Vinamilk - Everyone is a Helmsman."

Behavioral Culture: This encompasses the norms and expectations that can be
perceived when interacting and working with Vinamilk's employees, ranging from
security guards and receptionists to management teams (e.g., professionalism,
systematization, orderliness, and scale).
Level 02 - Mid-Level of VINAMILK's Culture:
This level encompasses the shared beliefs and values that form the core of
Vinamilk's culture. These fundamental principles guide the company's actions and
decisions, shaping its identity and aspirations.
The mid-level of Vinamilk's culture includes:

a. Vision: To become the leading symbol of trust in Vietnam for nutritional and
health products that serve human life.
b. Mission: Vinamilk is committed to providing the community with top-quality
and premium nutrition with its utmost respect, love, and high sense of responsibility
for human life and society.
c. Core Values: Integrity, Respect, Fairness, Ethics, Compliance.
d. Business Philosophy: Vinamilk aspires to be a beloved product in every region
and territory. Therefore, we believe that quality and creativity are Vinamilk's
companions. Vinamilk puts customers at the center and is committed to meeting all
their needs.
e. Quality Policy: Always satisfy and be responsible to customers by diversifying
products and services, ensuring quality and food safety with competitive prices,
respecting business ethics and complying with the law.
f. 7 Minimum Management Behaviors: This is a very important factor of culture,
the minimum management behaviors of the leadership team will determine 70% of
the formation of culture.

This is a quite important floor, expressing the philosophies, core values, and beliefs
that have been agreed upon by the Board of Directors through aspirations. These
values, philosophies and beliefs have been implemented and communicated by the
Board of Directors and are expected to be followed by the entire team. Note, this
second layer of VNM culture is the belief and value of AGREEMENT, which is
understood as the consensus of the Board of Directors, the collective consensus but
can become an immutable principle. translate, use to solve and handle problems.
The issue of VNM or not will be discussed in detail on the 3rd floor.

Level 03 - Underlying Assumptions: The Foundation of Culture:

Level 03 delves into the deepest level of Vinamilk's culture, encompassing the
fundamental assumptions and beliefs that shape the company's very essence. These
underlying assumptions are often unspoken and taken for granted, yet they exert a
profound influence on the organization's behavior, decision-making, and overall
culture.

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 Vinamilk's Six Underlying Cultural Principles

Vinamilk has identified six underlying cultural principles that serve as the bedrock
of its corporate culture. These principles are not just slogans or aspirations; they are
deeply ingrained assumptions that guide the behavior and decision-making of every
employee, from the security guards to the CEO.

1. Personal Responsibility: When something happens, the first cause is me.

2. Empowerment: Adults don't need supervision from other adults.
3. Authenticity: My words are me.
4. Data-Driven Communication: Communicate with each other using
quantifiable data.
5. Solution-Oriented Approach: Don't say no; always seek two solutions.
6. International Standards: I am an expert in my field according to
international standards.
6. Outstanding product
o Vinamilk Fresh Milk: Fresh milk is Vinamilk's core product, available in a
variety of options, from full-cream milk to low-fat and sugar-free milk. These
products are popular for their fresh taste and nutritional value.
o Vinamilk Condensed Milk: Condensed milk is widely used in cooking and
baking. Vinamilk offers both full-cream and sugar-free condensed milk,
providing versatile options for various culinary creations.
o Vinamilk Powdered Milk: Powdered milk is a convenient and popular
choice for consumers. Vinamilk produces a range of powdered milk products,
from infant formula to adult milk powder, catering to diverse nutritional
needs.
o Vinamilk Yogurt: Yogurt is a nutritious and digestive-friendly product.
Vinamilk offers a variety of yogurt options, from full-cream yogurt to sugar-
free yogurt, providing healthy and refreshing alternatives.
o Vinamilk Twin Cows Ice Cream: Vinamilk's Twin Cows ice cream is a
popular choice for indulging in delicious desserts. They also offer innovative
recipes and beverages using Twin Cows ice cream, such as Peach Cheese Ice
Cream Sauce.
o Vinamilk Plant-Based Milk: Plant-based milk is a growing trend,
combining the goodness of milk with the benefits of plant-based ingredients.
Vinamilk offers a variety of plant-based milk options, including soy milk,
barley milk, and sunflower seed milk, catering to those seeking dairy
alternatives.
7. Market
7.1. Domestic Market
 Traditional Sales Channels: Extensive distribution network across the
country, particularly concentrated in two major cities, Ho Chi Minh City and
Hanoi, with all supermarket systems, "Vietnamese Milk Dream" store

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 systems with 616 stores and tens of thousands of points of sale and
distributors nationwide.
 Modern Sales Channels: Vinamilk's products are mostly sold on e-
commerce platforms such as Shopee, Lazada, etc.
7.2. Export Market:
 Vinamilk's export market has recorded many positive highlights. To date,
Vinamilk has exported products to 54 countries and territories, with a total
turnover of over USD 2.2 billion. Renowned and demanding markets such as
the US, Japan, Singapore, and Canada are all Vinamilk's partners.
 Vinamilk is constantly developing export products, especially those under the
Ong Tho and Ngôi Sao Phuong Nam brands. They also continuously
participate in activities to support the business of existing distributors and
find new customers.
 Vinamilk's milk and tea products have officially entered the potential export
market when major Korean e-commerce platforms since the beginning of
June with good expectations of acceptance from consumers in this country.

With a sound strategic direction, effective and proactive corporate governance,

and creativity to overcome difficult periods, thereby finding opportunities for
development, Vinamilk has regularly been named in prestigious rankings both
domestically, such as Top 50 Best Listed Companies, and internationally, such
as Asia300 - List of Outstanding Listed Companies in Asia, Top 200 Listed
Companies with Revenue over USD 1 Billion Best Published by Forbes Asia...

Currently, Vinamilk is the only Vietnamese company in the Top 50 largest dairy
companies in the world by revenue and is very close to the Top 30.

17
Part 2: Company vision 2021 - 2025
1. Vision
“To become the leading symbol of trust in Vietnam for nutritional and health
products that serve human life.” With this vision, Vinamilk hopes to continue to
develop and become one of the leading companies in the nutrition and health sector
in Vietnam and around the world. In addition, Vinamilk also actively contributes to
the community through social and sustainable environmental activities to
demonstrate that it is doing the right thing with its current vision.
2. Mission
“Vinamilk is committed to providing the community with top-quality and premium
nutrition with its utmost respect, love, and high sense of responsibility for human
life and society.”
3. Core Values
o Integrity: Honest and truthful in behavior and in all dealings.
o Respect: Respect for oneself, respect for colleagues, respect for the
company, respect for partners, cooperation in respect.
o Fairness: Fair to employees, customers, suppliers and other stakeholders.
o Ethics: Respect established standards and act ethically.
o Compliance: Comply with the Law, the Code of Conduct and the Company's
regulations, policies and rules.
4. Business Philosophy
Vinamilk aspires to be a beloved brand in every region and territory. Therefore, we
believe that quality and innovation are our constant companions. Vinamilk places
customers at the heart of our operations and is committed to meeting their every
need.

Quality Policy
Customer Satisfaction: We always strive to satisfy and fulfill our customers' needs
by continuously improving and diversifying our products and services, ensuring
quality and food safety, offering competitive prices, upholding business ethics, and
complying with all applicable laws and regulations.

18
Part 3. Situation Analysis
Outstanding Issues to be Addressed
Vinamilk, one of Vietnam's leading dairy companies, is facing numerous challenges amidst
a volatile global economy. Issues ranging from production to human resources need to be
addressed and resolved for the company to continue its sustainable development.

1. Production: Vinamilk is facing pressure from rising input material costs,

particularly for fresh milk and sugar. This is affecting the company's gross profit
margin.
2. Product Research and Development: With the increasing demand for product
innovation, Vinamilk needs to focus on research to create new products that align
with consumer trends and nutritional requirements.
3. Business: The company faces stiff competition from other domestic and
international dairy brands.
4. Marketing: Vinamilk needs to improve its marketing strategy to strengthen brand
recognition and expand market share.
5. Financial Accounting: Managing finances and accounting in a volatile pricing
environment is a major challenge, requiring Vinamilk to have flexible financial
strategies.
6. Human Resources: Attracting and retaining talent is a critical issue, especially
in the dairy industry that demands high specialization.
Conclusion
Vinamilk needs to confront and address challenges in each area of operation to
continue its strong market presence. By implementing creative and flexible
solutions, Vinamilk can not only overcome difficulties but also seize opportunities
for stronger growth in the future.

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Part 4. External audit STEEPLE
1. Social
Vinamilk has implemented a series of smart social media marketing strategies to
enhance brand awareness and engage the public. Here are some highlights of their
social media strategy:

1.1. New Color and Logo Campaign: Vinamilk created a social media buzz by
highlighting their new colors and logo. They developed an automated website that
allowed users to create avatars in the style of Vinamilk. This not only helped
Vinamilk spread brand awareness but also created a fresh and engaging way for
consumers to interact with the brand.

1.2. Leveraging the Power of "Word of Mouth": This marketing activity has
garnered positive attention from the online community and generated a strong ripple
effect through sharing and discussions on social platforms.

1.3. Effective Facebook Ads: Vinamilk has utilized Facebook ads to boost brand
performance. A study by Kantar revealed that Facebook offers a significantly lower
cost per reach compared to television, with a cost per reach that is 10 times lower
than TV.

1.4. Official Facebook Page: Vinamilk's official Facebook page serves as a hub for
sharing information on new health and beauty trends, family-friendly recipes, and
other engaging content.

Analysis of Vinamilk's Social Media Strengths and Weaknesses:

Strengths:
- New Color and Logo Campaign: Vinamilk created a social media trend, helping
to increase brand awareness by highlighting their new colors and logo.
- Leveraging the Power of "Word of Mouth": This marketing activity generated a
strong ripple effect, attracting positive attention and discussions from the online
community.
20
- Effective Facebook Ads: Utilizing Facebook ads has helped Vinamilk save costs
and boost brand performance.
- Official Facebook Page: Serves as a platform for sharing valuable information,
attracting attention and engagement from consumers.

Weaknesses:
- Reliance on a Few Channels: While current strategies are effective, focusing
primarily on Facebook could cause Vinamilk to miss opportunities on other social
media platforms.
- Content Management Risks: Managing content on large social media platforms
requires caution to avoid misinformation or negativity that could affect the brand.

Overall, Vinamilk has taken significant strides in building and maintaining a social
media presence. However, they also need to diversify their strategy to fully leverage
the power of different social media platforms and effectively manage content-related
risks. These efforts will not only help Vinamilk strengthen brand awareness but also
demonstrate their creativity and agility in adopting social media tools to engage and
communicate with customers. This reflects Vinamilk's commitment to innovation
and its continuous pursuit of new ways to connect with consumers.

2. Technology
Vinamilk has implemented numerous advanced technologies in production and
management to enhance product quality and operational efficiency:

2.1. UHT Fresh Milk Production Technology: Vinamilk's Vietnam Milk Factory
is equipped with a modern fresh milk production line using advanced manufacturing
technology. The process is completely closed from raw materials to finished
products, ensuring food safety and hygiene.

2.2. Modern UHT Sterilization System: The advanced UHT sterilization system
can heat milk to 140°C and quickly cool it to 25°C, helping to preserve the natural
taste, nutrients, vitamins, and minerals of the product.

2.3. Aseptic Packaging Technology: The combination of advanced processing

technology, UHT sterilization, and aseptic packaging allows the product to retain its
fresh taste for 6 months without preservatives.

21
2.4. LGV Automated Robots: LGV automated robots move pallets of finished
products to the smart warehouse. Additionally, LGV robots also transport packaging
materials to the packaging machines.

2.5. Smart Warehouse: Vietnam's leading smart warehouse with an area of 6,000
m2, 20 doors, a width of 105 m, and a height of 35 m. The warehouse is designed
with 17 shelves, storing up to 27,168 pallets.

2.6. Wamas Warehouse Management System: Goods in and out are managed by
Wamas software. The operating system is based on the Tetra Plant Master
automation solution, allowing the connection of the entire factory from raw
materials to finished products.

Analysis of Vinamilk's Strengths and Weaknesses in Technology:

Strengths:
- UHT Fresh Milk Production Technology: Modern production lines ensure food
safety and hygiene.
- UHT Sterilization System: Advanced sterilization technology preserves the
natural taste and nutrients of milk.
- Aseptic Packaging Technology: Helps products retain their fresh taste for an
extended period without preservatives.
- LGV Automated Robots and Smart Warehouse: Optimize transportation and
storage processes, enhancing operational efficiency.
- Wamas Warehouse Management System: Effective goods in and out
management software, connecting the entire production process.

Weaknesses:
- Reliance on Technology: Heavy reliance on technology can pose risks in case of
technical malfunctions or system disruptions.
- Updates and Maintenance: Advanced technology requires frequent updates and
regular maintenance, which can be costly and require a high-skilled workforce.
- Cybersecurity: With the adoption of information technology in management,
Vinamilk needs to ensure cybersecurity to protect data and systems from external
threats.

Vinamilk has made significant strides in applying technology to production and

management. However, the company also needs to focus on managing technology
risks, updating and maintaining systems, and strengthening cybersecurity to ensure
stable and secure operations. Vinamilk is constantly researching and improving its
products, from collaborating with the National Institute of Nutrition on clinical
research to developing specialized products for the Asian, African, and Middle
Eastern markets. Advanced technology and research are key to Vinamilk's expansion
and competitiveness in the international arena.
22
3. Economic
Vinamilk, one of Vietnam's leading dairy companies, has made significant economic
strides in recent years. Here are some highlights of Vinamilk's economic
performance:

3.1. Revenue Growth: Vinamilk is targeting 5.5% revenue growth in 2023. In 2022,
the company recorded net revenue of VND 59.96 trillion (approximately USD 2.56
billion), a decrease of 1.58% compared to the previous year.

3.2. After-tax Profit: Vinamilk's after-tax profit in 2022 was VND 8.58 trillion
(approximately USD 365.8 million), a decrease of 19.3% compared to the previous
year.

3.3. Brand Value: Vinamilk is valued at USD 2.4 billion according to Forbes
Vietnam.

3.4. Performance during the COVID-19 Pandemic: Despite the challenges posed
by the COVID-19 pandemic, Vinamilk still recorded revenue and profit growth.

Analysis of Vinamilk's Economic Strengths and Weaknesses:

Strengths:
- Revenue Growth: The 5.5% revenue growth target for 2023 indicates Vinamilk's
commitment to growth and expansion.
- Brand Value: With a brand value estimated at USD 2.4 billion, Vinamilk holds a
strong market position.
- Performance during the COVID-19 Pandemic: Vinamilk has demonstrated its
ability to adapt and maintain growth amidst challenging circumstances.

Weaknesses:
- Declining Revenue and Profit: The 1.58% decrease in net revenue and the 19.3%
decrease in after-tax profit compared to the previous year highlight the financial
challenges the company is facing.
- Pressure from Economic Fluctuations: The decline in revenue and profit could
reflect the pressure from global economic fluctuations and market competition.

Vinamilk needs to continue closely monitoring macroeconomic factors and

implement flexible strategies to optimize economic performance while mitigating
future financial risks. This includes market diversification, cost efficiency
improvements, and enhanced competitiveness to achieve its stated revenue growth
targets. Vinamilk continues to invest in international market expansion and new
product development to meet diverse customer needs. The company also focuses on

23
adopting advanced technologies and improving management processes to enhance
operational efficiency and optimize costs. This demonstrates Vinamilk's focus not
only on business growth but also on creating sustainable value for shareholders and
society.

4. Ethical
In the modern business landscape, adhering to business ethics is not only a legal
requirement but also a crucial factor in building reputation and consumer trust.
Vinamilk, as one of Vietnam's leading dairy companies, has continuously strived to
ensure that all its operations strictly follow ethical business standards.

4.1. Integrity and Respect: Vinamilk values fostering a work environment based on
integrity and respect. This is reflected not only in adhering to legal regulations but
also in the way the company interacts with its customers, partners, and employees.

4.2. Fairness and Legal Compliance: The company is committed to conducting

business fairly and transparently, ensuring compliance with all relevant legal
regulations. This not only helps Vinamilk minimize legal risks but also contributes
to strengthening trust from consumers and stakeholders.

4.3. Encouraging Whistleblowing and Protecting Whistleblowers: Vinamilk

encourages its employees to identify and report any unethical business practices. The
company also pledges to protect those who take this courageous action, thereby
creating a safe and healthy work environment.

Analysis of Vinamilk's Ethical Business Strengths and Weaknesses:

Strengths:
- Integrity and Respect: Vinamilk cultivates a work environment built on integrity
and respect, evident in its adherence to laws and positive interactions with
customers, partners, and employees.
- Fairness and Legal Compliance: The company's commitment to fair and
transparent transactions helps minimize legal risks and enhances consumer trust.
- Encouraging Whistleblowing and Protecting Whistleblowers: Vinamilk fosters
a safe and healthy work environment by encouraging employees to report unethical
behavior and protecting them.

Weaknesses:
- Challenges in Maintaining Standards: Upholding ethical business standards can
be challenging in a competitive and dynamic market, especially when expanding or
entering new markets.

24
- Supply Chain Risks: Vinamilk needs to ensure that its supply chain also adheres
to ethical principles, which can be difficult to control, particularly with distant
suppliers.

Vinamilk has taken many positive steps in building and maintaining business ethics.
However, the company needs to continue improving and adapting to new challenges
to ensure that all its business operations strictly adhere to ethical and legal standards.
By earnestly upholding ethical business principles, Vinamilk not only strengthens its
market position but also contributes to shaping a sustainable and equitable economy.
This demonstrates that sustainable development is not solely based on economic
profit but also requires active contributions to the community and society.
5. Political
Vinamilk, a leading company in Vietnam's dairy industry, faces various political
factors that can impact its business operations. Here are some key points from the
political-related PESTLE analysis:

5.1. Policy and Regulatory Environment: Government and regulatory agency

regulations and policies can affect Vinamilk's production, business, and export
activities. Changes in trade, tax, and food safety policies can significantly impact the
company.

5.2. Political Environment: Vietnam's political environment is relatively stable,

with the 0% import tax reduction policy encouraging foreign investment, promoting
learning, and supporting development with greater confidence.

5.3. Company's Core Values: Vinamilk emphasizes values such as integrity,

respect, fairness, ethics, and compliance in all transactions and interactions.

Analysis of Vinamilk's Political Strengths and Weaknesses:

Strengths:
- Stable Political Environment: Vietnam has a relatively stable political
environment, conducive to business operations and investment.
- Import Tax Reduction Policy: This policy reduces costs for Vinamilk and foreign
investors, supporting the company's learning and development.
- Core Values: Vinamilk upholds ethical values like integrity, respect, fairness,
ethics, and compliance, building trust and confidence among consumers and
partners.

Weaknesses:
- Policy and Regulatory Changes: Changes in policies and regulations can impact
production, business, and export activities, creating risks and uncertainties for the
company.

25
- Dependence on Political Decisions: Reliance on political decisions can make it
challenging for Vinamilk to plan long-term and respond to unexpected changes.

Vinamilk should continue to closely monitor political and policy developments to

adapt promptly and minimize risks to its business operations. Simultaneously,
upholding core values will help the company strengthen stakeholder relationships
and solidify its market position.

6. Legal
Vinamilk, Vietnam's leading dairy company, has a robust corporate governance
system and a comprehensive set of legal policies in place to ensure transparent and
compliant business operations. Here are some highlights of Vinamilk's legal
policies:

6.1. Corporate Governance: Vinamilk has a professional organizational chart,

clearly dividing departments with specific responsibilities for each member and
function within the company.

6.2. Company Charter: The Charter of Vietnam Dairy Products Joint Stock
Company (Vinamilk) is the legal basis for the operation of the entire company,
including content on the company's identity, method of establishment, capital
contribution, organizational structure, management, and company operations.

6.3. Governance Regulations: Vinamilk's governance regulations are a system of

rules and principles to ensure that the company is governed, managed, and
controlled effectively for the benefit of shareholders and stakeholders.

6.4. Code of Conduct: Vinamilk's Code of Conduct is committed to maintaining

integrity, promoting respect, ensuring fairness, upholding compliance, and valuing
ethics, serving as a guiding principle for all daily activities at Vinamilk, aiming for
strong and sustainable development in the future.

6.5. Information Disclosure Policy: Vinamilk's information disclosure policy

systematizes the content in legal documents so that the company's information
disclosure is full, accurate, timely, and transparent. The policy also stipulates the
procedures and responsibilities of functional departments and units in the company
in disclosing information to ensure compliance with the law and in accordance with
the company's policy.

26
6.6. Audit Committee Charter: The Audit Committee Charter stipulates the
organizational structure, operating principles, rights, and obligations of the Audit
Committee and its members to ensure compliance with the regulations of the
Enterprise Law, the Company Charter, and other relevant laws and regulations.

Analysis of Vinamilk's Legal Strengths and Weaknesses:

Strengths:
- Corporate Governance: Vinamilk has a professional governance system, with a
clear division of responsibilities between departments, creating a solid foundation
for business operations.
- Company Charter: The Charter provides a clear legal basis for the company's
operations, helping to ensure compliance and transparency.
- Governance Regulations: The system of governance rules and principles helps
the company operate effectively and in the interests of shareholders and
stakeholders.
- Code of Conduct: The commitment to ethics and compliance helps to enhance
reputation and trust among consumers and partners.
- Information Disclosure Policy: Ensures that information is disclosed in a full,
accurate, and timely manner, enhancing transparency.
- Audit Committee Charter: Specific regulations help ensure that auditing
activities comply with the Enterprise Law and related regulations.

Weaknesses:
- Challenges in Maintaining Compliance: Maintaining compliance in an ever-
changing legal environment can be challenging, requiring continuous updates and
adjustments.
- Legal Risks from International Expansion: When expanding into international
markets, Vinamilk may face complex and different legal regulations, creating new
legal risks.

Vinamilk has built a strong legal foundation for its business operations. However,
the company needs to continue to update and adapt to legal changes to ensure
compliance and minimize risks in the future.

7. Environmental
Vinamilk, as one of Vietnam's leading companies, has demonstrated a strong
commitment to sustainable development and environmental protection. Here are
some highlights of Vinamilk's environmental policy:

27
7.1. Sustainable Development: Vinamilk understands that business success is not
only measured by financial performance but also by the sustainable and significant
value they bring to the community.

7.2. Sustainable Agriculture: Vinamilk encourages and trains farmers to apply

sustainable agricultural practices in line with Global G.A.P. standards.

7.3. Green Manufacturing: Vinamilk aims to reduce greenhouse gas emissions by

15% by 2027, 55% by 2035, and achieve net-zero emissions by 2050.

7.4. Environmentally Friendly Logistics: The company focuses on optimizing

logistics processes to minimize environmental impact.

7.5. Sustainable Consumption: Vinamilk strives to produce products that are

beneficial to health and do not harm the environment, while providing consumers
with clear and complete information about product ingredients, nutritional value, and
storage instructions.

Analysis of Vinamilk's Environmental Strengths and Weaknesses:

Strengths:
- Sustainable Development: Vinamilk recognizes the importance of creating
sustainable value for the community, not just relying on financial performance.
- Sustainable Agriculture: The company encourages and supports farmers in
adopting sustainable agricultural practices that meet international standards.
- Green Manufacturing: The goal of reducing greenhouse gas emissions and
achieving net-zero emissions by 2050 demonstrates a strong commitment to the
environment.
- Environmentally Friendly Logistics: Vinamilk optimizes logistics processes to
minimize negative environmental impacts
- Sustainable Consumption: Producing environmentally friendly products and
providing consumers with complete information about storage and nutritional value.

Weaknesses:
- Challenges in Achieving Goals: Setting ambitious greenhouse gas emission
reduction targets can pose significant technical and financial challenges.
- Pressures from Development: Maintaining high environmental standards can be
difficult during expansion and development due to competitive pressures and profit
requirements.

Vinamilk has shown a strong commitment to environmental protection and

sustainable development. However, the company needs to continue its efforts and
investments to achieve its set goals while addressing the challenges in implementing
its environmental policies. Notably, Vinamilk is the first dairy company in Vietnam
28
to achieve carbon neutrality at its Nghe An Dairy Factory and Cattle Ranch,
following the PAS 2060:2014 standard.

Part 5: Corporate Goals

Become one of the top 30 largest dairy companies in the world by
revenue
In 2021, based on the ranking of Plimsoll Publishing Ltd, Vinamilk Dairy Company ranked
36th in sales revenue among the top 50 dairy companies worldwide. In 2022, Vinamilk was
also the only Vietnamese dairy company in the top 40 nutrition companies worldwide by
revenue. Continuing with the achievements made, Vinamilk's next goal will be to become
one of the top 30 largest dairy companies in the world by revenue in the period from 2025
to 2030.

Strengthen the leading position in the Vietnamese dairy industry

Currently, in the Vietnamese market, Vinamilk is still the leading dairy brand in most
criteria such as revenue, market share, brand love... However, there are many competitors
such as Milo, TH Truemilk also gradually followed closely behind, so Vinamilk needs to
strengthen its position in the domestic market and continue to lead the Vietnamese dairy
industry.

Prioritize exploiting the domestic market with great potential for development.

Expand penetration and coverage of rural areas with popular product lines, where the
growth potential is still very large.

Focus on the high-end product segment with many added values, especially in urban areas.

Continue to build a large and strong domestic distribution system, increase market share
and maintain Vinamilk's leading position in the market.

Become the most valuable dairy company in Southeast Asia

Ready for mergers and acquisitions (M&A) activities and expand strong partnerships with
partners in all three directions: horizontal integration, vertical integration, and combination.

29
Prioritize looking for M&A opportunities with dairy companies in other countries with the
aim of expanding the market and increasing sales.

Continue to penetrate new export markets with a strategy of converting the traditional
commodity export model into deep cooperation with distribution partners in new key
markets.

Part 6: Proposed Strategies

6.1. International Business Strategy
6.1.1. Focus on regions that prefer the company's products (Southeast Asia, Middle
East, Africa)
Grasp the standards for goods, especially dairy standards, in regions such as Southeast
Asia, the Middle East, and Africa to continue to develop and strengthen Vinamilk's brand
in these regions.

These are regions that favor Vinamilk's product lines, such as the Middle East, which
prefers Vinamilk's powdered milk and condensed milk, and the Philippines, Indonesia, and
Cambodia also love Vinamilk's products. Therefore, Vinamilk needs to focus on meeting
user needs, understanding their milk consumption habits, and developing products that
meet customer needs to help Vinamilk sell products and increase revenue.

6.1.2. Continue to develop and meet the needs of regions that do not prefer the
company's products (EU, USA...)
The US and EU markets do not favor Vinamilk's products, partly because their milk
consumption habits are accustomed to short-term dairy products.

From that problem, it is necessary to research the needs of customers in this market,
product consumption habits, and the reasons why they prefer to use short-term dairy
products. From there, to innovate the company's products to suit the market. In addition to
innovation and product change to suit the market, it is also necessary to strengthen the
brand and promote products so that more people know about Vinamilk's brand in order to
sell products and increase sales.

6.1.3. Develop distribution channels and bring products to e-commerce platforms.

For potential markets such as Southeast Asia, Africa, the Middle East, the US, and the EU,
Vinamilk must build its own distribution channels or partner with local distribution
channels in these regions to distribute Vinamilk's products to agents and supermarkets,
thereby achieving high coverage in the selected region and market.

In addition to developing its own distribution channels, the company can also cooperate
with major e-commerce platforms in these regions such as Amazon, eBay, Lazada... to
make it easier to buy and sell products and reach more customers because online shopping
is currently on the rise.

30
6.2 New Product Development Strategy
6.2.1. Establish a product research and development team.
Invest in recruiting and training a team of high-quality, specialized product research and
development. Focus on market research and customer needs both domestically and
internationally, and prioritize innovation and creativity, helping the research team work in
the direction of diligently researching the market, customers, innovating, and innovating.
To be a pioneer in breakthrough product features.

6.2.2. Upgrade infrastructure

Upgrade research rooms and modern analytical machines and equipment to ensure smooth
and smooth operation of processes, avoiding errors.

6.2.3. Focus on developing new environmentally friendly products, new flavors, and
short-term dairy products to meet export needs.

Continue to develop products with environmentally friendly paper straws to follow the
"green" trend, and develop new flavors in addition to the original, strawberry, and
chocolate flavors to diversify products to reach more audiences such as melon flavor,
orange...

In addition to the two above, it is also necessary to research and develop short-term dairy
products to meet the needs of customers in other export regions, typically the US and EU,
because customers here are accustomed to using short-term products

6.2.4. Improve existing formulas to create new formulas.

Improving formulas to create new formulas is very important, helping to save resources,
resources, and costs in order to compete with products of domestic and international
competitors.

6.2.5. Improve and introduce high-end product lines with many added values to
target urban customers.
Focus on improving new milk lines from existing milk lines such as YOKO Gold to create
higher quality and higher quality products.

6.3. Product Quality Enhancement Strategy

6.3.1. Standardize product quality inspection procedures
Standardizing product quality inspection procedures will help Vinamilk mass-produce
products according to available procedures, helping to minimize risks and avoid putting
defective, low-quality products on the market. In addition, it also improves product quality.

6.3.2. Selectively recruit and regularly screen the staff

Be selective in recruitment, select truly talented people with high expertise and thorough
training. In addition, it is also necessary to regularly screen employees and check their
qualifications to ensure the quality of the output products.

31
6.3.3. Control input materials
Ensure that the input milk source is truly high-quality and safe, in order to create high-
quality milk lines. The most important thing is the quality of the milk because it will
account for more than 90% of the volume of a product. Therefore, the evaluation and
selection from the stage of importing dairy cows and caring for them to the stage of
milking is very important to improve and ensure product quality. In addition, it is also
necessary to ensure other raw materials such as the necessary flavors added to create the
final product.

6.4. Price Competition Strategy

6.4.1. Diversify the supply of raw materials
Currently, Vinamilk's raw materials are mainly imported from abroad, which is very
difficult. Therefore, it is necessary to build more factories and dairy farms, and cooperate
with other domestic flavor manufacturers to diversify the source of raw materials, so as not
to be squeezed on prices and have raw materials at a reasonable price, thereby the selling
price can be lower.

6.4.2. Optimize production costs

The first is to automate Vinamilk's production processes, reduce human factors in the
production stage will help save production costs. In addition, it is necessary to build a
scientific working system with clear working hours for the staff, which will help minimize
working time and costs.

6.4.3. Improve labor productivity

It is necessary to build a reasonable salary and bonus policy for employees, motivating
them to work actively and at maximum productivity. In addition, it is also necessary to
develop equipment and machinery to support them in their work to make it easier to
operate and improve productivity.

6.5. Distribution Strategy

6.5.1. Distribute products to rural and mountainous areas
Open more factories and Vinamilk's own distribution channels to rural and remote areas, or
cooperate with agents here to bring the company's basic products to the people here to
cover both rural and urban areas. From there, increase market share and revenue.

6.5.2. Increase discounts for agents who have been selling the company's products for
a long time
Increasing discounts for agents who have been with the company for a long time will help
these agents continue to accompany and be loyal to the company to maintain the market
share of the area that these agents distribute.

6.5.3. Put products on large domestic e-commerce platforms

Cooperating with large domestic e-commerce platforms such as Shoppee, Lazada, Tiki,
will make it easier to sell products, help increase the company's sales and revenue.

32
6.6. Social Value Creation Strategy
6.6.1. Organize charitable events in both domestic and developing countries
The company can utilize new products and inventory to serve charitable activities in
remote areas, especially underdeveloped areas, not only in our country but also in
developing countries such as Laos, Cambodia, African countries, and the Middle East in
combination with media coverage. It both creates value for society, raises the company's
value in the hearts of users, and utilizes the company's products.

6.6.2. Organize exchange and playground activities for students in schools in both
domestic and developing countries
The company can both utilize these exchange and playground activities to introduce new
product lines to consumers, create value and PR for products, and create positive images in
the subconscious of our customers, who are students and parents.
6.6.3. Promote the company's values through communication
It is necessary to promote communication not only domestically but also internationally, so
that international users can recognize the brand and the value that the company brings,
thereby creating a solid foundation for future business activities.

33
Part 7: Strategic Deployment Schedule for the 2025-
2030 Period
With a vision of becoming a leading dairy brand, Vinamilk has developed a development
strategy for the 2025-2030 period focusing on three main pillars: Enhancing core values,
Expanding the market, and Sustainable development.

Recognizing that the 2025-2030 period is a period of economic recovery with fierce
competition, we have taken the initiative to arrange resources reasonably and implement
the strategy on a year-by-year basis in a quick and effective manner.

With a well-structured development strategy and determination to implement it, we are

confident that we will achieve many successes and affirm our leading position in the dairy
industry in the 2025-2030 period.

To realize the Company's vision, in the period 2025-2030, we plan to complete the
strategic contents in each period (year), specifically:

T IMPLEMENTATION TIME (years)

STRATEGIC CONTENTS
T 2025 2026 2027 2028 2029 2030
I INTERNATIONAL
BUSINESS STRATEGY
1 Focus on regions that prefer X X X X X X
the company's products
(Southeast Asia, Middle East,
Africa)
2 Continue to develop and meet X X X X
the needs of regions that do not
prefer the company's products
(EU, USA...)
3 Develop distribution channels X X X X
and bring products to e-
commerce platforms.
II NEW PRODUCT
DEVELOPMENT
STRATEGY
1 Establish a product research X X
and development team.
2 Upgrade infrastructure X X X X X X
3 Focus on developing new X X X
environmentally friendly
34
 products, new flavors, and
short-term dairy products to
meet export needs.
4 Improve existing formulas to X X X
create new formulas.
5 Improve and introduce high- X X X
end product lines with many
added values to target urban
customers.
III PRODUCT QUALITY
ENCHANCEMENT
STRATEGY
1 Standardize product quality X
inspection procedures
2 Selectively recruit and regularly X
screen the staff
3 Control input materials X X X
IV PRICE COMPETITION
STRATEGY
1 Diversify the supply of raw X X
materials
2 Optimize production costs X X
3 Improve labor productivity X X
V DISTRIBUTION
STRATEGY
1 Distribute products to rural X X
and mountainous areas
2 Increase discounts for agents X X
who have been selling the
company's products for a long
time
3 Put products on large domestic X X
e-commerce platforms
VI SOCIAL VALUE
CREATION STRATEGY
1 Organize charitable events in X X X
both domestic and developing
countries
2 Organize exchange and X X X
playground activities for
students in schools in both
domestic and developing
countries
3 Promote the company's values X X X X X X

35
 through communication

Part 8: Risk Management

International Business Strategy:
Vinamilk needs to have contingency plans and be prepared for possible incidents that
could occur to the supply chain in the current tense world situation due to war.

There needs to be plans to ensure product quality when exporting to distant countries such
as the United States or the EU market.

Prepare contingency plans for when products do not sell well in difficult markets as well as
foreign countries, such as organizing charitable events to create company value.
New Product Development Strategy:
Conduct thorough market research: Identify consumer needs, trends, and behaviors for new
products.

Assess competitiveness: Analyze competitors and their products to develop appropriate

competitive strategies.

Ensure product quality: Apply high quality standards and strict quality control during
production.

Develop a sound financial plan: Estimate investment capital and calculate the economic
efficiency of the new product.

Effective project management: Establish a clear project management process with the
involvement of stakeholders.

Effective change management: Communicate internally, train employees, and support them
in adapting to new changes.

Product Quality Enhancement Strategy:

Have a sound financial plan: Estimate investment capital for the product quality
enhancement strategy and ensure economic efficiency.

Conduct thorough market research: Identify consumer needs, trends, and behaviors for
high-quality products.

Apply an effective quality management system: Comply with international quality

standards and build a strong internal quality management system.

Invest in innovation: Research and develop new technologies, new production processes,
and new management methods to improve product quality.

36
Develop an effective communication strategy: Communicate about the product quality
enhancement strategy and Vinamilk's efforts to ensure product quality.
Have a crisis management plan: Be prepared for product quality crisis situations and have
an effective response plan to minimize losses.
Price Competition Strategy:
Have a thorough market analysis: Identify the price sensitivity of market demand and
competitor behavior.

Assess risk tolerance: Determine the level of profit decline and brand image impact that
Vinamilk can accept.

Have a flexible pricing strategy: Apply flexible pricing strategies suitable for each
customer segment and each product.

Combine with other marketing strategies: Combine price competition strategies with other
marketing strategies such as advertising, promotions, etc. to increase effectiveness.

Comply with the law: Comply with competition law and anti-dumping regulations.
Distribution Strategy:
Have a well-structured distribution plan: Identify distribution targets, appropriate
distribution channels, and necessary resources.

Apply management technology: Use management software to track and manage the
distribution system effectively.

Develop relationships with distributors: Build long-term and effective partnerships with
distributors.

Have an effective marketing strategy: Promote sales through appropriate marketing

activities.

Comply with the law: Comply with competition law and food safety and hygiene
regulations.
Social Value Creation Strategy:
Have a well-structured social value creation strategy: Define clear goals, select activities
that are appropriate for the company's capabilities and resources, and develop a detailed
implementation plan.

Choose reputable partners: Collaborate with reputable organizations with experience in

social value creation to ensure the effectiveness of activities.

Apply an effective project management system: Use appropriate project management tools
and methods to ensure that activities are carried out on schedule, within budget, and with
quality.

37
Have an effective measurement system: Select appropriate measurement indicators to
assess the effectiveness of social value creation activities.
Transparent communication: Communicate openly and transparently about social value
creation activities to raise community awareness and strengthen brand reputation.

By carefully considering the potential risks and developing a well-structured

implementation plan, Vinamilk can effectively implement its strategies and contribute to
achieving the company's goals.

38
Part 9: Conclusion
Overall, Vinamilk's development strategy for the 2025-2030 period focuses on three main
pillars: Enhancing core values, Expanding the market, and Sustainable development. This
strategy is built on Vinamilk's existing strengths and also responds to new market trends
and the increasing demands of consumers.

However, it should be noted that this strategy still has some potential risks, such as:

Market risk: Market demand can change, fierce competition from domestic and foreign
competitors.
Financial risk: High investment costs, fluctuations in raw material prices, foreign exchange
rate risk.
Management risk: Managing a large distribution system, managing product quality,
managing risks.

To minimize these risks, Vinamilk needs to:

Continue to conduct market research to update new trends and consumer needs.
Increase investment in research and development of products to improve product quality
and competitiveness.
Improve management and operational efficiency to optimize costs and profits.
Build and strengthen the Vinamilk brand in the domestic and international markets.

With its efforts and determination, Vinamilk is fully capable of successfully implementing
its development strategy for the 2025-2030 period and becoming a leading dairy company
in the region and one of the top 30 in the world.

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