VIET NAM NATIONAL UNIVERSITY HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

INDUSTRIAL MANAGEMENT

Report

VINAMILK - JOURNEY
TO INCREASE REVENUE TO VND 80
BILLION
Subject: Fundamentals Of Management
Class: CC01
Group: 1
Instructor: Lại Văn Tài
 Name Student ID Email Evaluation

Nguyễn Dương Thanh 2352009 100%

1 an.nguyensub@hcmut.edu.vn
An

2 Nguyễn Thanh Mai 2352725 mai.nguyen2352725@hcmut.edu.vn 100%

3 Lý Chiêu Quân 2352996 quan.lychieu@hcmut.edu.vn 100%

4 Lê Minh Thảo 2353112 thao.leminh1311@hcmut.edu.vn 100%

5 Nguyễn Thành Thơ 2353152 tho.nguyenthanh@hcmut.edu.vn 100%

6 Lê Ngọc Diễm Trâm 2353204 tram.le2327@hcmut.edu.vn 100%

I. INTRODUCTION

Vinamilk - also known as Vietnam Dairy Products JSC, is a leading nutrition company
in Vietnam, founded in 1976. It is the largest dairy company in the country and ranks among
the top 40 nutrition companies globally. With a diverse range of over 250 products, Vinamilk
caters to a wide array of nutritional needs and holds about 50% of Vietnam’s dairy market.
The company operates 14 dairy farms and 16 factories in Vietnam and abroad, and its
products are available in nearly 60 countries. Vinamilk aims to be a trusted global brand in the
food and beverage industry, aligning its growth with environmental, human, and societal
development goals. The company’s achievements and recognition, including being the 6th
most valuable dairy brand worldwide in 2022, are attributed to its leadership and
employees’contributions.
(F1: Top valuable dairy brands 2022 by Brand Finance Food & Drink)
II. OVERVIEW

1. About Vinamilk

The State now owns 45.1% of the Vietnam Dairy Products Joint Stock Company, often
known as Vinamilk, which was established in 1976. In 2006, it debuted on the Ho Chi Minh
Stock Exchange.
Vinamilk is proud to represent the national brand in the effort to introduce Vietnamese
milk to the world after 46 years of establishment and more than 25 years of "conquering" the
international market. Vinamilk has solidified its place in the Top 10 most valuable milk
brands globally as well as the Top 40 largest dairy enterprises in terms of revenue. Vinamilk
presently owns and operates over 40 member units, including a network of factories, farms,
branches, etc., both locally and abroad, with a consolidated total revenue of VND 63,380
billion.
In addition to opening up exciting new development stages for the business's future,
Vinamilk makes a lasting impression on the global dairy map by offering increasingly
sustainable values and goods to stakeholders. This reflects the pride that Vietnamese brands
and products have in their products.

2. About the field of business

Vinamilk's primary commercial endeavors encompass the processing, production, and

distribution of fresh milk, canned milk, powdered milk, nutritious powder, yogurt, condensed
milk, soy milk, beverages, and more dairy items. Additionally, Vinamilk exports its goods to
other nations, including Australia, the Philippines, Cambodia, and several Middle Eastern
nations. Thirteen percent of the company's overall income comes from exports. 2011 saw
Vinamilk increase output and go into the fruit and vegetable market. The product line had
success shortly following the introduction of the new product sector, gaining a 25% market
share in supermarket retail channels. The firm started producing children's juices in February
2012.

3. About the produce range

Vinamilk is a leading dairy company in Vietnam that produces and distributes a wide range of
products derived from milk. According to the web search results, some of the product lines
and brands of Vinamilk are:

 Vinamilk liquid milk, yogurt, and ice cream: These products are made from fresh
milk and natural ingredients, and are enriched with calcium and vitamin D3 for strong
bones. Some of the popular products in this line are Vinamilk 100% Fresh Milk
yogurt, Vinamilk Star yogurt, Vinamilk Beauty Yogurt, and Vinamilk Probi yogurt.
 Dielac powdered milk: This product line is designed for infants, children, and adults
who need supplementary nutrition. Some of the popular products in this line are
Dielac Alpha, Dielac Grow Plus, Dielac Mama, and Dielac Sure.
 Ridielac nutrition powder: This product line is a convenient and delicious snack for
children, made from milk, cereals, and fruits. Some of the popular products in this line
 are Ridielac Banana, Ridielac Strawberry, Ridielac Chocolate, and Ridielac Mixed
Fruits.
 Longevity sweetened condensed milk and Southern Star sweetened condensed
creamer: These products are made from high-quality milk and sugar, and are ideal for
making desserts, beverages, and dishes. Some of the popular products in this line are
Longevity Original, Longevity Low Sugar, Southern Star Original, and Southern Star
Low Sugar.

III. FORMULATING STRATEGY FOR (SUBJECT)

1. The External Environment (PESTEL)

The prevailing external conditions significantly impact a company's performance,

making it imperative for businesses to conduct a PESTEL Analysis to comprehensively assess
the market.

Political Environment:
Vietnam continues to maintain stable political structures favorable for business operations.
The government's policies to support the milk sector have been consistent, facilitating ease of
doing business for companies like Vinamilk. Recent government initiatives aimed at lowering
trade barriers and attracting more investment could present opportunities for Vinamilk to
expand its market share and increase revenue. However, fluctuations in government tax
policies could impact the company's financial strategies in achieving the revenue target.

Economic Environment:
Vietnam's steadily increasing GDP provides a promising landscape for Vinamilk's revenue
aspirations. The rising income levels and growing life expectancy in the country signify
increased consumer spending power, potentially benefiting Vinamilk's product sales.
However, the challenge lies in managing production costs due to inflation rates, which might
affect pricing strategies for Vinamilk's products. The pressure from global competition,
especially as a WTO member, necessitates a robust strategy for Vinamilk to stay competitive
and achieve its revenue target.

Social-Cultural Environment:
The demographic advantage of a young population in Vietnam signifies a substantial market
for milk product consumption, aligning with Vinamilk's revenue goals. With a growing
middle-class buyer base and a societal focus on health and wellness, there's a significant
opportunity for Vinamilk to cater to consumer demands for quality dairy products. Targeting
not only the adult demographic but also children's consumption preferences could further
augment revenue streams for the company.

Technological Environment:
Vinamilk's emphasis on technological advancements in milk processing positions it favorably
in the market. Leveraging superior technology from European countries helps in maintaining
product quality, meeting market demands, and fostering customer trust. Further investments
in technology should be aligned with market trends and consumer preferences to ensure
sustained revenue growth.
Environmental Factors:
Given the increasing emphasis on environmental sustainability, Vinamilk should prioritize
eco-friendly practices in its operations. This includes efficient waste disposal methods,
utilizing natural resources wisely, and adopting clean energy solutions. Embracing
sustainability aligns with consumer preferences and could contribute positively to Vinamilk's
brand image, potentially influencing purchasing decisions and revenue growth.

Legal Factors:
Compliance with stringent food safety regulations is crucial for Vinamilk's operations.
Adhering to contemporary production systems to ensure consumer safety is imperative.
Navigating the varied tax rates in Vietnam might pose challenges, impacting pricing strategies
and profitability in Vinamilk's pursuit of achieving the revenue target.

In 10 years recently, there was notable growth in the average GDP rate. Despite limited
population growth, the average GDP per capita increased steadily. This upward trajectory has
persisted annually. By 2008, Vietnam transitioned from being among the nations with the
lowest average income to joining the group of countries boasting the highest average income.

Overall, leveraging the opportunities presented by Vietnam's economic growth, demographic

trends, technological advancements, and a focus on sustainability, while navigating regulatory
challenges and market competition, will be pivotal for Vinamilk in reaching its revenue target
of 80 billion VND.

2. The Internal Environment

2.1.Strengths
  Vinamilk - Trusted brand with quality assurance:
Vinamilk is a highly recognized and leading dairy brand in Vietnam, known for its quality
and trusted by loyal local consumers. The company has received prestigious awards and
certifications, including ISO 9001, ISO 22000, HACCP, and FSSC 22000, highlighting their
commitment to delivering high-quality dairy products that meet rigorous food safety
standards. Vinamilk's strong brand reputation, dedication to quality, and industry recognition
have solidified its position as the preferred choice for dairy products among Vietnamese
consumers.

 Strong marketing and market research:

Vinamilk excels in digital marketing by leveraging popular social media platforms like
Facebook and TikTok, as well as a comprehensive multi-channel approach including TV,
radio, print, and internet platforms, to increase sales, raise awareness of their cutting-edge
technologies and new products, and effectively engage their target customers. They also
update their logo and product design to provide customers with a fresh and enticing
appearance. Supported by an experienced sales and marketing team, Vinamilk conducts
market research and develops products that align with market trends and consumer needs.

 Diversified product portfolio and subsidiaries:

Vinamilk offers a diverse range of over 200 dairy products, including fresh milk, powdered
milk, cheese, juices, ice cream, and other nutritional consumables, tailored for adults,
children, and specific dietary needs. This diverse product offering serves many client
categories and marketplaces, highlighting the value of product variety in meeting various
consumer requirements and preferences. Vinamilk's numerous subsidiary firms play an
important role in marketing various goods, raising brand recognition, and driving sales, all of
which contribute to the company's overall wide-ranging product portfolio and strong market
presence.

 Strong national and international distribution network

Vinamilk leverages its extensive distribution channels to establish a strong presence in the
milk industry in Vietnam. Vinamilk's distribution network, which includes 250 distributors
and 200,000 outlets scattered over 64 provinces, offers customers with widespread access and
allows for successful nationwide marketing campaigns. Furthermore, Vinamilk has
effectively established distribution channels and collaborations in nations such as the United
States, Japan, China, Russia, and the Middle East. This worldwide development has not only
enhanced Vinamilk's global brand recognition but also diversified its revenue streams.

 Advanced manufacturing facilities and technology

Vinamilk, an industry leader, uses worldwide standard equipment for manufacturing and
modern technologies in its state-of-the-art operations. By embracing advanced technology and
adhering to international production standards, Vinamilk remains competitive in the market.
Their modern manufacturing facilities across Vietnam are equipped with advanced production
lines and strict quality control, ensuring product safety and quality.

 Sustainable growth and autonomous investments: Vinamilk's commitment to

long-term success
Vinamilk demonstrates its strong financial position and long-term growth commitment
through its autonomous capital and investments, including substantial investments in modern
dairy farms. With a focus on sustainability, the company emphasizes quality, innovation, and
strategic planning to ensure continued success. Vinamilk fosters a positive work environment
that promotes productivity and employee satisfaction. They also prioritize research and
development (R&D) to drive innovation, improve product offerings, and explore new
technologies. In addition to R&D investments and collaboration with experts, Vinamilk
actively engages in corporate social responsibility (CSR) initiatives. Their CSR efforts center
around education, healthcare, nutrition, and community development, with a particular focus
on children and underprivileged communities. Vinamilk sponsors educational programs,
scholarships, and healthcare projects, positively impacting society.

2.2 Weakness

 Vinamilk's import dependency and market challenges in raw material

acquisition:
Vinamilk heavily relies on imported raw materials, including powdered milk, which accounts
for about 65% of its total imports. This dependence on imports is considered a weakness and
hinders the company's self-sufficiency. Only around 30% of the production demand is met
domestically, exposing Vinamilk to global supply-demand dynamics and external factors. In
the powdered milk market, Vinamilk holds a 16% market share, while imported products
make up 65%, with Dutch Lady capturing 20% of the market. Despite efforts, approximately
70% of Vinamilk's raw materials are still imported from countries like New Zealand, the
United States, and Japan.

 The decline in export business:

Vinamilk has encountered a significant weakness in its export business since the onset of the
pandemic. The company has experienced a sharp decline in its export activities, highlighting
the fickle nature of this sector. To overcome this challenge, Vinamilk must devise new
schemes and strategic plans to revitalize its export business and maintain its competitiveness
in the global market. It is crucial for the company to adapt to the evolving market conditions
and implement innovative strategies to regain momentum in the export sector. By addressing
the impacts of the pandemic and developing resilient export strategies, Vinamilk can navigate
through uncertainties and strengthen its position in the international market.
  Negative press - safeguarding vinamilk's brand image and building consumer
trust:
Vinamilk is always surrounded by rumors related to its various products, despite no evidence
being presented to date. Competitors consistently target Vinamilk and spread baseless rumors
among the public, causing unnecessary confusion. By focusing on modern strategies for
information management and online reputation, Vinamilk can ensure the protection of its
brand image, maintain credibility, and build trust among consumers.

 Marketing strategies and portfolio competitiveness for Vinamilk:

Vinamilk faces the challenge of underwhelming marketing outcomes in relation to the
expenses incurred, primarily due to a focus on marketing operations in the South while
neglecting the North, which represents two-thirds of Vietnam's population. Furthermore, apart
from its dairy products, Vinamilk's other offerings such as beer, coffee, and green tea are yet
to achieve a high level of competitiveness in the market.

2.3. Opportunities

 The government is assisting with the supply of raw materials, and the tax rate on
imported goods is lower:
The Vietnamese government has had a major impact on the country's dairy business in recent
years, especially since Vietnam joined the WTO and ASEAN. The Ministry of Health put into
effect rules in 2010 that required dairy products to meet particular requirements, with
children's milk being one of the main targets. In an effort to lower manufacturing costs for
companies, the government is now aggressively promoting the supply of raw materials and
lowering import tariffs on such materials. Vinamilk has a great chance to take advantage of
this and provide consumers with high-quality goods.

 There is a large number of prospective clients and a high level of demand:

Vietnam offers Vinamilk a promising market because of its sizable population, strong milk
demand, and a variety of demographic characteristics. With a growing middle class and a
developing tendency of urbanization, the nation has a high population density. The younger
population, who have access to Western knowledge and culture, is especially aware of the
advantages of consuming milk, and education levels are growing accordingly.
Furthermore, the growing concern among Vietnamese parents for their children's nutrition
makes Vinamilk's dairy products alluring due to their positive developmental effects.
Vinamilk now has the chance to focus on attracting both parents and kids as clients. When
these elements come together, Vinamilk can take advantage of Vietnam's market potential and
meet the needs of an expanding customer base.

 Vietnamese people's need for milk is growing:

The majority of Vietnamese people must utilize dairy products. Dairy products are used by
many individuals not only for cooking and beauty but also as nutritional supplements.
Consequently, Vinamilk has a tremendous chance to capitalize on this and develop further
within the dairy sector.

 The desire for high-quality, healthful products exists among consumers:

According to Nielsen's consumer report, today's consumers are deeply concerned about their
health and tend to buy health products. And when it comes to health supplements, most
consumers will refer to milk, an important food in nutritional products.

The trend of consumers consuming healthy products has created opportunities for Vinamilk to
develop. Vinamilk has been recognized by the British Retail Consortium for food safety
standards, contributing to the increase of advantages, sales growth and market expansion. It is
the belief in nutritious food, the development trend of the healthy, high-income food market
that has become the next factor for the development of Vinamilk.

 Demand from China:

Vinamilk benefits from being adjacent to China. Vinamilk can meet China's growing demand
for milk products, expanding its market share. The greatest market for Vinamilk's products is
China, and Vinamilk may benefit from entering this sizable market by employing the
appropriate strategies. This will expedite their global expansion goal as well.

 Expanding in Sports Nutrition:

Globalization has led to expansion in the sports nutrition sector. Vinamilk may grow its
company by branching out into Vietnam's sports nutrition sector. The sports nutrition sector
depends heavily on milk, therefore Vinamilk may benefit from tapping into this market.

2.4. Threats

 Many competitors enter the market:

Vinamilk has a formidable task in the very competitive dairy industry. New rivals have
emerged as a result of the rising demand for dairy products, which offers Vinamilk, an
established brand, both potential and problems. With so many options available to them,
Vietnamese consumers are steadily undermining Vinamilk's standing as foreign brands make
their way into the market.

TH True Milk, Dutch Lady, as well as up-and-coming labels like Meadow Fresh and Table
Cove, are some of Vinamilk's notable rivals. Vinamilk is exposed to possible hazards such as
decreased product diversity (due to niche market rivalry), trouble retaining consumer loyalty,
and a loss of market share to rival companies as a result of the growing number of competing
businesses. To maintain its place in the market, Vinamilk needs to overcome these obstacles.

 The raw material supply is unstable:

Vinamilk also has to deal with an unreliable source of raw resources.
Despite having dairy farms that meet international standards, Vinamilk nevertheless imports
its raw ingredients. In addition, farmers frequently change employment due to the low
profitability of raising cattle. Vinamilk is under a lot of strain because of this, and it has to
concentrate on creating indigenous raw materials instead of relying too much on imported
ones from elsewhere.

 Vietnamese consumers typically like foreign milk:

A significant obstacle for Vinamilk is the inclination of Vietnamese people to favor imported
milk.
Customers typically favor foreign items when they are health-related. They think that
compared to home items, portable products have a greater nutritional value and are safer. In
light of this, Vinamilk has to step up its brand promotion efforts and reassure consumers that
the product's nutritional content is on par with that of any well-known international brand.
 The export market still has a lot of unidentified dangers:
Exporting Vinamilk's goods overseas entails a number of serious inherent hazards. 90% of
Vinamilk's income, reportedly, come from milk exports to Iraq. On the other hand, instability
is currently plaguing this nation. Vinamilk may thus be wholly inactive in terms of exporting,
which may have an effect on company earnings.

 Price instability:
Since Vietnam is an underdeveloped nation Vinamilk must provide its services at a
reasonable cost that can be afforded by the general public at the same time maintaining the
quality of its products. Also, the cost of products exported must be on par with the global
competitors.

 Alternative for milk:

Vegans have seen a rise in the trend, Vinamilk needs to adjust and produce new products
supporting this trend to improve its market size. Soymilk and Vegan milk can be the new
products launched by Vinamilk thus gaining the support of the trend followers not only in
Vietnam but also on a global level.

STRENGTHS (S) WEAKNESSES (W)

1. Well-known brand with a 1.Have not been able to

huge market share of 75% proactively source raw
2. Broad distribution system materials yet
spanning 64 provinces 2. Powdered milk's market
3. A large selection of goods share is small and unable to
at affordable costs compete with imports from the
US, Australia, and the
SWOT 4. Cutting-edge production Netherlands
apparatus
3. The South has made
OF 5. A varied selection of significant investments in
products and robust marketing, whereas the North
VINAMILK 6. Skilled staff in product has not
research and marketing 4. The drop in export revenue
7. Robust financial situation 5. Negative press: preserving
8. Advanced manufacturing the reputation of Vinamilk and
facilities and technology fostering customer confidence
9. Sustainable growth and
autonomous investments:
vinamilk's commitment to
long-term success

OPPORTUNITIES (O) GROWTH STRATEGY TORION STRATEGY

 (SO) (WO)
1. Potential clientele S7,O1,2,4: Expand the W2O2,3: Make marketing
enormous demand and high market and capitalize on investments to grow powdered
capacity financing milk's market share.
2. Quality concerns are S2,4O2: To encourage the W1O1: Spend money on
undermining competitors, export of dairy products, preservation and transit
and the notion that provide high-quality goods technologies
Vietnamese consumers with cutting-edge production W3,O1: expanding marketing
utilize VietNam items is techniques initiatives (especially to the
being addressed S1,6O2: As demand for dairy market in the north)
3. To assist with the raising products rises, make W4,O1,4,6: associated with
of dairy cows, a number of significant investments in international firms to gain
cutting-edge technologies marketing to build brands technology and managerial
were created worldwide and in streamlining the expertise, increasing exports
4. Dairy products generally distribution network to boost and accessing the foreign
see price increases sales market
worldwide S2O5: Displaying products
5. Vietnam's "golden made with condensed milk
population structure" period near areas that sell
is now in effect complimentary items like tea
and coffee
6. Vinamilk gains from
being close to China by S3,5O6,7: Make investments
satisfying the country's in dairy projects and actively
rising demand for milk participate in raw material
products and increasing its supply
market share
7. Vinamilk can enter
Vietnam's sports nutrition
market, capitalizing on the
demand for milk-based
products and driving global
growth

THREATS (T) DIVERSIFICATION DEFENSE STRATEGY

STRATEGY (ST) (WT)
1.The tax reduction
roadmap that Vietnam has S7T1: Be proactive in W1T1,3: Cost-cutting tactics:
committed when joining the financial resources, limit the look for other suppliers of
WTO is to reduce the tax on impact of interest materials, bargain for long-
powdered milk from 20% to S1,2T2,6: Improve product term agreements, and
18%, condensed milk from quality, distribution and streamline manufacturing
30% to 25%. marketing to compete procedures.
2. Many competitors enter S2,3,5O4: Use contemporary W2T2,4: A plan to safeguard
the market and convenient milk the market: Boost marketing
3. The raw material supply producing technologies. and brand promotion, invest in
 is unstable Provide better service, better R&D for new items, and
4. Vietnamese consumers products to customers improve product quality.
typically like foreign milk S9T2: Invest in R&D to W1T2: Proactive sources of
5. Vinamilk has unstable expand your product material and development of
prices offerings and boost your dairy projects for competitive
company's competitiveness advantage of price and
6. Alternative for milk resources
W5T6: Promoting marketing
activities to increase brand
positioning for consumers

IV. ANALYSIS ON STRATEGIC MEASURES (2024-2029)

1. Vinamilk target (increase revenue to VND 80 billion)

Vinamilk, the foremost dairy enterprise in Vietnam, has articulated ambitious strategic
objectives for the timeframe spanning 2023 to 2026. The company's aspirations include:
 Revenue Increase: The revenue expected to hit VNĐ80 billion in 2026, Vinamilk
envisions achieving this through a strategic amalgamation of organic growth and
acquisitions. The company's roadmap includes expanding its market share
domestically and venturing into untapped international markets.

 Global Market Share Increase: The company aims to elevate its global market share
to 5%, propelling Vinamilk into the ranks of the world's top 10 dairy companies. The
strategic focus lies in augmenting its presence across Asia, Africa, and Latin America.

 Leadership in Premium Dairy Production: Vinamilk is committed to establishing

itself as a leading global producer of top-tier dairy products. Significant investments in
research and development will fuel the creation of novel and innovative products,
concurrently emphasizing improvements in the quality of existing offerings.

 Sustainable and Responsible Practices: Pledging to become a sustainable and

socially responsible entity, Vinamilk outlines plans to curtail its environmental
footprint and enhance its social responsibility initiatives. The company will also
dedicate attention to the development of sustainable product lines.

To realize these objectives, Vinamilk has outlined a set of core initiatives:

 Expanding Distribution Networks: Vinamilk is set to broaden its distribution

networks both within Vietnam and on the international stage. This strategic move is
aimed at enhancing the accessibility of its products for consumers.
  Investing in Innovation: A substantial investment in research and development is on
the horizon for Vinamilk, focusing on the creation of novel and inventive products.
Additionally, there will be a concerted effort towards the development of sustainable
product lines.

 Fortifying Brand Presence: Vinamilk plans to allocate resources to marketing and

branding activities with the goal of fortifying its brand reputation. Building robust
relationships with consumers is also a key focus.
 Enhancing Operational Efficiency: The company is committed to investing in new
technologies and streamlined processes to enhance operational efficiency. This
strategic move is geared towards cost reduction and margin improvement.

2. Strategy to achieve goals (from 2023 to 2026)

2.1. Sales and marketing

• Broaden Distribution Network and Expand Reach: Bolster presence in current markets by
amplifying distribution channels and forming strategic partnerships. Explore new
international regions with substantial growth potential.

• Elevate Brand Image and Marketing: Foster emotional bonds with consumers via tailored
campaigns. Highlight the nutritional advantages and wholesome qualities inherent in
Vinamilk's product offerings.

2.2. Research and Development (R&D)

• Allocate resources to pioneering dairy product advancements:
o Create inventive dairy products customized to align with changing consumer
preferences.
o Investigate alternative protein origins to address the expanding desire for plant-
based alternatives.

• Reinforce advancements in functional food development:

o Conduct research and development in the domain of functional foods, focusing
on augmented health benefits.
o Harmonize with the escalating consumer interest in functional and fortified
product options.

2.3. Marketing and commumications

• Adopt Digital Marketing and E-commerce Strategies:
o Forge a robust online footprint by utilizing e-commerce platforms and actively
engaging in social media.
o Utilize data analytics for tailoring marketing messages and refining campaign
strategies.
Harness the Power of Influencer Marketing and Public Relations:
o Collaborate with influential personalities in the health and wellness sector to
endorse Vinamilk's products.
o Execute impactful public relations approaches to elevate brand reputation and
increase visibility.
2.4. Operations
• Enhance efficiency in supply chain management and logistics:
o Introduce lean manufacturing methods and automate processes for heightened
efficiency.
o Fortify partnerships within the supply chain to guarantee punctual and cost-
effective product delivery.

• Improve productivity and minimize costs:

o Incorporate innovative technologies like robotics and automation to streamline
operational processes.
o Enact cost-saving initiatives without compromising on quality or product
standards.

2.5. Corporate Social Responsibility (CSR)

• Advocate for sustainable farming methods:

o Collaborate with farmers to incorporate sustainable agricultural practices.
o Diminish the ecological footprint associated with dairy production.
• Uphold local communities and social endeavors:
o Participate in philanthropic endeavors and form partnerships contributing to
the well-being of local communities.
o Contribute to social initiatives aligned with Vinamilk's core values and
sustainability objectives.

2.6. Business development

• Diversify product portfolio:

o Investigate possibilities in plant-based substitutes, functional foods, and infant
nutrition.
o Broaden the spectrum of product offerings to address a more extensive array of
consumer requirements.

• Explore entry into fresh international markets:

o Identify and prioritize emerging markets exhibiting favorable growth potential.
o Adjust marketing approaches and product portfolios to align with local
preferences.

2.7. Information Technology (IT)

• Adopt digital evolution and technological advancements:

o Incorporate digital technologies for improved functionality in operations,
marketing, and customer interactions.
o Commit to research and development in the exploration of new and emerging
technologies.

• Harness the power of data analytics and atificial intelligence:

o Deploy data analytics to acquire comprehensive insights into consumer
behaviors and market trends.
o Employ artificial intelligence to streamline operations, customize marketing
strategies, and enrich the overall customer experience.
 2.8. Human Resources (HR)

• Recruit, nurture, and retain exceptional talent:

o Foster a culture emphasizing innovation, ongoing learning, and active
employee involvement.
o Offer competitive compensation and benefits packages to draw in and retain
top-tier talent.

• Establish strategic partnerships and collaborations:

o Develop alliances with significant contributors in the food and beverage sector.
o Engage in joint efforts related to research, technology, and initiatives for
expanding market presence.

3. Risk management related to sustainable development.

Risk Impacted Impact Likeli Risk Level Solution

Types Audience Level hood
of Risk Level

Raw material price Farmers, 3 2 High Implement hedging strategies and

volatility: Instabilities suppliers, broaden the supplier base to
in the pricing of raw consumers enhance stability.
materials, such as
milk, have the
potential to influence
Vinamilk's financial
performance and its
ability to procure
high-quality
ingredients.
Strat
egic
Risk
s Changes in consumer Consumers, 2 3 High Invest in research and
preferences: Evolving retail development of innovative dairy
consumer inclinations partners products and explore
towards plant-based opportunities in plant-based
alternatives or other alternatives.
dairy products could
have implications for
Vinamilk's market
share and sales.

Environmental Environmen 2 2 Medium Integrate sustainable measures,

regulations: More tal agencies, including waste reduction,
stringent consumers, adoption of renewable energy,
environmental investors and adherence to principles of the
regulations have the circular economy.
potential to elevate
Vinamilk's
expenditures related
to waste
management, energy
consumption, and
Ope sustainable practices.
ratio
nal
Risk
s
Health and safety Consumers, 3 3 Extreme Implement stringent quality
concerns: Food safety regulatory control measures, invest in food
scandals or product bodies, safety training, and maintain
recalls could damage investors transparency in communication.
Vinamilk's reputation
and consumer trust.

IV. CONCLUSION
Vinamilk has been a trailblazer in the dairy business for 46 years, having surmounted
several challenges to emerge as Vietnam's top dairy firm. Furthermore, Vinamilk takes great
pride in having been the first to introduce Vietnamese dairy products to the global market. The
culmination of Vinamilk's leadership and all of its fundamental skills accounts for this
accomplishment.
Vinamilk, though, is never content to rest. Macroenvironment dynamics are present.
Vinamilk must continually adapt to change and strive for improvement in the face of swift
shifts in customer preferences, competition, economic cycles, legislation, technology, and free
trade agreements. elevate their essential skills, which require work to maintain.
Thus, some of the most important things Vinamilk has to focus on are ongoing R&D,
technological advancements, and channel improvement (both for new and current channels,
such as electronic channels). Another critical component in preserving cost leadership is input
costs. It is recommended that Vinamilk make the most of the government's assistance in 2023
by giving qualified cow replacement first priority in order to increase milk production and
quality.
Vinamilk must be cognizant of the issues surrounding food safety, environmental
degradation, diseases, resource depletion, and global warming if it hopes to boost revenue to
VND 80 billion. sustainable development, which includes socially conscious behavior and
environmental cleanliness and garbage disposal.
In summary, following over 46 years of development, Vinamilk has demonstrated
successful commercial outcomes. The dairy market exists, and Vinamilk is one of the main
drivers of Vietnam's economic growth and one of the country's bright spots.

V. REFERENCES

Vietnamnews (2022, March 26). Việt Nam’s largest dairy producer eyes 5-per cent
revenue growth in 2022.
https://vietnamnews.vn/economy/1167996/viet-nam-s-largest-dairy-producer-eyes-5-
per-cent-revenue-growth-in-2022.html
Bloomberg (2023, October 4). Vinamilk Targets Doubling Revenue to $8.7 Billion by
2026.
https://www.reuters.com/world/us/bloomberg-spend-85-million-against-us-plastic-
petrochem-buildout-2022-09-21/

Reuters. (2023, September 26). Vinamilk Aims to Become a Global Dairy Giant by
2026.
https://www.prnewswire.com/news-releases/vinamilk-depicts-the-rise-of-vietnams-
dairy-industry-at-the-2023-global-dairy-congress-301867772.html

The Wall Street Journal. (2023, September 27). Vinamilk Raises Its Ambitions for
Global Expansion
https://e.vnexpress.net/news/business/vinamilk-ramps-up-r-amp-d-to-win-big-
globally-4349738.html
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https://iide.co/case-studies/swot-analysis-of-vinamilk/
About us. (n.d.). Vinamilk.
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development-report-2022
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Vinamilk: “Top 30 công ty sữa lớn nhất thế giới”. (2021, February 6). Báo Xây dựng.
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Vietnam GDP 1985-2023. MacroTrends. (n.d.).
https://www.macrotrends.net/countries/VNM/vietnam/gdp-gross-domestic-product