Vinamilk- successful dairy company
Ha Noi, Jan. 25 (VNA) -- The Viet Nam Dairy Products Co. (Vinamilk) has almost defeated multinational rivals.
Between five and seven years ago, milk was a luxury product. However, with the appearance of Vinamilk with its 100 categories of products milk and dairy produce have become familiar to all families.
Following the strategy of high-product quality, low-production price and diversity of products to meet all tastes, Vinamilk almost dominates the market. It also exports to France, Germany, the former Soviet Union, the Middle East and the United States.
Vinamilk's success lies with the strategy and its implementation. General Director Mai Kieu Lien says: "The rate of malnutrition among Vietnamese children is quite large, while women and the middle-aged are afraid of putting on weight. Therefore, there must be different products for different customers. For example, mothers who are breast-feeding need milk enriched with calcium, while milk for children should include vitamin and minerals for each stage of growth. Yogurt is for those afraid of getting fat. This is the way other dairy companies have taken, and as a latecomer Vinamilk has tried to develop it."
By meeting local demand, Vinamilk products ranked first in the top ten high-quality Vietnamese products in customer polls by Sai Gon Tiep Thi between 1993 and last year. Its products were sold across the country through 1,000 agents. Even in Sapa or Mong Cai (Quang Ninh province) which are flooded with Chinese products, Vinamilk products are available. The company plans to expand to communes even in isolated areas.
Between 1990 and this year, Vinamilk has posted continuous growth. Yearly revenues increase a 35 percent on average, output was up 33 percent, tax payments up 33 percent and workers' incomes up 18-20 percent. In 1999, on average each Vinamilk worker obtained a turnover of almost VND 1 billion and paid VND 120 million in taxes. The figures were even higher last year, by late December, the company's revenues had surpassed the year's plan by 8 percent, increase of 29 percent compared with 1999. Industry Minister Dang Vu Chu says, "Vinamilk has been keen to apply new and adjust traditional technologies to turn out many new, high-quality products for local sale and export. The company's methods suits the development strategy of the dairy industry."
Vinamilk obtained high export sales in 1999 and 2000 and helped farmers to boost the use of local materials. The company provides farmers with an average VND 3 billion each year and buys all their milk output at reasonable prices. It has also spent over VND 10.7 billion installing refrigeration equipment to guarantee milk quality. The company buys 152 tonnes of milk from farmers every day, up 50 times compared with 1991.
Vinamilk has bought 210,000 tonnes of milk worth VND 683 billion from local farmers during the past ten years; otherwise it should have spent USD 50 million on imports (based on prices in 2000). By doing this, the company is ready to suffer a loss of VND 20-30 billion (as imported milk is cheaper), but has contributed to expanding the country's dairy herd from a few thousand to 31.000 in 2000.--VNA
