Vinamilk is the first Vietnamese enterprise to export milk to Russia and other countries of the Eurasian Economic Union
admin 17-06-2020, 23:45

Vinamilk is the first Vietnamese enterprise to export milk to Russia and other countries of the Eurasian Economic Union

Vietnamese dairy products have just reached Korean consumers and continue to be exported to Russia and EAEU. Photo: VNM

The Russian Federal agency for veterinary surveillance and quarantine has officially announced that Vinamilk is allowed to export dairy products to the territory of the Eurasian Economic Union (EAEU) under supervision of customs offices in the union. Vinamilk is also the first dairy company in Vietnam to be successfully registered in the list of organizations and individuals that are allowed to export milk to the EAEU region.

EAEU is a common market of 5 countries including Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan and an economic region with good growth. With a gross domestic product (GDP) of US $ 1,900 billion and a population of 183 million (in 2018), the EAEU alliance, though newly established in 2015, is an area with great development potential.

Vinamilk has passed the surveys, met the strict standards of the countries in the Eurasian Economic Union and became the first dairy enterprise in Vietnam to be licensed to export dairy products to 5 countries of the Union.

Many years ago, Vinamilk had the first access and introduced to consumers in Russia, Kazakhstan soft drinks products derived from tropical fruits, which are Vinamilk’s strengths. This is also a step of market surveying and reference to very methodical consumer tastes of Vinamilk.

Market of countries in EAEU is considered to be in great demand for Vietnam’s strong commodities, including agricultural products. Moreover, the free trade agreement between Vietnam and the Eurasian Economic Union, which came into effect in late 2016, has opened up great trade opportunities between countries. According to statistics, in 2018 Vietnam’s import-export turnover and EAEU reached US $ 4.9 billion. In the first 9 months of 2019, this figure reached 3.7 billion USD and is estimated to reach 5 billion USD for the whole year, of which Russia accounts for the largest proportion with more than 90%.

The event that Vietnam’s first dairy business was granted an export license to the EAEU is not only meaningful to Vinamilk but also for Vietnam’s dairy industry as a whole, opening the way for Vietnamese milk to enter a new market full of potential.

However, in another aspect, Russia and EAEU countries are countries with long-term and highly developed dairy industries, so along with opportunities, there are still many challenges that need to be taken by businesses devise the right strategy to effectively exploit the market.

Mr. Mai Hoai Anh, Managing Director of International Business, said that Vinamilk had more than 20 years of experience, exporting to 53 countries and territories. In many markets, dairy products are always competitive products, so initially, there will be many difficulties. But Vinamilk will carefully prepare to make appropriate approaches with its strong products to effectively exploit this market.

In 2019, revenue from direct export of Vinamilk reached VND 5,175 billion, an increase of 15% compared to 2018, contributing to the total revenue of VND 56,318 billion. In the first quarter, overcoming the common difficulties caused by the Covid-19 pandemic, Vinamilk’s export segment recorded net revenue of VND 1,081 billion, up 7.5% compared to 2019 and contributed VND 14,153 billion in total revenue.

This result comes from Vinamilk constantly exploring export opportunities from potential markets. In the beginning of 2020, Vinamilk signed a contract to export US $ 20 million of milk to the Middle East. Then, in terms of social isolation, the company successfully exported the first batch of condensed milk to China and many other countries. Recently, Vinamilk’s seed milk and milk tea products have been officially launched in South Korea through major e-commerce websites here with good expectations of the country’s consumers.

With an effective business strategy and great resilience in the first months of 2020, amidst the domestic economy as well as the world affected by the Covid-19 epidemic, Vinamilk has been ranked among the top by Forbes Vietnam. The 50 best listed companies in Vietnam for the 8th consecutive year. Vinamilk is also the only Vietnamese company in the Top 50 largest dairy companies in the world in terms of revenue and is very close to the Top 30 according to the strategic goals set out.