Page 30 - Layout 1

BUSINESS REPORT

Steady as she goes

Vietnam’s dairy market recorded a strong 2020 thanks to companies
diversifying their strategies and ample potential remains.

T LINH NGOC REPORTS

PHOTO: VIET TUAN

ietnam’s dairy industry was predicted its fresh milk market share standing at over last year. Total consolidated revenue stood
to grow in the low single-digits in 40 per cent. Mr. Ngo Minh Hai, Chairman of at VND59.723 trillion ($2.5 billion), an increase
V pandemic-hit 2020 due to consumer the TH Group, told VET that although the of 5.9 per cent against 2019 and representing
spending on fast-moving consumer goods pandemic impacted market structure and 100 per cent of the annual plan. To achieve
(FMCG) beginning to slow after basic needs consumer behavior, TH implemented a sus- these results, it linked its business goals with
had been met. Despite the difficulties caused tainable development strategy to maintain its sustainable development, typically applying
by Covid-19, however, the dairy industry position and stable growth. A high-tech, the “circular economy” model in all stages of
posted total revenue of VND113.715 trillion closed-chain production enterprise with auton- its value chain. In the context of Covid-19, it
($4.9 billion), an increase of about 5 per cent omy from input materials to product output, also launched or re-launched more than 15
compared to 2019, according to the Vietnam it was one of a few enterprises to import high- products to meet demand for nutritional sup-
Dairy Association (VDA). The better-than- yield dairy cows last year, in its case 4,500 plements. Though the past year has been
expected result was due to abundant supplies heads, to improve production and meet market problematic, Vietnamese companies in general
of raw milk, increasing consumption demand, demand. It will continue to increase its invest- still found opportunities to develop and
and the efforts of dairy companies. Traditional ment in dairy farm networks applying high improve core competencies, it told VET.
networks also boosted distribution through technology under international standards, The market also welcomed new brands
modern channels. with a closed production process providing such as NutiFood’s NutiMilk, with NutiFood
high-quality products. TH has also made now having grand ambitions to penetrate
Differing strategies efforts to introduce new and healthy products into Europe now the EU-Vietnam Free Trade
Amid the travails posed by Covid-19, the that increase nutrition and resistance to disease. Agreement (EUVFTA) has come into being.
TH Group continued to expand its market Vinamilk also posted handsome business And the pandemic has apparently had little
share in all groups in the dairy industry, with results in both domestic and foreign markets effect on merger and acquisition (M&A)

28 | VIETNAM ECONOMIC TIMES | MARCH 2021