Vietnam dairy producers target Chinese market

Vietnam’s dairy products will enter the Chinese market following the signing of documents between the two governments.

Vietnam dairy producers target Chinese market

As such, great opportunities have been opened for Vinamilk, TH True Milk and Masan.

In late April, three agreements on the cooperation in the field of agriculture were signed between Vietnam’s MARD and China’s General Department of Customs. 

One of the three documents was the protocol on veterinary and public health requirements for Vietnamese dairy exports to China. It includes the legal basis to facilitate the exports of Vietnam's dairy products to a potential market with 1.4 billion consumers.

According to World & Research, with economic development and improved living standards, the dairy product consumption level has been increasing rapidly, reaching 31.79 million tons in 2017. The CAGR increased steadily by 2.7 percent in 2013-2017. Meanwhile, the CAGR in dairy product output was only 2.1 percent.

A report of the Chinese customs agency showed that in 2018, the country imported 2.74 million tons of dairy products of different kinds, an increase of 7.8 percent over the same period last year, with total import turnover of $10.65 billion, an increase of 14.8 percent.

FAO reported that the WMP (whole milk powder) volume China imported in 2018 increased by 10.6 percent over the year before, while SMP (skim milk powder) by 11 percent. Chinese consumers have turned their back to domestic dairy products for the last decade after the ‘melamine crisis’.

Meanwhile, FAO reported that the WMP (whole milk powder) volume China imported in 2018 increased by 10.6 percent over the year before, while SMP (skim milk powder) by 11 percent. Chinese consumers have turned their back to domestic dairy products for the last decade after the ‘melamine crisis’.

According to Fiinpro, Vietnam’s dairy market is controlled by five big players, Vinamilk, Nestle Vietnam, Nutifood, Frieslandcampina and TH Milk.

VInamilk, the nation’s leading producer, for the first time in the last five years saw profit decreasing in 2018 (VND10.206 trillion in 2018 vs VND10.278 trillion in 2017).

 

However, the figure represented a 60 percent growth rate compared with 2014.

However, Vinamilk’s CEO Mai Kieu Lien is optimistic about the company’s growth. Vinamilk’s products are exported to more than 40 countries and the brand has the biggest advantages among Vietnamese producers in conquering the Chinese market.

VInamilk has 12 milk cow farms including two organic farms meeting European standards.

TH True Milk’s major products are fresh milk, yoghurt and nut milk. The company also has great advantages in materials with 45,000 cows.

Masan, a big consumer goods manufacturer, plans to join the dairy market from 2021. There has been no information showing that the group has kicked off the plan. However, sources said Masan may ‘take a shortcut’ with M&A deals.

RELATED NEWS

Vinamilk eager for M&A with GTNfoods to expand market share

Vinamilk no longer attracts foreign funds?

H. Tu

 
 

Other News

.
Vietnam needs US$8-10 billion for electricity investment annually
Vietnam needs US$8-10 billion for electricity investment annually
BUSINESSicon  08/09/2020 

Given the increasing demand for electricity, Vietnam needs US$8-10 billion for electricity investment annually, Minister of Industry and Trade Tran Tuan Anh said at a meeting on Monday, September 7.

Thu Duc City set to be new growth pole for HCM City
Thu Duc City set to be new growth pole for HCM City
BUSINESSicon  09/09/2020 

Like Gangnam south of the Han River in Seoul and Pudong east of the Huangpu River in Shanghai, Thu Duc City is expected to become a new growth area for HCM City.

Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
Nam Dinh-based Rang Dong Textile Industrial Park sign land lease contracts with foreign firms
BUSINESSicon  08/09/2020 

The signing ceremony of a land lease contract and land delivery for factory construction between Cat Tuong Real Estate Group, Top Textile Co., Ltd and Jehong Textile Viet Nam Co, Ltd took place on September 4.

Ministry proposes overhaul of investment framework for power projects
Ministry proposes overhaul of investment framework for power projects
BUSINESSicon  08/09/2020 

The National Assembly's economic committee held a hearing on the development of Vietnam's energy sector until 2030 yesterday.

Mooncake producers begin selling well before Mid-Autumn Festival
Mooncake producers begin selling well before Mid-Autumn Festival
BUSINESSicon  08/09/2020 

The Mid-Autumn Festival is a time for mooncakes, a baked pastry that symbolises family reunions and which is traditionally consumed as part of the...

Vietnam to face power shortages
Vietnam to face power shortages
BUSINESSicon  08/09/2020 

Vietnam would face the risk of power shortages from 2021-25 due to slow progress at many large power projects both in the northern and southern...

Biggest business stories: August 31 to Sep 6
Biggest business stories: August 31 to Sep 6
BUSINESSicon  08/09/2020 

Big changes were made with the key personnel of Quoc Cuong Gia Lai Group, while the president of Hoang Anh Gia Lai Group, Doan Nguyen Duc, has not been able to escape difficulties despite his efforts to sell assets to pay debts.

Multi-trillion VND helps VN-Index regain peak
Multi-trillion VND helps VN-Index regain peak
BUSINESSicon  07/09/2020 

The strong cash flow to the stock market in recent days has helped stock prices bounce back.

Online shopping sees record growth, ranked 3rd in region
Online shopping sees record growth, ranked 3rd in region
BUSINESSicon  08/09/2020 

The total number of visits to online shopping apps in Vietnam reached 12.7 billion in the first six months of the year, the highest ever figure.

Vietnamese rice takes bite out of global market
Vietnamese rice takes bite out of global market
BUSINESSicon  07/09/2020 

Vietnam’s rice exports have expanded during the pandemic to surpass rival Thailand in price for the first time in three decades, leading experts to suggest the sector should consolidate its position.

Plastics industry shrugs off pandemic, interests stock investors
Plastics industry shrugs off pandemic, interests stock investors
BUSINESSicon  07/09/2020 

The new wave of Covid-19 infections has caused heavy pressure on the country’s economy. 

EU competition in redrawn public procurement landscape
EU competition in redrawn public procurement landscape
BUSINESSicon  07/09/2020 

Competition in Vietnam’s government procurement market is expected to heat up with the involvement of EU contractors, driven by the country’s highest-ever market-opening commitment in this field. 

Alibaba.com rolls out export-focused program for Vietnamese SMEs
Alibaba.com rolls out export-focused program for Vietnamese SMEs
BUSINESSicon  07/09/2020 

Alibaba.com, the global business-to-business (B2B) e-commerce platform of Alibaba Group, has launched a landmark initiative to help businesses in Vietnam go online and reach an enormous pool of qualified global buyers.

Profit taking to weigh on local market, but September may be bright
Profit taking to weigh on local market, but September may be bright
BUSINESSicon  07/09/2020 

Vietnam’s stock market rally may slow this week as investors eye profits but the one-month projection is still optimistic.

E-commerce gives impetus to woodworking sector
E-commerce gives impetus to woodworking sector
BUSINESSicon  06/09/2020 

In the rapid development of e-commerce, online stores and factories are one of the solutions with which enterprises can cope with the prolonged Covid-19 pandemic while laying a foundation for digitalized business

Key public investment projects gather speed
Key public investment projects gather speed
BUSINESSicon  07/09/2020 

Amid the government’s rush to push up public investment as one of the key pillars for economic growth, numerous projects have been accelerating their progress to match the plan set forth, 

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 8
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 8
BUSINESSicon  08/09/2020 

Solar power developers acquire massive profit in short time

ASEAN aiming for tech-led innovation to foster growth
ASEAN aiming for tech-led innovation to foster growth
BUSINESSicon  07/09/2020 

ASEAN countries are becoming a rising hub destination for global manufacturers thanks to well-established trade networks, a growing middle class, a thirst for tech expansion, and a young and educated workforce.

Logistics groups strive to exploit EVFTA potential
Logistics groups strive to exploit EVFTA potential
BUSINESSicon  07/09/2020 

The EU-Vietnam Free Trade Agreement has created a new driving force for Vietnam’s logistics, but the industry needs to take further action to unlock its full potential.

The path to economic recovery and further growth
The path to economic recovery and further growth
BUSINESSicon  06/09/2020 

While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN