The best should be reserved for the consumer.

*After impressing in 2022 with its continuous brand upgrade in the world market , in 2023 Vinamilk continues to resonate with awards. honor of the dairy industry global​ In terms of business, the company also Vinamilk achieved positive results despite facing numerous challenges in the overall market. Using the term "bumper harvest" is perhaps not an exaggeration for Vinamilk, sir?

I think the word "bumper harvest" is appropriate to refer to the awards Vinamilk has received. Earlier this year, Vinamilk's entire range of infant formula brands, also the first in Asia, won the Purity Award for safety and purity from the non-profit Clean Label Project (USA). To win this award, products must undergo very rigorous testing with approximately 400 different criteria. Only 30% of products globally that participate meet all the criteria set by this organization and receive the award. In addition, Vinamilk Green Farm & 100% Organic fresh milk also received safety and purity certification from the Clean Label Project. These are the first two fresh milk products in the world to achieve this certification.

Previously, eight Vinamilk products received the "Superior Taste Award" from the International Taste Institute. This award is highly significant because the Superior Taste Award is considered the Michelin star in the food and beverage industry. Notably, two products, Ong Tho condensed milk and Vinamilk Super Nut 9-grain milk, achieved the highest rating of 3 stars.

Immediately after that, two products, Vinamilk Super Nut 9-nut milk and Vinamilk Green Farm fresh milk, were named in the gold award of the Monde Selection - the top quality award in the food and beverage industry in the world.

Most recently, Vinamilk Super Nut 9-nut milk became the champion in the category "Best Dairy Alternative 2023" at The World Dairy Innovation Awards 2023.

These are all very prestigious awards in the global food industry and demonstrate that "made in Vietnam" products are on par with the world's leading products.

*Vietnam is a latecomer to the world in the dairy industry, but nearly 50 years since its establishment, Vinamilk has achieved many impressive milestones: Top 40 largest dairy companies in the world by revenue, 6th largest dairy brand globally with a brand value of 3 billion USD, and the most valuable food brand in the ASEAN region (as announced by Brand Finance - a leading global organization in brand valuation). What are your thoughts on this impressive journey and achievements?

-Last month, a friend of mine from the US came back to Vietnam and bought several cartons of Vinamilk yogurt to take back with him. Isn't that something to be proud of? Absolutely! Initially, Vinamilk's goal when exporting was to serve the Vietnamese diaspora abroad. But now, the brand has spread to local consumers and is developing very well.

In fact, exporting raw materials or doing contract manufacturing is much easier. But Vinamilk chose its own path, exporting under its own brand, even though this path is infinitely more challenging. It's not easy for a Vietnamese brand to establish a presence in 59 countries and territories, including notoriously demanding markets like the US, Japan, and South Korea…

To achieve this, from the very beginning we believed that: A reputable, high-quality product that becomes the leading milk brand in a country is what truly convinces foreigners to try and choose it. Conversely, Vinamilk's presence in Japan, South Korea, the US, etc., will significantly increase the trust and international standing of Vinamilk in the domestic market.

We are not a country with a long history of dairy farming, dairy products are not Vietnam's strong point, but Vinamilk is determined to change Vietnam's position on the world milk map.

*On that journey, what do you consider to be the most important factor?

-Conquering foreign or domestic markets depends on three decisive factors: product quality, price and service quality.

Regarding product quality, Vinamilk strictly adheres to and pioneers the application of the most advanced international standards in both production processes and raw materials, such as Global Gap, Organic, ISO 9001, FC 2000, ISO 17025… However, that's just a passport to export. The next hurdle is flavor. Each region has different tastes, so when exporting to any market, we always have a market development and R&D team ahead, collaborating with partners in the destination country to research their habits and culinary culture. For example, Vinamilk's Ong Tho condensed milk, when exported to China, is used as a beverage in some places and as a dipping sauce for steamed buns in others. We need to understand this to adjust and modify accordingly. Therefore, the same Ong Tho condensed milk will taste different in Guangdong than in Guangxi; the sweetness or protein content may be altered. Similarly, during our recent market research, we found that the Chinese are very fond of, if not crazy about, durian. So, batches of Vinamilk durian-flavored yogurt specifically for the Chinese market were created and exported to this country of a billion people.

The next factor is price. Exporting certainly has lower profit margins than domestic because of high costs. But when you decide to conquer the market, in the early stages of penetration, you have to accept low profit margins to spread the brand effect.

Regarding service quality, we have an international sales team that collaborates with partners to understand the market. We listen to consumer feedback and adjust our products accordingly. Our distribution system is also closely monitored; we don't simply hand over products and rely on distributors, but directly track the product's journey.

It is easy to say, following the right principles and procedures, but to do it is a very difficult story. But Vinamilk's character is to choose to do difficult things. More important is the quality of the product and determination, then it can be done.

*The world economy is in trouble. Even essential industries such as milk and food are facing the possibility of declining sales. What plans does Vinamilk have to overcome the current period? How do you assess the future of the domestic milk industry as well as the global market?

-The milk market in Vietnam is increasingly under competitive pressure. Although Vinamilk is the market leader, with a market share that many people consider to be at a safe distance from the second-placed unit, we cannot be complacent.

Another challenge is that consumer needs are increasingly fragmented and heterogeneous: some avoid sugar, others prefer sweets, and young people favor modern trends. Therefore, businesses must adopt new, differentiated, and personalized approaches to customer engagement, telling stories that resonate with each individual. Above all, the current economic situation is very difficult, and purchasing power has been significantly impacted.

However, we believe these are only disadvantages in the medium and short term. In the long term, Vinamilk is confident that the Vietnamese dairy industry still has many opportunities to exploit for development. Firstly, the average per capita milk consumption in Vietnam is currently low compared to neighboring countries. Specifically, according to Research and Markets, the average per capita milk consumption in Vietnam is only 27 liters/person/year, compared to 35 liters/person/year in Thailand and 45 liters/person/year in Singapore. This shows that our market still has great potential.

Second, the gap in milk consumption between rural and urban areas is still very large. This is also a room for growth.

Another opportunity is that every year there are over 1.5 million children born in Vietnam. This is the group that needs the most nutritional supplements in the future and is a huge growth potential for the dairy industry.

Furthermore, although the pandemic caused a market downturn, in return, after Covid-19, people tend to be increasingly interested in and use nutritional products that are beneficial to health. The market has gained a new segment of adults with higher purchasing power, more stable incomes, and greater health concerns. There is also the Gen Z consumer group – young people who are currently interested in a clean, green, and sustainable lifestyle. Vinamilk will be a pioneer in exploring these segments. These are opportunities. Once opportunities are identified, they will know how to seize, exploit, and grow.

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