Phân tích các yếu tố ảnh hưởng đến cung của Vinamilk | Bài tập môn Kinh tế vi mô (Hệ CLC)

BANKING ACADEMY OF VIETNAM FACULTY OF ECONOMICS
TOPIC: ANALYZING THE SUPPLY OF VINAMILK IN VIETNAM MARKET FROM 2018 - 2023 Lecturer: M. Econ Cao Hai Van Class: K25CLC-TCB
Students: 1. Nguyen Dieu Ngoc Anh - 25A4013001
2. Nguyen Bach Duong - 25A4013014
3. Nguyen Minh Hoa - 25A4013029
4. Bui Khanh Linh - 25A4013046 5. Ha Dieu Linh - 25A4013049
6. Tong Khanh Linh - 25A4013061 Ha Noi, 2023 TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................1
I. REASONS FOR CHOOSING THE TOPIC..........................................................................................1
II. RESEARCH SUBJECTS - THE SCOPE OF RESEARCH:...................................................................1
III. RESEARCH METHODS:.............................................................................................................1
B. CONTENT..................................................................................................................................2 CHAPTER 1: THEORETICAL B
ASIS..................................................................................................2 CHAPTER 2: MARKET A
NALYSIS....................................................................................................3
1. The summary of Vinamilk dairy market in Vietnam:...........................................................3
2. Determinants of supply:.......................................................................................................4
2.1. Input prices:...................................................................................................................5
2.2. Technology:...................................................................................................................8
2.3. Number of sellers:........................................................................................................10
2.4. Others determinant:.....................................................................................................13 CHAPTER 3: EVALUATION P
, ROPOSED SOLUTIONS AND PREDICTIONS.........................................15
1. The evaluation of Vinamilk’s market in Vietnam...............................................................15
1.1. Strengths:.....................................................................................................................15
1.2. Weaknesses:.................................................................................................................16
1.3. Opportunity:.................................................................................................................17
1.4. Threats:........................................................................................................................18
2. Proposed solutions:.............................................................................................................19
3. Predictions:.........................................................................................................................20
C. CONCLUSION.........................................................................................................................21
D. REFERENCES.........................................................................................................................21 A. INTRODUCTION:
I. Reasons for choosing the topic:
Currently, the dairy products business is booming and competing more fiercely
than ever due to the rapid rise of countless different brands. Proud to be a brand from
Vietnam. Vinamilk has successfully affirmed its position in this arena and has been
ambitious to expand its reputation to other markets around the world, not just in Vietnam.
In recent years, along with the outstanding development of our country’s
economy, people’s needs for quality of life have also been increasingly improved.
Consumers tend to focus on the level of perfection and value the product brings to
themselves when using it. Then Vinamilk has become the top priority choice when
talking about the dairy industry. It is the responsiveness in terms of products, prices as
well as product quality that has helped Vinamilk have a solid foothold in the hearts of many generations.
II. Research subjects - The scope of research:
Research subjects: The supply of Vinamilk in the Vietnam market in the period from 2018 to 2023.
The scope of research: Vietnam's economy, facing the remarkable development of
society, has raised people's consumption needs to a new level, requiring businesses to
quickly adapt to that environment.
 Study space: Vinamilk (Vietnam Dairy Products Joint Stock Company)  Study time: 2018 - 2023 III. Research methods:
 Theoretical analysis - synthesis method.
 Analysis - synthesis research method.
 Statistical data collection. 1 B. CONTENT
Chapter 1: Theoretical basis
Market: A market is a group of buyers and sellers of a particular product.
Price: the money price of a good or service is the amount of money needed to buy it.
Quantity supplied: In economics, quantity supplied describes the number of goods or
services that suppliers will produce and sell at a given market price. The quantity
supplied differs from the actual amount of supply (the total supply) as price changes
influence how much supply producers actually put on the market.
Law of supply: The law of supply is a microeconomic law. It states that, all other factors
being equal, as the price of a good or service increases, the quantity of that good or
service that suppliers offer will increase, and vice versa.
Determinants of supply: are factors that directly affect the supply of a good or service.
Price can determine the quantity supplied but price doesn't determine the supply of a
good or service. There are many non-price determinants of supply, including input prices,
technology, future expectations, and the number of sellers.
 Input prices significantly influence the supply of a particular good or service.
That's because input prices directly impact the company's cost, which then dictates how much profit a firm makes.
 Technology is another important factor that determines the supply of a good or
service. That's because technology has a direct impact on the cost that the firm
faces while turning inputs into outputs. When a company employs technology that
makes the production process more efficient, manufacturers can boost their
productivity while decreasing the amount of money they spend on labor. This then
contributes to an increase in supply and vice-versa.
 The number of sellers in a market impacts the supply of a good or service. That's
because when you have more sellers in the market, the supply of that good will be larger.
 The expectations that companies have about the price of a good in the future have
an impact on their present supply of goods or services. For example, if companies
believe they will be able to sell their goods at higher prices the next month, they
will cut down on their supply levels for the time being and then boost those levels
the following month to maximize their profits.
 Unlike price, non-price determinants of supply do not cause a movement along the
supply curve. Instead, they cause the supply curve to shift to the right or left. 2
Chapter 2: Market analysis
1. The summary of Vinamilk dairy market in Vietnam:
Being included in “5-year plan 2017-2021” by Vinamilk, a significant improvement
was reported during the year 2018-2021. In 2018, the domestic revenue of Vinamilk was
44.7 billion VND, accounting for 55% of Vietnam milk market share, proving the
dominance of the brand to the milk industry in Vietnam.
The revenue continued to rise substantially in 2019 with 47.3 billion VND, however,
the market share remained unchanged in this year. A slowdown trend can be seen in the
last two years of the plan as the Covid-19 pandemic hit the world economy and Vinamilk
was unable to avoid the losses it brought.
By 2020, It experienced a marginal decrease of 0.55 billion compared to the previous
year, with the reduction being relatively minor. 3
The market measurement is reflected more clearly in the Kantar Worldpanel report. In
2021, in urban areas, the consumption rate of Vinamilk products reaches 99% of
households, while in rural areas, this number is approximately 90%. It can be understood
that out of every 10 households, 9 families in Vietnam will use at least one Vinamilk
product. In particular, this rate in urban areas is almost absolute at up to 99%, this is also
an area with very strong growth in dairy product consumption in recent years.
According to the 2022 "Brand Footprint"
report published by Kantar's Worldpanel
division, Vinamilk received 03 outstanding
results: (1) Milk brand most chosen by
consumers; (2) Top 3 manufacturers of fast-
moving consumer goods (FMCG) chosen by
consumers the most; (3) Mr. Tho and
Phuong Nam Star - The condensed milk
brand most chosen by consumers.
In particular, for more than a decade, Vinamilk has always maintained the highest
position in the ranking of Top 10 Milk Brands and Dairy Products most chosen by 4
Vietnamese consumers with CRP (Customer Reach Point - Consumer touch points) far surpass other brands.
The Top 10 most chosen milk and dairy product brands also have the appearance of
two other brands, Susu and Probi, belonging to the yogurt industry - one of Vinamilk's
key products. Thus, among the 10 most typical brands in the dairy industry in 2022,
names belonging to Vinamilk have occupied 5 positions.
=> To achieve such achievements, Vinamilk has constantly made efforts to improve
inputs, production processes, transportation and branding, those determinants will be clarified in the next section.
2. Determinants of supply:
2.1. Input prices:
Being the largest enterprise in the dairy industry in our country, Vinamilk still has
to use up to 60% of its raw materials are imported powdered milk to produce powdered
milk products, liquid milk, yogurt,... while raw materials account for about 50% of
Vinamilk's production costs in the past 5 years .
According to figures from the analysis report of FPT Securities Company in 2020.
Escalating raw material prices caused Vinamilk's P/E to decrease by nearly 16%
compared to the beginning of the year. This will affect the company's gross profit.
According to VNDirect, every 5% increase in raw milk powder price can cause the
company's gross profit to decrease by 0.4 to 0.5 percentage points. Besides, the dairy
industry still cannot meet the milk demand for domestic milk factories.
Therefore, Vinamilk has early built a strategy to develop domestic raw material
areas and considered it a key task throughout the past 42 years of development.
 Cooperate and accompany farmers:
 In 2018, Vinamilk has more than 80 raw milk transfer stations to receive fresh
milk from farmers and at the same time support the distribution to farmers of
animal feed, and advise on technology transfer from there. can develop and
make the most of domestic raw material resources.
 Vinamilk is operating and managing 02 subsidiaries 100% owned by
Vinamilk, namely Vietnam Dairy Cow Company Limited and Thong Nhat
Thanh Hoa Dairy Cow Company Limited. These two companies have operated
and provided the factory with milk and animal feed, and also produced
construction materials for the factories.
 2019: Vinamilk officially owns 75% of the charter capital of GTNFoods Joint
Stock Company, setting the strategic goal of building Moc Chau into the high- 5
tech dairy capital of Vietnam, contributing to the development of the liquid milk industry. home.
 2020: Putting into operation the Dairy Cow Technical Center and Embryo
Transplantation to serve the needs of selecting and providing outstanding genetic resources.
 In 2020 and 2021, the Covid pandemic occurred, causing the global supply
chain, including Vietnam, to be seriously affected. During that year, Vinamilk
also encountered many difficulties in producing and distributing goods:
+ Animal feed prices increase by 30-40% in 2021
+ Shipping fees increased by 20% (domestic) and 500% internationally
+ Vinamilk's purchasing activities of raw fresh milk from livestock farmers in
some localities face difficulties due to long-term social distancing, high food
prices, and some types of food are not in supply => affecting the animal
husbandry => many farming households are forced to change occupations.
=> These factors had lead to the increase in the price of milk in 2020,2021,2022
In order to ensure supply, the company had to reduce staff, and at the same time
conduct an overall review of machinery and equipment, optimize operating time,
and distribute operating time for each equipment cluster. equipment during the day
to optimize efficiency while saving energy costs and aiming to apply circular
economy and sustainable development. 6 
Vinamilk also gradually improves the quality of domestic raw materials through
the application of international standards in dairy management and farming.
Specifically, of the company's 12 farms, 10 farms meet Global G.A.P standards,
with all breeding cows imported from Australia, America, New Zealand and 2
farms following European organic standards. Vinamilk currently owns the largest
Global G.A.P dairy farm system in Asia in terms of number of farms. 7
=> The rise in input prices has presented a considerable challenge for Vinamilk, resulting
in diminished profitability. Faced with the dual impact of the global pandemic and
escalating prices, the company has taken proactive measures to optimize the sourcing of
domestic raw materials and implement cost-saving strategies to maintain supply stability and operational resilience. 2.2. Technology:
Vinamilk's revenue and profit growth comes not only from what they sell at the market
but also thanks to modern technologies that help increase productivity and sales volume,
leading to a revenue increase gradually over the years.
 Dairy farming system:
All dairy cow breeding systems are invested and built by the Company based on
modern, world-class design and technology consultancy from countries such as the US, Sweden and Israel:  In 2018:
The whole farm system has been equipped with a fully automatic
silofeeding system that helps to shorten operation time, reduce labor costs, save
packaging costs and ensure weatherproof quality at the same time.
Automatic cooling system from Israel and super soft rubber mattress from
US was installed to keeps cows healthy and stress-free and to reduce lameness rate
and increase milk yields, contributing to the economic performance of the Company.
 From 2020: Towards the goal of sustainable development, Vinamilk had applied
the circular economic model to its farming system.
Sustainable land management: In response to decreased crop productivity
due to impacts of climate change, deforestation, fertilizer/pesticide/antibiotic
abuse and water contamination, Vinamilk has implemented various strategies,
such as converting animal waste into organic fertilizers to replace chemical ones
and applying the latest best practices of crop cultivation. In particular, the
Japanese practices of crop cultivation, with superior benefits of soil protection and
enrichment, are being deployed on many of Vinamilk's farms. Results show that
on Vietnam Dairy Cow's farms, corn yield and Mombasa grass yield have
increased by 34% and 12% respectively compared to 2019. 8
Sustainable water management:Application of GEA solutions for fertilizer
collection and treatment, which makes use of water discharge to retain fertilizer,
not only helps to treat fertilizer effectively but also reuses water discharge,
bringing positive impacts to the environment and optimizing water use by
circulation and recycling of wastewater  Up to 2020:
Vinamilk had invested and put biogas-powered water heating system in
operations in 8 farms to pasteurize milk, wash buckets and provide water for cows
and therefore help reducing environmental pollution and energy costs
Prioritizing energy-saving technologies: LED lighting systems are installed
in all newly built barns and factories and gradually replaced the high-pressured
compact lamps in existing farms; Eco-friendly orientation is also applied.
Moreover, by the end of 2020, solar panels have been installed in 05 farms: Binh
Dinh (2.96 MWp), VNM Da Lat (2.06MWp), Organic (1.18MWp), Di Linh (0.99 MWp).
- In the production process:
In 2018, many of the most modern production lines to increase production
capacity for factories nationwide was invested
+ Completing phase 2 of the Mega liquid milk factory in Binh Duong, increasing
the total capacity of this factory from 400 million liters/year to 800 million liters/year 
Invest in more high-speed liquid milk transmission lines (A3 Speed) of
100ml and 180ml cans at Tien Son and Lam Son factories to serve the
school milk program in Hanoi and the Northern provinces 
Invest in installing 2 yogurt lines with a capacity of 80,000
jars/hour/machine at the factory in Ho Chi Minh and the factory in Tien
Son, which are the most modern production lines and the largest capacity in the world. time of year 2018
In 2019, Cu Chi Raw Fresh Milk Center has been established, which gathers all
fresh milk sources in Ho Chi Minh City and surrounding areas to make the milk 9
transportation process and quality control activities more convenient. The
technology in that Center includes:
+ Cold storage to store concentrated samples
+ Fast analyzer system operates by barcode, returning results to each household
+ Automatic cleaning system (CIP) helps tank trucks of milk stations use
advanced cleaning regimes, ensuring food hygiene and safety
+ System of fast milk cooling tanks, large volume, high flexibility can both
receive milk from purchasing stations when necessary, and can also receive milk directly from farmers
- Moreover, a document system was also built to control and manage fuel
and periodic energy audit programs was implemented at the factory to
optimize production costs and ensure product quality - Supply Activities: 
Manage the trips of the Warehouse Enterprise and other transport units with
route sharing software => save 1.5 hours of daily transportation time for
each Enterprise and closely manage orders outsourcing 
ERP: Encryption technology and application of traceability to ensure
transparency in quality and inventory management of suppliers
Overall, in the period of 2017- 2021, machinery and equipment investment
plan has basically been completed at all factories to increase production capacity
of key product lines by 60-80%.
=> The integration of technology plays a crucial role in enhancing Vinamilk's supply
capability at the microeconomic level. Automation in production and infrastructure
expansion enables the optimization of processes, cost reduction, and ensures a stable
supply. This has contributed to helping Vinamilk maintain its leading position in key
dairy products for many consecutive years.
2.3. Number of sellers:  Modern channels:
 Supermarkets, shopping centers and grocery store systems: Currently, Vinamilk
products are present in more than 1,500 level 1 agents, 251,000 small agents, 200
Vinamilk distributors, 3,899 large and small supermarkets and 1,356 convenience
stores spread evenly across the country.
 Vinamilk store: With the "Vietnamese Milk Dream" chain, there are currently
more than 600 stores and 251,000 retail points. This is the main growth driver of
the business and is also the basis for reputable subsidiaries and manufacturing 10
partners to increase synergistic value in the future. Including online channels
which develop strongly with the channel e-commerce www.giacmosuaviet.com.
 Online sales: This is one of the businesses in the fast-moving consumer goods
industry (FMCG) that develops e-commerce channels. According to 2021
statistics, online platforms recorded a 3-fold increase in revenue over the same
period, signaling a shift in shopping trends and Vinamilk's correctness and
timeliness in investing promptly in the channel. On Vinamilk eShop, consumers 11
can choose to buy all Vinamilk products: Powdered milk, Nutritional powder,
Condensed milk, Liquid milk, Yogurt, Soft drinks, Ice cream, Soy milk and
Cheese... The product is committed to quality according to the manufacturer's
standards, with appropriate nutritional information for users to easily look up and
choose. Payment by cash upon delivery or online payment with domestic and
international cards… Buyers can purchase Vinamilk products via giacmosuaviet app, Shopee, Lazada,... 
Traditional channel: Traditional channels distribute more than 80% of the
company's output with 220 distributors and more than 250,000 retail points present
in 63 provinces and cities. Although being heavily affected by the Covid
pandemic, business operations are gradually improving throughout the years. In
addition, Vinamilk has opened 14 showrooms in big cities such as Hanoi, Da
Nang, Ho Chi Minh City and Can Tho to distribute their products. 
Key accounts: This is a channel that includes places such as restaurants, hotels,
schools, agencies, hospitals,... that often order extremely large quantities from
Vinamilk. This product allocation method is often applied in the US, however, it is
becoming prevalent in the Vietnam market as well. Vinamilk often sell products
through vending machines and display coolers in these units. In addition, key
accounts can also be partners in providing food and drinks that buy Vinamilk
products for processing such as: Viva Star, The Coffee Bean, Gem restaurant,... 12
2.4. Other determinants: (Promotion strategies)  Advertising:
 Conveying the message of "100% pure fresh milk" amid a consumer focus on
quality, Vinamilk's ads feature cheerful, singing and dancing cows, creating a
strong brand perception. Notable TV campaigns, like "6 million glasses of milk,"
emotionally connect consumers to the brand's innovation and compassion.
Vinamilk's product development strategy through TVC advertising.
 Sales promotion: Regularly implementing promotions like product volume
increase at the same price, bundled gifts, and product discounts. …  Public relations:
 In recent times, Vinamilk has placed a paramount emphasis on socially
responsible and charitable activities, establishing funds like the "Vinamilk -
Nurturing Young Vietnamese Talent" scholarship fund, the "Vietnam Continues to
Develop" milk fund, the charity fund "One Million Trees for Vietnam," and
actively participating in pandemic relief efforts. 13
 Notable sponsorship programs include the "3 million glasses of milk for poor
children" program worth 10 billion VND, and contributions to the "Vinamilk
Nurturing Young Talent" scholarship fund and activities assisting impoverished
children, totaling 3.1 billion and 2.8 billion VND respectively.  Brand Identity Change:
 One of the recent attention-grabbing marketing campaigns is the trend of changing
Vinamilk's logo. On July 6, 2023, Vinamilk unexpectedly altered its brand identity
after more than 40 years. The brand's logo shifted from an emblem to a wordmark
design, featuring a simple layout along with the text "est 1976" – marking the year of the brand's establishment.
 Moreover, the brand has actively encouraged young individuals to craft logos in
Vinamilk's fresh style. By having access to the website est1976.vinamilk.com.vn,
entering their name and birth year, users receive a personalized logo in the
distinctive Vinamilk style. This initiative has become a sensation, attracting a
significant number of enthusiastic young participants.
=> It is evident that Vinamilk has not only successfully repositioned its brand but has
also indirectly captured the interest of numerous potential customers. This significantly
enhances the brand's standing in customer perception. 14
Chapter 3. Evaluation, proposed solutions and predictions
1. The evaluation of Vinamilk’s market in Vietnam
1.1. Strengths:  Vinamilk brand is famous:
 The first strength of Vinamilk is that Vinamilk is a famous brand. Since
starting operations in 1976, Vinamilk has built a strong brand for dairy
products in the Vietnamese market. The Vinamilk brand has been used
since the company was first established and is currently a widely known
milk brand in Vietnam. Vinamilk dominates the market thanks to focusing
on advertising, marketing, constantly innovating products and improving quality.
 Because it is a famous brand, Vinamilk clearly leads in the level of trust
and love of Vietnamese people for nutritional products. International
quality is always committed and affirmed by Vinamilk to achieve sustainable development goals.
 Vinamilk's Marketing Strategy is effective:
 Successful implementation of effective marketing strategies is also
Vinamilk's strength. One of Vinamilk's marketing strategies is to take
advantage of a variety of channels such as TV, radio, billboard, fanpage,
television,... to advertise its products. With a multi-channel product
advertising strategy, coverage has helped Vinamilk successfully deploy the
business's Marketing campaigns.
 In addition, Vinamilk also invests in advertising content in Marketing
campaigns as well as content that provides useful information to customers.
To be able to produce good and attractive content, Vinamilk has applied the
Hero - Hub - Help (3H) model in its content strategy effectively to achieve certain successes.
 Marketing plans play an important role in helping businesses determine
goals, allocate resources, develop implementation orientation, etc. to attract
potential customers, optimize conversions and increase revenue. sell. So
how to build an effective Marketing plan? What content should a complete
marketing plan contain? Register to receive the full set of Marketing Plan
Templates by clicking on the image below. 15
 Diverse product portfolio:
 Vinamilk provides a variety of dairy products with over 200 dairy products
and dairy products, serving a wide range of consumers. Product lines target
specific target customers such as: children, adults and the elderly along
with products for households and businesses such as cafes.
 Vinamilk's products are diverse with different packaging sizes, providing
customers in the Vietnamese market with convenient dairy products.
Vinamilk also diversifies product types to increase service capabilities and
maximize profits in the market segment that Vinamilk targets.
 Vinamilk has an extensive distribution network
 Another strong point of Vinamilk is that this brand owns a widespread distribution network.
 A wide distribution and sales network is an essential factor leading to
Vinamilk's success in operations. With a widespread distribution network,
Vinamilk can reach a large number of customers and ensure the launch of
new products and effective marketing strategies nationwide. 
Vinamilk applies high technology 
Possessing advanced technology is also an outstanding strength of Vinamilk.
Vinamilk owns European production technology that meets global standards.
Vinamilk's sterilization equipment is imported from Sweden along with other
equipment originating from European countries. International standards such as
ISO 50001:2011 and HACCP are applied to control the production system. 
Vinamilk always innovates technology, installs complete, modern production line
systems, welcomes new technology with the best technical standards and food
hygiene and safety. Vinamilk also built more factories with modern and advanced
equipment in key national economic regions, creating a proactive position in production and business. 1.2. Weaknesses:
Besides its strengths, Vinamilk also has weaknesses that need to be overcome. Some of
the main weaknesses in Vinamilk's SWOT model can be mentioned as follows. 
Vinamilk is not yet independent in its raw material sources 
Not being able to be self-reliant on raw materials, depending on imported raw
materials is one of their weaknesses. When domestic raw materials only meet
about 30% of production needs, 70% of the supply and input raw material ratio
depends on the world's milk supply-demand relationship. With this dependence,
Vinamilk's production and business situation will be affected by the external
environment as well as factors such as inflation, economic crisis,... 16 
Vinamilk's market share of powdered milk is not high 
Currently, users tend to use imported powdered milk rather than domestically
produced powdered milk. In addition, the market is seeing more and more foreign
milk brands imported from Europe, so Vinamilk's powdered milk market share,
which holds a monopoly position, is tending to decline. 1.3. Opportunity:
To take advantage of strengths and overcome weaknesses, Vinamilk can seize a number
of beneficial opportunities to develop its brand and increase sales as follows. 
Raw material supplies are being supported by the government, imported materials have reduced tax rates 
In recent years, the Government has had many great impacts on the domestic dairy
industry. Specifically, after Vietnam became a member of ASEAN and WTO in
1995 and 2007. In July 2010, the Ministry of Health of Vietnam approved
regulations requiring dairy products, especially milk for children. must meet certain standards. 
Currently, the Government is also supporting the supply of raw materials and
reducing import taxes on raw materials to help businesses reduce the burden of
production costs. This is a huge opportunity that Vinamilk needs to grasp to
produce many quality products for consumers. 
The number of potential customers is high and there is great demand 
Vietnam is still a country with a high number of potential customers and a large
demand for milk that Vinamilk can take advantage of. 
Vietnam has a high population density, the proportion of people tending to
urbanize in recent years has increased, education levels have increased, the income
of the middle class has also gradually improved... These are all opportunities.
opportunity that Vinamilk needs to grasp. 
With increased levels of education, Vietnamese youth have the opportunity to
access Western knowledge and culture, and understand more about the effects of
milk on the body, so they tend to consume dairy products. more from milk. 
Besides, as parents increasingly care about their children and pay attention to their
children's nutrition, Vinamilk's dairy products are also very beneficial for
children's development, thereby attracting customers. The target customers are parents and children. 
Vietnamese people's demand for milk consumption is increasing 
Most Vietnamese people have a need to use dairy products. Besides nutritional
supplements, many people also use dairy products for beauty or cooking. 17
Therefore, this is a great opportunity and potential for Vinamilk to continue to
grow stronger in the dairy industry. 
Customers have a need to consume quality and healthy products
According to Nielsen's consumer report, today's customers are deeply concerned
about health and tend to buy health products. And when talking about health
supplements, most consumers will mention milk, an important food in nutritional products. 
The trend of customers consuming healthy products has created opportunities for
Vinamilk to develop. Vinamilk has been recognized for its food safety standards
by the British Retail Consortium, contributing to increased advantages, sales
growth and market expansion. It is the belief in nutritious food, the development
trend of the healthy food market, and high income that has become the next factor for Vinamilk's development. 1.4. Threats:
Besides opportunities, Vinamilk also needs to face some challenges. The main challenges
in Vinamilk's SWOT analysis can be listed as follows. 
Many competitors entered the market 
The dairy market is also a highly competitive market. Therefore, this is a challenge that Vinamilk must face. 
Increasing demand for products leads to the emergence of new competitors. For a
long-standing brand like Vinamilk, this is both an opportunity and a big challenge.
Currently, Vietnamese consumers are faced with many choices of dairy products.
Especially foreign brands are pouring into Vietnam, leading to Vinamilk's position
in the market gradually "shaking". 
Some of Vinamilk's main competitors include: TH True Milk, Dutch Lady,...
along with emerging brands such as Meadow Fresh or Table Cove. 
The increase in the number of competing companies causes many potential risks
for Vinamilk such as reducing the diversity of dairy products (competing in niche
markets), difficulty maintaining loyal customers, and losing market shares. Milk
goes into the hands of competitors... 
Input raw material sources are unstable 
Another challenge that Vinamilk faces is the unstable source of input materials.
Despite owning international standard dairy farms, Vinamilk still depends on
imports for raw materials. In addition, because profits from livestock farming are
not high, farmers tend to change jobs. This has created a great pressure on 18
Vinamilk, requiring this brand to focus on developing domestic raw materials,
avoiding dependence on imported raw materials from abroad. 
Vietnamese customers tend to prefer foreign milk 
Vietnamese people's tendency to prefer foreign milk is a big challenge for
Vinamilk. For health-related products, customers tend to prefer foreign products.
They believe that the nutritional content and safety of portable products is higher
than domestic products. With this situation, Vinamilk needs to strengthen more
brand promotion campaigns, affirming that the nutritional value of the product is
not inferior to any famous foreign brand. 2. Proposed solutions:
Expand the export market: Vinamilk can leverage the export market to increase
revenue and growth. To do this, Vinamilk needs to research and understand the standards
and regulations for dairy product exports in potential markets. Additionally, Vinamilk
needs to build long-term partnerships with international distributors and take advantage
of free trade opportunities to increase product exports.
Enhance marketing strategies: Vinamilk needs to intensify marketing activities to
strengthen brand recognition and attract customers. Advertising campaigns, promotions,
events, and attractive product designs can help Vinamilk successfully reach customers.
Additionally, Vinamilk should also leverage the rapid development of social media and
e-commerce channels to target the right customer base and build trust.
Invest in research and development: Vinamilk should continue to invest in
research and development to apply advanced and innovative technologies in dairy
production. This helps Vinamilk maintain competitiveness and be a pioneer in the dairy
manufacturing industry. Additionally, investing in research and development also helps
Vinamilk quickly respond to new market demands and trends.
Build strategic partnerships: Vinamilk can seek opportunities for cooperation with
strategic partners, including raw material suppliers, distributors, and related companies in
the dairy industry. Such collaborations can bring benefits in terms of quality raw material
supply, expanding distribution channels, and sharing knowledge and experience. 19 3. Predictions:
Vinamilk is always steadfast in its commitment as a leading enterprise in
the dairy industry to contribute to improving the stature of Vietnamese people.
This commitment has been demonstrated throughout the development journey of
Vinamilk in particular and the dairy industry in general. From a country with no
habit of using milk, in the past 12 years, with the efforts of businesses in the dairy
industry, Vietnam's milk usage rate has improved significantly, from 10 kg to 25
kg, an increase of about 2,5 times.
"Continuing that mission, Vinamilk has been and will introduce dairy
products of international quality standards, suitable for Vietnamese people's
physical condition," said Ms. Mai Kieu Lien. Vinamilk is also promoting the
School Milk program towards the goal that all Vietnamese children can drink
milk. These efforts will help increase milk consumption in Vietnam and gradually
approach other countries in the region.
Continue to focus on growth and sustainability:
Regarding distribution channels, Vinamilk has traditional channels (distributors,
250,000 retail points), modern channels (supermarkets, product introduction
stores, convenience stores) and e-commerce channels.
Also according to this CEO, in the coming time, Vinamilk will focus strongly on
e-commerce with long-term plans and strategies, learning experiences from large
companies in the world. When there is an opportunity in any channel, Vinamilk
will focus on that channel, however, Ms. Lien also said that the transition from
traditional to modern channels will be an inevitable trend.
Potential in high-end product lines:
Ms. Mai Kieu Lien said that in addition to products that ensure nutrition for all
generations, Vinamilk also focuses on high-end products. Because the higher
income, the more consumers need to use high quality and unique products.
Typically, Organic milk, since its launch, has received love and acceptance from
consumers. To date, the Organic milk brand has built a loyal customer base with
the product. Although this is a high-cost product, picky about buyers, and takes
time to reach consumer behavior, the trend of consuming organic products is
inevitable in developing countries around the world. Vinamilk's development step is to prepare for the future.
High-end products are launched on the market mainly from around 2020 to 2021
and have a sustainable growth trend. With current market trends, these products
will continue to grow and increase their contribution to Vinamilk's revenue. 20
=> This shows that the growth potential of the dairy market in Vietnam is very
large, and Vietnam’s demand for milk is increasing .Therefore, Vinamilk will
actively invest and expand production scale, so that domestic milk output
increasingly meets market demand .With the results achieved, Vinamilk will
definitely lead the dairy market in the next 5 years. C. CONCLUSION
To conclude ,Vinamilk has maintained a significant position in Vietnam's dairy
market from 2018 to 2023. By analyzing the supply of Vinamilk in the Vietnamese dairy
market we can understand why Vietnamese chose Vinamilk as a top dairy product.
Despite market challenges, the company maintained a strong foothold. The challenges
such as fluctuating input prices and increasing market competition, Vinamilk's supply
chain resilience and responsiveness to shifting market demands allowed the company to
maintain a sustainable supply network. Overall, Vinamilk keeps doing well in Vietnam's
dairy market because it's good at dealing with how much milk people want and making changes when needed. D. REFERENCES NO REFERENCES 1
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