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Vinamilk to export to China

Released at: 20:51, 13/05/2017

Vinamilk to export to China

Photo: Vnexpress

Company signs agreement on exporting dairy products to northern neighbor.

by Quynh Nguyen

Vietnam’s leading dairy producer Vinamilk signed a memorandum of cooperation with a Chinese partner on May 12 to export dairy product to the country, witnessed by senior Chinese leaders and visiting State President Tran Dai Quang, who is in China from May 11-15 to pay a State visit to China and to attend a high-level forum on the Belt and Road Initiative.

China is a huge market with a total dairy market value of about $30 billion a year. Vinamilk hopes that the memorandum will be an opportunity to export dairy products in the near future, when a trade agreement between the two countries is signed.

Vinamilk is the largest dairy company in Vietnam and among the Top 50 dairy companies in the world in terms of revenue. Its products are not only consumed in the domestic market but also exported to 43 countries around the world, including the US, Japan, Thailand, and the Philippines, as well as the Middle East. Its export turnover stood at $258 million last year.

It owns ten dairy farms around the country, with over 17,000 heads of cattle. The Ho Chi Minh City Securities Corporation (HSC) estimates that, in 2016, its farms supplied 42,654 tons of raw milk, up 13 per cent and contributing 7 per cent of the country’s raw milk input.

According to HSC, Vinamilk will maintain stable growth thanks to the potential of its core business. It can maintain double-digit revenue growth in 2017 and the dairy sector will continue to grow at an average rate of over 10 per cent.

It forecast that Vinamilk’s average annual growth rate in net sales from 2017 to 2020 will be 10.9 per cent and after-tax profit 9.3 per cent.

Vietnam’s largest dairy producer began operating the country’s first-ever organic dairy farm under European standards in the central highlands province of Lam Dong on March 14.

The farm has investment capital of $8.7 million, is certified by the Netherlands-based global network of inspection operations, Control Union, and has a herd of 500 imported cows. “We apply close monitoring measures to ensure the herd only produces high-quality milk,” said Ms. Mai Kieu Lien, Vinamilk’s CEO.

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