The Digiworld Corporation and Nestlé Vietnam last week signed a strategic partnership agreement on the market expansion of nutrition products to meet demand and also improve the health of Vietnamese people.

The signing marks a milestone for Nestlé Vietnam in promoting its nutrition products and for Digiworld in expanding its business and distribution capabilities.

Digiworld will become the master distributor of Nestlé’s nutrition products in Vietnam, responsible for Nestlé’s market expansion and product distribution through hospitals, pharmacies and clinics, which are Nestlé’s current product distribution channels. Digiworld will also take advantage of its existing distribution channels, which suit such products and consumers, to expand product distribution activities.

Nestlé’s nutrition products are the results of scientific research by the Nestlé Health Science Institute, part of Nestlé R&D Center. This is the largest independent research center in the world, with annual investment of $2 billion for research and development, and has medical specialists and professional scientists from around the world.

Nestlé’s current products include Nutren Junior, providing optimal nutrients to treat child malnutrition in Vietnam, Nutren Diabetes, which helps diabetics maintain their health, and Nutren Boost Optimum for the elderly.

“Dairy companies are promoting consumer-oriented communications activities,” said Mr. Ganesan Ampalavanar, General Director of Nestlé Vietnam. “However, these activities are carried out on a massive scale, which confuses consumers and hinders them from identifying the most suitable products. We believe that the combination of Nestlé’s strengths in products and Digiworld’s distribution experience will be an advantage for long-term development and bring Nestlé’s nutrition products to Vietnamese consumers in the future.”

According to figures from the UN Food and Agriculture Organization (FAO), consumption in Vietnam of milk products is 14,81 liters per person per year; still much lower than other countries in the region. The total value of Vietnam’s functional milk market in 2018 has been estimated at $302 million.

Given such potential, Digiworld’s strategy is to invest in high-quality products. Additionally, the market needs a distribution channel that is broad and capable of developing and expanding the market so that products are widely known and the market grows higher. For 2019, Digiworld has set a target of $15.1 million in revenue from consumer goods. The market for nutrition products promises double digit growth each year.

Digiworld’s total revenue was $256.1 million in 2018, representing 126 per cent of its annual plan, while after-tax profit was $4.76 million, or 109 per cent of its annual plan.

With outstanding business results recorded in 2018, Digiworld has set the following targets for 2019: