Vinamilk has carried out product introduction and trade promotion activities in Russia since 2015. (Photo: NDO)
EAEU is a common market of the 5 countries of Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan, and an economic region with good growth. With a gross domestic product (GDP) of USD1.9 trillion and a population of 183 million (in 2018), the EAEU, established in 2015, is an area with great development potential.
With thorough preparations and great production potential of 13 modern factories and 12 high-tech dairy farms of international standards, Vinamilk has passed the surveys and met the rigorous standards of EAEU countries to become the first dairy enterprise in Vietnam licensed to export dairy products to the 5 countries of this union.
Many years ago, the enterprise began to have first access to the Russian and Kazakhstan markets by introducing soft drink products derived from tropical fruits, which are Vinamilk's strengths.
Modern production lines at Vinamilk's factories (Photo: NDO)
The EAEU market is considered to be in great demand for Vietnam's key commodities, including agricultural products. Moreover, the free trade agreement between Vietnam and the Eurasian Economic Union, which came into effect in late 2016, has opened up great trade opportunities between countries. According to statistics, in 2018, Vietnam - EAEU import-export turnover reached USD4.9 billion. In the first nine months of 2019, this figure reached USD3.7 billion and the two sides are striving to obtain two-way trade turnover of USD10 billion in 2020.
Therefore, Vinamilk’s access to the EAEU market is expected to open doors for Vietnamese milk to penetrate this great potential market.
According to Mr. Mai Hoai Anh, Executive Director of International Business, Vinamilk has more than 20 years of experience in exporting its products to 53 countries and territories, and it will use its key products to efficiently exploit the EAEU market.
In 2019, Vinamilk's direct export revenue reached VND5.175 trillion, a year-on-year increase of 14.8%, contributing to the total revenue of VND56.318 trillion. In the first quarter of 2020, due to COVID-19, Vinamilk's net export earned VND1.081 trillion, up 7.5% compared to the same period last year and contributed to the total revenue of VND14.153 trillion.
Vinamilk's booth at GULFOOD DUBAI fair 2020 where it successfully signed the contract worth USD20 million in export to the Middle East. (Photo: NDO)
This result comes from Vinamilk’s efforts in taking export opportunities from potential markets. Specifically, in early 2020, Vinamilk signed a milk export contract worth USD20 million to the Middle East. Then, during social distancing, it successfully exported the first batch of condensed milk to China and many other countries. Recently, Vinamilk's seed milk and milk tea products have been officially launched in the Republic of Korea.
Amidst the bad influence of COVID-19 on the domestic economy as well as the world economy, Vinamilk was rated by Forbes Vietnam among the top 50 Vietnam best listed companies 2020 for the 8th consecutive year. Currently, Vinamilk is also the only Vietnamese company in the top 50 largest dairy companies in the world in terms of revenue and is very close to the top 30./.