POTENTIAL DAIRY INDUSTRY IN VIETNAM : Case Study: Vinamilk LTD

Vietnamese dairy industry is evaluated around 4.1 billion US dollars with the increasing growth rate of 16 % during the period 2011-2015 (EVBN, 2016). The dairy market in Vietnam has advantages of the young demographics, raising concerns of health and fitness, and increasing basic income level. Currently, the dairy sector in Vietnam is featured with ten big players and highly consolidated entrance. However, the upstream dairy market still stands a high chance of development, due to the under-developed raw milk producers. Especially, these products: pow- dered milk, cheese, and fresh cream in Vietnam are heavily dominated by the foreign suppliers, who fulfils more than 70 % of the total volume. To benefit from the trends and current situation in the market, the local companies in the dairy sector have to reshape their strategies of invest- ment and development. That is the reason this research is conducted. The author aims at provid- ing an insight in the potential and difficulties for the Vietnamese dairy product manufacturers. There is deep discussion on Vietnamese dairy market and business environment. This paper work chooses Vinamilk Ltd, one of the biggest dairy products suppliers in Vietnam as a study case. Vinamilk has been analysed in three main focuses: value chain, SWOT analysis, and STEEP analysis by using the secondary data and qualitative method. The research suggests that Vinamilk should focus on three aspects, including: brand recognition, cost efficiency, and so- cial awareness of dairy products