Plan

Political
Satisfy the legal basis for the establishment of business households processing dairy products
and products made from milk.
Charter capital meets the needs of covering operating expenses of the business.
Legal place of business.
Register the enterprise tax code according to the provisions of Vietnamese law.
Have a certificate of food safety qualified establishment.
Register for protection of corporate intellectual property rights….
Peaceful politics, the law protects business interests.
Political stability, favorable for business activities.
Food safety requirements are strictly regulated.
The Vietnamese government has issued many policies to support businesses. Typically, the
issue of approving a budget of 2,000 billion VND for projects to develop the dairy industry in
2020.

Economics
Vietnam's economy is growing, strongly and positively affecting the milk consumption demand
of Vietnamese customers.
Vietnam joined the international trade organization WTO, creating certain pressures for
Vinamilk.
Inflation is increasing, gasoline prices are also increasing, significantly affecting Vinamilk's input
materials.
The price of beef cattle also increased, businesses had to push the selling price for their
products.

Social – Cultural
The increasing standard of living creates conditions for the outstanding development of the
dairy market.
The demand for health care through dairy products is of great interest to many people.
The rate of malnourished children in Vietnam is still high, promoting the development of the
dairy industry.
Currently, Vietnamese people do not really have the habit of drinking milk, so this is Vinamilk's
development opportunity.

Technology
The technology of producing dried milk powder is gradually changing from "knock" to
"blowing", which helps to increase productivity when producing milk on the market.
The technology of extracting powdered milk cans is increasingly developing, helping to preserve
the product for a longer time.
The development of milk pasteurization technology at high temperature helps to increase
product quality and helps preserve products for longer.
Quality management of products according to ISO standards helps customers feel secure when
using Vinamilk's milk lines.
Giá trị thương hiệu và độ uy tín cao
Danh mục sản phẩm đa dạng
thị trường phân phối lớn
sản phẩm chất lg với giá phải chăng

Position
The level of competition in the industry of Vinamilk
Currently, Vinamilk is facing relatively large competition from domestic and foreign dairy brands
such as TH True Milk, Nesle, Abbott, Mead Jonson, etc. And Vinamilk's competition level will
continue to increase. as the dairy market continues to expand in the future.
In addition to dairy products, Vinamilk's coffee, sugar, cheese, etc. products do not have many
impressions because they are "late birth" products in a market full of other big players in the
industry.

Potential competitors of Vinamilk

The threat from potential competitors of Vinamilk is very low. In fact, the entry barrier of the
dairy industry is quite large, new businesses need to have huge costs to research product
quality, build brands, establish distribution channels, etc., so it will not be easy. easy to enter
this industry.
In addition, to survive, develop and gain the trust of customers, new businesses need to have
creativity with different quality. However, the difference needs to be parallel with the core
values of the brand and customers.

Bargaining power from suppliers

In addition to focusing on product quality research and marketing mix campaigns, Vinamilk also
promotes the construction of dairy farms in Vietnam, moving towards autonomy in liquid milk
supply. Currently, the enterprise owns 12 largest international standard farms in Asia, with a
herd of 130 thousand cows. This farm system, every day, provides from 950 to 1000 tons of
milk for Vinamilk.

However, to ensure the input of liquid milk, Vinamilk still has to cooperate with small dairy
farmers. These farmers do not have advanced cow care techniques, mainly amateurs, so the
quality of milk is not uniform, causing them many disadvantages. Therefore, in this case, the
bargaining power belongs to Vinamilk.

Vinamilk's raw materials and powdered milk supply are mainly imported from major brands in
the world. For these foreign suppliers, Vinamilk usually does not have much bargaining power
and is under great pressure, in return for better quality of inputs.

Bargaining power of customers

End customers are likely to put pressure on Vinamilk on the quality of dairy products. The fierce
competition in the dairy industry leads to the price difference between milk brands. This allows
customers to freely choose to use different brands when they need to change flavors or want to
try a new brand.
However, customers buying at small stores will not affect Vinamilk's selling price too much.
Instead, large customers who are distributors, agents and purchasers in large quantities will
have the right to negotiate prices with Vinamilk. Because distributors, agents can directly
influence the end user's milk purchase decision through consultation or product
recommendation. This is a significant pressure, directly affecting Vinamilk's total revenue.

Threats from Vinamilk's substitute products

In fact, dairy products always have a strong position in the market with very few other
substitutes due to the characteristics of milk as an essential nutritional supplement. For liquid
milk, the substitutes that are likely to reduce Vinamilk's market share are nut milk, soy milk,
cereals or soft drinks mixed with milk, etc.

These products are developed based on the needs of end users with the desire to reduce fat
and ensure high nutritional value. However, this effect is weak because substitute products are
not popular with the needs of the majority of consumers.

Pattern
USP of Vinamilk – “Building a brand based on Vietnamese spirit”. Vinamilk is a brand that
follows the path of exploiting national pride to position the brand and maintain its position for
many years. In 2016, on the occasion of Vinamilk's 40th anniversary, the company held many
outstanding programs such as "6 million glasses of milk for Vietnamese children, Nurturing
talents" and that year became a memorable year. In the same series of events, Vinamilk gave 7
billion dong to the charity fund "Reaching to heaven with Vinamilk" for children with disabilities
and orphans.

Perspective
3 levels of corporate culture
of Vinamilk company
In corporate culture, there are
different levels. And
Vinamilk has clearly
demonstrated its cultural
values in 3 levels
For leaders: Leaders need to
make efforts to bring benefits
to shareholders
and effectively protect the
inherent resources of the
whole enterprise.
For employees: The
leadership needs to treat them
with respect, create the
best conditions for employees
to develop equally, build and
maintain a friendly
culture.
3 levels of corporate culture
of Vinamilk company
In corporate culture, there are
different levels. And
Vinamilk has clearly
demonstrated its cultural
values in 3 levels
For leaders: Leaders need to
make efforts to bring benefits
to shareholders
and effectively protect the
inherent resources of the
whole enterprise.
For employees: The
leadership needs to treat them
with respect, create the
best conditions for employees
to develop equally, build and
maintain a friendly
culture.
3 levels of corporate culture
of Vinamilk company
In corporate culture, there are
different levels. And
Vinamilk has clearly
demonstrated its cultural
values in 3 levels
For leaders: Leaders need to
make efforts to bring benefits
to shareholders
and effectively protect the
inherent resources of the
whole enterprise.
For employees: The
leadership needs to treat them
with respect, create the
best conditions for employees
to develop equally, build and
maintain a friendly
culture.
3 levels of corporate culture
of Vinamilk company
In corporate culture, there are
different levels. And
Vinamilk has clearly
demonstrated its cultural
values in 3 levels
For leaders: Leaders need to
make efforts to bring benefits
to shareholders
and effectively protect the
inherent resources of the
whole enterprise.
For employees: The
leadership needs to treat them
with respect, create the
best conditions for employees
to develop equally, build and
maintain a friendly
culture.
3 levels of corporate culture
of Vinamilk company
In corporate culture, there are
different levels. And
Vinamilk has clearly
demonstrated its cultural
values in 3 levels
For leaders: Leaders need to
make efforts to bring benefits
to shareholders
and effectively protect the
inherent resources of the
whole enterprise.
For employees: The
leadership needs to treat them
with respect, create the
best conditions for employees
to develop equally, build and
maintain a friendly
culture.
3 levels of corporate culture of Vinamilk company
In corporate culture, there are different levels. And Vinamilk has clearly demonstrated its
cultural values in 3 levels
For leaders: Leaders need to make efforts to bring benefits to shareholders and effectively
protect the inherent resources of the whole enterprise.
For employees: The leadership needs to treat them with respect, create the best conditions for
employees to develop equally, build and maintain a friendlyculture.

For customers: The enterprise

is committed to providing
diverse products
and services, high-standard
goods and products,
transparent prices in all
transactions.
6 core principles in
Vinamilk's corporate culture
In the book "Vinamilk
Cruise", the "big man" of the
dairy industry has
emphasized 6 core principles
in its corporate culture
including:
- Responsibility: When
things happen, first you need
to know to accept
responsibility for yourself.
"The responsibility is on me".
- Result-oriented: Let's talk
about quantification.
- Creative and proactive:
Never say “No”. Always look
for at least 2
solutions to the problem.
- Cooperation: Adults do
not need adult supervision
but need people to
cooperate. Let's work
together equally
For customers: The enterprise is committed to providing diverse products and services, high-
standard goods and products, transparent prices in all transactions.

6 core principles in Vinamilk's corporate culture

In the book "Vinamilk Cruise", the "big man" of the dairy industry has emphasized 6 core
principles in its corporate culture including:
-Responsibility: When things happen, first you need to know to accept responsibility for
yourself. "The responsibility is on me".
-Result-oriented: Let's talk about quantification.
-Creative and proactive: Never say “No”. Always look for at least 2 solutions to the problem.
-Cooperation: Adults do not need adult supervision but need people to cooperate. Let's work
together equally
-Integrity: I must be responsible for all my actions and words, not lying around – “My words are
who I am”-Excellence: Confident as a highly professional, excellent at work – “I am an
international standard expert in my field”.
7 leadership behaviors in Vinamilk's corporate culture
For Vinamilk's leaders, it is certain that they must understand, grasp and perform well 7
leadership behaviors including:
- Must follow the KPI framework, have a development plan, and have a clear report.
- Always care about employees, motivate employees at the right time.
- Observe capacity and train talents in a timely manner.
- Guide the work, not do it instead.
- Create a good environment and connect both inside and outside the office.
- Tactful behavior is the art of management.
- Both a leader and a servant.