Vinamilk maintains market resilience amid tariff cuts and sets record revenue target for 2025
- gamlthvietdata
- 4 hours ago
- 4 min read
The CEO of Vinamilk stated that reducing the import tax on milk from the U.S. to 0% would not significantly impact the company’s market share, as domestically produced products hold advantages in terms of freshness, logistics, and competitive pricing.
Minimal impact from tariff-related developments
Addressing a shareholder’s question regarding the potential competitiveness of imported milk from the U.S. if import tariffs are reduced to 0%, Ms. Mai Kieu Lien, CEO of Vinamilk, stated that, from her perspective, the change is unlikely to significantly affect the company’s business operations.
She explained that currently, imported liquid milk is subject to tariffs ranging from 2% to 15%. Even if these tariffs are eliminated, imported milk would still struggle to compete with domestic products due to advantages in freshness, logistics, and pricing.
Regarding powdered milk, which currently faces a 10% import tax, the potential removal of this tariff would only have a moderate effect. Price disparities across product segments remain significant, and premium imported milk from the U.S. would not be substantially cheaper than existing domestic offerings.
Ms. Lien emphasized that Vietnam’s powdered milk market is already well-established, and any tax adjustments would have limited impact. Additionally, consumer demand has not shown clear signs of recovery amid ongoing economic uncertainties. As a result, even premium or ultra-premium imports from the U.S. are unlikely to shift the overall market landscape.
The CEO reaffirmed that the domestic market remains Vinamilk’s core focus. Although the company has seen good growth in exports, this segment still accounts for a relatively small portion of total revenue and thus does not significantly affect overall performance.
Despite facing various challenges in recent years, Ms. Lien affirmed Vinamilk’s commitment to its strategy of focusing on quality, reasonable pricing, and excellent service—placing the interests of consumers, shareholders, and society first. “We choose to act, not to merely endure,” she emphasized.
In Q1, Vinamilk undertook a restructuring of its distribution network, particularly the traditional retail channel. This involved a comprehensive review of all distributors and the sales team—from regional directors and team leaders to supervisors and staff.
Following the restructuring, starting in April, Vinamilk’s business results have shown positive trends, with estimated double-digit revenue growth in April compared to the same period last year.
Ms. Lien acknowledged that Vinamilk’s biggest weakness in recent years has been its domestic distribution network, especially the 250,000 traditional retail outlets. Starting this year, the company plans to comprehensively revamp this network by recruiting younger talent to drive fundamental change.
“I believe we are heading in the right direction. Reforming our domestic sales team is the most crucial transformation for Vinamilk,” she stressed.
In Q1, Vinamilk also launched and reintroduced nearly 20 new products, including: Green Farm pasteurized drinking yogurt, high-protein yogurt with honey and grains, plant-based yogurt with nine kinds of seeds, and weight management milk.
In terms of exports, Ms. Lien shared that Vinamilk has seen promising signs early this year, with its condensed milk products making initial inroads into the European market. Export revenue in Q1 continued a stable growth trajectory, marking the sixth consecutive quarter of growth, with double-digit gains anticipated.
Targeting record revenue
At the Annual General Meeting, shareholders approved Vinamilk’s 2025 consolidated revenue target of VND 64.505 trillion and pre-tax profit of VND 9.68 trillion—up 4.3% and 2.4%, respectively, from 2024’s results. If achieved, this would mark the highest annual revenue in the company’s history.
Shareholders also approved a minimum 2025 cash dividend payout of 50% of the consolidated post-tax profit. The Board of Directors was authorized to determine the specific dividend amount and timing of interim payments based on this plan.
Based on Vinamilk’s 2025 financial performance, the Board will propose the final cash dividend at the 2026 Annual General Meeting.
As for the 2024 dividend, the 2024 AGM had approved a cash payout of 38.5% of the par value, equivalent to VND 3,850 per share. However, given the company’s current financial position, the Board has raised the 2024 cash dividend to 43.5%, or VND 4,350 per share—the highest payout since 2018, when the dividend reached 45%.
To date, Vinamilk has made two interim dividend payments totaling VND 4.18 trillion (equivalent to 20% of par value). The remaining 23.5% (VND 2,350 per share) will be paid within six months after the AGM.
With over 2 billion shares in circulation, Vinamilk is expected to allocate over VND 9 trillion in total dividends for 2024. Funds will be drawn from undistributed post-tax profits, based on the latest financial statements prior to the payment date.
Board of directors changes
The AGM also approved the dismissal of Mr. Lee Meng Tat and Mr. Hoang Ngoc Thach from the Board of Directors as previously announced.
Two new members were elected to the Board:
Mr. Vu Tri Thuc, representing the SCIC shareholder group holding 36% of total shares
Ms. Tongjai Thanachanan, representing F&N Dairy Investment Pte Ltd and F&NBev Manufacturing Pte Ltd, which collectively hold 20.39% of shares
(According to Tri Thuc Magazine)
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