group assignment report vinamilk

A.ABOUT VINAMLIK I HISTORY Vinamilk was established on August 20, 1976 on the basis of three dairy factories from the old regime: Some important milestones: - 1976 - 1986: Vinamilk's es

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

GROUP ASSIGNMENT REPORT

GROUP 1

“VINAMILK”

Lecturer : DrNguyen Bich Ngoc

Students’s name : Nguyen Thi Anh My

Pham Chau Anh

Vo Khanh Minh Nguyen Cong Nam Nguyen Anh Phuong Dao Tran Quoc Huy Class : International Business Management 63C

Ha Noi, November, 2022

TABLE OF CONTENTS

A ABOUT VINAMILK 3

| History of Vinamilk 3

Il Achievements of Vinamilk 3

Ill Sustainable Development 4

a Human Nutrition 4

b Envinronment and Energy 5

c Local Economic Development 6

d.Employees 7

e Social Activities 8

IV Challenges 9

B BUSINESS ETHICS IN VINAMILK’S PRODUCTS 11

C CONCLUSION 13

B REFERENCES 15

A.ABOUT VINAMLIK

I HISTORY

Vinamilk was established on August 20, 1976 on the basis of three dairy factories from the old regime:

Some important milestones:

- 1976 - 1986: Vinamilk's establishment period

+ In 1976, Vietnam Dairy Products Company (Vinamilk) was officially established with the original name Southern Coffee and Milk Company The company belongs to the General Department of Food Industry in the South + In 1982, Southern Milk - Coffee Company was transferred to the Ministry of Food Industry and renamed Milk - Coffee - Confectionery Enterprise I

- 1986 — 2003: Innovation period

- 2003 to present: The equitization period

Vision and Mission

- Vision: "Jo become the leading Vietnamese trusted brand on nutrition and health products for human life’

- Mision: "Vinamilk commits to bring to communities the best-quality nutrition source that conveys our respectability, love and responsibilities for the people, life and society."

=> Vinamilk always demonstrates integrity and integrity in any transactions with customers and consumer agents, respects colleagues, everyone from the company to the cooperation partners Vinamilk always brings fairness to partners and customers,

as well as to all workers working here And has professional ethics and respects established ethical standards and acts in the right way

II, ACHIEVEMENTS OF VINAMILK

After 45 years of establishment and development, with creative thinking, bold

innovation and continuous efforts, Vinamilk has become one of the leading

enterprises of Vietnam with lots of noticeable achievements in nation and also from foreign

Domestic achievements

e 2016-2020: List of 50 MOST VALUABLE BRANDS IN VIETNAM - according to Forbes magazine

e 2013-2020: TOP 500 LARGEST PRIVATE ENTERPRISES IN

VIETNAM - VN Assessment Report Joint Stock Company

e 2012-2020: NATIONAL BRAND - Ministry of Industry and Trade

International Achievement

e TOP 50 LARGEST LISTED COMPANIES IN ASIA PACIFIC - Forbes Magazine 2016

e The Asian Export Awards 2019

e TOP 200 BEST REVENUE COMPANIES OVER $ 1 BILLION IN ASIA PACIFIC - Forbes Magazine 2019

¢ TOP 5 STRONGEST GLOBAL FOOD BRANDS - Brand Finance

Report

a Human Nutrition

I Increase the source of fresh milk from Vinamilk’s farm

Understanding that fresh milk source is the key issue in the production of high quality milk Vinamilk has kept promoting the development of large-scale cow farms and modern technology to promote the supply of safe and nutritious fresh milk

The farm system of Vinamilk and its subsidiaries currently includes 06 dairy farms operating in Tuyen Quang, Nghe An, Thanh Hoa, Binh Dinh, Lam Dong and Ha Tinh with a total herd size of about 10,000 animals In 2014 Vinamilk also promoted the investment of 03 new camps in Tay Ninh, Thanh Hoa and is expected to come into operation in the period of 2015 — 2016

2, Safe production

Advanced production and processing technology and equipment

In 2013, Vinamilk started to establish two factories with the largest capacity and the most modern technology equipment in the world into its milk production system: the Vietnam Baby Milk Powder Factory in Binh Duong and the Vietnam Dairy Factory Products which are produced in a closed system will minimize errors and external influences that impact product quality

Standardization of quality testing methods and equipment

In 2014, all laboratories of Vinamilk factories have obtained ISO 17025 laboratory standard certificates, standardizing testing methods and testing equipment, ensuring complete product quality inspection in Vinamilk's laboratories

3 Improving product value for human health

Vinamilk has continued to research and bring to the market products with constantly improving quality, applying scientific research about the world's newest nutrition, launching a variety of healthy products, meeting the nutritional needs of all types of

customers

b Environment And Energy

I, Improve Management Quality

Currently, all Vinamilk's factories have been deployed and operated energy management systems according to ISO 5001: 2011 In 2013, Vinamilk conducted an energy audit of 3 more factories, bringing the total number of factories audited to 9 units

2, The program replaces old energy sources with clean, renewable energy According to the orientation of the program with the purposes of protecting energy sources and reducing greenhouse gas emissions, Vinamilk has switched to using clean, renewable energy sources such as CNG and BIOMASS to replace traditional energy such as FO and DO oil

3 Program to use energy-saving lighting equipment

Vinamilk completed the pilot implementation of a project to improve energy efficiency in the field of lighting This project includes adjusting the design to optimize power, using energy-efficient lighting fixtures such as LEDs, Compact TS — T8 This can save up to 70% of the energy used for lighting compared to using high- pressure lamps

4 Environmental management and waste control

Implying the latest waste control system into operation at Vietnam Dairy Factory and Vietnam Powdered Milk Factory from 2013

At these two factories, Vinamilk set up modern wastewater treatment systems which are capable of treating wastewater with a total investment budget of more than 50 billion VND and environmental management systems Vinamilk focused on waste- processing such as: solid waste, liquid waste, gas waste, waste on the farm Trying to ensure the quality of products and also handle its impacts on the environment

5 Activities for environment

In 2012, “The 1 million trees fund program for Vietnam” was a joint activity between the Vietnam Environment Administration (VEA) and the beverage brand Vfresh under

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the Vietnam Dairy Products Joint Stock Company - Vinamilk The program aimed at planting more green trees in cities to improve the living standard The program was even extended to other areas such as residential areas, public areas, central roads, schools, etc This campaign has brought practical benefits for not only Vinamilk's reputation but also for the community

c Local Economic Development

I, Development of dairy farming

Build a farm with advanced techniques

Vinamilk is always proud to be one of the leading units in contributing to the development of dairy agriculture in a modern way, improving efficiency and improving product value for both Vinamilk and dairy farmers in Vietnam Always update and boldly invest in applying advanced livestock technology from which is the goal throughout the development strategy of raw material areas

Accompanying with dairy farmers

In addition to the development of the large-scale farm model, Vinamilk also accompanies farmers in developing dairy raw material areas and improving the operational efficiency of households

* Create a solid source of output and reasonable purchasing prices for livestock farmers

¢ Support farmers to develop production and improve efficiency

* Promote the development of relevant agricultural products such as agricultural products for feed for dairy herds (such as corn, elephant grass, fresh straw )

* Conducted 44 training courses across the country with 1,605 households participating with the theme "Technical guidance on dairy farming"

In addition, in order to support livestock households to have a cozy Tet, increase the comnection between Vinamilk and livestock households, Vinamilk has implemented the program "Together with Vinamilk to accumulate points, celebrate Tet" In the program, Vinamilk has supported a total of more than 18 billion VND for 4,724 households, on average, each household recetved more than 3.8 million VND

2, Create jobs for local people

With the strategy of developing the scale of its farms, in 2013, Vinamilk began to invest in projects in Ha Tinh, Thanh Hoa and Tay Ninh When these projects came into operation in the period of 2014-2015, Vinamilk also directly and indirectly contributed to creating more jobs in these local areas With the development of its system, Vinamilk continues to contribute to creating a system with more than 250 enterprises and more than 4,500 stable jobs in provinces and even nationwide

d Employees

I Ensure safety and health for employees

Training for employees

Training on occupational safety for 100% of employees working in factories, factories and farms

Fire prevention training and drills for 100% of employees

Established ATVSV (An toan vé sinh vién) im 13 factories and two warehouses The ATVSV team will be responsible for checking occupational safety and health at their workshop

Employees’ health care:

Building medical departments at all Vinamilk's factories

Annual health check-ups for employees: male employees 01 time/year, female employees: 02 times/year

Using health and accident insurance for employees to bring better health care to Vinamilk's employees

2, Ensure the rights of employees

Develop, receive and give solutions to employees’ complaints

They can contact Company human resources department, administrative administration of personnel units are always ready to support employees

Hot channel receives information: compliance@vinamilk.com.vn

Try to provide employees with opportunities to have fun outside working hours

3 Recognition and adequate compensation for the labor values of employees Vinamilk's payroll scale is being built according to the Merce system Every month, Vinamilk maintains the evaluation of employees according to the method of

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Performance Appraisal and Management by Objective The results of the evaluation

are the basis for decisions on annual salary increases and year-end bonuses

4, Employee training and development

In 2013, Vinamilk spent VND 6.5 billion on internal and external training programs

The Legacy Team Development Program was organized with the aim of developing

qualified personnel for key leadership positions in the company This program will

provide many opportunities for employees to be trained, challenged, develop their

careers and contribute to the company The program completed phase | in 2013, and

continued in 2014

e Social Activities

1 Quỹ sữa vươn cao Việt Nam

In the 2013 school year, the Foundation donated 1.2 million glasses of milk to more

than 13,000 children in 57 provinces and cities nationwide Some locations VNM has

organized to give direct gifts:

Thời gian Tỉnh thành được trao tặng sữa

2 Scholarship Fund "Vinamilk - wom mim tai nang tré Viét Nam"

The program was implemented in

2013:

* Awarding 1,000 scholarships, with a

total value of 1 billion VND

* Coordinated with the Ministry of

Education and Training to organize the |

10th Anniversary of the "Vinamilk -

Uom mam tai nang tré" scholarship

fund and organize a_ playground

"Shining Vietnamese talents" for primary school students , with more than 2,000 students attending

3 Other activities

Awarding scholarships to poor students in Ben Tre in 2018

Vinamilk supports people in the Central region affected by floods and storms Join the program "Giot Mau Héng" - Employees from Vietnam volunteer to donate blood

e "You're Healthy, Vietnam Healthy” Campaign

IV Challenges of Vinamilk nowadays

1 Unstable sources of materials

Vinamilk is one of the largest dairy companies in Vietnam However, there are still challenges that Vinamilk needs to overcome First of all, Vinamilk’s input materials are unstable Despite owning international standard dairy farms, Vinamilk's raw materials still depend on imports from New Zealand, Europe, America and Japan and

it accounts for more than 70% of Vinamilk's material inputs Therefore, input costs increase, and product costs also increase Due to the low profitability from livestock and being forced by raw dairy cow buyers to reduce prices so farmers tend to switch jobs and its causing domestic milk raw materials to decrease significantly This forces Vinamilk to compete with many other intermediary milk raw materials

2 The market participation of many strong competitors

The dairy market is also a highly competitive market Therefore, this is a challenge that Vinamilk faces The increasing demand for products leads to the emergence of new competitors, Vietnamese consumers have more and more new choices coming from big brands such as Nestle, Dutch Lady, Abbott, After joining the WTO, Vinamilk is under increasing competitive pressure due to the tax reduction for imported milk under Vietnam's tax cut policy The increase in the number of competing companies poses many potential risks for Vinamilk such as reducing the diversity of dairy products, difficulty in maintaining loyal customers, losing milk market share to competitors

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3 Vietnamese customers tend to use foreign milk

Export market has many risks, the customers have a tendency to use foreign milks 90% of Vinamilk's export profit comes from exporting to Iraq However, it is one of the most unstable regions in the world Therefore, the export profit to this market is not as much as expected With stricter demands from users along with competition from foreign milk brands, Vinamilk milk no longer holds a monopoly position in the dairy market According to a report, in the Vietnam market, imported milk accounts for 65%, Vinamilk accounts for 15% and Dutch Lady accounts for 20% The foreign- favored mentality of Vietnamese consumers, preferring to use portable foreign goods over domestic goods is also one of Vinamilk's challenges

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