The dairy giant's ads and marketing spending averages VND1 billion per hour as it bets on the fast-growing market.
Vinamilk has posted a 20.5 percent jump in net profit for the year 2016 to VND9.36 trillion ($412.5 million), according to its latest financial statement filed at the Ho Chi Minh Stock Exchange.
The leading dairy company has also reported that its consolidated revenue went up 16.7 percent to VND46.9 trillion and its pretax profit increased 37.3 percent to VND22.3 trillion.
According to the financial statement, Vinamilk doubled its ads and marketing spending in 2016. The dairy firm spent on average VND25 billion or $1.1 million per day to step up its marketing efforts.
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| Vinamilk products are displayed at a Fivimart supermarket in Hanoi. |
Vinamilk controls 53 percent of the domestic market for liquid milk, 84 percent for yogurt and 80 percent for condensed milk, the company said on its website.
The company is targeting $3 billion in revenue this year by boosting exports to overseas markets.
Under the plan, Vinamilk will expand its overseas business to account for half of its total sales in the next five years, aiming to become one of the top 50 milk producers in the world.
Vietnam’s consumption of milk is estimated to rise to 27 liters per person by 2020 and 34 liters by 2025 from around 20 liters currently.
Its average milk consumption is half of that of Thailand's and about one third of Singapore's, according to official data.
The local dairy industry is poised for strong growth, driven by higher disposable income levels and living standards. The market has expanded 15 percent annually in the last five years as Vietnamese are raising their spending on dairy products, which now accounts for 10 percent of total food expenses.
In an attempt to fully divest from one of the biggest state-owned companies, the government’s investment arm SCIC sold 9 percent of its Vinamilk stake in December last year.
Singapore-based Fraser & Neave (F&N), which is already Vinamilk’s second biggest shareholders and backed by Thai tycoon Charoen Sirivadhanabhakdi, is aiming to raise its stake in the dairy producer to 16.29 percent from 10.95 percent.
