News: Vietnam-based dairy group Vietnam Dairy Products Joint Stock Company (Vinamilk) has opened a new dairy plant in Vietnam's Binh Duong province, investing US$110mn. The plant will cover an area of 20 hectares and have an annual capacity of 400mn litres of milk in the first stage. The plant will help the company to achieve its goals of raising its annual revenue to US$3bn by 2017 and becoming one of the 50 largest dairy companies in the world, according to Vinamilk's CEO Mai Kieu Lien.
BMI View: We believe Vinamilk's strategy of developing in the domestic market will be to its benefit, as local demand has significant growth potential in the long term. Indeed, we forecast the country's dairy consumption to significantly increase over our forecast period, albeit from a low starting point. Finally, increased urbanisation, Westernisation and the ongoing spread of modern, organised retail networks will prove supportive of strong dairy consumption growth, especially in light of continued economic development.