More Vietnamese brands tap into China's thriving consumer market

Vinamilk is making significant strides in China's dairy market. The company has signed a cooperation memorandum with leading Chinese partners during the Hanoi investment, trade, and tourism promotion conference in Guangzhou on September 26.

This remarkable partnership sees Vinamilk producing customised yogurt products, tailored to meet the Chinese market's quality standards and preferences. Concurrently, Chinese partners will oversee importation, distribution network, regulatory compliance, and trade promotions.

"Yogurt holds a vital place in the Chinese consumers' diet. Since the protocol allowing the export of Vietnamese dairy products to China was established, I've been eager to collaborate with Vinamilk to introduce the brand's yogurt products to China," said Ye Canjiang , chairman and general manager of Guangzhou Jiangnan Fruit and Vegetable Wholesale Market Management Co., Ltd., the leading wholesale market management company in Guangdong.

Another partner, who is an expert in food import and distribution and plays a pivotal role in establishing the presence Ong Tho (Vinamilk's sweetened condensed milk) in China, also conveyed their trust in this collaboration.

"Yogurt has stringent storage requirements and short shelf-life," Vo Trung Hieu, Vinamilk's international business director, said. "With this collaboration, we can significantly reduce the time it takes for Vinamilk's yogurt products to reach consumers while ensuring optimal preservation conditions. I firmly believe that Vinamilk's yogurt products will quickly reach the world's most populous market and receive a positive reception."

China stands as the world's largest import market for dairy products, with 3,897 million tonnes valued at $13.36 billion imported in 2021.

Yogurt ranks among the fastest-growing segments in the Chinese dairy industry, expected to reach $73 billion in sales by 2029 with annual growth of 15 per cent from 2023 to 2029.

In September 2022, coffee giant Trung Nguyen Legend opened its first global store in Shanghai (China). The company plans to capitalise on China's coffee market with a compound annual growth rate of 10.42 per cent 2022 to 2027.

On July 25, Trung Nguyen Legend opened the second outlet in Shanghai. After the flagship stores of Trung Nguyen Legend Coffee World in Shanghai have stabilized its operations, the company will expand its business landscape and plan to develop 1,000 stores in China through investment and cooperation.

In the past two decades, China's economy has thrived, people's living standards have steadily improved, and the consumer market is full of dynamism. Consumption has become the biggest contributor to China's economic growth today, according to Deloitte.

China has surpassed South Korea and Japan to become the second-largest foreign investor in Vietnam this year. Seck Yee Chung, partner at Baker McKenzie Vietnam, discussed with VIR's Thanh Van about the Chinese funding that is ramping up in Vietnam.

China International Capital Corporation (CICC Singapore) has received formal approval from the State Securities Commission of Vietnam (SSC) to establish a representative office in Vietnam.

Chinese investors, driven by Vietnam's strategic position and their own financial prowess, are deeply embedding themselves across various sectors in the country.