Vinamilk Adjusts to Reduce Advertising Costs, Increase Promotions, Introduce Products, Boost Sales

Vietnam Dairy Products Joint Stock Company (Vinamilk) recorded a record revenue of 61.824 trillion VND in 2024, up 2% from the previous year, with a net profit after tax of 9.452 trillion VND, but not returning to the 10 trillion VND level. The biggest challenge is consumer price sensitivity, requiring appropriate pricing strategies and attractive promotion programs. Vinamilk has undergone brand identity changes and launched 125 new products in 2024. The cost for promotions and product introductions reached 10.400 trillion VND, with 300 billion VND shifting from advertising expenses to promotions. Vinamilk reduced advertising costs to 3 billion VND per day from 6 billion VND in 2019. The dairy market is expected to grow at an average single digit from 2024-2029 due to increased health awareness and growth in the middle-class.