Vinamilk plans dairy price hike amid rising costs

VIETNAM – Vinamilk has announced plans to raise product prices by 2-3% amid renewed pressure from higher raw material and logistics costs.

The dairy producer said the increases would be implemented cautiously to avoid hurting consumer demand, particularly as Vietnam’s fast-moving consumer goods (FMCG) sector remains sensitive to household spending trends.

Vinamilk also said recent adjustments to Vietnam’s personal income tax family deduction thresholds could help lift consumers’ disposable income by an estimated 2-3%, potentially supporting demand for consumer staples and packaged food products.

The company reported revenue of VND16.15 trillion ($613.44 million), up 24.6% from a year earlier, while net profit rose 55% to VND2.46 trillion (US$93.38 million).

Domestic sales remained the primary growth engine. Revenue from local market reached VND12.08 trillion (US$458.93 million), up 20.4% year-on-year, supported by a restructuring of the company’s distribution network that began in early 2025.

Vinamilk has been revamping its retail and distribution strategy to improve market penetration and operational efficiency amid intensifying competition in Vietnam’s consumer goods market.

International revenue climbed 39.1% to VND4.07 trillion (US$154.59 million) during Q1, highlighting resilient overseas demand for nutritional and dairy products despite broader global economic uncertainty.

The company said geopolitical tensions in the Middle East had minimal impact on Q1 operations because most export orders had already been completed before the conflict intensified.

In the Middle East, Vinamilk maintained stable growth, reflecting sustained demand for essential nutritional products and strengthening brand trust.

Other potential markets also contributed positively, helping diversify revenue streams. China is emerging as a new growth driver, with key products such as condensed milk and yogurt gaining traction.

Subsidiaries also reported solid performance. Moc Chau Milk posted net revenue of VND742 billion (US$28.15 million) and net profit of VND80 billion (US$3.04 million), up 25.2% and 67.8% respectively, supported by cost optimization and a streamlined supply chain.

Recently, Platinum Victory, a wholly-owned subsidiary of Singapore-listed Jardine Cycle & Carriage (JC&C), registered to sell its entire remaining stake in Vietnam’s leading dairy producer Vinamilk (HoSE: VNM).

The move follows an earlier divestment in December 2025, when Platinum Victory sold more than 96 million Vinamilk shares, or a 4.6% stake, to F&N Dairy Investments Pte. Ltd.

F&N Dairy Investments Pte. Ltd is part of the Fraser and Neave (F&N) group controlled by Thai billionaire Charoen Sirivadhanabhakdi. That transaction was valued at around VND6.01 trillion ($228 million).

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