P.E.S.T.L.

E in Vietnam for Vinamilk

1. Political factors:
- Vietnam is country with a stable political institutions that facilitate doing business in
Vietnam. Moreover, Vietnam is a peaceful country without war and terrorism.
- Vietnam joined ASEAN and the World Trade Organization in 1995 and 2007,
respectively.
In July 2010, the Vietnamese Ministry of Health passed a policy requiring milk
products, particularly those marketed to children.
- Policymakers also authorized steps in 2012 to raise Vietnam's average height
(Vietnam Government Portal)
2. Economic factors:
- In the period 2010-2015, fresh milk production increased by 16% per year on
average, from 520.6 million liters in 2010 to 1,093 million liters in 2015; Powdered
milk production returned to increasing momentum after decreasing in 2014,
reaching 97.3 thousand tons, up 19.5% compared to 2013, milk powder production
increased on average 10.5%/year, from 58 9 thousand tons in 2010 to 97.1 thousand
tons in 2015. According to the General Statistics Office, in 2015 Vietnam's dairy
industry recorded the highest level of milk production ever.
(https://investvietnam.gov.vn/vi/nghanh.nghd/15/sua-va-cac-san-pham-sua.html)
- Vinamilk in the past year can be mentioned as having successfully signed a contract
to export baby formula worth USD 20 million to the Middle East in early 2020; is the
first dairy enterprise of Vietnam licensed to export milk to EAEU countries (Eurasian
Economic Union) and continuously records positive information about exporting to
countries such as Korea, China. . With those efforts, Vinamilk's international business
revenue in 2020 reached over $240 million, an increase of more than 8% compared
to 2019, higher than the increase. growth of 5.1% in export turnover of the whole
country. In addition to exploiting strong markets such as the Middle East, Southeast
Asia, the United States, etc. Over the years, Vinamilk has also actively developed
potential new markets such as China, Korea, and some new countries in the Africa
 region. Up to now, Vinamilk has exported to 56 countries and territories with a total
turnover of more than 2.4 billion USD. (https://nhandan.vn/tin-tuc-kinh-te/vinamilk-
xuat-khau-sua-hat-va-sua-dac-sang-trung-quoc-632112/)
3. Techonological factors:
- Vinamilk uses modern production and packaging technology at all factories,
importing technology from European countries such as Germany, Italy, and
Switzerland to apply to production lines. As the only company in Vietnam that owns
a system of machinery using spray drying technology produced by Niro of Denmark -
the world leader in industrial drying technology - Vinamilk also uses production lines
to meet international standards provided by Tetra Pak to produce dairy products
and other value-added products.
- The company has invested more than 6,500 billion VND from its capital to
modernize machinery, equipment, and technology. manufacture. Many modern
refining lines originating from advanced industrial countries such as the US,
Denmark, Italy, Germany, the Netherlands... are installed together with the world's
leading experts to guide the operation and transfer. technology.
- The product categories and products are of high quality and have been tested by
international organizations such as condensed milk with sugar, soy milk, yogurt, and
Dielac milk powder of Vinamilk, which have been exported to the US and Australia. ,
South Africa, the Middle East, and many Asian countries.
(https://khcncongthuong.vn/tin-tuc/t985/nganh-sua-viet-nam-dau-tu-cong-nghe-
huong-toi-tuong-lai.html)

4. Environmental factors
- Vietnam has encountered substantial environmental difficulties as a result of its
rapidly developing economy, population, and urbanization. Vietnam's pollution level
became a major problem in 2006 owing to solid waste, water, and air pollution.
According to Vietnam's Ministry of Natural Resources and Environment, these issues
are becoming increasingly acute as a result of a lack of government resources and
 help ( GlobalSecurity, 2016). Water and environmental issues might have a severe
impact on Vinamilk farms and the value chain.
5. Social factors
- In the 18-year-old age group, the height of Vietnamese youth rises dramatically,
reaching 168.1 cm in 2020, an increase of 3.5 cm from 2010. (165.4 cm). Notably,
the youth's height increased in tandem with their nutritional condition, and vitamin
deficits were alleviated. Malnutrition and stunting among school-aged children (5-19
years old) have fallen to 14.8%. (by 2020). This rate was 23.4 percent in 2010.
(https://thanhnien.vn/chieu-cao-thanh-nien-viet-nam-tang-trung-binh-3-5-cm-so-voi-10-
nam-truoc-post1057411.html)
- In 2021, Vietnam's population is expected to increase by 830,246 people and reach
98,564,407 people by early 2022, of which 25.2% are under the age of 15. It is often
estimated that a child's adult height will be twice his height at 2 years old (for example,
when a child is 82cm tall when he is 2 years old, he will be 1.64m tall when he is an adult).
Or the adult height is equal to the height at 10 years old multiplied by 1.25 (for example,
when a child is 1.4m tall when he is 10 years old, he will be about 1.75m tall when he is an
adult). Thereby, we see that nurturing care in the stages: pregnancy, the first 3 years, and
puberty is very important to develop the child's height. (https://danso.org/viet-nam/)
6. Legal factors
- Vinamilk must employ a sophisticated way to verify that its products are safe and
nutritious for its customers. The corporation must follow food safety regulations not
only in Vietnam but also in other countries across the world. Furthermore, Vinamilk
must pledge to completely implement the legal laws on food safety and accept full
responsibility for the legality of the reported records as well as the company's
quality and food safety. with previously announced items
- - Vietnam has a plethora of taxes that will make it tough for any business to
function. It also influences the company's price selections.