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FrieslandCampina Vietnam has been awarded the Labour Medal II from the Vietnamese government for its contribution to creating shared values for Vietnamese society and economy on the 15th anniversary of its establishment. New managing director of the company Mark Boot talks with VIR’s Minh Thien about FrieslandCampina Vietnam’s achievements and the company’s future directions.
What is FrieslandCampina Vietnam’s ‘global vision with local heart’ formula? How important has this been to your success in the past 15 years?
Royal FrieslandCampina is a co-operative owned by farmers and this ensures we will always stay committed to our core principles. We will take care of the environment, create sustainable dairy farming and always ensure the best possible quality dairy products. FrieslandCampina Vietnam therefore has been built on providing health and nutrition, carrying out sustainable dairy farming and boosting education. Our dairy products are being produced in cooperation with more than 3,100 farmers in the Dairy Development Programme. We have taken this one step further – to societal involvement in education through the Den Dom Dom Study Encouragement Fund. So far, we have awarded over 20,000 scholarships and have built eight schools for needy children in remote areas to help them continue schooling.
Furthermore, FrieslandCampina Vietnam, like its mother company in the Netherlands, values human relationships. Our employees are a core asset and we cherish long-term relationships with our distributors, customers, suppliers, partners and stakeholders.
When and why did FrieslandCampina Vietnam decide to invest some $13 million to develop a local supply of raw materials although you can import them from other countries?
Our growth has been established in symbiosis with the Vietnamese society. From the start, FrieslandCampina Vietnam has committed to improving the livelihood of the Vietnamese as a responsible citizen. We decided to contribute to the sustainable development of the country. The mission is to help Vietnamese people to improve their lives and move forward in life by getting more out of milk. We have run the Dairy Development Programme since 1995 to support dairy development in Vietnam with our most advanced knowledge and 135-year-experience in dairy and nutrition gained from Holland and countries all over the world.
For the Dairy Development Programme, we organised the dairy development support to help Vietnamese dairy farmers for sustainable dairy farming. We apply the dairy quality management method “From grass to glass” to ensure product’s quality and hygienic conditions, and purchase milk directly from farmers while paying more for better quality. We are keen on encouraging and supporting farmers to improve milk quality. Annually, the company has invested $1 million for the programme in training, technology transfer for farmers, the establishment of a complete control system, and encouraging investment in the use of the bio gas system. In addition, we are investigating ways to develop milk cows in the northern areas, near our Ha Nam factory.
How is your market size in Vietnam compared with other countries? How does it contribute to your global development in terms of annual revenue and profit?
Vietnam is a very important growth market for Royal FrieslandCampina. Ever since we started in Vietnam we have not only been looking for annual revenue and profits, but also try our best to fulfil our mission: “to help Vietnamese people to improve life, and move forward in life by getting more out of milk”. We want to be the most professional, successful and attractive “glocal” dairy company, creating shared values with Vietnam, Vietnamese people, the community, the farmers, the suppliers and all our partners.
How does FrieslandCampina Vietnam maintain and expand market share in a more competitive market where there are many players trying to boost their market shares?
In this increasingly competitive market environment, we have to use our strong foundation and keep driving the market through innovative thinking and continuously improving our operations to be always best-in-class. We will invest in capabilities, new technologies and innovation to better serve our consumers and customers. Also, FrieslandCampina Vietnam will tirelessly contribute to provide the best nutritional dairy products in Vietnam. That is our commitment.
FrieslandCampina Vietnam has invested some $135 million to develop a production chain in Vietnam. Do you have a plan to scale up your facility in the years to come?
FrieslandCampina Vietnam invested $30 million in a new factory in Ha Nam province and has invested $10 million in expanding the factory in Binh Duong. Both of FrieslandCampina Vietnam’s factories have the safest and most modern milk production technology along with best wastewater treatment, thus helping to reduce the greenhouse effect. In upcoming years,we will invest in capabilities, new technologies and innovation, continuously improve our daily operations to be best-in-class, to better serve our consumers and customers.