Vietnamese dairy giant Vinamilk plans cautious price hikes as input costs rise

Vietnam’s top dairy producer Vinamilk (HoSE: VNM) plans to raise product prices by around 2-3% as the company faces renewed pressure from higher raw material and logistics costs, according to brokerage Vietcap Securities following a recent investor meeting.

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 ($93.38 million).

Domestic sales remained the primary growth engine. Revenue from local market reached VND12.08 trillion ($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 ($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.

VNM shares closed at VND60,600 ($2.3) each on Monday.