Vietnam's dairy giant Vinamilk to be safe and sound amid US tariff storm: CEO

Vietnam’s largest dairy maker Vinamilk will not be significantly affected by U.S. reciprocal tariffs and global trade competition as its largest share lies in the domestic market, said CEO Mai Kieu Lien.

Responding to shareholders' enquiries at the 2025 AGM on Friday, she said that the domestic market accounts for the majority of the firm’s revenue.

"While exports are growing fast, they still represent a small portion, so the impact is minimal. Out of Vinamilk’s $2.5-2.6 billion in revenue, its U.S. plant contributes around $120 million, only 5%," Lien added.

“The world is interconnected so everything is temporary. Every nation wants stability, so cooperation agreements will follow. We believe these current disruptions will end soon. Countries are negotiating. The tariff enforcement has been delayed by 90 days. Personally, I am optimistic,” she said.

These impacts are mostly psychological. If tariffs are enforced, many industries like wood and textiles would be affected. The trend now is selecting only essential products for consumption, Lien argued.

According to the CEO, even if Vietnam lowers import tariffs on U.S. dairy products to zero, it will not significantly affect the local industry.

For liquid milk, current import tariffs range from 2% to 15%. If reduced to zero, it might cause some changes, but imported liquid milk still struggles to compete with local products, Lien noted.

As for powdered milk, the import tax is currently 10%. If reduced to zero, there might be moderate changes, but the price gap between market segments is still large. If U.S. imports belong to the premium or ultra-premium segment, even with zero tariffs, the price reduction is limited.

“The powdered milk market has been long established. Such minor tariff changes will not cause major disruptions. Moreover, consumer purchasing power has not recovered significantly due to economic uncertainties. As a result, premium U.S. imports are unlikely to shift the overall market landscape,” she remarked.

Modest revenue, profit targets for 2025

For 2025, Vinamilk targets VND64.5 trillion ($2.48 billion) in total revenue and VND9.68 trillion ($372 million) in post-tax profit, respective increases of 4.3 and 2.4% from 2024.

The board of directors proposed a minimum 2025 cash dividend of 50% of the consolidated post-tax profit.

The AGM approved a 2024 cash dividend payout of 43.5% of par value, or VND4,350 ($0.17) per share, up 5% from the level approved at the 2024 AGM.

The total dividend value is estimated at over VND9 billion ($345.87 million), equivalent to 108% of the 2024 after-tax profit.

Last year, Vinamilk’s exports grew by 12.4%, with net revenue reaching VND5.66 trillion ($217.5 million).

In Q1 this year, export activities continued to show double-digit growth. Earlier this year, the company announced that its condensed milk had entered the European market. Since 1997, Vinamilk has exported to 63 countries, with cumulative export revenue exceeding $3.4 billion.

In 2024, the firm’s total revenue reached VND61.82 trillion ($2.38 billion) and post-tax profit hit VND9.45 trillion ($363.2 millon), up 2.2% and 4.8% year-on-year, respectively.

According to its financial statement, as of the end of 2024, Vinamilk’s development investment fund had recorded nearly VND7 trillion ($269 million).

Vinamilk is listed on the Ho Chi Minh Stock Exchange as VNM, which closed Friday at VND58,300 ($2.24) per share.