Danone, the French-headquartered corporation that owns the Aptamil infant formula brand, is increasing its investment in Vietnam. Tran Thi Hoang Thu, general director of Danone Vietnam, shares her market perspective, as well as the corporation's challenges and future directions in Vietnam.

Tran Thi Hoang Thu, general director of Danone Vietnam. Photo: Danone Vietnam

Vietnam is a key strategic market for Danone, driven by rapid economic growth and a significant demand for premium, traceable nutritional products. Danone observes a shift in consumer habits among Vietnamese parents, who now seek not only milk products that support physical development but also specialized scientific solutions to build their children's immune systems and foster brain development. This presents a clear opportunity for Danone to introduce its global scientific heritage to Vietnam.

Parents' demand for infant formula is becoming more stringent than ever, with Vietnamese parents willing to pay more for imported nutritional milk products. While these trends create major opportunities for Aptamil in the Vietnamese market, the market also presents significant challenges. First, the Vietnamese milk market, estimated to be worth USD 2 billion by the Vietnam Dairy Association, faces fierce competition. Second, gaining consumer trust amidst numerous unregulated products on the market is not simple.

To overcome these challenges and strengthen consumer trust, Danone focuses on two core strategies. The first is ensuring product consistency and authenticity. All genuine Aptamil products imported into Vietnam are in their original packaging, strictly complying with Vietnamese legal regulations, scientific standards, and Danone's global quality control processes. The second strategy involves building a reliable official distribution system. Strategic cooperation with leading reputable distributors and mother-and-baby retail chains in Vietnam ensures that genuine Aptamil products reach consumers through tightly controlled channels, with full certification documents and transparent origin.

Danone always places scientific research as the foundation of the group's operations. Photo: Danone Vietnam

Since its entry in 2019, Aptamil has made a significant mark on the Vietnamese milk market. Its arrival, spearheaded by Danone Vietnam as the official importer and distributor of the Aptamil Profutura Kid Cesarbiotik 3 (Aptamil New Zealand 3) line, addressed a primary consumer concern: transparency of origin, consistent quality, and product authenticity. Danone has successfully positioned Aptamil as a premium brand, trusted by many parents, as evidenced by stable annual growth in the premium infant formula segment. Further achievements include partnerships with reputable retail chains, establishing a reliable official distribution channel, and organizing in-depth nutritional counseling activities, all of which strengthen the brand's position with consumers.

Danone's vision, "One Planet, One Health", established in 2017, serves as a guiding principle for long-term sustainable development, emphasizing transparency regarding the origin and impact of food on people and the planet. In Vietnam, this philosophy translates into a commitment to sustainable business, prioritizing environmental issues and human health through two pillars. The first, "One Health" (for people), focuses on nutrition, particularly children's nutrition and gut health. Danone promotes cooperation with hospitals for health research and education, and encourages healthy lifestyles through communication campaigns. The second pillar, "One Planet" (for the environment), commits Danone Vietnam to sustainable operations that minimize environmental impact and achieve global goals, prioritizing partnerships with strategic partners in Vietnam who share this commitment to sustainability.

Aptamil's orientation, "Every Growth Journey Is Different", is realized in Vietnam by developing a product portfolio that meets diverse needs. For example, Danone offers Aptamil Profutura Kid Cesarbiotik 3 (Aptamil New Zealand 3) as a scientific nutritional solution for children born by C-section. This infant formula incorporates an exclusive Synbiotic formula and a set of five nutrients supporting brain development, helping children boost immunity and achieve comprehensive brain development. Aptamil also provides other product lines to support children's immunity, brain, and physical development, fostering overall growth. Looking ahead, Danone aims to research more specialized nutritional solutions based on the digestive characteristics and living environment of children in each region, ensuring all children are nourished to reach their potential.

Danone Vietnam is the official importer and distributor of the Aptamil Profutura Kid Cesarbiotik 3 (Aptamil New Zealand 3) line in the Vietnamese market. Photo: Danone Vietnam

As Danone's number one brand, Aptamil Profutura Kid Cesarbiotik 3 (Aptamil New Zealand 3) will remain a strategic product during the expansion phase in the Vietnamese market, continuing to lead Danone's premium infant formula segment. Beyond children's nutrition, Danone is exploring plans to expand its portfolio into specialized medical nutrition and dairy and plant-based nutritional products to meet the increasingly diverse needs of Vietnamese consumers.

Danone aims to become the trusted nutrition partner for Vietnamese families. To achieve this, the corporation will implement a comprehensive investment strategy in the Vietnamese market. Future initiatives include enhancing nutritional science knowledge for Vietnamese people through cooperation with leading Vietnamese experts and health organizations to conduct research and educational programs on the role of nutrition for children. Danone will also invest in developing a local expert team to understand Vietnamese consumer culture and needs. Additionally, the corporation will enhance technology application to improve the authentic shopping experience and provide nutritional counseling services.

Mai Thuong