Namyang Dairy Products is set to significantly expand its infant formula business in Vietnam.

Namyang Dairy Products announced on the 7th that it has signed a strategic partnership with Phu Thai Group, Vietnam’s largest distribution company.

Through this partnership, Namyang Dairy Products plans to develop its business by leveraging Phu Thai Group’s nationwide distribution infrastructure, as well as its channel competitiveness centered on traditional markets and baby shops specializing in formula and milk, which are optimized for infant formula sales.

The Vietnamese infant formula market is characterized by a structure in which purchases are mainly made through offline channels. In particular, trust in safety and quality has a direct impact on purchasing decisions for infant formula. In response, Namyang Dairy Products plans to work with Phu Thai Group, which has experience in distributing global brands, to convey the quality competitiveness and management standards of K-formula in a way that is tailored to the local distribution environment. Namyang Dairy Products also has experience in stably operating its infant formula business in the Cambodian market and building trust among local consumers.

In the Vietnamese market as well, Namyang Dairy Products intends to secure a stable sales base of USD 20 million over the next three years, focusing on infant formula, and to gradually increase the proportion of its global business.

Kim Seung-eon, CEO of Namyang Dairy Products, said, “This partnership is a strategic collaboration aimed at stably developing the infant formula business on a foundation of trust, taking into account Vietnam’s distribution environment and consumer characteristics,” adding, “Through this agreement, we will prove the competitiveness of K-formula in the local market and make it a meaningful turning point for expanding our global business.”

Meanwhile, Phu Thai Group is a leading Vietnamese distribution group with 160,000 retail outlets, more than 1,000 supermarkets, over 2,000 convenience stores, and more than 2,500 wholesale distribution networks across 63 provinces and cities nationwide. The company has maintained an average annual growth rate of over 25% and serves as the exclusive distribution partner for global brands such as P&G, Caterpillar, Jaguar Land Rover, and Petronas.

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