Namyang Dairy Products Partners with Vietnam's Top Distributor Phu Thai to Expand Infant Formula Business

Signed $20 Million Export Deal Over Three Years
Largest Scale Since Entering Vietnam

On January 7, Namyang Dairy Products announced that it has signed a strategic partnership with Phu Thai Group, Vietnam's largest distribution company, to accelerate the expansion of its infant formula business in Vietnam.

Established in 1993, Phu Thai Group is a leading Vietnamese distribution conglomerate, operating 160,000 retail outlets, over 1,000 supermarkets, more than 2,000 convenience stores, and 2,500 wholesale distribution networks across all 63 provinces and cities nationwide. The group has maintained an 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.

Namyang Dairy Products signed a strategic partnership agreement with Vietnam's Phu Thai Group. (From left: Nguyen Viet Cuong, Vice President of Phu Thai Group; Pham Dinh Doan, Chairman; Tran Viet Hung, Business Development Director; Seung Eon Kim, CEO of Namyang Dairy Products; Seong Hyun Seo, Head of Global Business Team; Eung Sik Kim, Deputy Manager of Global Business Team). Namyang Dairy Products

Through this partnership, Namyang Dairy Products plans to leverage Phu Thai Group’s nationwide distribution infrastructure, as well as its channel competitiveness in traditional markets and baby shops specializing in infant formula and milk products, to drive its business. While the importance of online channels is growing in the global food market, the Vietnamese infant formula sector remains largely dependent on offline channels. In particular, since trust in safety and quality directly influences purchasing decisions for infant formula, it is crucial to collaborate with a distribution partner whose capabilities in logistics, inventory, and store operations have been proven.

The company aims to secure a stable sales base of 20 million dollars over the next three years in the Vietnamese market, focusing on infant formula, and to gradually increase the proportion of its global business.

Seung Eon Kim, CEO and President of Namyang Dairy Products, stated, "This partnership is a strategic collaboration to ensure the stable development of our infant formula business based on trust, taking into account the Vietnamese distribution environment and consumer characteristics. Through this agreement, we will demonstrate the competitiveness of K-formula in the local market and make this a meaningful turning point for expanding our global business."

Tran Viet Hung, Business Development Director of Phu Thai Group, emphasized, "Namyang Dairy Products is a company with longstanding competitiveness in quality control and product reliability. Based on our expertise in the Vietnamese distribution environment, I expect that our two companies can build a long-term partnership."