Dutch dairy co-operative Campina and Vietnamese dairy company Vinamilk are forming a 50/50 joint venture, Campina said today (Friday).

Campina said the move would enhance its competitive power in Vietnam’s growing dairy market.

For Campina, the launch of the joint venture represents an important step in realising its aim of fast growth in a selected number of Asian countries. The joint venture will focus on so-called value-added products such as yoghurts, dairy drinks and desserts, which will be marketed in Vietnam under the international Campina brand, it said.

Vinamilk is a company with a majority state ownership. It has around 3,000 employees and turnover of US$245m. It has seven plants spread around the country and a large national distribution network. Vinamilk is specialised in the production and marketing of dairy products (such as sweetened condensed milk, milk powder and liquid milk), biscuits, fruit juices and other drinks. The company’s well-known brands are Vinamilk, Dielac, and Yomilk.

The joint venture will operate under the name Campina Joint Venture company. Campina’s contribution to the joint venture is its marketing know-how, its innovative power  and the Campina brand. Vinamilk will contribute with its production facilities and distribution network throughout Vietnam.

“I am extremely pleased that Campina will be working with a partner like Vinamilk,” said Justinus Sanders, CEO of Campina BV. “Vinamilk has state-of-the-art production facilities and an elaborate distribution network throughout the country. Campina will provide marketing know-how together with innovative dairy products. By optimally combining the competitive power of both companies, we should be able to build significant market positions.”