Vinamilk sees 2010 sales to rise 30% on recovery

Vietnam's biggest dairy firm Vinamilk expects this year's sales to grow 30% as the country's economic recovery bolsters demand.

Vinamilk, with a market share of about 35%, will tap population growth in the nation of more than 86 million people, said Nguyen Minh Tung, chief operating officer at Ho Chi Minh City-based Tigers Alliance Capital.

Vietnamese are increasingly concerned about their health and the country's economic growth is boosting their capability to buy milk, Nguyen said.

''We expect Vinamilk to increase its market share to 45 percent in the next few years,'' he said.

Vinamilk has gained 12.7% this year compared with a 1.3% advance in the benchmark VN Index, according to reports. Its shares fell 0.6% to close at VND84,500 on the Ho Chi Minh City Stock Exchange.

Vinamilk, which started shipping its products to Iraq 12 years ago, posted a revenue increase last year of 29% to VND10.6 trillion (US$555 million), while net income rose 90% to VND2.37 trillion.

Meanwhile, the company will continue to focus on milk powder, yogurt and fresh milk and aim to expand from its existing export markets of the US, India, the Middle East, Africa, Poland, Germany and Cambodia, according to Vinamilk chairwoman Mai Kieu Lien.