Established on April 5, 1985, from a collective enterprise with four cigarette factories and several raw tobacco production facilities, Vietnam Tobacco Corporation has now fully developed a comprehensive tobacco business, covering everything from raw material production to cigarette manufacturing, import-export, trade, and tobacco-related services. It has also expanded into the food, confectionery, and beverage sectors. Through various phases of ups and downs and gradual growth in difficult circumstances, Vietnam Tobacco Corporation has become one of the largest state-owned corporations, holding the top position in Vietnam’s tobacco industry and contributing significantly to the state budget and the national economy.
Since January 1, 2006, Vietnam Tobacco Corporation has operated under the parent-subsidiary company model, with 11 subsidiaries in cigarette production, 3 subsidiaries in raw material production, 2 subsidiaries in auxiliary materials, 1 research unit, and 2 joint ventures with foreign partners in tobacco production.
Over more than three decades, Vietnam Tobacco Corporation has made remarkable strides in its development. Its dominance in the domestic market, coupled with a high growth rate in export turnover, has created significant momentum for enhancing the Corporation’s competitiveness. This highlights its leading position, serving as a strategic spearhead in the development of the entire industry while also playing an essential role in the government’s macroeconomic regulation.
During the 2010-2020 period, the Corporation maintained its leading position in Vietnam’s tobacco industry. Despite a decline in overall domestic consumption, the Corporation’s output continued to grow steadily at an average rate of 2-3% per year. Its domestic market share exceeded 65%, leading the mid-range product segment. Its export market share was approximately 75%, with Vietnamese-produced tobacco products present in many countries across Asia, Africa, and the Americas. Notably, in 2019, the Corporation reached a record-high contribution to the state budget in its 36 years of operation, surpassing VND 11.3 trillion, with profits nearly 6% higher than planned, reaching almost VND 1.6 trillion. Employee living standards continued to improve, with average incomes increasing by over 8%.
The Corporation’s direct business activities are also growing through international partnerships to research, invest in, and develop alternative and next-generation tobacco products. It focuses on developing high-end tobacco and cigar products. The Corporation – Parent Company will continue refining its infrastructure to facilitate the strategic management of production, human resources, and the tobacco value chain. This includes unifying brand management, brand identity systems, production machinery capabilities, the Vinataba shared distribution system, and information technology management platforms.
We now have exact knowledge of all daily sales activities on the field and real-time information including product display at hundreds of thousands of outlets nationwide. Real-time visibility into daily business activities and timely business data now empowers every decision – from tactical ones on seasonal promotions to strategic decisions to extend market coverage.