Overview of Vietnam's Dairy Industry

Vietnam has emerged as a major force in the global dairy market, marked by substantial growth in both domestic and international sectors. The dairy industry is a crucial part of Vietnam's agricultural landscape, contributing significantly to the national economy.

Milk Production and Dairy Cattle

As of 2023, Vietnam boasts a dairy cattle population of approximately 320,000, leading to an impressive annual milk production of about 1.2 billion liters. This achievement highlights the country's investments in agricultural technology and enhanced farm management practices.

Milk Processing and Cheese Production

The country processes around 900 million liters of milk annually, resulting in the production of about 20,000 tons of cheese. These processed dairy products are consumed domestically as well as exported, showcasing Vietnam's efficient processing capabilities.

Milk Powder and Whey Production

Vietnam produces approximately 50,000 tons of milk powder and whey each year. These products are vital for the domestic market and also play a significant role in exports, underscoring Vietnam's strong position in the dairy sector.

Key Dairy Enterprises

Prominent players in the Vietnamese dairy industry include Vinamilk, Dutch Lady Vietnam, TH True Milk, and Nutifood. Major dairy farms such as TH Group Farms, Vinamilk Farms, and Moc Chau Milk Farms form the backbone of the industry infrastructure.

Export and Import of Dairy Products

Vietnam exports approximately 300 million liters of dairy products annually to countries like China, Cambodia, and the Philippines. Despite robust exports, the country imports around 100 million liters of dairy products each year to satisfy domestic demand.

Significant Events in Vietnam's Dairy Industry

Key developments in the industry include the inauguration of the TH Group's livestock complex in Russia's Moscow region and investments by Vietnam's TH Group in Russia's Far East. The entry of the a2 Milk Company into the Vietnamese market and global manufacturing shifts, along with U.S. tariffs, have impacted Vietnam's dairy exports.

The expansion of the Binh Duong facility in Vietnam, with a EUR 97 million Phase 2 launch, is aimed at meeting regional demands with a production capacity of 30 billion packs annually. Furthermore, partnerships such as those between Nutifood and Australia's ViPlus Dairy, and the establishment of a cheese processing plant by Megmilk Snow Brand in Ho Chi Minh City, highlight Vietnam's growing international collaborations.

As Vietnam's dairy industry continues to evolve, declining production in some areas helps maintain price stability. The expanding middle class and increasing health consciousness drive demand for premium dairy products, positioning Vietnam as a central hub for ASEAN expansion and quality dairy nutrition.

Vietnam's dairy industry faces significant changes due to China's regulations. Vietnamese dairy companies must urgently revise product formulations, processes, and packaging to comply with China's new standards. Reconstituted milk forms a substantial portion of Vietnam's dairy exports to China.

Modified: 2025/07/25


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