Vietnam's Dairy Industry Overview

Vietnam has emerged as a significant player in the global dairy market, experiencing substantial growth in both domestic and international sectors. The dairy industry is a crucial part of Vietnam's agricultural landscape and contributes 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 reflects the country's investments in agricultural technology and improved farm management practices.

Milk Processing and Cheese Production

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

Milk Powder and Whey Production

The country produces approximately 50,000 tons of milk powder and whey each year, essential for the domestic market and playing a significant role in exports.

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 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, aims to meet regional demands with a production capacity of 30 billion packs annually. Additionally, 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.

Challenges and Opportunities

Vietnam's dairy sector is witnessing steady growth with ambitious targets for 2030 and 2045. The strategy targets self-sufficiency rates of 80-82% by 2045, alongside a per capita consumption increase to 70 liters annually. However, the industry faces challenges with slowed growth and shrinking resources. The national dairy herd growth has decelerated dramatically to just 0.4% per year. Urbanization has shrunk grazing land, and high feed costs have squeezed profitability. The government's target is 650,000 dairy cows and 2.6 million tonnes of fresh milk annually by 2030.

Regulatory Developments

Vietnam plans to introduce new technical standards for dairy and alcoholic beverages by July 2026 to enhance food safety. These new regulations continue Vietnam's commitment to food safety, evidenced by previous initiatives and engagements with the World Trade Organisation (WTO). F&N plans to acquire more shares in Vinamilk, announcing intentions to acquire up to 4.6% more shares in Vietnam Dairy Products Joint Stock Company as part of its strategy to bolster its dairy segment.

Expansion and International Influence

Expansion targets for Chinese dairy companies include Feihe's operations expansion to Vietnam as part of its Southeast Asian market strategy. Indonesia's inaugural shipment of processed dairy products to Vietnam included yogurt products valued at $65,000. This development underscores Indonesia's expanding reach in the Asian dairy market. Vietnam's largest dairy company, Vinamilk, is expanding its global presence and has recently achieved a significant milestone by obtaining a patent in the United States. SIG expands its used-carton collection and recycling program, "Recycle for Good," to Vietnam. The project is launching in Bac Ninh province, aimed at collecting empty milk cartons at preschools and primary schools. Waste management is becoming an increasingly pressing challenge due to rapid urbanization and rising consumption. Zott’s sales operations extend to Vietnam, covering markets across Central and Eastern Europe.

Vietnam's dairy industry is targeting significant growth in self-sufficiency by 2045. Currently, the country imports over $1 billion in dairy products annually, highlighting the need to expand local production. The Dairy Industry Development Strategy aims for a 12-14% annual growth rate by 2030, with processed liquid milk output expected to reach approximately 4.2 billion litres per year.

Vietnam Dairy Products took home the Best Children's Dairy Product award for Vinamilk Optimum A2 Pro+.

Modified: 2026/06/19