Foreign Dairy Firms Catalyze Vietnam's Green and Digital Industry Shift
On June 11, Meadow Fresh introduced two new products at an industry workshop in Ho Chi Minh City, marking its expansion in the Vietnamese dairy market. This move is part of a broader trend where international dairy companies are investing in Vietnam, leveraging advanced farming technologies and sustainable production models. Scott James, New Zealand’s consul general to Vietnam, emphasized the global recognition of New Zealand for its high-quality dairy products, underpinned by sustainable farming practices.
Meadow Fresh ensures quality through strict controls from farm to product, using technologies like herd health monitoring and hormone-free farming. This reflects a growing interest in Vietnam's dairy sector, as seen at Vietnam Dairy 2026 in Hanoi, where over 250 international and domestic brands discussed industry trends and innovations.
According to Dr. Tran Quang Trung of the Vietnam Dairy Association, the industry faces challenges in quality standards and traceability. He noted that experiences from international firms could help local businesses adopt emission reduction solutions and circular economy principles throughout the value chain. Digital transformation is pivotal for improving efficiency and reducing environmental impact through automation, data management, and traceability solutions.
Nestlé, with over 30 years in Vietnam, is undergoing a digital transformation across its operations, from marketing to supply chain, to enhance efficiency and customer experience. They are developing smart factory models with technologies like AI and real-time data analysis to improve productivity and ensure food safety.
Le Thi Hoai Thuong, of Nestlé Vietnam, stated that digital transformation is central to enhancing the dairy value chain's transparency and efficiency. Concurrently, foreign companies are exploring nutritional product lines to meet the diverse needs of Vietnamese consumers. Taguchi Yoshihiro of Morinaga Nutritional Foods Vietnam highlighted the rising demand for high-quality nutritional products driven by health awareness and urbanization.
Despite Vietnam's potential, its per capita milk consumption is much lower than in developed countries. The Vietnam Dairy Association aims for significant growth, with plans for processed liquid milk production to reach 4.2 billion litres by 2030. TH Group suggests developing a herd of 700,000 cows using high-tech farming to meet demand.
Investment interest remains strong, with TH Group exploring a $1 billion funding round. Vinamilk is also advancing its sustainability goals, targeting net-zero emissions by 2050, and deploying technologies to cut emissions and boost efficiency.
