Vietnam's Dairy Industry: A Strategic Push Towards Self-sufficiency

At a recent conference focusing on the dairy industry's development strategy, Assoc. Prof. Dr. Tran Quang Trung, chair of the Vietnam Dairy Association, highlighted the robust growth and rising consumption in Vietnam's dairy sector. Despite Vietnam's average milk consumption being lower than countries like Thailand and Singapore, there is significant potential for growth. The average consumption is around 27 litres per person annually, expected to grow by 7-8% each year. Revenue is projected to rise from $5.7 billion in 2024 to $13.37 billion by 2033, with a compound annual growth rate of 9.5% from 2025 to 2033.

Despite these positive trends, Vietnam still heavily relies on imported dairy ingredients, which meet only 40% of domestic demand. Import expenditures topped $1 billion in 2024, primarily on powdered milk. Dr. Nguyen Xuan Duong, of the Vietnam Livestock Association, called for improved regulation and management to prevent cheap imports from overshadowing locally produced fresh milk. By mastering local raw materials and adopting high-tech, value-chain-linked farming practices, Vietnam aims to enhance productivity and ensure sustainable growth.

By 2030, the dairy herd is expected to reach up to 700,000 cows, with fresh milk output reaching 2.6 million tonnes. The strategy also targets self-sufficiency rates of 80-82% by 2045, alongside a per capita consumption increase to 70 litres annually. Companies like Vinamilk and TH true MILK are spearheading innovation and expansion strategies to bolster both domestic and export markets, with Vinamilk reporting impressive revenue growth and market leadership.