Vietnam's Dairy Industry Faces Stagnation Amidst Urbanisation and Economic Challenges
The Vietnamese dairy industry faces significant challenges as growth in the national dairy herd has decelerated dramatically to just 0.4% per year. Previously, during 2010-2015, the herd expanded by over 15% annually. However, urbanisation has shrunk grazing land, and high feed costs have squeezed profitability. From 2020 to 2024, areas like HCM City saw their herds decline sharply, losing half their population.
At a recent forum in Hà Nội, industry leaders highlighted these concerns, pointing out that the stagnation threatens both the industry's future and farmers' livelihoods. Lê Trọng Đảm, Deputy Editor-in-Chief of Nông nghiệp và Môi trường, expressed worry over these trends undermining the ambition to supply fresh Vietnamese milk.
Experts suggest a comprehensive strategy involving farmer–business partnerships as essential. Nguyễn Xuân Dương, Chairman of the Việt Nam Animal Husbandry Association, advocates for long-term contracts and technical support from enterprises, while farmers should join cooperatives. The State is urged to uphold standards and promote local sourcing to meet demand, considering the national herd only supports 40% of domestic requirements.
The government's target is 650,000 dairy cows and 2.6 million tonnes of fresh milk annually by 2030. Successful models like TH's Dalatmilk in Lâm Đồng, which fosters close cooperation with farmers resulting in significant income gains, demonstrate the potential for success through collaborative efforts.
