Vietnam's Dairy Industry Faces Challenges Amid Global Geopolitical Fluctuations
The dairy processing industry in Vietnam is striving to maintain sustainable growth amidst challenging global conditions, according to Tống Xuân Chinh, vice chairman of the Vietnam Dairy Association. Recent geopolitical tensions, including conflicts in the Middle East and the ongoing Russia-Ukraine war, have disrupted agricultural and trade structures, impacting the dairy sector that relies heavily on imported raw materials.
These conflicts have led to increased prices for imported milk powder and raw materials, along with heightened costs for feed, electricity, and shipping. The industry is also facing inflationary pressures that affect domestic purchasing power.
Despite these challenges, the sector aims to tap into niche markets driven by demand for premium and specialized dairy products, including nutritional foods for the elderly and children. Developing dairy herds to support both domestic consumption and export is also a priority.
Trần Quang Trung, chairman of the Vietnam Dairy Association, highlighted recent progress in market size, production capacity, and product quality. The industry now focuses on meeting international standards and expanding the product ecosystem to include items like nut-based milk and fruit beverages.
The Vietnamese government has approved a strategy for dairy industry development through 2030, with a vision to 2045. This strategy emphasizes building a disease-safe and food-safe dairy farming chain and reducing reliance on imports by expanding the domestic herd.
The Vietnam International Milk and Dairy Products Exhibition, scheduled for May 28-31, 2026, in Hanoi, will feature 250 booths from both domestic and international exhibitors. The event aims to facilitate market expansion, branding, and access to new technologies, contributing to the industry's sustainable development.
In 2025, the total revenue of the dairy industry reached over VNĐ133 trillion (approximately $5 billion), with exports exceeding $390 million while imports surpassed $1.43 billion. The exhibition will also feature seminars and workshops to promote sustainability and innovation in the dairy sector.
