Persistent non-trade barriers (NTBs) in ASEAN markets, including Vietnam, present significant operational challenges for dairy firm Fonterra, its general manager of Trade Strategy Justine Aroll has said in corporate commentary published by the Vietnam Investment Review →view source.
Major NTBs include duplicative administrative procedures, non-transparent import licensing, inconsistent rule enforcement, and complex labelling requirements.
Key points Aroll makes include:
- Fonterra has been present in Southeast Asia for over 50 years, operating in eight countries with more than 1,000 staff and 450 products under eight brands.
- Regional growth has been supported by trade agreements such as AANZFTA, RCEP, and CPTPP, which have reduced tariffs and improved certainty for exporters.
- Rising incomes, urbanisation, and growing dairy integration into local diets continue to boost demand, particularly through expanding Western-style dining.
- Despite Vietnam’s relative strengths, NTBs still pose difficulties region-wide, highlighting the need for broader collaboration on simplifying procedures and aligning standards.
- Fonterra sees opportunities for Vietnam to work with ASEAN partners to advance mutual recognition systems and science-based standards, reducing compliance burdens for exporters.
- Vietnam’s strong trade agreement network, improving infrastructure, and openness to reform position it as an increasingly important hub for regional supply chains.
See also: Milk in Vietnam 2025: Market Trends, Imports, and Key Players