Vietnam’s Dairy Market 2026: Data, Scandals, Risks, and Key Players

Vietnam’s dairy market is one of the biggest segments of Vietnam’s food and beverage industry.

The sector has experienced robust growth in recent years, underpinned by rising disposable incomes, a youthful and expanding population, and a growing awareness of health and nutrition.

Increasing demand for value-added dairy products such as yogurt, cheese, and fortified milk has broadened the market beyond traditional liquid milk consumption.

However, the sector also faces notable challenges. Vietnam’s domestic fresh milk production remains insufficient to meet demand, leading to high reliance on imports of milk powder and raw materials.

Ensuring consistent milk quality, improving cold chain logistics, and addressing rising input costs are ongoing concerns.

It’s with all of this in mind that this article breaks down Vietnam’s key dairy data, including market size and imports; popular dairy products; and the main dairy players, both domestic and foreign.

Section 1: Vietnam dairy industry overview

Vietnam’s dairy market is experiencing robust growth, supported by a young and increasingly health-conscious population.

Domestic brands dominate the sector, but international players are making significant inroads, encouraged by the rising demand for high-quality and diverse dairy products.

Vietnam’s dairy market

Vietnam’s dairy market is mostly dominated by milk which accounts for an estimated 70 percent of the market.

It’s estimated that the milk market in Vietnam will be worth about US$4.2 billion in 2024.

It’s also estimated that it will grow at a compounded annual growth rate of 8.65 percent between now and 2029, according to data from Statista.

Vietnam dairy enzymes market

Vietnam’s dairy enzymes market, valued at US$12.10 million in 2023, is set to witness steady growth with a compound annual growth rate (CAGR) of 4.58 percent through 2029.

The rising consumer demand for dairy products, advancements in enzyme production, and an expanding dairy processing sector are key drivers of this growth, according to a report from Research and Markets.

Listed dairy firm revenue, US$m

Vietnam dairy imports

To bridge the gap between domestic supply and demand, Vietnam imports a substantial amount of dairy products, including milk powder, butter, and cheese. Major import sources include New Zealand, Australia, and the US.

These countries are known for their high-quality dairy production and have established strong trade relationships with Vietnam.

Vietnam dairy imports, US$

Dairy production in Vietnam

Vietnam’s fresh milk output reached 1,697.98 million litres in 2025.

Vietnam’s powdered milk production in 2025 had reached 153.98 thousand tons by the end of December.

Eggs in Vietnam

Dairy farming regions in Vietnam

Vietnam’s dairy industry is concentrated in several key regions, each with its own unique characteristics.

Northern Vietnam dairy production

The northern region, including provinces like Ha Tay and Moc Chau, is known for its temperate climate and abundant grasslands, making it suitable for dairy cattle farming.

Large-scale dairy farms and cooperatives have emerged in recent years, contributing significantly to the country’s milk production.

Southern Vietnam dairy production

The southern region, particularly the Mekong Delta, has witnessed rapid growth in the dairy sector.

While facing challenges related to climate and infrastructure, this region is home to a significant portion of Vietnam’s dairy cow population.

Efforts are underway to improve breeding and management practices to boost milk yield.

Central Highlands dairy production

The central highlands offer a mix of conditions suitable for dairy farming.

While the region has potential, it has not yet reached the same level of development as the north and south.

However, there is growing interest in developing the dairy industry in this area.

It’s important to note that the Vietnamese dairy industry is still relatively young, and the distribution of dairy farms is constantly evolving.

The government is actively supporting the development of the dairy sector nationwide through various initiatives and policies.

See also: Manufacturing in Vietnam: Industry Overview

Popular dairy products in Vietnam

Vietnam’s dairy market has been expanding rapidly, with a diverse range of products catering to various consumer preferences.

Some of the most popular dairy products in Vietnam include:

Fresh Milk

Fresh milk in Vietnam is a staple in many households, available in various forms, such as whole milk, skim milk, and flavoured milk.

Brands like Vinamilk and TH True Milk are leaders in this segment, offering high-quality products sourced from local farms.

Yogurt

Yogurt in Vietnam is a favourite among Vietnamese consumers, enjoyed as both a snack and a dessert.

It is available in a variety of flavours, from traditional plain yogurt to fruit-flavoured options and drinking yogurts. Vinamilk, TH True Milk, and Dalat Milk are some of the leading brands in this category.

Cheese

The consumption of cheese in Vietnam has been growing steadily, especially in urban areas.

Processed cheese products, such as slices and spreads, are popular for their versatility and convenience.

There is also increasing demand for specialty cheeses like mozzarella and cheddar for use in Western dishes.

Butter

With domestic milk production still limited, most butter is made from imported raw materials or brought in as finished products from New Zealand, Australia, France, and Denmark.

Demand is strongest in urban bakeries, cafés, hotels, and restaurants, while household consumption is rising alongside interest in Western-style cooking.

See also: Butter in Vietnam 2025: Market Trends, Imports, and Key Players

Section 2: Key playersy

Vietnam’s dairy market is dominated by a handful of strong domestic players, with foreign companies also making significant inroads.  

Vietnamese dairy companies

Vietnam’s dairy industry is marked by a mix of established and emerging companies, each contributing to the sector’s growth and diversity.

Lof International Dairy Products

Lof International Dairy Products is a Vietnamese dairy company engaged in producing a range of milk and dairy products.

The company integrates modern dairy farming practices and advanced processing techniques to cater to consumer demand for fresh dairy products.

Hanoi Milk

Based in Hanoi, Hanoi Milk is a dairy producer focused on offering milk and dairy beverages to a wide audience.

The company is known for its local sourcing approach and commitment to sustainable production methods.

Lof International Dairy

Lof International Dairy provides a variety of dairy products, including organic and premium options.

The company emphasises local milk sourcing and offers products aimed at meeting diverse consumer needs.

Moc Chau Dairy Cattle Breeding

Moc Chau Dairy Cattle Breeding operates in the highlands of Moc Chau, focusing on cattle farming and milk production.

The company has a long-standing presence in the dairy sector, producing milk known for its regional characteristics.

Vietnam Dairy Products (Vinamilk)

Vietnam Dairy Products, or Vinamilk, is one of Vietnam’s largest dairy companies, producing a broad array of dairy products, including milk, yogurt, and snacks.

Vinamilk continues to expand its product line and maintain a significant presence in the Vietnamese market.

Foreign dairy companies in Vietnam

Foreign dairy companies have established a notable presence in Vietnam, drawn by the country’s growing demand for high-quality dairy products.

Some of these companies include:

FrieslandCampina

FrieslandCampina, a Dutch dairy giant, operates in Vietnam under the Dutch Lady brand.

With over two decades in the Vietnamese market, it offers a variety of milk-based beverages, catering to consumers across different age groups.

The company emphasises quality and nutrition, adapting its products to local preferences.

Nestlé

Nestlé, a Swiss multinational, has a strong presence in Vietnam’s dairy market, mainly in the form of milk powders and dairy-based drinks.

The company tailors its products to meet local tastes and nutritional needs, contributing to the growing diversity of dairy options in the market.

Fonterra

New Zealand-based Fonterra is also active in Vietnam, primarily supplying dairy ingredients to local food and beverage manufacturers.

Known for its high-quality milk powders, Fonterra’s products are used in a range of dairy products and processed foods throughout the country.

Abbott

Abbott, a US-based healthcare and nutrition company, provides milk formulas and nutritional products in Vietnam, focusing on infants, children, and adults with specific dietary needs.

Abbott’s specialised products are popular among health-conscious consumers, particularly for infant and toddler nutrition.

See also: How to Start a Business in Vietnam

Section 3: Scandals & Risks in Vietnam’s Dairy Industry

This section outlines several key scandals and a few key risks in Vietnam’s dairy industry.

Scandals

Vietnam’s dairy industry has faced several high-profile safety controversies over the past two decades, shaking public confidence and prompting regulatory reforms. 

While domestic brands like Vinamilk and TH True Milk have invested heavily in rebuilding trust, recurring issues—ranging from counterfeit powders to import fraud—continue to influence consumer behaviour and policymaking.

The 2008 Melamine-contaminated dairy scare

Back in 2008, Vietnamese authorities expanded nationwide inspections of imported milk products after detecting melamine—a toxic industrial chemical—in shipments from China, amid rising concerns following the Chinese milk scandal.

Preliminary tests found low levels of melamine in products imported from Inner Mongolia Yili Industrial Group, a company already listed by Chinese authorities for contaminated milk.

Over 16,700 litres of milk from Yili were confiscated by local inspectors.

The Ministry of Health issued an urgent notice to all provinces, instructing agencies to remove milk without clear labels or origin and to conduct melamine testing.

Whereas there were no reported cases of serious illness, this shook consumer confidence in the industry.

2013 Goat Milk Scandal

Retailers in Ho Chi Minh City were forced to remove GmB-branded goat milk from stores back in March of 2013, after it was revealed the distributor had misled consumers about the product’s origin and falsified expiry dates.

The distributor, Dai Hung Tinh Co. Ltd., marketed GmB milk as “US-made with Dutch origins,” but the product was actually repackaged in District 9 using imported powder from the Netherlands.

More concerning, however, was that the original milk powder expired on March 16, 2013, but the final product was labelled safe for consumption until 2014.

Over 30 dealers, two supermarket chains, and numerous online vendors pulled the product from circulation following media reports.

Ho Chi Minh City’s food safety and market watchdogs launched a broad inspection of Dai Hung Tinh and 10 other dairy firms. Authorities warned of strict penalties for mislabelling and deceptive advertising.

This scandal highlighted persistent gaps in Vietnam’s food labelling and import oversight, especially in the fast-growing dairy sector. 

2025 Counterfeit milk powder scandal

Early in 2025, Vietnamese authorities uncovered one of the country’s largest food safety scandals–a sophisticated criminal operation was producing and selling hundreds of fake powdered milk products targeting vulnerable populations, including infants, diabetics, and pregnant women.

The operation, which earned approximately VND 500 billion (US$20 million) before being shut down, was producing nearly 600 counterfeit milk powder variants. 

These were sold under various brand names such as Talacmum, Sure IQ, The Empire, Ikidmi, and Gumi Colos 24h Baby.

Products claimed to contain premium ingredients like bird’s nest extract, cordyceps, and macadamia—but tests found these were absent or replaced with cheap substitutes.

In fact, lab analysis revealed many products had less than 70 percent of the stated nutritional content, legally qualifying them as counterfeit under Vietnamese law.

Of note, the products were sold nationwide in supermarkets, baby supply stores, and maternal health retailers, and promoted online using doctors, celebrities, and influencers–that is to say, this was not an isolated, underground operation but conducted very much out in the open.

Broader implications and consumer impact

These scandals have severely affected public trust—particularly among middle-class urban consumers—who now place greater emphasis on traceability, lab certification, and brand reputation when choosing dairy products. 

Authorities have responded with tighter controls on nutritional labelling, self-declared product registration, and import testing. 

However, the fragmented nature of distribution channels and the widespread use of unlicensed claims—especially on social media—continue to pose challenges.

This has led to a clear preference for foreign brands in product categories where safety and health are paramount, especially for young children.

Risks in Vietnam’s dairy industry

There are a number of risks in Vietnam’s dairy industry, particularly relevant to investors, importers, and regulators. These include:

Quality and safety concerns remain

Vietnam’s dairy industry has been repeatedly rocked by quality scandals. Cases involving counterfeit milk powder — some targeting infants and diabetics — have raised serious public health concerns.

The 2008 melamine contamination scare, traced to imported Chinese dairy, led to mass product withdrawals and regulatory reforms.

More recently, issues like mislabelled origin claims, as seen in the GmB goat milk case, and undeclared nutritional shortfalls have deepened consumer mistrust.

Regulatory compliance and enforcement gaps

While Vietnam has made notable improvements to its regulatory framework — including updates to labelling laws, food safety protocols, and advertising restrictions — enforcement is often uneven.

Firms must navigate frequently updated rules, including tight restrictions on health-related claims, while facing the risk of fines or product seizure.

Smaller and newer market players are particularly vulnerable to these compliance risks.

Supply chain fragmentation

Vietnam’s dairy supply chain is highly fragmented.

A significant portion of fresh milk comes from smallholder farmers, which limits consistency and scale.

These farms often lack modern infrastructure and access to high-quality feed, increasing the risk of contamination — particularly from aflatoxins, a toxic byproduct found in poor-quality animal feed.

Meanwhile, the industry’s heavy reliance on imported milk powder leaves it exposed to global price volatility and supply chain disruptions.

Consumer trust and brand preferences

Given past scandals, Vietnamese consumers are increasingly cautious and tend to place more trust in well-known domestic brands or foreign-labelled products.

This creates a difficult environment for new entrants or budget offerings.

Brand-building, transparency in sourcing, and independent quality verification have become essential for gaining market share.

However, achieving this requires significant investment and long-term strategic planning.

Price pressure and market saturation

Despite rising demand, Vietnam’s dairy sector is becoming more competitive.

Price wars between producers, especially in retail channels, often lead to cost-cutting that can compromise quality.

Maintaining product integrity while staying competitive on price remains one of the toughest balancing acts for dairy firms operating in the country.

Section 4: FAQ & Conclusion

These are some of the most common questions about Vietnam’s dairy industry.

How big is Vietnam’s dairy market?

Vietnam’s dairy market is estimated to be worth US$4.2 billion in 2024, with milk accounting for around 70 percent of total market value.

The sector is expected to grow at a compound annual growth rate (CAGR) of 8.65 percent through 2029, driven by rising incomes and changing dietary habits.

What are the most popular dairy products in Vietnam?

The most popular dairy products in Vietnam include fresh milk, yogurt, and cheese. Yogurt is widely consumed as a snack and dessert, while cheese—especially processed and mozzarella—is gaining traction in urban areas.

Who are the major dairy companies in Vietnam?

Key domestic players include Vietnam Dairy Products (Vinamilk), Lof International Dairy, Moc Chau Dairy, and Hanoi Milk.

Foreign firms such as FrieslandCampina, Nestlé, Fonterra, and Abbott also maintain a strong presence in the market.

Does Vietnam produce enough milk to meet demand?

No. Vietnam’s domestic fresh milk production is insufficient to meet demand.

The country relies heavily on imports of milk powder, butter, and cheese, primarily from New Zealand, the US, and Australia to bridge the supply gap.

What are the key challenges facing Vietnam’s dairy industry?

Vietnam’s dairy industry faces several challenges, including milk quality control, cold-chain logistics, and rising input costs.

It also faces growing competition from foreign brands, requiring domestic firms to invest in innovation and efficiency to stay competitive.

Regional comparison

The dairy markets of the Philippines, Vietnam, and Indonesia share some structural similarities — such as low self-sufficiency, strong demand growth, and high import dependency — but they differ significantly in terms of scale, local production capacity, and development strategies.

All three countries are experiencing rising dairy consumption due to urbanisation, growing middle classes, and dietary shifts. However, consumption patterns differ. 

Philippines

In the Philippines, powdered milk and condensed milk dominate, driven by price sensitivity and limited cold-chain infrastructure.

Cheese, yoghurt, and flavoured milk are growing segments but remain niche.

See also: The Philippines’ Dairy Market: Consumption and Development

Indonesia

Indonesia, similar to the Philippines, has widespread consumption of powdered and sweetened condensed milk, but fresh milk and yoghurt are gaining popularity in urban centres.

See also: Indonesia’s Dairy Market: Imports, Production, Trends

Thailand

Thailand’s dairy sector is one of the strongest in Southeast Asia, with significant domestic production and export capacity.

UHT milk, yoghurt drinks and cheese are well established. Compared to Malaysia, Thailand has more export orientation and greater self-sufficiency in dairy.

See also: Thailand’s Dairy Market

Malaysia

Malaysia

Local production is not sufficient to meet demand, with imports making up a large share.

Consumption has grown steadily, with packaged milk and flavoured products popular among younger consumers.

See also: Malaysia’s Dairy Market

What’s next?

Vietnam’s dairy industry is experiencing substantial growth, driven by increasing consumer demand, economic development, and government support.

While domestic players dominate the market, foreign companies are also making significant inroads.

The industry is geographically concentrated in the north and south, each with its own strengths and challenges.

As the market matures, there is an opportunity for further development in regions like the central highlands.

To sustain growth, the industry must address challenges such as milk quality, supply chain efficiency, and competition.

Continued investment in research and development, coupled with a focus on consumer preferences, will be crucial for the long-term success of the Vietnamese dairy sector.

With this in mind, to keep abreast of what’s happening in Vietnam’s dairy market, foreign dairy producing professionals should make sure to subscribe to the-shiv.

First published August 18, 2024. Last updated February 8, 2026.