Vietnam’s dairy market is experiencing robust growth, driven by increasing consumer incomes, a burgeoning population, and a growing preference for dairy products.
To capitalise on the market’s potential, the Vietnam Dairy 2024 exhibition was held in May, 2024, serving as a platform for domestic and international players to connect, collaborate, and drive industry advancement. The event showcased the latest technologies, products, and trends, highlighting the sector’s commitment to innovation and sustainability. With nearly 200 booths from countries like Australia, Denmark, and New Zealand, the exhibition underscored the global interest in Vietnam’s dairy market.
Looking ahead, the dairy industry in Vietnam is poised for continued expansion. Factors such as rising consumer awareness of dairy’s nutritional benefits, coupled with increasing urbanisation and changing dietary habits, are expected to fuel demand. However, the industry must also address challenges related to milk quality, supply chain efficiency, and competition to sustain its growth momentum.
Vietnam’s dairy market in numbers
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 SU$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 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, July 2024
| June | July | MoM | YTD | |
| New Zealand | 22,654,860 | 26,057,700 | 15.02% | 167,201,266 |
| United States of America | 7,022,671 | 10,054,386 | 43.17% | 79,308,166 |
| Australia | 6,085,406 | 12,669,199 | 108.19% | 67,358,351 |
| Malaysia | 5,174,269 | 6,016,591 | 16.28% | 34,081,709 |
| Thailand | 3,228,123 | 4,969,752 | 53.95% | 31,762,618 |
| Japan | 6,583,449 | 1,375,009 | -79.11% | 30,262,998 |
| Ireland | 4,794,472 | 3,798,917 | -20.76% | 27,969,490 |
| Singapore | 3,708,026 | 3,957,799 | 6.74% | 25,892,020 |
| France | 3,975,783 | 6,696,489 | 68.43% | 25,782,852 |
| Germany | 6,113,344 | 4,142,180 | -32.24% | 25,574,773 |
| Netherlands | 4,404,250 | 3,331,161 | -24.36% | 19,202,155 |
| Poland | 2,702,965 | 3,180,756 | 17.68% | 16,353,995 |
| Switzerland | 1,612,111 | 1,775,053 | 10.11% | 12,858,716 |
| South Korea | 1,728,279 | 1,833,649 | 6.10% | 10,466,938 |
| Spain | 829,273 | 1,084,412 | 30.77% | 6,229,660 |
| Belgium | 657,708 | 1,637,699 | 149.00% | 5,853,885 |
| Lithuania | 556,589 | 544,180 | -2.23% | 5,255,131 |
| Denmark | 737,818 | 697,529 | -5.46% | 3,275,952 |
| Philippines | 0 | 0 | 0.00% | 209,778 |
| Armenia | 0 | 0 | 0.00% | 22,300 |
| Other | 6,676,873 | 22,722,367 | 240.31% | 40,647,443 |
| Total | 89,246,269 | 101,520,690 | 13.75% | 635,570,196 |
Source: Vietnam Imports Tracker
Box 1: Starting a dairy import business in Vietnam
Importing dairy products into Vietnam for foreign firms can be tricky. Not only are there a number of technical and legal requirements that need to be met, but a myriad of free trade agreements has made navigating tariffs and trade restrictions complex.
Understanding the nuances of importing dairy products into Vietnam, including how to find a distributor, establish a trading company, and customs procedures, before attempting to access Vietnam’s 100 million-strong consumer market, can make the difference between a foreign firm’s success or failure. Read more…
Vietnam’s Dairy Businesses: Key Players
Vietnam’s dairy market is dominated by a handful of strong domestic players, with foreign companies also making significant inroads.
Vietnamese dairy companies
- Vinamilk: The undisputed leader in the Vietnamese dairy industry, Vinamilk boasts a wide range of products and a strong distribution network. Its brand recognition is unparalleled, and it has successfully expanded into international markets. Recent acquisitions have further solidified its position as a regional dairy powerhouse.
- TH Group: Known for its high-end “TH True MILK” brand, TH Group has positioned itself as a premium dairy producer. With a focus on quality and organic products, it has gained a loyal customer base. The company has invested heavily in research and development to maintain its premium image.
- Nutifood: A prominent player in the infant formula and nutritional products segment, Nutifood has expanded its portfolio to include various dairy products. Its strong presence in the maternal and child nutrition market has contributed to its overall growth. Nutifood has been successful in adapting its products to cater to the evolving needs of Vietnamese consumers.
- Moc Chau Milk: This company specialises in fresh milk and dairy products sourced from the highlands of Moc Chau. Its emphasis on natural ingredients and traditional production methods has earned it a dedicated following. Moc Chau Milk has capitalised on the growing consumer preference for authentic and sustainable dairy products.
Foreign dairy companies in Vietnam
While domestic players hold a dominant position, foreign companies like FrieslandCampina (Dutch Lady) and Nestlé have established a considerable presence in the Vietnamese market. They offer a diverse range of products and compete aggressively with local brands.
It’s important to note that the dairy landscape is dynamic, with new entrants and evolving consumer preferences shaping the market.
Box 2: Dairy brands among most reputable F&B firms in Vietnam
In 2023, Vietnam Report published a list of the Top 10 Most Reputable Food-Beverage Companies in Vietnam and half of them were dairy producers. This goes to an increasing interest in dairy products in Vietnam and the growing importance of dairy products in the lives of everyday Vietnamese. See the full list..
Dairy farming regions in Vietnam
Vietnam’s dairy industry is concentrated in several key regions, each with its own unique characteristics.
The North
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.
The South
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
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.
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.