Vietnam’s dairy market is one of the biggest segments of Vietnam’s food and beverage industry and has been 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 industry in numbers
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 SU$4.2 billion in 2024. It’s also estimated that it will grow at a compounded annual growth rate of 8.65 percent between now and 2029, according to data from Statista.
Revenue, key listed Vietnam dairy firms, Q3 2023-Q2 2024, US$millions
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |
| Total | 785 | 787 | 711 | 847 |
| Lof International Dairy Products | 64.87 | 66.08 | 62.44 | 76.05 |
| Hanoi Milk | 7.24 | 8.14 | 5.19 | 7.06 |
| Lof International Dairy | 64.87 | 66.08 | 62.44 | 76.05 |
| Moc Chau Dairy Cattle Breeding | 32.16 | 31.32 | 24.65 | 31.88 |
| Vietnam Dairy Products | 616.24 | 615.52 | 556.15 | 656.39 |
Revenue, key listed Vietnam dairy firms, 2020-2023, US$millions
| 2020 | 2021 | 2022 | 2023 | |
| Total | 2,772 | 2,907 | 2,985 | 3,055 |
| Lof International Dairy Products | 151.17 | 190.23 | 239.86 | 262.25 |
| Hanoi Milk | 8.17 | 10.73 | 19.08 | 27.54 |
| Lof International Dairy | 151.17 | 190.23 | 239.86 | 262.25 |
| Moc Chau Dairy Cattle Breeding | 111.25 | 115.30 | 123.47 | 123.56 |
| Vietnam Dairy Products | 2350.20 | 2400.76 | 2362.81 | 2379.07 |
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, September 2024
| September | August | Change | YTD | |
| Total | 86,183,247 | 108,856,845 | -20.83% | 830,358,244 |
| New Zealand | 19,971,342 | 24,588,491 | -18.78% | 211,799,796 |
| USA | 7,983,426 | 12,005,239 | -33.50% | 99,154,430 |
| Australia | 7,193,238 | 14,351,293 | -49.88% | 88,917,345 |
| Malaysia | 5,927,460 | 6,173,468 | -3.98% | 46,182,901 |
| Thailand | 3,828,937 | 6,421,298 | -40.37% | 41,885,250 |
| Japan | 2,201,940 | 5,527,613 | -60.16% | 37,993,084 |
| Singapore | 5,686,744 | 5,746,396 | -1.04% | 37,325,160 |
| Ireland | 3,816,071 | 4,577,518 | -16.63% | 36,376,798 |
| France | 5,192,997 | 4,738,322 | 9.60% | 35,714,560 |
| Germany | 4,839,963 | 4,741,630 | 2.07% | 35,157,421 |
| Netherlands | 4,645,795 | 5,025,933 | -7.56% | 28,873,956 |
| Poland | 1,858,098 | 2,919,290 | -36.35% | 21,132,048 |
| Switzerland | 1,845,909 | 1,893,212 | -2.50% | 16,597,838 |
| South Korea | 2,026,866 | 2,041,291 | -0.71% | 14,536,937 |
| Spain | 996,692 | 836,288 | 19.18% | 8,062,703 |
| Belgium | 383,412 | 238,143 | 61.00% | 6,475,690 |
| Lithuania | 375,706 | 312,014 | 20.41% | 5,942,851 |
| Denmark | 273,433 | 488,503 | -44.03% | 4,037,943 |
| Philippines | 0 | 0 | 0.00% | 235,872 |
| Armenia | 0 | 0 | 0.00% | 33,450 |
| Other | 7,135,218 | 6,230,903 | 14.51% | 53,922,211 |
Source: Vietnam Imports Tracker
Dairy production in Vietnam
Vietnam’s dairy processing sector has continued its upward trajectory, according to the latest data from Vietnam’s Industrial Production Index. In September 2024, the production of milk and dairy products grew by 2.8 percent compared to August, marking a solid monthly increase driven by rising domestic demand for dairy.
The year-on-year comparison reveals even more encouraging growth. The index for September 2024 was 5.1 percent higher than the same month last year, showcasing the sector’s resilience and sustained expansion. The year-to-date data for the first nine months of 2024 also shows a robust 4.1 percent rise in production compared to the same period in 2023, indicating that Vietnam’s dairy processing industry is consistently expanding despite global economic uncertainties.
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
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.
See also: Vietnam Stock Reviews: Vinamilk
Foreign dairy companies in Vietnam
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.
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..
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 flavored 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 favorite among Vietnamese consumers, enjoyed as both a snack and a dessert. It is available in a variety of flavors, from traditional plain yogurt to fruit-flavored 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.
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.
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.