Vietnam’s milk powder production reached 12,900 tons in March, up from 11,000 tons in February. Year-to-date output for the first quarter totalled 34,200 tons, marking a 1.9 percent increase compared to March 2024 and a 1.8 percent rise year-on-year, according to data from the General Statistics Office.
Vietnam’s milk powder production has grown significantly in recent years, driven by increasing domestic demand for dairy products, improvements in production capabilities, and strong investments from both local and international dairy companies. The country has become a major player in the production of milk powder, which is used in a variety of products, including infant formula, baking ingredients, and dairy beverages.
The domestic dairy sector, led by companies like Vinamilk, TH Group, and Moc Chau Milk, has heavily invested in processing facilities, modern equipment, and high-quality raw materials to produce milk powder. These companies process both locally sourced fresh milk and imported milk to produce powdered milk for various segments, such as infant formula, nutritional milk powder, and products for the food and beverage industry.
Vietnam’s milk powder production is supported by both local dairy farms and imports of milk from countries with larger-scale dairy farming industries. While the country has made strides in increasing its domestic milk production, the demand for milk powder—especially for infant formula—remains high, and the industry continues to rely on imported milk powder to meet this demand.
In addition to satisfying domestic needs, Vietnam also exports milk powder to neighbouring countries in Southeast Asia and beyond. The growing middle class in these regions, along with rising health consciousness, has led to an increase in demand for dairy products, further driving Vietnam’s milk powder production industry.
Despite the industry’s growth, challenges remain, such as the reliance on imported milk for processing, fluctuations in global milk prices, and the need for stricter quality control and food safety standards to meet both domestic and international market requirements.
In summary, Vietnam’s milk powder production has become a significant component of the country’s dairy industry. The sector’s continued growth is supported by rising demand, both domestically and regionally, along with ongoing investments in processing technology. While challenges such as dependency on imports and price fluctuations exist, the industry is poised for continued expansion.
See also: Dairy in Vietnam: Industry Overview