Vietnam’s milk powder production for December 2024 is projected to be 13,400 tons, with an estimated total of 145,500 tons for the entire year, according to Vietnam’s General Office of Statistics. This represents a year-on-year increase of 10.9 percent compared to 2023, indicating continued growth in the dairy processing sector.
Vietnam’s milk powder production is an essential part of the country’s dairy industry, driven by both domestic consumption and export opportunities. As one of Southeast Asia’s fastest-growing economies, Vietnam has seen an increasing demand for milk powder, particularly for infant formula, nutritional supplements, and dairy-based products. With a growing middle class, rising disposable incomes, and a shift in consumer preferences towards more convenient food and beverages, the demand for milk powder continues to rise.
The milk powder industry in Vietnam is dominated by both domestic and international players. Key local companies, such as Vinamilk, Masan Nutri-Science, and TH True Milk, have invested heavily in milk powder production, benefiting from the country’s extensive dairy supply chain. These companies use a combination of domestically sourced milk and imported raw materials to produce various milk powder products. International brands such as Nestlé, FrieslandCampina, and Abbott also have a significant presence in the market, importing and producing their products in Vietnam.
Vietnam produces a range of milk powder products, including whole milk powder, skim milk powder, and specialized infant formula, often aimed at the growing demand for baby nutrition. The industry is supported by a well-established processing infrastructure, with modern facilities that meet both domestic and international quality standards.
Despite local production growth, Vietnam remains a net importer of milk powder, particularly for specialized products like infant formula, which are produced by global brands with strong brand recognition. The import dependency is driven by the inability to meet domestic demand for specialized dairy products with local milk production alone.
The Vietnamese government has implemented policies to support the dairy industry, including incentives for dairy farming, investment in infrastructure, and efforts to improve the quality of domestic milk production. As the industry continues to modernise and expand, Vietnam’s milk powder production sector is expected to grow, supported by increasing domestic demand, greater self-sufficiency in dairy farming, and opportunities in the regional export market.
See also: Dairy in Vietnam: Industry Overview