Vietnam's dairy industry still has a lot of room for development.

week-of-milk...jpg — Average milk consumption in Vietnam is only about 27 liters/person/year. Photo: Mai Thuy

Raw fresh milk output reached 1.2 million tons

The dairy industry is identified as an economic sector that plays an important role in Vietnam's socio-economic development strategy. The industry has provided essential food sources and supported human health, provided nutrition for the community and brought income to livestock farmers.

Deputy Minister of Industry and Trade Truong Thanh Hoai said that the implementation of Decision No. 3399/QD-BCT dated June 28, 2010 approving the Development Plan for Vietnam's dairy processing industry to 2020, with a vision to 2025, has achieved the set goals.

Industry revenue will increase from about 4.4 billion USD in 2017 to 5 billion USD in 2022 and reach more than 5.03 billion USD in 2023. Notably, thanks to increased investment in the dairy farming sector, the country's total dairy herd will grow at an average rate of about 4.6% per year, from 228,000 heads in 2014 to about 335,000 heads in 2024.

Raw fresh milk output also recorded a growth rate of nearly 8.4% per year, from 550,000 tons (2014) to over 1.2 million tons (2024), helping Vietnam become self-sufficient in nearly 40% of domestic raw fresh milk.

According to Dr. Nguyen Van Hoi, Director of the Institute for Strategy and Policy Research in Industry and Trade (Ministry of Industry and Trade), Vietnamese dairy enterprises have been proactive and creative in finding suitable directions, such as investing in new technology, modern production and processing equipment and smart distribution systems to create new products of high quality and reputation, meeting domestic and foreign markets.

“With geographical and climatic characteristics favorable for the development of dairy cow herds, investing in the dairy industry not only creates conditions for businesses to produce with low labor costs, but also provides livelihoods for people, contributes to hunger eradication and poverty reduction, and links business interests with the community,” said Mr. Hoi.

As a leading enterprise in the Vietnamese dairy industry, TH Group currently owns a herd of about 70,000 cows with an average productivity of 35 liters of milk/cow/day, the highest level in the region.

TH is the enterprise that owns the largest high-tech dairy farming model in the country. TH's high-tech farms have been expanded in many provinces such as Nghe An, Lam Dong, Thanh Hoa... TH's total investment in the dairy industry reached 1.2 billion USD. TH is also a pioneer in comprehensive digital transformation, applying QR codes to trace origins, 4.0 technology, AI, and robotization, from grass planting, cow care to production and distribution.

On August 5, the Ministry of Industry and Trade opened the "Family Festival - Fresh Milk Week 2025". Photo: Mai Thuy

Diversify products, focus on high-value milk lines

However, statistics show that fresh milk from domestic dairy cows only meets about 38% of the demand for processed milk. On the other hand, according to statistics, the average milk consumption in Vietnam is about 27 liters/person/year.

Compared to other countries in the region, the average milk consumption of Vietnamese people is still low compared to the world, while Thailand is 35 liters/person/year, Singapore is 45 liters/person/year and European countries are from 80 - 100 liters/person/year.

According to experts, Vietnam’s participation in free trade agreements will create many new opportunities for dairy enterprises to develop; dairy products have great opportunities to be exported and expanded to international markets. However, many new challenges are being posed to Vietnamese dairy enterprises, such as competitive pressure from foreign enterprises, changes in tastes and consumption habits with clean products, organic products, milk products with new formulas, etc.

Mr. Nguyen Xuan Duong, Chairman of the Vietnam Livestock Association, said that by 2030, the market for milk and dairy products in Vietnam will still be very large, but without timely and strong policies, the dairy industry will find it difficult to achieve the goal of self-sufficiency in 60% of raw materials for processing.

According to Mr. Duong, the current average dairy cow ratio is only 3.3 cows/1,000 people, equal to 1/3 of Thailand, 1/26 of the Netherlands. If it reaches 1.3-1.5 million cows by 2030, milk production could reach 4.3-5 million tons.

To develop the dairy industry in the future, Mr. Duong proposed developing two parallel models of high-tech intensive farming of large corporations and professional household farming of 30-50 heads. This model makes good use of rural labor and agricultural by-products, while spreading the value of the production chain to the community.

Along with that, ministries and branches complete a transparent legal framework between types of milk, encourage businesses to use domestic raw materials, and even grant milk business licenses according to the committed ratio of using domestic fresh milk.

To concretize the development goals, the Ministry of Industry and Trade has developed a Draft Strategy for the Development of Vietnam's Dairy Industry to 2030, with a vision to 2045, with a growth target of 4 - 4.5%/year; the proportion of domestic raw fresh milk reaching 53 - 56% in 2030 and 62 - 65% in 2045; average consumption reaching at least 58 liters of milk/person/year in 2045.

The strategy prioritizes the development of raw material areas through large-scale, high-tech dairy farms, linked with farmers; replicating effective and sustainable models. At the same time, diversifying products, focusing on high value-added milk lines, such as functional milk, organic milk, milk for the elderly. Enterprises are encouraged to invest in modern processing technology, applying green, clean, circular production, meeting international standards and new consumption trends.

Within the framework of the event series “Science and Technology of the Dairy Industry - Vietnam Fresh Milk Week”, on August 5, the Institute for Strategy and Policy Research on Industry and Trade (Ministry of Industry and Trade) organized a workshop on “Development of Vietnam's Dairy Industry to 2030, vision to 2045”, to consult experts, scientists, and businesses, and complete the draft “Dairy Industry Development Strategy to 2030, vision to 2045”. The event series also includes business exchanges, supply-demand connections; the “Fresh Milk Week” experience event takes place from August 5 to 10, in Hanoi.

Source: https://hanoimoi.vn/nganh-sua-viet-nam-con-nhieu-du-dia-phat-trien-711554.html