At the "Vietnam Dairy Industry Development to 2030, Vision 2045" conference on 12/8, Professor Doctor Tran Quang Trung, Chairman of the Vietnam Dairy Association, stated that Vietnamese milk consumption is around 26-28 liters per person per year. This is significantly lower than other countries in the region and the world, such as Thailand at 35 liters, Singapore at 45 liters, and European countries at 100 liters per person per year.

Domestic materials only meet about 40% of demand, with the rest relying on imports. "The system of standards and regulations hasn't been updated in 15 years, and testing methods are outdated compared to new technologies," he said.

Beyond supply and demand, the Vietnamese dairy industry also faces hurdles from consumer perceptions. Doctor Nguyen Xuan Duong, Chairman of the Vietnam Animal Husbandry Association, believes many Vietnamese still view milk as a drink for children, the elderly, or the sick, while it's a nutritional supplement for all ages.

Duong added that purchasing power decreased after the Covid-19 pandemic, and the market became oversaturated with hundreds of products. This, combined with counterfeit and low-quality milk, has eroded consumer trust.

Professor Doctor Tran Quang Trung, Chairman of the Vietnam Dairy Association. Photo: Linh Dan

Professor Doctor Tran Quang Trung, Chairman of the Vietnam Dairy Association. Photo: Linh Dan

From a business perspective, Nguyen Quang Tri, Production Director of Vietnam Dairy Products Joint Stock Company (Vinamilk), pointed out another factor: the relatively high lactose intolerance rate among Vietnamese. Lactose, a natural sugar in milk, can cause bloating, indigestion, or diarrhea in some individuals. This phenomenon is common in communities with limited tradition of consuming animal milk, leading some young people to abandon dairy products.

To retain consumers, many businesses have shifted to developing lactose-free milk, plant-based milk, or fermented yogurt to ensure nutrition and reduce digestive issues. According to Tri, this strategy helps expand the domestic market and creates export opportunities to regions with similar consumption patterns.

Despite these initiatives, the Vietnamese dairy industry remains far from its potential. Liquid milk currently holds nearly half the market share, followed by powdered milk (29%) and yogurt (14.5%).

In the first six months of the year, Vietnam produced over 120,000 tons of liquid milk and 74,500 tons of powdered milk. Vietnam imports nearly 1 billion USD worth of dairy products annually, mainly from New Zealand, Australia, the US, and Eastern Europe, while exporting about 300 million USD to 60 markets.

Duong noted that the management of imported milk has shortcomings, with large enterprises dominating and smaller ones less interested in domestic materials. Meanwhile, countries like Indonesia, the Philippines, and India require dairy companies to source domestic materials to receive support, a policy Vietnam is still discussing.

The Chairman of the Vietnam Animal Husbandry Association proposed developing material zones, intensive grass cultivation, and applying high technology to both household and industrial farming. The aim is to have at least 20% of fresh milk materials in production to protect farmers and enhance product quality.

Regarding quality, Duong emphasized the need for clear standards to prevent counterfeit milk, especially for powdered milk for pregnant women and the elderly—a segment lacking specific standards. He urged authorities to seriously assess the declining cow population and slow growth. The industry needs to combine intensive farming with household farming on a scale of 20-50 cows, similar to models in South Korea and Taiwan. According to the Chairman, the management process needs to be unified from central to local levels, treating this as a national priority program.

Vietnam aims for 60% material self-sufficiency by 2030 and per capita milk consumption of 70-100 liters per year by 2045.

Thi Ha