Large room for Vietnam’s dairy farming industry to flourish

Insiders are pinning high hopes on a faster growth rate of the dairy farming industry in the coming years given that both domestic and major foreign markets are witnessing growing demand for milk products.

Vietnam is now home to over 28,000 dairy farms and households with nearly 375,000 milk cows producing more than 1.2 million tonnes of fresh milk annually. The volume is able to meet over 42 % of the domestic demand. The remainders relied on imports.

According to the Vietnam Dairy Association, the dairy industry generated more than 119.38 trillion VND (5.14 billion USD) in revenue last year, up around 5 % from 2020.

Data from the General Statistics Office showed that the number of milk cows in Vietnam grew 3.77 % on average annually from 2015 – 2021. Its liquid milk output exceeded 1.770 million litres in 2021, a year-on-year increase of 4.5 % from the previous year. Milk powder production rose by 13.1 % year-on-year to reach 151,500 tonnes last year.

The dairy cow farming industry is thriving with annual productivity averaging 5,300 kg of milk per cow.

The figure far outstrips that of other Southeast Asian countries, said Tong Xuan Chinh, Deputy Director of the Department of Livestock Production at the Ministry of Agriculture and Rural Development. Vietnam is staying ahead of its regional peers in industrialisation of livestock and dairy farming, he added.

Vietnamese dairy products are now available in 48 countries worldwide. Last year, its dairy exports valued over US$300 million. Eight Vietnamese producers, who operate 12 dairy factories, have been granted with transaction codes to export to China.

There is large room for the dairy farming sector to grow further in Vietnam, said Assoc. Prof., Dr. Hoang Kim Giao, President of the Vietnam Ruminant Husbandry Association.

Large-scale dairy cow farming projects have been flourishing in recent years, with the latest being a dairy complex developed by Vinamilk to raise some 4,000 milk cows in Moc Chau in the northern province of Son La.

The Moc Chau Milk Paradise Complex, worth VND3.15 trillion (US$135.6 million), is designed to produce 20 million litres of fresh milk per year. It comprises a hi-tech dairy cow farm, a hi-tech milk factory and an eco-tourist service facility.

Recently, the government has approved a national strategy for livestock development for the 2021 – 2030 period, with a vision towards 2045, expected to create momentum for the sustainable growth of the dairy cow farming sector.

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