Vietnam’s Ambitious Dairy Industry Development Strategy
On February 25, 2026, Vietnam took a significant step forward in its agricultural landscape by launching a long-term strategy aimed at transforming its dairy industry. Authored by Deputy Prime Minister Bui Thanh Son, this initiative, encapsulated in Decision 309/QĐ-TTg, aspires to cultivate a robust dairy sector by 2030 with an eye toward a visionary 2045.
Targeting Growth and Sustainability
The crux of Vietnam’s dairy strategy is to achieve double-digit growth rates while easing the dependency on imported raw materials. The plan seeks to establish a sustainable dairy value chain that encompasses every aspect from herd development through to high-value processing of dairy products. With projections suggesting that the dairy sector could expand by an impressive 12-14% annually by 2030, this is a transformative vision.
Projections for Production
The strategy lays out ambitious production targets: by 2030, processed liquid milk output is expected to reach 4.2 billion liters annually, while domestic fresh milk production is projected at 2.6 billion liters. This production level aims to cater to 60-65% of the inputs required by local processors. Additionally, powdered milk output is anticipated to grow at an annual rate of 7-8%, culminating in a total of approximately 245,000 tons by the end of the decade. The per capita consumption of milk and dairy products is also expected to surge to around 40 liters per year, underscoring a nationwide transformation in dietary habits.
As the timeline extends to 2045, the annual growth rate is expected to stabilize between 5-6%. By then, the output for processed liquid milk will reach an impressive 9.7 billion liters, with domestic production of fresh milk hitting 8 billion liters. This production would cover 80-85% of local processing needs, while powdered milk output is expected to rise to 415,000 tons, and per capita consumption could soar to an impressive 100 liters.
Focus on Biosecurity and Quality
A central tenet of the strategy is the expansion of the national dairy herd under stringent biosecurity and food safety standards that align with international benchmarks. The plan emphasizes increasing domestic supply, reducing the dependency on imports, and integrating concentrated dairy farms with cooperative and household models. Such an approach aims to bolster rural development while simultaneously modernizing the agricultural landscape.
Embracing Technology and Innovation
The Vietnamese government intends to diversify dairy products and elevate quality standards utilizing innovative technologies. Embracing digital solutions, blockchain principles, and artificial intelligence in herd management is a key facet of this strategy, ensuring traceability and efficiency in distribution. The objective is to bolster the presence of high-value products both locally and in international markets.
The Role of Enterprises
Dairy businesses are encouraged to scale up their herds and enhance processing capabilities by modernizing their production lines with cutting-edge technology. The strategic plan prioritizes vertically integrated projects, covering every stage from farming to processing, while remaining steadfast in meeting food safety and environmental standards.
Strengthening Global Competitiveness
In a bid to enhance Vietnam’s presence in international dairy supply chains, the strategy aims to restructure the industry to create large-scale corporations that exhibit competitive strength both regionally and globally. This is anticipated to further entrench Vietnam’s position in the global dairy market.
Enhancing Domestic Market Presence
On the domestic front, the government is working diligently to increase the share of locally produced dairy products. Strategies include expanding production, modernizing distribution frameworks, and improving product design. They are also putting measures in place to combat trade fraud, particularly in the burgeoning e-commerce sector.
Focusing on Exports
For exports, the plan underscores the need for market diversification and technical negotiations to open up new avenues for trade. The initiative encourages robust brand-building efforts, the establishment of geographical indications, and the development of legal frameworks to assist in dispute resolution.
Supporting Technological Advancement
Simultaneously, Vietnam recognizes the necessity of importing advanced production technologies and diversifying sources of dairy inputs that are currently not domestically produced. To supplement local supply, efforts to secure overseas investments are also underway.
Ensuring Food Safety
Food safety remains a cornerstone of this strategy, with strict oversight through enhanced national standards aligned with international frameworks like Codex, ISO, and HACCP. The establishment of regionally accredited testing centers is part of the effort to ensure constant adherence to these standards.
Promoting Environmental Stewardship
Lastly, the strategy envisions a greener transformation of the dairy industry. Emphasizing cleaner production technologies, life-cycle assessments, eco-labeling, and circular economy practices aims to significantly reduce emissions and waste throughout the supply chain.
This comprehensive approach not only aims to elevate the dairy industry domestically but also positions Vietnam as a competitive player on the global stage in the years to come.