The strategy aims to build a sustainably developed dairy processing industry with a complete value chain, from dairy herd development and increased raw milk output to high value-added processed products. The industry is expected to largely meet rising domestic demand while integrating more deeply into regional and global dairy value and supply chains.

Growth targets through 2045

Under the strategy, by 2030, the dairy industry is projected to grow by 12–14% annually. Processed liquid milk output is expected to reach about 4.2 billion liters per year, while domestic fresh milk production is forecast at roughly 2.6 billion liters, meeting 60–65% of processing demand. Milk powder output is projected to grow by 7–8% annually to around 245,000 tons, with per capita milk consumption reaching about 40 liters per year.

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At a Vinamilk factory (Photo: Vinamilk)

By 2045, the industry is expected to grow by 5–6% annually. Processed liquid milk output is projected at approximately 9.7 billion liters, domestic fresh milk production at about 8 billion liters, meeting 80–85% of processing demand. Milk powder output is forecast at around 415,000 tons, while per capita milk consumption is targeted at about 100 liters per year.

Building safe, sustainable dairy value chain

The strategy prioritizes building a dairy farming chain that ensures disease safety and food safety in line with international standards. It seeks to expand the domestic dairy herd to capitalize on Vietnam’s agricultural strengths, increase domestic raw milk supply and gradually reduce reliance on imports.

Dairy herd development will be promoted through large-scale farms combined with cooperative and household-based farming, in line with agricultural and rural modernization goals.

Product diversification will go hand in hand with improvements in quality, design and packaging. The strategy encourages the application of digital technologies, blockchain and AI in herd management, traceability and distribution to boost productivity, quality and economic efficiency, while increasing the share of high value-added dairy products.

Promoting high-value, innovative products

Market research will be strengthened alongside the development of ingredients and additives for the dairy industry, supporting new products aligned with consumer preferences and global trends.

Priority will be given to high value-added dairy products, including formula milk tailored to different life stages and specialized consumer needs. School milk programs will use only fresh milk, with priority for disadvantaged areas, poor children and ethnic minority students.

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Vinamilk's system of 14 factories meeting numerous international standards and practicing green manufacturing helps it meet the increasingly stringent criteria of many export markets. (Photo: Vinamilk)

The strategy also promotes innovation and investment in advanced, automated production lines with low energy and material consumption, high efficiency and environmental friendliness across the entire dairy value chain.

Developing large-scale dairy enterprises

Enterprises are encouraged to expand dairy herds, increase raw milk output and enhance processing capacity through upgrading existing projects and investing in modern, highly automated technologies. Priority will be given to integrated value-chain projects ensuring food safety and compliance with environmental regulations.

Organizational restructuring and governance reform will be promoted to form large-scale dairy groups and corporations capable of enhancing competitiveness and strengthening Vietnam’s position in regional and global dairy value and supply chains.

Sustainable development of raw milk producers will be supported through improved herd genetics, greater domestic self-sufficiency and stronger linkages among enterprises, farmers and processors to stabilize the market and enhance the competitiveness of Vietnamese dairy brands.

Source: VNA