Vietnam's Dairy Industry Reaches New Heights
The Vietnamese dairy market is attracting more foreign brands as a gateway to international expansion, while domestic milk producers are implementing strategies to safeguard their market share. Despite macroeconomic challenges and a significant increase in input material prices, foreign enterprises remain determined to enter the Vietnamese dairy market.
Recently, South Korean bakery company Orion Food Vina (OFV) partnered with Thai dairy company Dutch Mill to enter the Vietnamese dairy industry. This collaboration has resulted in the launch of two new brands, Choco IQ milk and ProYo drinking yogurt, this month.
In June 2022, Japanese enterprise Morinaga Milk Industry, with a century of experience in dairy product development, entered the market after acquiring shares of Elovi Vietnam Joint Stock Company. Morinaga Milk aims to increase its international sales to more than 15% of total sales by 2029, targeting around $73 million in sales in Vietnam.
Meanwhile, Vietnamese enterprises maintain control of the domestic dairy market, with approximately 65% market share held by Vinamilk, TH Group, Nutifood Vietnam, and VINASOY, according to Euromonitor. The remaining market share is divided among foreign enterprises, including FrieslandCampina and Nestlé, leaving room for new brands to enter and compete for approximately 10% of the market.
Vinamilk, holding 40% of the dairy market share, continues to expand its operations, investing in factories and farms with an estimated capital of up to $600 million to prepare for the future. The brand value of Vinamilk has reached an impressive $3 billion, showcasing 6% growth compared to 2022. This achievement solidifies Vinamilk as Vietnam’s most valuable food brand and the sixth-largest dairy brand globally.
TH Group, on the other hand, not only invested in a state-of-the-art dairy cow farm and fresh milk processing plant in Nghe An province with a capacity of 500,000 tonnes per year but is also developing a large-scale high-tech dairy cow production project in Russia with a total investment of $2.7 billion.