Milk and cream market in Vietnam

Earlier Report Observations

The market for milk and cream in Vietnam expanded consistently from 2018 to 2023, with volume rising from 1 030 thousand tons to 1 310 thousand tons. This growth was primarily fueled by increasing domestic production, which benefited from government policies such as the exemption of import duties on milk raw materials for dairy farming projects and support for cattle breeders through credit, training, and technical advice. These measures lowered input costs and encouraged the scaling up of local milk supply.

Changing consumer demand played a significant role, with a rising preference for organic, sugar-free, and lactose-free milk varieties prompting manufacturers to launch new product lines and capture additional market segments. At the same time, free trade agreements like the CPTPP, EVFTA, and RCEP opened export channels, which began to contribute to production growth, especially as exports reached 9 thousand tons in 2024.

Regulatory developments, including the ban on terms such as 'fresh milk' on labels and mandatory food safety certification for each product type, helped standardize the market and maintain consumer confidence during this period of expansion.

Production milk and cream in Vietnam

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Vietnam's milk and cream production has increased for the third consecutive year. In 2020, the country produced 1 116 thousand tons of milk and cream, marking a modest year-over-year growth of 7.0%. From 2017 to 2020, production rose by 19.3%, which translates to an annualized growth rate of 6.1%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K t

Exports milk and cream from Vietnam

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports reached their lowest point in 2018 at 243 tons, then peaked in 2020 at 1 717 tons—a swing of 7.1 times between these years. In 2020, Vietnam exported 1 717 tons of milk and cream, which is 28.2% higher than the previous year. The largest decline occurred in 2018, with an 8.1% drop, while the largest increase was recorded in 2019, surging by 451.1%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, t

From 2017 to 2020, Germany, Russia, and Malaysia were the principal destinations for Vietnam's milk and cream exports in kind. Germany accounted for 35.6% of exports, Russia for 18.5%, and Malaysia for 9.7%. Together, these three countries made up 63.7% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, K $ US

Vietnam's milk and cream exports in value terms have increased for the third consecutive year. In 2020, exports reached 1 204 thousand US dollars, which is 34.8% higher than in 2019. Between 2017 and 2020, exports grew by 330.6%, equating to an annualized rate of 62.7%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, K $ US

From 2017 to 2020, Germany, Malaysia, and Russia were the main destinations for Vietnam's milk and cream exports in value terms. Germany represented 28.7% of exports, Malaysia 17.7%, and Russia 14.4%. Collectively, these three countries accounted for 60.8% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports milk and cream to Vietnam

Imports in kind, t

Vietnam's milk and cream imports in kind have increased for the third consecutive year. In 2020, imports stood at 49 329 tons, up by 15.3% compared to the previous year. Over the period from 2017 to 2020, imports grew by 43.3%, with a compound annual growth rate (CAGR) of 12.7%.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, t

From 2017 to 2020, Australia, New Zealand, and France were the principal suppliers of milk and cream to Vietnam in kind. Australia accounted for 40.3% of imports, New Zealand for 24.3%, and France for 13.4%. Together, these three countries comprised 78.0% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, K $ US

Vietnam's milk and cream imports in value terms have increased for the third consecutive year. In 2020, imports totaled 38 581 thousand US dollars, showing a limited increase of 8.2% compared to 2019. Over the period from 2017 to 2020, imports rose by 28.5%, with a compound annual growth rate (CAGR) of 8.7%.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, K $ US

From 2017 to 2020, New Zealand, Australia, and France were the main suppliers of milk and cream to Vietnam in value terms. New Zealand accounted for 41.5% of imports, Australia for 28.8%, and France for 12.5%. Together, these three countries made up 82.7% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020