Milk market in Vietnam

Earlier Report Observations

From 2018 to 2020, Vietnam's milk market volume increased from 1 155 thous. t to 1 237 thous. t. Growth in 2018-2019 was driven by high consumer demand and active innovation from manufacturers, who adopted new technologies and diversified their product ranges. Even in 2020, despite the COVID-19 pandemic, milk remained an essential item, supporting a modest volume increase. At the same time, the market became more competitive with the entry of new players.

In 2021-2022, market volume continued to rise, reaching 1 341 thous. t. This growth was influenced by investments from major companies such as Vinamilk in expanding dairy farms and importing cows to boost domestic production. Moreover, consumer preferences shifted towards healthier products, including organic and plant-based milk, creating new demand segments. However, producers faced a sharp rise in raw material costs due to global supply disruptions and geopolitical tensions, leading to a significant increase in the market value in monetary terms.

In 2023, the physical market volume grew to 1 418 thous. t, but its value in US dollars fell by 2.4% to USD 4 981 million. This occurred due to weak domestic consumer demand, which prevented producers from fully passing high raw material costs onto final prices. This effect was partly offset by active exports: Vinamilk, for example, signed large supply contracts to the Middle East. Consumers also showed growing interest in the premium segment, prompting companies to develop new products and enhance marketing.

Production milk in Vietnam

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Vietnam's milk production has grown for the third year in a row. In 2020, the country produced 1 108 thousand tons of milk, marking a 6.2% year-over-year increase. From 2017 to 2020, production rose by 18.4%, with an average annual growth rate of 5.8%.

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

In value, 2017-2020, M $ US

In 2020, Vietnam's milk output was valued at 3 093 million US dollars, down 21.6% from 2019. Between 2017 and 2020, production value fell by 22.8%, translating to an annualized decline of 8.3%. The lowest value occurred in 2018 at 3 054 million US dollars. The sharpest drop was in 2018 at 23.8%, while the largest gain was in 2019 at 29.2%.

Annual dynamics of production in Vietnam in value, 2017-2020, M $ US

Exports milk from Vietnam

Exports in kind, K t

Following a two-year decline, Vietnam's milk exports rebounded. In 2020, exports reached 26.0 thousand tons, showing a significant 28.8% year-over-year improvement. However, from 2017 to 2020, exports overall decreased by 67.8%, with an annualized rate of 31.4%. The lowest point was in 2019 at 20.2 thousand tons, and the steepest decline happened in 2018 at 66.9%.

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

From 2017 to 2020, Iraq, the Philippines, and Cambodia were the top destinations for Vietnam's milk exports in volume terms. Iraq accounted for 57.4% of exports, the Philippines for 8.8%, and Cambodia for 6.8%, together making up 73.0% 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, M $ US

Vietnam's milk export value declined for the second consecutive year. In 2020, exports totaled 72.6 million US dollars, a 4.9% decrease compared to 2019. Over the period from 2017 to 2020, export value increased by 32.9%, with an annualized growth rate of 9.9%. The peak was in 2018 at 82.2 million US dollars. The largest drop occurred in 2019 at 7.1%, while the biggest rise was in 2018 at 50.4%.

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

Between 2017 and 2020, Iraq, the Philippines, and Cambodia were the leading markets for Vietnam's milk exports in value terms. Iraq represented 59.3% of exports, the Philippines 9.0%, and Cambodia 5.4%, collectively accounting for 73.8% of total export value.

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 to Vietnam

Imports in kind, K t

After two years of growth, Vietnam's milk imports in volume terms declined. In 2020, imports totaled 154.6 thousand tons, down 24.3% year-over-year. From 2017 to 2020, imports decreased by 11.2%, with a compound annual growth rate of -3.9%. The highest volume was in 2019 at 204.2 thousand tons, and the largest increase was in 2018 at 8.9%.

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

From 2017 to 2020, New Zealand, the United States, and Australia were the main suppliers of milk to Vietnam in volume terms. New Zealand contributed 30.8% of imports, the United States 24.1%, and Australia 13.5%, together representing 68.4% of total import volume.

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, M $ US

Vietnam's milk import value has risen for the third year in a row. In 2020, imports amounted to 463.2 million US dollars, showing a moderate 7.8% increase over the previous year. Between 2017 and 2020, import value grew by 19%, with an annualized rate of 6.0%.

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

In the period from 2017 to 2020, New Zealand, the United States, and Australia were the largest suppliers of milk to Vietnam in value terms. New Zealand made up 43.3% of imports, the United States 24.7%, and Australia 6.8%, collectively forming 74.8% of total import value.

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

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