May 20, 2026
 

Vietnam sets 2030 dairy targets as government approves self-sufficiency strategy

Vinamilk posts 55% net profit surge in Q1 2026 as leading producers invest in domestic fresh milk supply chains.

 

Vietnam's government has approved a dairy industry development strategy through 2030, targeting annual sector growth of 12–14% and domestic fresh milk production of 2.6 billion litres per year — enough to meet 60–65% of processing demand and sharply reduce reliance on imported milk powder.

 

Deputy Prime Minister Bui Thanh Son signed the decision, which sets processed liquid milk output at 4.2 billion litres annually by 2030, milk powder output at 245,000 tonnes and per capita milk consumption at 40 litres per year. The long-term vision to 2045 targets processed milk output of 9.7 billion litres, domestic raw milk production of 8 billion litres — covering 80–85% of local demand — and per capita consumption of 100 litres annually.

 

The strategy prioritises the expansion of dairy herds through concentrated farming models combined with cooperatives and household farms meeting international disease prevention and food safety standards, alongside a reduction in dependence on imported raw materials.

 

Vinamilk, the country's largest dairy producer, reported consolidated revenue of VND16.15 trillion (US$620 million) in the first quarter of 2026, up 24.6% year on year, with net profit rising 55% to nearly VND2.5 trillion (US$96 million). Chief Executive Mai Kieu Lien said internationally certified farm systems and a self-sufficient fresh milk supply chain have become central to the company's market position and export expansion strategy.

 

TH Group, through its TH true MILK brand, has also invested significantly in domestic fresh milk production, contributing to a rising share of locally sourced raw milk and a broader shift in consumer preference away from reconstituted dairy products.

 

Dr Nguyen Xuan Duong, Chairman of the Animal Husbandry Association of Vietnam (AHAV), said per capita milk consumption in Vietnam remains below the regional average, representing a significant demand growth opportunity. He cautioned, however, that long-term industry development depends on building a stronger domestic dairy farming base.

 

The strategy also directs producers to use free trade agreements to diversify export markets, develop high-value products including infant formula and elderly nutrition products, and advance green production practices in line with Vietnam's net-zero emissions target by 2050.