Vietnam targets double-digit dairy growth by 2030 under new strategy

Vietnam has approved a long-term strategy to develop its dairy industry through 2030, with a vision to 2045, targeting double-digit growth and reduced reliance on imported raw materials.

Deputy Prime Minister Bui Thanh Son signed Decision 309/QĐ-TTg on Monday, endorsing the plan to build a sustainable dairy value chain spanning herd development, fresh milk production, and high value-added processing.

Under the strategy, the dairy sector is expected to expand at an average annual rate of 12-14% by 2030. Processed liquid milk output is projected to reach 4.2 billion liters per year, while domestic fresh milk production is targeted at 2.6 billion liters, covering 60-65% of input demand for local processors.

Powdered milk output is forecast to grow 7-8% annually to about 245,000 tons by 2030. Per capita milk and dairy consumption is expected to rise to around 40 liters per year.

By 2045, annual growth is set to moderate to 5-6%, with processed liquid milk output reaching 9.7 billion liters and domestic fresh milk production climbing to 8 billion liters, meeting 80-85% of processing demand. Powdered milk output is projected at 415,000 tons, while per capita consumption is targeted at 100 liters per year.

The strategy calls for expanding the national dairy herd under biosecurity and food safety standards aligned with international benchmarks, gradually increasing domestic supply to reduce import dependence. Development will focus on concentrated dairy farms combined with cooperative and household-based models, supporting rural modernization.

Authorities also aim to diversify dairy products and raise quality standards, encouraging the application of digital technologies, blockchain, and artificial intelligence in herd management, traceability and distribution. The goal is to increase the share of high value-added products for both domestic consumption and export.

Enterprises are urged to scale up dairy herds, boost processing capacity, and modernize production lines with advanced, automated technologies. The plan prioritizes vertically integrated projects covering farming through processing, while ensuring food safety compliance and environmental protection.

The strategy envisions restructuring the industry to form large-scale corporations with stronger regional and global competitiveness, reinforcing Vietnam’s position in international dairy supply chains.

On the domestic market, the government seeks to raise the share of locally produced dairy consumption by expanding output, improving product design, and modernizing distribution networks. Measures to combat trade fraud, particularly in e-commerce, will be strengthened.

For exports, the plan emphasizes market diversification, technical negotiations to open new destinations, and better use of free trade agreements. Brand building, geographical indications, and legal support for dispute resolution are also highlighted to mitigate risks abroad.

In parallel, Vietnam will continue to import advanced production technologies and diversify sources of dairy inputs not yet produced domestically, while encouraging overseas investment to supplement supply.

Food safety oversight will be tightened through updated national standards aligned with Codex, ISO and HACCP frameworks, alongside the establishment of internationally accredited regional testing centers and regular inspection regimes.

The strategy also promotes green transformation in the dairy industry, including cleaner production technologies, life-cycle assessments, eco-labeling, and circular economy models to reduce emissions and waste across the supply chain.