Will Vietnam soon be a major player in the dairy market?

Vietnam's Ministry of Industry and Trade said this week that the country exported $2020 million worth of dairy products in 302,7. That is an increase of 10,5% compared to the previous year. It is also the first time that dairy exports from the country have exceeded $300 million. The Vietnamese dairy market is expected to grow by another 7% this year.

Modernization
The Vietnam Dairy Association (VDA) expects that this increase is related to the fact that many dairy farmers have invested heavily in modern technologies. Many new companies have also been set up in the past period and full focus has been placed on the production of organic dairy products. It ensures a significant increase in productivity, but food safety is also making progress. Something that is an important factor for global dairy buyers.

Because Vietnam now shows that it can also sell good quality dairy, many companies have seen a strong increase in turnover. The largest dairy producers in the country, Vinamilk and Vinasoy, have therefore been able to export a lot of product to China, the Middle East, South Korea and Japan, among others.

The above also provides the Vietnamese with new, permanent trading partners. For example, Vinamilk has entered into an agreement with Dubai for the purchase of $20 million worth of dairy products.

Still a long way to go
But if the country really wants to become a major player in the global dairy market, it still has a long way to go. New Zealand is currently the largest player, with annual sales of $6,3 billion. This is followed by Germany and the Netherlands, with an export value of $2,9 billion and $2,4 billion respectively. With sales of $300 million, it is still far below Spain for the time being. That country closes the top 15 in 2019 with sales of $462 million.