Ho Chi Minh City: Vietnam’s dairy industry is undergoing a significant transformation as foreign dairy companies increase investments in advanced technologies, digitalisation, and low-emission production systems, helping reshape the country’s dairy value chain while supporting its long-term sustainability goals.
Driven by rising consumer demand for premium nutrition and the government’s commitment to achieving net-zero emissions, international dairy firms are introducing smart farming technologies, automation, artificial intelligence (AI), traceability systems, and environmentally friendly production practices across Vietnam’s rapidly expanding dairy sector.
International Dairy Companies Expand Presence
The latest sign of growing international confidence came on June 11 when New Zealand dairy brand Meadow Fresh introduced two new premium dairy products in Vietnam, further strengthening its presence in one of Southeast Asia’s fastest-growing dairy markets.
Speaking at the product launch in Ho Chi Minh City, Scott James, New Zealand’s Consul General and Trade Commissioner to Vietnam, highlighted the country’s global reputation for producing premium dairy products through sustainable farming systems.
“New Zealand’s high-quality milk forms the foundation of the premium quality associated with its dairy products,” James said.
Meadow Fresh employs advanced herd health monitoring technologies, hormone-free dairy farming, strict quality assurance protocols, and natural pasture-based grazing systems to ensure product quality from farm to consumer.
Industry analysts believe the expansion reflects a broader trend of international dairy companies viewing Vietnam as a strategic growth market.
Green Technology Driving Industry Modernisation
Sustainability has emerged as a major investment theme within Vietnam’s dairy sector, with foreign companies introducing technologies designed to reduce greenhouse gas emissions while improving production efficiency.
Earlier this year, Vietnam Dairy 2026, one of the country’s largest dairy industry exhibitions, brought together more than 250 exhibitors from New Zealand, Australia, Japan, Taiwan and several other countries to showcase innovations in dairy farming, processing technologies and sustainable production.
According to Dr. Tran Quang Trung, Chairman of the Vietnam Dairy Association, international collaboration is playing an increasingly important role in helping Vietnamese dairy companies modernise their operations.
“Global expertise and technologies will help Vietnamese businesses implement emission reduction solutions and apply circular economy principles across the dairy value chain—from livestock farming and milk processing to packaging—supporting Vietnam’s national net-zero ambitions,” Trung said.
Digital Transformation Becoming Industry Standard
Experts say digitalisation is rapidly becoming one of the industry’s strongest competitive advantages.
Automation, real-time monitoring systems, artificial intelligence, robotics, and digital traceability platforms are enabling dairy companies to improve food safety, operational efficiency, and product transparency while reducing production costs.
After more than three decades of operations in Vietnam, Nestlé Vietnam is implementing a comprehensive digital transformation programme covering production, supply chain management, sales, and customer engagement.
The company has introduced smart manufacturing technologies, including AI-powered inspection cameras, industrial robots, and real-time production analytics to optimise factory performance and strengthen product traceability.
According to Le Thi Hoai Thuong, External Relations Director at Nestlé Vietnam, digital transformation has become central to improving the efficiency of the dairy value chain.
“We are digitalising every stage—from production to supply chain management—while placing people at the centre of this transformation. Our objective is to share best practices, promote technology adoption, and strengthen collaboration for a more efficient and transparent dairy industry,” Thuong said.
Premium Nutrition Segment Expanding
Beyond manufacturing technology, international dairy companies are also investing heavily in specialised nutritional products as Vietnamese consumers become increasingly health-conscious.
Japanese dairy company Morinaga Nutritional Foods Vietnam sees significant long-term opportunities in functional nutrition and specialised dairy products.
According to Marketing Director Taguchi Yoshihiro, rising incomes, rapid urbanisation and greater awareness of preventive healthcare are driving demand for premium nutritional products.
“We believe demand for specialised nutrition and long-term health solutions will continue growing strongly as consumers increasingly prioritise quality, functionality and wellness,” Yoshihiro said.
Strong Growth Potential Attracts Investors
Despite rapid growth, Vietnam’s dairy market still offers considerable room for expansion.
According to the Vietnam Dairy Association, annual milk consumption stands at approximately 36 kilograms per person, considerably below consumption levels in developed dairy markets such as Denmark, France, the United States and Japan.
Under Vietnam’s Dairy Industry Development Strategy to 2030, with a vision extending to 2045, the government aims to achieve annual industry growth of 12–14 percent.
By 2030, processed liquid milk production is projected to reach 4.2 billion litres, while domestic fresh milk production is expected to increase to 2.6 billion litres, meeting approximately 60–65 percent of national processing demand.
Technology Essential for Self-Sufficiency
Industry leaders believe achieving these targets will require major investments in dairy technology, infrastructure, and herd development.
According to TH Group, Vietnam has the natural resources and production potential to significantly improve domestic fresh milk self-sufficiency.
The company estimates that meeting approximately 70 percent of national milk demand by 2035 would require the development of a modern dairy herd of around 700,000 cows, supported by high-technology farming systems and advanced herd management.
Investor confidence in the sector also remains strong. Earlier this month, reports indicated that TH Group is in discussions with several international investment funds regarding a potential US$1 billion minority stake investment to support future expansion.
Vinamilk Targets Net-Zero by 2050
Vietnam’s largest dairy company, Vinamilk, is also accelerating its sustainability strategy through major investments in green infrastructure and energy-efficient production technologies.
According to Le Hoang Minh, Executive Director of Production at Vinamilk, innovation today extends beyond manufacturing to include environmental responsibility and consumer engagement.
“We have established a clear roadmap to reduce emissions by 15 percent by 2027, 55 percent by 2035, and achieve net-zero emissions by 2050,” Minh said.
Vinamilk currently operates 14 Green Farms and 14 modern production facilities across Vietnam, exporting dairy products to 63 international markets.
The company has introduced several technologies aimed at improving environmental performance, including smart warehouse systems that reduce energy consumption by up to 70 percent, robotic internal logistics that cut transport-related emissions by around 60 percent, and heat recovery systems capable of reusing up to 90 percent of thermal energy generated during milk processing.
Outlook
With growing foreign investment, rapid technological adoption, and ambitious sustainability targets, Vietnam’s dairy industry is entering a new phase of development.
Industry experts believe that continued collaboration between international investors, domestic dairy companies, and government agencies will accelerate the transition towards a greener, digitally connected, and globally competitive dairy sector.
As consumer demand for premium nutrition continues to rise, Vietnam is increasingly positioning itself not only as a fast-growing dairy market but also as an emerging regional hub for sustainable dairy production and innovation.
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