Making news

Vietnam’s dairy industry reaches out to the world

Despite the COVID-19 pandemic wreaking havoc on all sectors, Vietnam’s dairy industry has made efforts to win over customers and solidified its foothold in the domestic market while reaching out to global markets.

The Ministry of Industry and Trade said Vietnam shipped 302.7 million USD worth of dairy products in 2020, a 10.5 percent increase against 2019. This was the first time the country’s dairy export revenue has exceeded 300 million USD.

According to the Vietnam Dairy Association (VDA), many enterprises have spent heavily on advanced technologies and developed cattle farms under Global GAP, VietGAP, and organic standards to improve productivity and food safety and to diversify products.

After showing their capacity to supply foreign markets with quality products, Vietnamese enterprises have enjoyed strong sales. Despite the pandemic, Vinamilk and Vinasoy exported products to major markets such as China, the Middle East, the Republic of Korea (RoK), and Japan.

The VDA said the dairy sector earned more than 113.71 trillion VND (4.95 billion USD) in revenue in 2020, or 5 percent higher than in 2019, thanks to an abundance of raw materials, high demand, and solid maintenance of distribution channels.

Securities firms expect that the dairy sector will grow some 7 percent in 2021 on the back of an increasing need for high-value products.

Exports exhibited robust signs in the first two months of the year, with 10 containers of Vinamilk’s nut milk and five containers of sweetened condensed milk shipped to China.

Meanwhile, the Chinese General Administration of Customs recently announced the granting of transaction codes to two Vietnamese companies to ship dairy products to the country, the Ministry of Industry and Trade’s Department of Asia-Africa Markets has said. China has so far granted transaction codes to nine Vietnamese companies and plants.

Besides China, Vietnam’s dairy products have also won over customers in the US, Japan, the RoK, and the Middle East.