Vietnam’s Dairy Sector Ramps Up Investment in Automation to Seize Export Growth
12. December 2025Vietnam’s dairy industry is experiencing a strategic transformation as producers boost investments in automation and advanced equipment to enhance production efficiency and meet rising international demand. In 2009, only 20–30 percent of domestic demand was met by local output, with a mere 5 percent of dairy cows raised on concentrated farms. The rest were raised by small-scale household operations, leading to elevated production costs. By 2018, Vietnam had imported $963 million worth of dairy products. With lower tariffs from multilateral and bilateral free trade agreements, such as CPTPP, the Institute for Brand and Competitiveness Strategy (BCSI) forecasts a sharp increase in import turnover. This includes easier access to automated production lines and components essential for modern dairy operations. Equipment and components used in partly automated systems as in dairy production usually require CR certification in order to be approved for import and sale in Vietnam.
Industry leaders stress the urgent need for technological upgrades, material development, and production cost reductions. Vinamilk, the country’s leading dairy producer, has focused on expanding its product range—including plant-based items—while targeting younger consumers and rural markets. The company also plans international expansion, including a new factory in Myanmar and investments in Laos to support ASEAN exports. Meanwhile, NutiFood is pursuing global markets through partnerships, such as with Delori for the U.S. market and BASF for enhanced nutritional formulas. With China’s $30 billion annual dairy market now accessible, Vietnamese producers are intensifying efforts to tap into this high-potential export destination.
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