VIETNAM DAIRY INDUSTRY

Dairy is an important and essential food but due to the high price compared to Vietnamese average income leading to the limitations in dairy’s expenses. Dairy’s spending accounts for 10% of the total food’s expenditure in Vietnam. Average GDP per capita growing constantly is the important factor boosting the dairy consumption.

The world’s dairy industry is highly concentrated. Total dairy consumption in developing countries is high, but consumption per capita is lower than in developed countries. In the first quarter of 2018, the dairy price fluctuated with two increases and three decreases, equivalent up 10.8% and down 2.3%.

In recent years, dairy sales in cities have not grown or kept negative growth, while dairy consumption in rural has been steadily growing at double digits. However, in the first quarter of 2018, total spending on dairy products in the whole market was lower than 5%. Especially, the negative growth in the quarter in cities was due to the fact that demand for powdered milk has not recovered.

Vietnam’s dairy production was forecast to increase by about 10% in 2017 and 2018. However, production of new raw milk only met 39-40% of domestic dairy demand, the rest depended on the import source. Dairy sales in Vietnam grew strongly from VND 42,000 billion in 2010 to more than xx, xxx billion in 2017, with an annual double growth rate of 11.7% in the period 2010-2017.

Powdered milk sales in 2017 were estimated to reach xx thousand billion dong, up 14.4% over 2016. According to VDA, powdered milk sales have continuously positively grown in the period 2017-2020. The turnover in 2018 is estimated at xx.x trillion.

Vietnam’s liquid milk market has an annual double growth rate of 22.4% in the period 2010 – 2017. Up to the first three months of this year, liquid milk sales reached VND xx.xx thousand billion, up 10.8% compared to the same period in 2017. Yogurt consumption in the first 3 months of 2018 reached about x.x billion, increasing by 10.7% over the same period last year.

 

Abbreviations
Executive Summary
I. Business environment
1. Macroeconomic situations
2. Legal Framework
3. Trade Agreements
II. Global market
1. Chain value of the dairy industry
2. Input materials
3. Industry situation
4. Typical producing countries
5. Key players in the world
III. Vietnam’s market
1. History of establishment and development
2. Producing procedures
3. Producing technology
4. Input materials
5. Production
6. Consumption
7. Export – Import
8. Inventory
9. Price
10. Distribution
11. Competition analysis
IV. Industriral risks
1. Industriral risk
2. SWOT analysis
V. Industrial development plan
1. Population growth
2. Raising industry development
3. Dairy industry development
VI. Prospects and forecasts
1. Development incentives
2. Forecasts
VII. Business analysis
1. Overview
2. Financial analysis
VIII. Financial analysis annex

Vietnam Dairy Products Joint Stock Company (Vinamilk)
Nestlé Vietnam Company Limited
3A Nutrition Company Limited
NutiFood Nutrition Food Joint Stock Company in Binh Duong Province
Frieslandcampina Vietnam Company Limited
TH True Milk Joint Stock Company
Moc Chau Dairy Cattle Breeding Joint Stock Company
Mead Johnson Nutrition (Vietnam) Company Limited
International Dairy Products Joint Stock Company (IDP)
KIDO Frozen Food Joint Stock Company (KDF)

List of figures
Figure 1: GDP and dairy consumption per capita, 2001-2017e
Figure 2: Expenditure structure of Vietnamese people, 2017
Figure 3: Rate of urbanization in Vietnam, 2004 – 2017
Figure 4: Growth in urban and rural dairy consumption, 2010 – Q1 / 2018
Figure 5: Total population and populstion structure in working age period 2010-2017
Figure 6: VND/USD exchange rate, 2013 – 3/2018
Figure 7: Monthly CPI Fluctuation 2015 – 3/2018
Figure 8: Consumer confidence index by quarter, 2014 – Q2/2017
Figure 9: Retail sales of goods, 2010 – 9M/2017e
Figure 10: Dairy industry value chain and added value by stage
Figure 11: Classification of milk and dairy products
Figure 12: Number of dairy cows in the world, 2008-2017e
Figure 13: Structure of dairy cows worldwide, 2017e
Figure 14: Production of dairy cow, 2012-2018f
Figure 15: Raw milk production in the world, 2010-2017e
Figure 16: Market share of cow milk production by region, 2017e
Figure 17: Cow milk production in some areas, 2017e
Figure 18: Cost of milk production in the world 2016 (USD/100kg)
Figure 19: Price of raw milk in the world, 2014 – 9/2017
Figure 20: Liquid milk production and consumption, 2012 – 2018f
Figure 21: Fresh milk consumption per capita, 2008-2023f
Figure 22: Milk consumption per capita growth 2006 – 2025
Figure 23: Liquid milk trade, 2008-2023f
Figure 24: Top 10 largest export milk countries in the world by value, 2017
Figure 25: Global yogurt production value, 2000 -2017e
Figure 26: Structure of world yogurt consumption, 2015
Figure 27: Skimmed milk powder production and comsumption, 2011 – 2020f
Figure 28: Structure of skimmed milk powder production and consumption, 2017e
Figure 29: Skimmed Milk Powder Global Trade, 2011 – 2018f
Figure 30: Export structure, 2017e
Figure 31: Import structure, 2017e
Figure 32: Global WMP production and consumption, 2016 – 2020f
Figure 33: Production structure of WMP, 2017e
Figure 34: Comsumption structure of WMP, 2017e
Figure 35: Whole Milk Powder Global Trade, 2015 – 2020f
Figure 36: Export and import structure of WMP, 2017e
Figure 37: Global cheese production and comsumption, 2011 – 2018f
Figure 38: Cheese production structure, 2017e
Figure 39: Cheese consumption structure, 2017e
Figure 40: Export structure of cheese, 2017
Figure 41: Import structure of cheese, 2017
Figure 42: Cheese Global Trade 2011 – 2018f
Figure 43: Global butter production and consumption, 2011 – 2018f
Figure 44: Consumption structure of butter, 2017
Figure 45: Butter Global Trade 2011 – 2018f
Figure 46: Export structure of butter, 2017
Figure 47: Consumption of dairy products per capita, 2017
Figure 48: Price movement of milk and dairy products, 2010 – 3/2018
Figure 49: Consumption of milk and dairy products per capita of NZ, 2011-2018f
Figure 50: Input materials of NZ dairy industry, 2011– 2017
Figure 51: Production structure of raw milk, 2017
Figure 52: Input materials of Europe dairy industry 2010-2017e
Figure 53: Input materials of USA dairy industry, 2010 – 2017e
Figure 54: Consumption of liquid milk per capita in USA, 2011-2017
Figure 55: Consumption of fresh milk per capita in China, 2010 – 2017
Figure 56: Production and consumption of powdered milk in China, 2010 – 2017
Figure 57: Number of cow herbs in Vietnam, 2010 – 2017
Figure 58: Number of dairy cow herds by region, 2017e
Figure 59: Cow milk volume by region, 2015
Figure 60: Domestic production volume of raw milk, 2010 – 2017e
Figure 61: Cow structure by enterprise, 2017e
Figure 62: Import volume of raw milk, 2010 – 2017e
Figure 63: Raw materials structure of milk, 2017e
Figure 64: Average raw milk price in some countries, 2017
Figure 65: Price movement of raw milk in the world, 2014 – 3/2018
Figure 66: Number of enterprises and workers in the dairy industry, 2010 – 2016
Figure 67: Fixed asset value of dairy sector over the years, 2010 – 2016
Figure 68: Production volume of liquid milk, 2010 – 3M/2018e
Figure 69: Production volume of milk powder, 2010 –3M/2018e
Figure 70: Production of liquid milk and powdered milk by month, 2016 – 3M/2018
Figure 71: Consumption sales of Vietnam dairy industry, 2010 – 2017e
Figure 72: Milk consumption volume, 2008 – 2020f
Figure 73: Dairy industry’s sales, 2010 – 2017e
Figure 74: Dairy consumption per capita, 2008 – 2017f
Figure 75: Sales of powdered milk, 2006 – 2020f
Figure 76: Market share of powdered milk for kids, 2016
Figure 77: Sales of liquid milk, 2010 – 3M/2018e
Figure 78: Market share of liquid milk, 2016
Figure 79: Sales of yogurt, 2010 – 3M/2018e
Figure 80: Market share of yogurt by brand, 2017e
Figure 81: Market share of condensed milk, 2017e
Figure 82: Sales of condensed milk, 2010 – 3M/2018e
Figure 83: Import of milk and dairy products, 2010 – 3M/2018
Figure 84: Import structure of milk and dairy products by HS code, 2017
Figure 85: Import market for milk and dairy products, 3M/2018
Figure 86: Export of milk and dairy products, 2010 – 3M/2018e
Figure 87: Dairy inventory, 2010 – 2017e
Figure 88: Distribution system of dairy industry
Figure 89: 10 most popular beverages in rural Vietnam, 2014
Figure 90: 10 most popular beverages in urban Vietnam, 2014
Figure 91: Population and population growth forecast in Vietnam, 2008 – 2020f
Figure 92: Dairy cow population’s targeted growth in the period of 2010 – 2020f
Figure 93: Forecast of fresh milk production, 2009 – 2020f
Figure 94: Total population and birth rate over the years, 2010-2017
Figure 95: Forecast of milk consumption in Vietnam, 2008 – 2020f
Figure 96: Net revenue, 2015 – 2016
Figure 97: Gross profit, 2015 – 2016
Figure 98: Gross profit margin, 2015 – 2016
Figure 99: Sales expenses, 2015 – 2016
Figure 100: Vinamilk’s sales and advertising expenses, 2010 – 2016
Figure 101: Sales expense structure of Vinamilk, 2016
Figure 102: Administrative expenses, 2015 – 2016
Figure 103: Total liabilities / Total assets, 2015 – 2016
Figure 104: Short-term Assets/Long-term Assets, 2015 – 2016
Figure 105: Solvency, 2015 – 2016
Figure 106: Profit Ratio, 2015 – 2016
List of tables
Table 1: Import tax on milk and dairy products to Vietnam
Table 2: Import tariffs for dairy products applied to countries in the TPP
Table 3: Yogurt production in some areas, 2010 – 2015
Table 4: World’s top 5 biggest butter importing countries, 2016-2017
Table 5: World’s top 20 largest dairy companies, 2016
Table 6: Some brands of powdered milk in Vietnam
Table 7: Description of goods under the HS code
Table 8: Retail price of some powdered milk products for kids under six years old in 3/2018
Table 9: Forecast for some basic population indicators up to 2019
Table 10: Development planning for dairy products to 2020, vision to 2025
Table 11: Indicators for performance efficiency, 2015 – 2016