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 Young population structure enables a potential market to promote the dairy industry.

The input of processing dairy consists of fresh milk and powder, in which the powder trade among countries dominates. The cow’s milk material production in 2018 was estimated to achieve 725.8 million tons, increase 1.7% compared to 2017. The milk consumption is forcusing on skimmed powder which is a material using in manufacturing mink products, baby powders because it has already separated milk fat which is difficult to disgest with young children.

By the end of 2018, domestic fresh milk material production was estimated to rise 6.2% compared to the same period of 2017; consumption revenue in Vietnam increased 10.9% in comparison with 2017. Powder consumption revenue grew continuously between 2010 and 2018 with the growth rate reaching CAGR at 19.4%.

From 2010 to 2018, Vietnam imported about 7.2 billion USD of milk and dairy products, spent 890 million USD each year to meet the domestic consumption demand. Vietnam processing dairy industry was planned for development until 2020, with a vision to 2025 with many mechanisms and policies in order to help bussinesses in the industry and enhance competition when international integration.

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. Industrial risks
1. Industrial 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
NutiFood Nutrition Food Joint Stock Company
3A Nutrition Company Limited
Frieslandcampina Vietnam Company Limited
TH True Milk Joint Stock Company
Moc Chau Dairy Cattle Breeding Joint Stock Company
Mead Johnson Nutrition (Vietnam) Company Limited
KIDO Frozen Food Joint Stock Company (KDF)
International Dairy Products Joint Stock Company (IDP)

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 by quarter, 2013 –  2018
Figure 5: Total population and population structure in working age period 2010-2017
Figure 6: VND/USD exchange rate, 2013 – 9/2018
Figure 7: Monthly CPI Fluctuation 2015 – 9/2018
Figure 8: Consumer confidence index by quarter, 2014 – Q2/2018
Figure 9: Retail sales of goods, 2010 – 9M/2018
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 – 9/2018
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 cheese production and consumption, 2011 – 2018f
Figure 26: Cheese production structure, 2017e
Figure 27: Cheese consumption structure, 2017e
Figure 28: Cheese Global Trade 2011 – 2018f
Figure 29: Export structure of cheese, 2017
Figure 30: Import structure of cheese, 2017
Figure 31: Skimmed milk powder production and consumption, 2011 – 2020f
Figure 32: Structure of skimmed milk powder production and consumption, 2017e
Figure 33: Skimmed Milk Powder Global Trade, 2011 – 2018f
Figure 34: Export structure, 2017e
Figure 35: Import structure, 2017e
Figure 36: Global WMP production and consumption, 2016 – 2020f
Figure 37: Production structure of WMP, 2017e
Figure 38: Comsumption structure of WMP, 2017e
Figure 39: Whole Milk Powder Global Trade, 2015 – 2020f
Figure 40: Export and import structure of WMP, 2017e
Figure 41: Global butter production and consumption, 2011 – 2018f
Figure 42: Consumption structure of butter, 2017
Figure 43: Butter Global Trade 2011 – 2018f
Figure 44: Export structure of butter, 2017
Figure 45: Global yogurt production value, 2000 -2018f
Figure 46: Market share of global yogurt by company name, 2017e
Figure 47: Global yogurt export, 2012 – 2017 e
Figure 48: Export structure of global yogurt by value, 2017e
Figure 49: Consumption of milk and dairy products per capita, 2011 – 2020f
Figure 50: Consumption of dairy products per capita, 2017
Figure 51: Price movement of milk and dairy products, 2010 – 9/2018
Figure 52: Consumption of milk and dairy products per capita of NZ,
2011-2018f
Figure 53: Input materials of NZ dairy industry, 2011– 2017
Figure 54: Input materials of Europe dairy industry
2010-2017e
Figure 55: Production structure of raw milk, 2017e
Figure 56: Input materials of USA dairy industry, 2010 – 2017e
Figure 57: Consumption of liquid milk per capita in USA, 2011-2017
Figure 58: Consumption of fresh milk per capita in China, 2010 – 2017
Figure 59: Production and consumption of powdered milk in China, 2010 – 2017
Figure 60: UHT pasteurization system
Figure 61: Filling machine system
Figure 62: Centrifugal separator
Figure 63: Automatic milking system
Figure 64: Homogenization preparing equipment
Figure 65: Homogenizer
Figure 66: Milk processing equipment
Figure 67: Milk collection equipment
Figure 68: Tower drying system
Figure 69: Number of cow  in Vietnam, 2010 – 6M/2018e
Figure 70: Cow volume by region, 2017e
Figure 71: Raw materials structure of milk, 2017
Figure 72: Domestic production volume of raw milk, 2010 – 9M/2018e
Figure 73: Cow structure by enterprise, 2017e
Figure 74: Import volume of raw milk, 2010 – 9M/2018
Figure 75: Price movement of raw milk in the world, 2014 – 9/2018
Figure 76: Average raw milk price in some countries, 2017
Figure 77: Number of enterprises and workers in the dairy industry, 2010 – 2016
Figure 78: Fixed asset value of dairy sector over the years, 2010 – 2016
Figure 79: Production volume of liquid milk, 2010 – 9M/2018e
Figure 80: Production volume of milk powder, 2010 –9M/2018e
Figure 81: Production of liquid milk and powdered milk by month, 2016 – 9M/2018
Figure 82: Dairy industry’s sales, 2010 – 2017e
Figure 83: Dairy consumption per capita, 2008 – 2017f
Figure 84: Sales of liquid milk, 2010 – 9M/2018e
Figure 85: Market share of liquid milk, 2017
Figure 86: Sales of powdered milk, 2006 – 2020f
Figure 87: Market share of powdered milk by brand, 2017e
Figure 88: Sales of yogurt, 2010 – 9M/2018e
Figure 89: Market share of yogurt by brand, 2017e
Figure 90: Sales of condensed milk, 2010 – 9M/2018e
Figure 91: Market share of condensed milk, 2017e
Figure 92: Import of milk and dairy products, 2010 – 9M/2018
Figure 93: Import market for milk and dairy products, 9M/2018
Figure 94: Import structure of milk and dairy products by HS code, 9M/2018
Figure 95: Export of milk and dairy products, 2010 – 9M/2018e
Figure 96: Dairy inventory, 2010 – 2017e
Figure 97: Distribution system of dairy industry
Figure 98: Population and population growth forecast in Vietnam,
2008 – 2020f
Figure 99: Dairy cow population’s targeted growth in the period of 2010 – 2020f
Figure 100: Forecast of fresh milk production, 2009 – 2020f
Firgue 101 Total population and birth rate over the years, 2010-2017
Firgue 102 Number of people above 60 years old, 2017 – 2030f
Firgue 103 Elder rate having healthy problems, 2017
Firgue 104 Forecast of milk consumption in Vietnam, 2008 – 2020f
Firgue 105 Net revenue, 2016 – 2017
Firgue 106 Gross profit, 2016 – 2017
Firgue 107 Selling expense/ Net revenue, 2016 – 2017
Firgue 108 Vinamilk’s selling and advertising expenses, 2010 – 2017
Firgue 109 Selling expense structure of Vinamilk, 2017
Firgue 110 Administrative expenses, 2016 – 2017
Firgue 111 Debt ratio, 2016 – 2017
Firgue 112 Short-term Assets/Long-term Assets, 2016 – 2017
Firgue 113 Liquidity, 2016 – 2017
Firgue 114 Profit Ratio, 2017

Table 1: Import tax on milk and dairy products to Vietnam
Table 2: Import tariffs for dairy products applied to countries in the CPTPP, 2017
Table 3: World’s top 5 biggest butter importing countries, 2016-2017
Table 4: World’s top 20 largest dairy companies, 2017
Table 5: Some brands of powdered milk in Vietnam
Table 6: Description of goods under the HS code
Table 7: Retail price of some powdered milk products for kids under six years old in 9/2018
Table 8: Forecast for some basic population indicators up to 2019
Table 9: Development planning for dairy products to 2020, vision to 2025
Table 10: Indicators for performance efficiency, 2017