Industry experts pointed to shrinking farmland, high feed costs, and volatile purchasing prices as major hurdles. — Vietnam News
HANOI: The dairy industry is facing mounting challenges as the growth of the national dairy herd has slowed to just 0.4% per year, far below earlier levels of expansion.
The warning was raised at a forum on dairy farming held here on Monday by Nong nghiep va Moi truong (Agriculture and Environment) newspaper, the Vietnam Animal Husbandry Association and the Vietnam Large Livestock Association.
From 2010 to 2015, the dairy herd expanded by over 15% annually, turning areas such as Moc Chau, Ba Vi, Vinh Tuong and Cu Chi into prosperous “dairy hubs”’.
But between 2020 and 2024, numbers dropped sharply, with Ho Chi Minh City losing more than half its herd.
“This is a worrying decline that threatens the industry’s future, farmers’ livelihood and the ambition of providing Vietnamese people with fresh domestic milk,” said Le Trong Dam, the newspaper’s deputy editor-in-chief.
Industry experts pointed to shrinking farmland, high feed costs, and volatile purchasing prices as major hurdles.
“Dairy farming requires large investment and professionalism, but urbanisation has reduced grazing land while input costs keep rising,” said Le Viet Hai, deputy head of Ho Chi Minh City’s animal husbandry and veterinary sub-department.
“Many farmers cannot make a profit and are forced to give up.”
Meanwhile, many households still lack access to high-yield breeds, affordable credit, and modern equipment.
Dependence on imported powdered milk and fluctuating market demand add further pressure.
Despite Vietnam’s population of over 100 million, the national herd stands at just 330,000 cows, meeting only 40% of domestic demand, according to the Vietnam Large Livestock Association.
Experts agreed that a comprehensive approach is needed.
Nguyen Xuan Duong, chairman of the Vietnam Animal Husbandry Association, stressed the importance of farmer–business partnerships.
Duong said: “Enterprises should sign long-term contracts, ensure transparent pricing and provide technical support, while farmers need to join cooperatives and adopt modern practices.
“The state must also improve standards and enforce minimum domestic sourcing requirements.”
The government’s livestock development strategy targets 650,000 dairy cows and 2.6 million tonnes of fresh milk annually by 2030.
To reach that goal, stronger policies on land-use planning, preferential credit and fair market mechanisms will be required.
Ngo Minh Hai, chairman of TH Group, underlined the central role of cooperation.
“Sustainable growth in dairy farming depends on close ties between enterprises and farmers,” he said.
“Only by moving together in a high-tech, closed chain can we reduce reliance on imported milk powder and ensure national nutrition security.”
TH’s Dalatmilk model in Lam Dong, which links farmers with breeding, veterinary services, feed and guaranteed purchase, has already delivered incomes of hundreds of millions of dong per household weekly.
“This is proof that when farmers and enterprises walk side by side, both economic and social benefits multiply,” Hai added. — Viet Nam News/ANN
