Vietnam's dairy sector braces for a new growth race

Vietnam's dairy industry is entering a new phase of competition and growth as the government advances a sector development strategy to 2030, encouraging expansion by both domestic and foreign producers while targeting 85 per cent self-sufficiency in raw milk by 2045.

- By Tra My

Two weeks ago, TH Group held a groundbreaking ceremony for the TH Binh Duong clean food processing plant project in Ho Chi Minh City, with a total investment of $240 million and a designed capacity of nearly one million tonnes per year.

According to the plan, the TH Binh Duong factory will operate in four phases, with phase 1 expected to be implemented over the next year, focusing on the production and processing of milk and dairy products with a capacity of approximately 69,000 tonnes per year.

Thai Huong, founder of TH Group, said that the factory is envisioned to become a modern processing centre, contributing to the completion of the company's clean food ecosystem, especially in the south.

“TH Binh Duong will bring consumers high-quality nutritional products. This will be one of the leading large-scale, modern factories for processing milk, beverages, and clean food in Vietnam, applying science and technology and modern management,” she said.

TH's move reflects the strong trend of investment expansion currently underway in Vietnam's dairy industry, as businesses seek to increase production capacity to meet market demand.

Vinamilk, the top dairy company in Vietnam, is also accelerating its expansion strategy through high-tech mega-factory projects. Among these, the most notable are the dairy factory in Hung Yen province with a total investment of nearly $200 million, expected to be operational in 2027, and the factory in Tay Ninh province with an investment of about $16 million, expected to be operational in the second quarter of this year.