Local dairy industry will have to compete with foreign brands under CPTPP

The domestic dairy industry will face competitive pressure this year due to the Comprehensive and Progressive Agreement for Trans Pacific Partnership CPTPP
local dairy industry will have to compete with foreign brands under cptpp

VNA/VNS Photo Pham Kha

The VDSC believes that Vietnam’s dairy brands will face fierce competition from foreign brands because when the CPTPP came into effect in Vietnam on January 14, import tariffs on dairy products from New Zealand, Singapore and Japan were cut to zero, making these product lines more competitive.

In addition, local consumers are more concerned about their own health and have improved awareness of nutritional products so they have become more demanding. They now prefer high-quality, organic milk products as well as those from walnuts and macadamia nuts. Meanwhile, demand for reconstituted milk has decreased, according to the report.

This is also the current consumption trend in developed markets like the US and the European Union (EU).

However, the current high-end product line still accounts for just a small proportion of the total milk supply in Vietnam. As much as 70 per cent of milk on the domestic market is traditional reconstituted milk with much lower nutritional value than fresh milk.

The ndh.vn website quoted the VDSC report as saying that dairy companies will take a long time to change product structures to follow market demand.

It said the long-term growth trend of the dairy industry is still positive. Milk consumption per capita in Vietnam is still at low of 26 litres per person per year compared to other countries in the region, such as 35 litres in Thailand and 45 litres in Singapore.

At the same time, other factors such as the large, young, quickly growing population and increasing incomes of the middle class will promote demand for milk in the long term.

To meet higher future demand, dairy processing enterprises in Vietnam have expanded dairy farms to increase milk supplies.

However, according to the VDSC report, companies from New Zealand, Singapore, Malaysia and Japan also want to access Vietnamese milk market, reported vneconomy.vn.

Under CPTPP, Japan will have more access to Vietnam’s dairy market in the coming years.

Recently, Japanese Asahi Group has co-operated with NutiFood, a Vietnamese food and nutrition company, to set up a join venture in January that will bring Japanese nutrition products to Vietnamese children.

Shoyama Katsuo, chairman of Asahi Group Foods, said Vietnam is a potential market so his group plans to bring more its products to the local market under this joint venture.

Other global dairy brands that entered Vietnam’s market many years ago such as Abbott, Friesland Campina, Mead Johnson, Nestle and some small milk brands, have promoted investment in marketing, research and development of new products for the local market.

At present, Vinamilk leads in market share at about 27 per cent while Abbott is second with 17 per cent, followed by Friesland Campina with 12 per cent.

Source: VNS

Related News

Taking advantage of FTAs ​​to promote exports of many products to Japan

Taking advantage of FTAs ​​to promote exports of many products to Japan

VCN - Vietnam and Japan are participating in 4 bilateral and multilateral free trade agreements, Vietnamese enterprises need to take advantage of this to increase exports.
Mexico: The leading market in the CPTPP bloc importing Vietnamese Tra fish

Mexico: The leading market in the CPTPP bloc importing Vietnamese Tra fish

VCN - According to statistics from General Department of Vietnam Customs, in the first half of July 2024, pangasius exports to Mexico reached more than US$4 million, an increase of 90% compared to the same period in 2023.
Vietnam

Vietnam's exports to Canada lead among CPTPP countries

VCN - Ms. Tran Thu Quynh, Commercial Counselor, Vietnam Trade Office in Canada shared with Customs Magazine about the picture of Vietnamese goods in Canada with a lot of potential that can be further exploited, and recommendations for businesses, along with activities deployed by the Trade Department to support businesses to conquer this attractive "billion dollar" market.
Efforts to supply US $ one billion of raw materials and cosmetics to replace imported goods

Efforts to supply US $ one billion of raw materials and cosmetics to replace imported goods

VCN - Dr. Nguyen Van Minh, Vice President of the Vietnam Aromatherapy - Essential Oils - Cosmetics Association (VOCA) shared with Customs Magazine the limitations in exploiting precious raw materials used for Vietnam's cosmetic production and the activities being implemented to develop this potential economic sector.

Latest News

Shrimp exports bring home nearly 2.8 billion USD in nine months

Shrimp exports bring home nearly 2.8 billion USD in nine months

Vietnam's shrimp export turnover is estimated at nearly 2.8 billion USD in the first nine months of this year – the highest among aquatic products, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

VCN- According to Yuanta Securities Company, from now until the end of the year, Vietnam's import and export enjoys many favorable macro factors to recover and accelerate. Many industries will benefit from this momentum such as rubber, textiles, seafood, seascapes, etc.
Seafood exports soar to new heights in the third quarter

Seafood exports soar to new heights in the third quarter

VCN - Seafood exports in the third quarter of this year reached US$2.76 billion, up nearly 13% over the same period last year. This is a peak after 4 years of disruption due to the Covid-19 pandemic.
Understand businesses and markets to expand cooperation opportunities with the United States

Understand businesses and markets to expand cooperation opportunities with the United States

VCN - The demand for shifting supply chains of US corporations is huge. Understanding the needs, standards and working methods of corporations will help Vietnamese enterprises have the opportunity to gain a larger market share in this wave.

More News

Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

VCN - Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it requires enterprises to meet international standards.
Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.
Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of voluntary as before. However, the level of readiness of businesses is not high.
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN- In order to foster development of the high-tech sector, one of factors is close cooperation between businesses to improve competitiveness and promote innovation.
Export target for 2024 set at US$400 billion

Export target for 2024 set at US$400 billion

VCN - Since the beginning of the year, Vietnam's export activities have continued to recover. It is forecasted that the total export turnover for the entire year may reach a historic milestone of US$400 billion.
Thai Binh intensifies cooperation with Russian localities

Thai Binh intensifies cooperation with Russian localities

A delegation from the northern province of Thai Binh, led by Chairman of the provincial People’s Council Nguyen Tien Thanh, on October 10 met with representatives of the Moscow Chamber of Commerce and Industry, along with several Russian businesses.
Ho Chi Minh City partners with nine provinces to boost import and export activities

Ho Chi Minh City partners with nine provinces to boost import and export activities

VCN - Ho Chi Minh City (HCMC) and nine provinces in the northern and north-central regions are cooperating in socio-economic development, leveraging each region's advantages and potential to boost import and export activities.
Read More

Your care

Latest Most read
Shrimp exports bring home nearly 2.8 billion USD in nine months

Shrimp exports bring home nearly 2.8 billion USD in nine months

Vietnam's shrimp export turnover is estimated at nearly 2.8 billion USD in the first nine months of this year – the highest among aquatic products, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

VCN- According to Yuanta Securities Company, from now until the end of the year, Vietnam's import and export enjoys many favorable macro factors to recover and accelerate. Many industries will benefit from this momentum such as rubber, textiles, seafood,
Seafood exports soar to new heights in the third quarter

Seafood exports soar to new heights in the third quarter

Seafood exports in the third quarter of this year reached US$2.76 billion, up nearly 13% over the same period last year. This is a peak after 4 years of disruption due to the Covid-19 pandemic.
Understand businesses and markets to expand cooperation opportunities with the United States

Understand businesses and markets to expand cooperation opportunities with the United States

VCN - The demand for shifting supply chains of US corporations is huge. Understanding the needs, standards and working methods of corporations will help Vietnamese enterprises have the opportunity to gain a larger market share in this wave.
Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Mobile Version