I. INTRODUCTION ABOUT TRUE MILK
1.1. Overview of the dairy market
Vietnam is a fertile market for domestic and foreign dairy companies. Increasing population
along with changes in nutrition has increased the demand for milk. Besides the big names
in the country, many foreign milk brands have also entered, creating quite strong
The COVID-19 epidemic has had a great impact on the production and business activities
of enterprises. However, dairy businesses seem to be less affected by this “storm”. Closing
2020, the dairy industry increased by 19.1% in market capitalization, better than the VN-
Index (14.9% in 2020). From the bottom on March 24, 2020, the dairy industry increased
sharply by 60% but still lower than the recovery of the whole market of 67.5%, recorded in
the report of SSI Research.
According to SSI Research, domestic demand for dairy products was less affected by
Covid-19, only down -6.1% in value compared to a decrease of -7.5% for consumption of
consumer goods (FMCG) in the first 9 months of 2020 and the country’s nominal retail
sales growth is 4.98% (GSO, 2020).
Vietnam is considered as a potential dairy market. Because Vietnam is a country which has
population growth, young population structure with a high population growth rate of about
1.2%/year, GDP growth rate of 6-8%/year, per capita income increasing by 14.2%/year.
These factors combined with the trend of improving the health and stature of the
Vietnamese people make the demand for dairy products always keep a high growth rate,
forecasted to reach 9%/year in the coming years next.
According to Phu Hung Securities Joint Stock Company (PHS), contrary to the negative
impact of COVID-19 on the global economy as well as in Vietnam, the consumption value
of milk and dairy products in Vietnam is still high, strong growth, even stronger than before
the epidemic in 2020. Specifically, milk consumption in urban areas grew by 10% while in
rural areas it grew by 15%.