[Photo: From Dairy Australia.]

Vietnam News, 19 October 2015. Foreign dairy prominent (part of a bigger article, Hotel surplus threatens Danang).

An edited extract of the original article appears below.

Imported dairy products, worth over US$1 billion a year, account for 70 per cent of the market on average, and their dominance seems set to continue since the tariffs will become zero when the Trans-Pacific Partnership (TPP) agreement become valid.

Viet Nam’s TPP accession will see consumers enjoy cheaper milk and other products, though the domestic dairy industry is likely to be broadsided as cheap products will flood the market.

The dairy imports are mainly from TPP members like Australia, New Zealand, and the US.

Trinh Quoc Dung, a manager at dairy giant Vinamilk, said Vietnamese producers would also benefit since the prices of imported dairy raw materials would drop.

According to the Viet Nam Dairy Association, imports of dairy products from Australia and New Zealand have increased relentlessly. In 2013 imports from New Zealand were worth $6.3 million and from Australia, $2.6 million.

The import tariffs are currently 3-5 per cent on dairy raw materials and 7-10 per cent on dairy products, and they stand to be eliminated under TPP.

“There are reasons for foreign dairy products to flood Viet Nam,” said Pham Ngoc Chau, deputy director of Hancofood.

Dairy companies believe foreign dominance will only become stronger. After all, even before TPP, many new dairy brands from the US, France, Japan and Canada have appeared in Viet Nam. — VNS



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