Vnm- Milk Industry

An update of the milk market in Vietnam

Lactose-free dairy opportunity

Nhi Nguyen

Degree Thesis

International Business

2014

DEGREE THESIS

Arcada

Degree Programme:

International Business

Identification number:

Author:

Title:

13350

Nguyen Yen Nhi

An update of the milk market in Vietnam

Lactose-free dairy opportunity

Supervisor (Arcada):

Svein Eldon

Commissioned by:

The Case Company

Abstract:

The dairy industry in Vietnam is a dynamic sector that shows continuous growth during

the past ten years. Opportunities are now so vast for foreign milk producers to enter this

market with their lactose free brands especially when lactose intolerance awareness is increasing gradually among Vietnamese people. The thesis provides an update of the dairy

market in Vietnam, including current condition, major players, and factors influencing

consumer behaviors in order to find out if there is a demand for lactose-free dairy products on the Vietnamese market. In the empirical research, a survey is conducted to collect

data regarding consumer behavior in Vietnam. The scope of the quantitative research is

limited in the Vietnam market, mostly in Ho Chi Minh City, which has the highest dairy

consumption nationwide. Vietnamese consumers are “demanding, open-minded, and adventurous” like the Asian in general. The “western brand oriented” psychology influences

the milk shoppers’ decision in Vietnam to a great extent. The key products of Vietnam

milk market are powder milk, milk in form of liquid, fermented milk product, condensed

milk and soy milk. Leader of powder milk sector is Abbott; of the liquid milk, fermented

milk product, condensed milk sectors is Vinamilk; of soya milk sector is Vinasoy. Adults

from non-milking area like Vietnam have lactose mal-absorption according to Simoon’s

hypothesis. Vietnam can be part of the booming of lactose-free dairy market in Asia.

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Date of acceptance:...