The Hanoitimes - Three leading Vietnamese dairy producers, including Vinamilk, TH True Milk and Moc Chau Milk, are the first to tap in the Chinese market, local media reported.
China has completed drafting the protocol on importing Vietnamese dairy products, starting 2019, according to Doan Minh Khoi, Vietnamese ambassador to China.
The protocol is expected to be signed during the official visit of high ranking delegations from Vietnam to China in April 2019, Khoi said in a meeting with the Ministry of Agriculture and Rural Development (MARD).
Next year, the Vietnamese embassy in China plans to hold an exhibition promoting Vietnam’s dairy products in China in May or June 2019, Khoi added.
According to Khoi, Chinese dairy market is huge but the product quality is not consistent. After China melamine milk scandal in 2008, Chinese consumers have been hesitating to use local products, while the cow health is affected by polluted farms.
Under this context, Australia and New Zealand currently hold the largest market shares in China, and Vietnam would have to compete with those two to gain a foothold in the market, the ambassador continued.
As of present, the Chinese authority has completed the risk-evaluation report on opening the dairy market for Vietnam. Nguyen Xuan Cuong, minister of Agriculture and Rural Development, said China would supervise the whole production chain to ensure safety and quality.
Cuong added the three leading Vietnamese dairy producers, including Vinamilk, TH True Milk and Moc Chau Milk, are the first to tap in the Chinese market.
China with GDP per capita of US$10,000 has huge demand for consumption, according to the MARD. Moreover, Chinese consumers have a preference for fresh foods, so Vietnamese agricultural products would have advantages in price and quality.
Currently, Vietnam’s main export products to China are rice and fruits, of which the former accounts for 50% of the latter's rice imports.
China remained Vietnam's largest import market during January-October with turnover of US$52.9 billion, a 12.4% climb year-on-year.