Vietnam is rapidly becoming a major importer of powdered milk from South Korea, which is currently facing a crisis of low birth rate similar to China. This has led to many Korean manufacturers to consider expanding their market via exports to those regions or countries with high fertility rates.
From January to November 2022, Korea exported US$15.85 million worth of powdered milk to Vietnam representing 17% of its total shipment. Korea earned US$96 million from the export of powdered milk during the same period.
Shipment to Vietnam has grown steadily from US$7.58 million in 2016 to US$19.54 million in 2021. Vietnam is expected to take up to 20% of Korea powdered milk exports.
Major producers like Lotte Confectionery, which merged with Lotte Food in July 2022, is expanding its formula milk business in Vietnam with such brands as Nubone, Lotte Kid A and Grand Noble that debuted in 2019. Social media and TVC marketing campaign helped to boost Lotte’s exports to Vietnam in 2022.
Another Korean manufacturer, Namyang Dairy Products is also stepping up its export of powdered milk such as Imperial XO into Vietnam.