Vietnam spends approximately 6.2 trillion Vietnamese dong on purchasing livestock goods from foreign sources
In the bustling city of HCM City, the landscape of the local market is shifting, with an increase in the consumption of imported meat and dairy products. According to a recent report by the Ministry of Agriculture and Environment, meat and meat by-products account for over $1 billion of the total import value, while milk and dairy products account for over $860 million.
This large price gap has contributed to an increase in the consumption of imported meat. The price of imported meat in HCM City is significantly lower than domestic meat, with frozen imports sold at prices 40-60% lower. This affordability has made imported products more competitive, especially during a period when the price of raw materials for domestic production surged, pushing meat prices higher.
The increase in imports occurred over the same period in 2024, with a nearly 23% rise. This surge is primarily caused by rising domestic demand fueled by population growth and higher meat consumption, combined with high local production costs driven by expensive imported feed ingredients and small-scale farming inefficiencies. Consumers also increasingly prefer cheaper foreign meat and dairy products.
The rise in imports has put pressure on domestic farmers, who are now forced to improve productivity, upgrade processes, and diversify products to remain competitive. However, concerns about quality and biosecurity remain. African swine fever poses a risk of poor quality meat entering the local market. Experts emphasize the need for controls on and close supervision of the quality of imported meat.
The economic impact of imports is significant. Imports account for nearly $2.6 billion spent on meat and dairy products in the first seven months of 2025, a 23% year-on-year increase. This has an impact on the local livestock industry's share in GDP and employment, challenging food security and rural livelihoods.
To address these challenges, a multifaceted approach is needed. Solutions include enhancing domestic productivity, diversifying and upgrading local products, strengthening import quality control, promoting sustainable feed supply, and supporting investment and infrastructure. For instance, firms like JBS have invested $100 million in Vietnam's meat factories, boosting local industry capacity.
The Southeast Livestock Association highlights the need for a balanced approach that meets consumer demand while sustaining domestic livestock development and food safety. This shift in the market is a call for action, not just for the local industry, but for the entire nation. As Vietnam continues to grow and develop, so too must its approach to food security and sustainability.
[1] Ministry of Agriculture and Environment Report, 2025 [2] Southeast Livestock Association Report, 2024 [3] World Bank Report, 2023 [4] Vietnam News, 2025 [5] JBS Press Release, 2025
- The affordability of imported meat in HCM City, due to a price gap with domestic meat, has been accentuated by AI-driven predictions, highlighting the potential for adding more AI solutions in the local livestock industry to enhance productivity and reduce costs.
- The surge in imports of meat and dairy products has not only affected culture, with a shift towards Western palates, but also the environment, as the increased demand for imported feed ingredients further intensifies deforestation and impact on local ecosystems.
- In the context of a growing economy, investment from multinational corporations like JBS in Vietnam's meat factories not only impacts the local industry but also finance and business, as this investment could potentially alter the balance of power between domestic producers and imported goods.
