Market of the whole chain is still really fresh in Vietnam. Efforts need to focus at all levels: dairy farms, the government, and processor to push thesector growth: 

     - Dairy farms should achieve lower production costs and improve milkquality, thereby creating the conditions for more local raw milkdemand from processors and consumers. Given the fragmentednature of the milk production from small-holders, any scale increases through co-operative is likely to lead to cost efficiencies and higher quality milk. And this is the critical factor for dairy farms beingsuccess.

     - Dairy processor should focus in R&D for higher value productsrange to improve its profitability and competitive ability tointernational players. On the other hand, supporting local dairy farming development to have a better control on raw milk source.Both of those issues are critical factors for dairy processing.

     - The Government can make a considerable contribution to thisprocess by creating a favorable investment climate in the dairy sector, i.e. sharing profits all over the chain; improving milk quality;increasing subsidies and developing in infrastructure.

     - We adopt a Reduce recommendation for Vinamilk and Hanoi Milk.

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