Under the new Trans-Pacific Partnership, Japan, Singapore and New Zealand will no longer face import tariff charges. As a result, experts are predicting that Vietnams dairy industry is set to face some strong competition.
Vietnam is currently experiencing an increased awareness for health and wellness which has led to higher dairy product demands. A report released by the Rong Viet Securities Company revealed that Vietnamese consumers now prefer high-quality organic milk as well as milk from walnuts and macadamia nuts.
Fonterra is one of the biggest dairy companies in Vietnam with a 57 percent share of the dairy foodservice market. “Vietnam is an important market for us and long where we have a long history, operating our consumer brands business for more than two decades,” said Fonterra.
The CPTPP will see 11 countries sign the free trade agreement.