Transforming Vietnam’s dairy industry on the foundation of sustainable development for community health

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Transforming Vietnam’s dairy industry on the foundation of sustainable development for community health

The project under the TH true MILK brand has contributed to enhancing the physical and intellectual well-being of Vietnamese people and future generations.

Over nearly 15 years, the project “Transforming Vietnam’s Dairy Industry on the Foundation of Sustainable Development and Community Health” under the TH true MILK brand has applied high technology, circular economy principles, and emission reduction measures to protect the environment. These innovations have improved productivity and product quality, producing fresh milk that meets international standards. TH true MILK has contributed to enhancing the physical and intellectual well-being of Vietnamese people and future generations, becoming a model of large-scale, high-tech, and circular agriculture, laying the foundation for Vietnam’s fresh milk industry and contributing to sustainable development.

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In 2009, the TH true MILK project was launched amid the global milk contamination crisis in China caused by melamine, posing severe health risks. At that time, Vietnam’s milk market had over 500 brands, characterised by fierce but non-transparent competition. Around 92% of liquid milk products were reconstituted (made from milk powder) rather than fresh milk, and consumers lacked the knowledge to distinguish between the two.

Determined to produce international-standard fresh milk from Vietnamese soil despite harsh natural conditions in western Nghe An, and to “make milk with the heart of a mother,” as envisioned by Labour Hero Thai Huong (the Founder), TH applied cutting-edge global technology, Industry 4.0 innovations, and management science to develop a closed-loop high-tech concentrated production system “from green fields to clean milk.” This approach created high-yield, high-quality, and cost-efficient dairy products.

Despite challenges in Vietnam’s fragmented livestock sector, TH introduced Industry 4.0 technology into dairy farming and clean agriculture, fundamentally changing production methods, promoting large-scale and circular farming, and reducing emissions across all TH farms.

With a steadfast commitment to sustainable development, TH invests in their projects through the combination of advanced global technology with management science, Vietnamese intelligence, and natural resources. This “golden key” has unlocked the potential of agriculture, achieving remarkable accomplishments, creating a clean, organic product ecosystem made from all-natural ingredients that meets international quality standards and facilitates Vietnam’s “fresh milk revolution,” “organic revolution,” and “nutrition revolution.”

Currently, with nearly 70,000 dairy cows, TH Group is Vietnam’s largest high-tech concentrated dairy farming enterprise. Its investments have significantly advanced the country’s dairy industry and helped achieve national goals for herd expansion and fresh milk output.

TH Group proudly:

Laid the foundation for Vietnam’s fresh milk industry based on sustainability and community health; led the shift from powdered milk to nutrient-rich fresh milk and pioneered the “no-sugar” revolution to shift consumer behaviors and reduce chronic diseases.
Pioneered the circular and green economy model with a sustainable development strategy built on six pillars: Nutrition–Health, Environment, Education, People, Community, and Animal Welfare.
Pioneered to support the Government’s Net Zero goal under COP26 through effective emission-reduction initiatives in production and business activities.
The first organization to develop the Vietnamese Nutrition Project, accompanying and implementing national nutrition policies such as Resolution No. 20/NQ-TW of the 12th Party Central Committee on strengthening the protection, care, and improvement of people's health in the new situation; Decision No. 641/QD-TTg of the Prime Minister approving the Master Project on Developing the Physical Strength and Stature of Vietnamese People (2011–2030); Decision No. 02/QD-TTg approving the National Nutrition Strategy for the 2021–2030 period with a vision to 2045; Decision No. 1660/QD-TTg of the Prime Minister approving the School Health Program for 2021–2025; Decision No. 1340/QD-TTg of the Prime Minister approving the School Milk Program to improve nutritional status and contribute to enhancing the stature of preschool and primary school children; etc.
Became the first Vietnamese enterprise licensed to export fresh milk to China and implemented the largest Vietnamese agricultural project in Russia.
Pioneered transparent labelling by clearly stating ingredient origins on packaging. - the crucial factor that determines milk quality
First enterprise allowed to label products as “fresh milk.”
Pioneered and advocated for greater transparency in Vietnam’s dairy market.
Developed TH School Milk, the first product to meet national school milk standards (Decision 5450/QD-BYT), verified by the Ministry of Health for its nutritional benefits among children.
TH pioneered the development of clean and organic agriculture, becoming the first enterprise in Vietnam to produce organic fresh milk and convert its dairy herd to organic farming practices.
First in Vietnam to successfully breed dairy cows through natural selection to develop an A2 herd, producing fresh milk and yogurt products made from A2 milk.

Driving philosophy:

Driven by the mission “For Vietnamese stature” and the vision “Investing in the development of physical and intellectual strength means investing in the nation’s future generations - a form of sustainable development that serves as a national strategic priority,” founder Thai Huong built TH Group on five core values: “For True Happiness”, “For Community Health”, "All-natural products”, “Environmentally Friendly – Innovative Thinking”, and “Harmonising Benefits”. Guided by the philosophy “Respect Mother Nature, she will grace you with all her gifts,” every TH manufacturing and operating activity is aligned with circular and green economic principles, emission reduction, environmental protection, and sustainable development across its entire production chain.

Goals:

For nearly 15 years, TH has remained dedicated to producing healthy, all-natural products. Its growing ecosystem of products continues to embody this vision and these core values. TH is solidifying its position as a “nutrition expert” in the industry, working alongside the government and ministries to advance national nutrition initiatives such as the School Milk program, Student Health program, and Vietnamese National Nutrition Initiative, etc. These efforts collectively aim to improve the health, stature, and intellectual capacity of future generations under national strategies.

The project “Transforming Vietnam’s Dairy Industry on the Foundation of Sustainable Development for Community Health” was launched in October 2009 with a total investment of USD 1.2 billion, under the investment advisory of Bac A Bank.

The first dairy farm cluster was established in Nghia Dan, Nghe An, now home to nearly 70,000 cows across 8,100 hectares.

This is a successful example of applying circular and green economy and reducing emission principles across all TH entities, including TH Milk Food Joint Stock Company (manages dairy farms); TH Milk Joint Stock Company (fresh milk processing plant); TH Food Chain Joint Stock Company (distribution and retail to consumers supermarkets and the TH true mart retail chain); companies responsible for implementing the dairy project in various provinces (connected in a value chain with three key enterprises). To date, emission reduction, use of renewable energy, and green energy initiatives have been implemented across all TH units.

15 years

of project implementation

USD 1.2 billion

in total investment

37,000 hectares

of material areas

70,000

dairy cows

TH Group, with its nearly 70,000 cows, remains Vietnam’s largest high-tech concentrated dairy farming enterprise. Initiated in Nghe An, the project is now expanding to Thanh Hoa, Phu Yen, Ha Giang, Cao Bang, An Giang, Kon Tum, and more. After 15 years of providing milk that improves and enhances Vietnamese stature, physical and intellectual capacity, TH true MILK accounts for 45% of Vietnam’s fresh milk market share.

Notably, since 2016, TH has expanded its model to Russia, with a total 10-year investment of USD 2.7 billion, aiming for 350,000 cows, 5,900 tons of daily milk processing capacity (equivalent to 1.8 million tons annually), and 140,000 hectares of raw material area.

TH true MILK products will be distributed in Russia through supermarkets, traditional channels, and 300 TH true mart stores.

Case Ownership

Lead organisation: TH Group – TH true MILK brand

Subsidiaries: TH Milk Food Joint Stock Company (manages dairy farms), TH Milk Joint Stock Company (fresh milk processing plant), TH Food Chain Joint Stock Company (distribution and retail)

Main partners: Bac A Commercial Joint Stock Bank: investment consulting and financial partnership, Government and ministries: Ministry of Health, Ministry of Education and Training, and the Government of Vietnam (for national programs on nutrition, school milk, and student health)

International partners: implementing investment projects in Russia and milk export to China

Stakeholders and main beneficiaries: Vietnamese consumers (especially children and future generations through the school milk program), Local communities in project areas (Nghe An, Thanh Hoa, Phu Yen, Ha Giang, Cao Bang, An Giang, Kon Tum, etc.), Vietnam’s dairy farming and milk processing sector (benefiting from the pioneering circular economy and high-tech model)

Source: Human Act Prize (external link)

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