In recent decades, the Vietnamese economy has experienced an unprecedented growth. Along with the significant development of the economy, the increasing in population and income has led to a rising need for imported dairy products like milk, cheese, yogurt and so on. As the result, Vietnam has become a potential market for dairy exporters of many countries, especially Australia. Moreover, due to the dramatic progression of Vietnamese food industry, the demand of imported dairy ingredients is higher than ever before. Another factor influencing the demand for imported foods is that more wealthy consumers with disposable income tend to spend more on dairy through expenditure from retail outlets and supermarket or dining out. In general, these consumers concentrate in the large cities like Ho Chi Minh city, Hanoi, Danang, Haiphong and Can tho.
Another advantage for Australia, in particular Dairy Farmer to import dairy products into Vietnam market is the geographical advantages. Compared with competitors from the USA and Europe, there is a shorter shipping time from Australia, thereby reducing transport costs and increasing the opportunities of the fresh chilled products, for instance fresh milk, yogurt or custard.
In addition, at the end of 2006, Vietnam became a member of the World Trade Organisation (WTO), thereby reducing investment barriers including investment restriction, tariff, non-tariff barriers and subsidies. Consequently, there is stronger trade framework not only to protect domestic economy but also encourage overseas countries to trade with Vietnam. Due to the reduction of tariff, the Agribusiness Group in Victoria (2009) find out that the performance of most important areas to