Domestic milk companies have increased powdered milk production to meet a higher demand on the local market.

Le Nguyen Hoa, deputy chairman of Dong Tam Nutrition Food Company (Nutifood), said the powdered milk market generated 2.36 trillion VND (111.3 million USD) in revenue in 2012, which included 300 trademarks, mostly foreign.

However, Hoa said, imported powdered milk is costly and domestic products are up to 60 percent cheaper and producers have better distribution systems.

That is why Nutrifood is building a powdered milk factory in the southern province of Binh Duong with an annual capacity of 50,000 tonnes, he said.

Another domestic firm, Vietnam Dairy Company (Vinamilk) also seems to be reaping boom benefits. Vinamilk chairwoman Mai Kieu Lien said the company’s powdered milk in Binh Duong province has a capacity of 54,000 tonnes a year, which include products for children and the elderly and hospital patients. It has won 25.8 percent of the market for children, she said.

Vietnam Customer Protection Association (Vinastas) deputy general director Vuong Ngoc Tuan said local powdered milk products meet hygiene and quality standards and are much cheaper.-VNA