At the session at Fonterra’s office, they made sure the delegation had an opportunity to hear, see and taste the “insights” through their Food Service show kitchen.
The Prime Minister’s visit also provided a platform for New Zealand businesses to strengthen partnerships, with several valuable MOUs getting signed between New Zealand companies and key Vietnamese partners, unlocking new trade opportunities.
“One of the highlights for us was signing a strategic partnership agreement with MM Mega Market Vietnam, a leading food service distributor,” de Silva said.
“This will significantly expand our reach, allowing us to more than double our access to mid-range F&B outlets, beyond the top 3500 outlets that we cover directly.”
“Vietnam’s economy is growing strongly, so there are lots of opportunities for our Kiwi dairy products,” Kelly said.
“As the Prime Minister himself mentioned, Vietnam is the rising star of Southeast Asia, and the growth potential is immense,” de Silva said.
“With a population of over 100 million and more than half expected to reach middle-class status by 2030, we are seeing a rapid shift in consumer behaviour.”
Despite this growth, Vietnam’s per capita dairy consumption remains low compared to other Southeast Asian markets, meaning there’s huge headroom for expansion.
For Fonterra, Vietnam is one of the fastest-growing foodservice markets in the region.
While Fonterra has been exporting dairy to Vietnam for over 30 years, the past few years have seen exceptional double-digit growth in the Foodservice business.
The co-op’s Anchor Food Professionals creams—one of the most premium products in its dairy range, doubled in value between the financial year 2022 and 2024, reflecting the increasing demand for high-quality dairy in this market.
“What’s driving the growth there?” Kelly asked.
“Our razor-sharp strategy of ‘go wide and go deep’. We have expanded our distribution by partnering with local players while ensuring our full premium portfolio is available across the market,” de Silva said.
“Our ‘local flavour infusion’ strategy has been a game-changer—integrating high-quality dairy into traditional Vietnamese and trending Asian cuisines to create new and exciting food experiences.
“Vietnam’s young and adventurous food culture is evolving rapidly, with Korean, Japanese, and Taiwanese influences shaping the way fusion food is being developed.
“Beyond flavour innovation, we are also replacing non-dairy substitutes with real dairy, helping elevate both taste and nutrition in a market where plant-based alternatives have traditionally dominated.
“Also, the growing international tourism sector has been a significant tailwind for the industry, driving up demand in hotels, cafés, and restaurants.”
Fonterra’s dairy products were now a staple in both traditional and modern Vietnamese dishes, de Silva said.
A great example is the sautéed snails in salted egg cream sauce, which the Prime Minister himself helped prepare in Fonterra’s kitchen.
It is a bold, umami-packed dish that blends Vietnamese, Chinese, and French influences, and Fonterra’s Anchor Extra Yield Cooking Cream was the secret ingredient that made the sauce silkier and more balanced.
Fonterra’s cream is also used in traditional curries, sweet soups, and even Vietnamese coffee drinks like egg coffee.
Asian fusion cuisine is a huge trend, and Fonterra’s dairy is playing a big role in elevating these dishes.
The opportunities in Vietnam were boundless, de Silva said.
“It is great to see the Prime Minister’s visit shining a spotlight on this growing market and opening doors for more New Zealand businesses to tap into its potential.”
