A new livestock law, which took effect on January 1, 2025, is expected to reshape the future of Vietnam’s livestock industry by promoting sustainable business practices and improving the overall quality of animal husbandry.
The law prohibits animal farming in urban areas, towns, and residential zones, allowing livestock production only in designated zones. Exceptions include ornamental animal breeding and laboratory-based animal farming, provided they do not cause environmental pollution. This change is expected to favor larger businesses with the financial means and adequate land resources to engage in livestock production.
The new law comes at a time when the sector is facing challenges, including the rise in feed prices and the prevalence of animal diseases. As a result, the number of small-scale pig farming households has dropped sharply from 70 percent to 49 percent. Many farmers have already sold off their pigs by the end of 2024 in response to the new regulations, which is anticipated to shift market share towards larger livestock enterprises.
Associate Professor Dr. Nguyễn Thường Lạng, a senior lecturer at the Institute of International Trade and Economics at the National Economics University, believes the law will steer Vietnam’s livestock industry toward a more structured and sustainable model. This, he argues, will increase the prominence of medium and large-scale businesses and align the industry with international standards.
As part of these changes, management measures will focus on both quantity and quality control of livestock, ensuring adherence to market regulations. The law also mandates that food chains within the livestock sector be professionally managed, with strict guidelines on techniques, hygiene, quarantine protocols, and environmental protection to meet sustainability goals, including net emissions reduction.
According to TPS Securities Company, the pig farming industry will undergo significant transformation during the 2025-26 period. The shift will be driven by a growing consumer preference for health-conscious and food safety-compliant products, alongside the rising market share of large-scale enterprises that operate closed-loop farming systems. These enterprises are better positioned to leverage lower production costs and minimize losses.
Technology adoption in the livestock sector is also expected to increase, particularly in farms, to boost production efficiency. TPS forecasts that Vietnam’s pork production will reach 3.8 million tonnes in 2025, marking a 3 percent increase from 2024. This growth is attributed to an expansion in pig herd sizes, as the industry recovers from the impacts of Typhoon Yagi and better manages African swine fever outbreaks.
Meanwhile, pork consumption in Vietnam is projected to reach 3.9 million tonnes in 2025, up 3.3 percent from the previous year, with projections indicating that demand will continue to rise, reaching 4.7 million tonnes by 2030, growing at an average annual rate of 3.1 percent.
The new law and industry shifts signal a pivotal moment for Vietnam’s livestock sector, paving the way for improved production methods, market stability, and greater alignment with international standards.
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