Arabfields, Said Ali, Specialist in Agricultural Policy and Economic Innovations in Asia — The Southeast Asian dairy and probiotic beverage market is witnessing significant growth, driven by rising health consciousness, increasing disposable incomes, and a growing demand for functional foods. In this dynamic landscape, Thai dairy brand Betagen has taken a bold step forward by announcing plans to establish its first manufacturing facility in Vietnam. This move not only marks the company’s inaugural production plant outside its home country but also underscores its ambition to deepen roots in one of the region’s fastest-growing consumer markets.

Founded in 1991, Betagen has built a strong reputation in Thailand for its sterilized drinking yogurt and signature fermented milk products, particularly those enriched with probiotics. The brand’s flagship offerings, known for their gut health benefits, have become household staples in Thailand and have successfully expanded through exports to neighboring countries including Cambodia, Myanmar, Malaysia, and Laos. Now, with Vietnam emerging as a key priority, Betagen is transitioning from an import-dependent model to localized production, a strategy that promises enhanced supply chain efficiency and greater market penetration.

The announcement centers on a major land acquisition in Vietnam’s southern province of Dong Nai. Betagen has signed a long-term lease agreement for nearly 35,000 square meters of prime industrial land in the An Phuoc Industrial Park. This lease, secured through a partnership with real estate consultancy Savills Vietnam, extends until 2062, providing the company with decades of operational stability. Savills has been instrumental in the process, assisting Betagen in site selection since as early as 2019, highlighting the thorough due diligence behind this investment.

Kitti Sawangarom, CEO of Betagen Vietnam, described the project as a pivotal milestone. “The construction of the company’s first plant in Vietnam marks a significant step in its regional expansion and reinforces its long-term commitment to the country,” he stated. This sentiment reflects Betagen’s confidence in Vietnam’s economic trajectory and its potential as a hub for food and beverage manufacturing.

The choice of An Phuoc Industrial Park is strategic. Managed by Tin Nghia Corporation, the park is conveniently located approximately a 60-minute drive from Ho Chi Minh City, Vietnam’s bustling economic center. Its proximity to the upcoming Long Thanh International Airport, along with excellent connectivity to major highways and seaports, positions it ideally for logistics and distribution. These infrastructure advantages are crucial for a dairy company like Betagen, where timely delivery of perishable probiotic products is essential to maintaining quality and shelf life.

Experts from Savills Vietnam have praised the location and the broader investment climate. John Campbell, Head of Industrial Services at Savills Vietnam, noted that Dong Nai province continues to lead the southern key economic region in industrial development and ranks among the top destinations for newly registered manufacturing foreign direct investment (FDI). “Betagen’s project reflects foreign manufacturers’ confidence in the region’s potential,” Campbell remarked. Similarly, Chi Phan, Manager of Industrial Real Estate at Savills Vietnam, highlighted Vietnam’s appealing attributes: “Developed infrastructure, competitive supply chains, and a skilled workforce continue to help Vietnam attract global manufacturers, especially in the food and beverage sector.”

Betagen’s journey in Vietnam dates back to 2007 with the establishment of Betagen Vietnam Co., Ltd., headquartered in Ho Chi Minh City. Initially focused on importing and distributing the brand’s probiotic fermented milk drinks, the subsidiary has steadily built a loyal customer base. In the competitive Vietnamese market for probiotic beverages, Betagen goes head-to-head with established players such as Yakult, local giant Vinamilk, TH True Milk, and international name FrieslandCampina. Local production will likely give Betagen a competitive edge through reduced import costs, fresher products, and the ability to tailor offerings more precisely to Vietnamese tastes and preferences.

This expansion aligns with broader trends in the probiotic and functional dairy sector. Consumers across Southeast Asia are increasingly seeking products that support digestive health, immunity, and overall wellness, areas where Betagen excels. The company has demonstrated innovation in this space, recently launching Betagen Pro, a high-protein probiotic drink that taps into the global high-protein trend. Available in 300ml and 200ml variants, Betagen Pro delivers impressive nutritional profiles: 15g of protein and 30 billion colony-forming units (CFUs) of live probiotics per 300ml serving, or 10g of protein and 20 billion CFUs in the smaller size. Formulated with lactose-free yogurt (comprising 99.95% of the base, including skimmed milk powder, whey protein concentrate, whole milk powder, and concentrated whey protein), it caters to health-conscious consumers looking for convenient, daily gut and muscle support.

The new Vietnam plant is expected to focus on producing these core probiotic fermented milk drinks and potentially expanded lines like Betagen Pro. While specific details on production capacity, exact construction timelines, and total investment figures have not been fully disclosed in the initial announcement, the scale of the land lease suggests a substantial facility capable of meeting growing regional demand. Once operational, the plant could serve not only the Vietnamese market but also bolster exports to other ASEAN countries, leveraging Vietnam’s favorable trade agreements and lower production costs compared to Thailand.

This development comes at a time when Vietnam’s dairy industry is booming. The country has seen rapid urbanization, a burgeoning middle class, and increased awareness of nutritional benefits from fermented dairy products. Government policies supporting FDI in manufacturing, particularly in food processing, have further sweetened the deal for companies like Betagen. By setting up local production, the brand can navigate import tariffs, ensure consistent supply amid global disruptions, and respond more agilely to market shifts.

For Betagen, this Vietnamese venture represents more than just a factory, it’s a statement of intent to evolve from a Thai-centric brand into a true regional powerhouse in the probiotic dairy space. As competition intensifies and consumer preferences lean toward functional, health-boosting beverages, localized manufacturing could provide Betagen with the agility and cost advantages needed to capture greater market share.

In conclusion, Betagen’s decision to build its first plant in Vietnam’s Dong Nai province is a forward-thinking move that capitalizes on the country’s industrial strengths and consumer growth potential. Backed by strategic partnerships and a proven product portfolio, this expansion positions Betagen for sustained success in Southeast Asia’s vibrant dairy and probiotic market. As construction progresses, industry watchers will undoubtedly keep a close eye on how this Thai pioneer adapts and thrives in its new Vietnamese home.