Vietnam is planning to increase its dairy cow population to 200,000 by 2010 to meet 40 percent of domestic demand, according to Duong, deputy director of the Husbandry Department.
Currently, domestic production serves only 20 percent of demand.
Duong said that the country's cattle herd was expected to grow with the population and the ministry aims to increase the herd to 500,000 by 2020, up from 130,000 currently, according to Vietnam news agency.
Vietnam's cow population has increased 22 percent since 2000, with milk production increasing 27 percent since then.
Duong said since not all areas in Vietnam are conducive to dairy farming, it must concentrate on specific areas for these activities, for example the highlands of Lam Dong and Moc Chau as well as the suburbs of Hanoi and HCM City.
People in places not conducive to dairy farming should not try raising cows, he said.
One place that was particularly suited for dairy farming was Ba Vi, in Ha Tay province, which is famous for its milk products due to its conducive raising conditions.
However, Duong pointed out that dairy farming there would need to be improved through adoption of modern large-scale production.
He added that it is unacceptable for homemade production to spoil the reputation that Ba Vi has built for itself.
International milk giant Nestle's plant was located in Ba Vi. Since 1997, the plant has been producing yoghurt and sterilised milk. Last April, the plant was sold to local company Anco. The products from the plant bore Nestle's name until April 2008 and now bears the name Ancomilk.
Recently, the district has worked with International Dairy Production Company (IDP) to build a trademark of Ba Vi Milk. IDP has also signed a contract to buy milk from local farmers and is also going to invest in the district's dairy cow raising programme.