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In this study, Vietnamese households’ expenditure on dairy products for home consumption is analyzed using the latest Vietnamese Household Living Standard Survey datasets in 2010 (VHLSS 2010). Vietnam is the 20th most important importer of dairy products in the world and it is foreseeable that the demand continues rising. This makes Vietnam a highly potential market for dairy exporting countries and for investors in the dairy industry. The aim of the paper is to analyze the effects of socio-economic and demographic variables on Vietnamese households’ decision to purchase dairy products and how much to spend per capita on these items. A double-hurdle model is estimated to accommodate non-normal and heteroskedastic errors for milk and milk products. The parameter estimates for the demand decision variables are presented in the paper. The results suggest that socio-economic and demographic variables effect household expenditure on dairy products. This may help policy makers to implement policies related to dairy industry, nutrition and food security. The results also are useful for dairy products marketers in planning and developing strategies.


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