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.