Vietnamese agriculture sector business leaders have told Thanh Nien current land limit regulations are forcing them to engage in complex land transfers involving multiple individuals and state approvals, increasing costs and risks. This is resulting in a fragmented, small-scale agricultural landscape that deters private sector investment, particularly in high-tech and export-oriented production.
The article notes that:
- In 2024, agriculture contributed nearly US$18 billion to Vietnam’s US$25 billion trade surplus — 72 percent — but land size limits are seen as a major barrier to scaling up.
- Under Decree 43/2014, land limits for farming and aquaculture are capped at 30 hectares, while perennial crop and forest land is limited to 100–300 hectares, depending on the region.
- In the Mekong Delta, private investment accounts for 61 percent of the region’s total social investment, but its national share has declined from 14.9 percent in 2014 to 12.4 percent in 2023.
- About 43 percent of private investment in the region is still household-based, suggesting a lack of engagement from formal businesses.
- Experts call for land limit reform and new-style cooperatives that link farmers with enterprises, ensure stable input-output channels, and provide access to finance, technology, and state support.
- High-tech, large-scale farms could transform agriculture into an industrialised sector, with lessons drawn from countries like Brazil (coffee), Malaysia (oil palm), and the Netherlands (dairy farming).
Agriculture is a long-standing strength of Vietnam’s economy, but policy constraints have discouraged enterprise-scale investment and kept farmers trapped in small, low-margin production cycles. Unlocking land access, fostering cooperative models, and enabling partnerships between farmers and private enterprises could provide a much needed to boost to attempts to modernise Vietnam’s agricultural economy.