Vietnam’s agriculture sector plays a crucial role in the country’s economy, contributing significantly to GDP and employing a large portion of the workforce. It is a diverse sector, encompassing crops, livestock, forestry, and fisheries. The country is a leading global exporter of products such as rice, coffee, and seafood. In recent years, the sector has seen a shift towards higher-value crops and more sustainable farming practices, as the government aims to enhance both productivity and environmental sustainability.
The sector faces several challenges, including climate change, which poses a significant risk due to its impact on agricultural productivity and the vulnerability of key crops to extreme weather events. Additionally, the agriculture industry must navigate competitive pressures in international markets, where meeting stringent quality and safety standards can be challenging. Despite these hurdles, there are opportunities for growth, particularly in organic and high-tech farming, which are increasingly supported by government policies and investment incentives.
Moving forward, Vietnam’s agriculture sector is expected to continue evolving with a focus on sustainability and innovation. This includes the use of organic fertilisers, advanced irrigation methods, and green financing options to support agricultural businesses in transitioning to more sustainable operations. These efforts are crucial for ensuring the long-term resilience and competitiveness of the sector on the global stage
Agriculture in Vietnam in numbers
The gross production value of Vietnam’s agriculture market is projected to reach US$30.38 billion in 2024. However, the market is expected to experience a slight decline with an annual growth rate of -0.99 percent between 2024 and 2028, resulting in a gross production value of US$29.20 billion by 2028, according to data collated by Statista.
This trend reflects several challenges facing the sector, such as the impact of climate change, fluctuating market demand, and competitive pressures in international markets.
Domestic agricultural producers in Vietnam
These companies engage in a variety of agricultural activities, including crop production, livestock farming, aquaculture, and agribusiness services.
TH Group
TH Group is a prominent player in Vietnam’s dairy sector, known for its innovative use of technology in farming. The company has invested significantly in high-tech agricultural practices, including automated systems and advanced irrigation methods, to enhance productivity and efficiency. This approach positions TH Group as a leader in the modernisation of Vietnam’s dairy industry.
VinEco
VinEco, a subsidiary of Vingroup, focuses on the production of high-quality agricultural products. The company operates extensive farms equipped with advanced technology for cultivating fruits and vegetables, ensuring sustainable and safe produce. VinEco’s commitment to food safety and sustainable practices has set a benchmark in the Vietnamese agricultural sector.
Dabaco Group
Dabaco Group specialises in animal feed production, livestock, and food processing. It is one of the largest integrated agricultural enterprises in Vietnam, managing operations from breeding and farming to processing and distribution. Dabaco is recognised for its focus on innovation and quality, playing a crucial role in the development of the country’s livestock sector.
Lavifood
Lavifood is known for its extensive production and export of processed fruits and vegetables. The company utilises state-of-the-art technology to produce a range of frozen and canned products, catering to both domestic and international markets. Lavifood’s emphasis on quality and sustainability has earned it a strong reputation in Vietnam’s agribusiness landscape.
These companies are leading examples of Vietnam’s evolving agricultural sector, showcasing the integration of technology and sustainable practices to boost productivity and meet both local and global demand. They play a significant role in shaping the future of agriculture in Vietnam.
Foreign agricultural producers in Vietnam
Foreign agricultural producers are playing an increasingly important role in Vietnam’s agricultural sector. These companies bring advanced technologies and farming practices that contribute to the modernisation of the industry.
Kubota (Japan)
Kubota is a leading player in Vietnam’s agricultural equipment market, particularly in the tractor segment. The company focuses on providing modern machinery that supports the mechanisation of agriculture in Vietnam. Kubota’s products are widely used in rice production, which is a major component of Vietnam’s agriculture.
Bayer (Germany)
Bayer has a significant presence in Vietnam, primarily through its crop science division. The company works on developing sustainable agricultural practices, including eco-friendly plant protection products and hybrid seeds. Bayer’s initiatives aim to increase productivity while reducing the environmental impact of farming activities.
John Deere (USA)
John Deere is actively involved in providing advanced agricultural machinery to Vietnamese farmers. The company’s equipment is used in various agricultural processes, including cultivation, harvesting, and post-harvest handling, helping to improve the efficiency and productivity of farming operations.
Yanmar (Japan)
Yanmar is another major player in the agricultural machinery sector in Vietnam, focusing on small-scale and specialised equipment for rice and other crop production. The company’s products support the mechanisation of smallholder farms, which are prevalent throughout Vietnam.
Fonterra (New Zealand)
Fonterra is involved in the dairy sector, providing expertise and products that help improve milk production and quality in Vietnam. The company collaborates with local dairy farms to implement better farming practices and enhance the overall dairy supply chain.
These foreign companies are instrumental in transforming Vietnam’s agricultural landscape through the introduction of innovative technologies and sustainable practices, which are essential for the country’s agricultural development and competitiveness on a global scale
Vietnam’s main agricultural products
Vietnam’s main agricultural products for export include a diverse range of commodities that significantly contribute to the country’s economy. The key products include:
Rice
Vietnam is one of the largest rice exporters globally. In 2023, rice exports generated nearly US$4.8 billion, with the product enjoying strong demand in markets such as the European Union, the Philippines, China, and Africa. The outlook for rice remains positive, driven by steady demand and favourable market conditions.
Coffee
Vietnam is the world’s leading exporter of robusta coffee, with the coffee industry achieving export revenues of nearly US$4.2 billion in 2023. The quality of Vietnamese robusta has improved significantly, making it a top choice in both domestic and international markets. The coffee sector continues to be a major contributor to the agricultural economy, benefiting from high global prices and strong export demand.
Fruits and Vegetables
The fruit and vegetable sector is another key area, with products like dragon fruit, mango, and durian gaining popularity. Vietnam’s fruit and vegetable exports reached US$1.23 billion in the first quarter of 2024, reflecting a significant increase compared to the previous year. The demand for fresh and processed fruits in markets such as China, the United States, and Japan is expected to grow, providing opportunities for further expansion.
These main agricultural products highlight Vietnam’s strength in the global agricultural market, supported by improvements in quality and increasing international demand
Vietnam’s agricultural sector is characterised by diverse regional specialisations, each contributing significantly to the country’s overall agricultural output.
Agricultural products by region in Vietnam
These regions, with their distinct agricultural outputs, play a significant role in Vietnam’s agricultural economy, supporting the country’s status as a major global exporter of various agricultural products.
Mekong Delta
The Mekong Delta is Vietnam’s largest agricultural region, often referred to as the “rice bowl” of the country. It is the leading producer of rice, contributing significantly to both domestic consumption and export. The region is also known for its extensive aquaculture, particularly shrimp and fish farming, and is a major supplier of tropical fruits such as durian, mango, and dragon fruit. This region’s fertile land and extensive waterway network make it ideal for large-scale agricultural production and aquaculture activities.
Central Highlands
The Central Highlands is the key area for coffee production, particularly robusta coffee, which Vietnam is globally renowned for. The region also grows other high-value crops like pepper, rubber, and tea. Provinces such as Dak Lak, Gia Lai, and Lam Dong are known for their coffee plantations, contributing significantly to Vietnam’s position as one of the world’s largest coffee exporters. The unique climate and elevation of this region support the cultivation of these crops, making it a crucial agricultural hub.
Red River Delta
The Red River Delta is another vital agricultural region, specialising in rice and vegetable production. Provinces like Hanoi, Bac Ninh, and Hai Duong are known for their high-quality rice and diverse vegetable crops. The area also produces fruits such as lychee and longan, which are popular both domestically and for export. The region’s proximity to major cities and ports facilitates efficient distribution and export of agricultural products.
What’s next?
Vietnam is integrating eco-friendly practices across its agricultural supply chains, supported by collaborations with international organisations such as the UNDP and the FAO. These initiatives aim to transition the sector towards lower emissions and improved sustainability. The focus is on reducing deforestation and promoting sustainable farming practices, particularly in the production of key export commodities like rice and coffee. Efforts to comply with new international regulations, such as the EU Deforestation Regulation, are also underway, however it may still take some time for Vietnam’s agricultural producers to be fully compliant.
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