Challenges and Opportunities in Vietnam’s Agricultural Sector
Striving for Growth in Agricultural Exports
At the recent 10th National Farmers’ Forum 2025, officials, including the Minister of Industry and Trade, gathered to discuss the future of Vietnam’s agricultural sector. Chair of the Vietnam Farmers’ Association, Luong Quoc Doan, outlined ambitious targets: $70 billion in exports from agriculture, forestry, and fisheries by 2025, scaling up to $100 billion by 2030.
However, these goals face significant hurdles. Notably, the specter of increased global competition looms large, especially as the U.S. imposes retaliatory tariffs that could impact various countries, including Vietnam. This backdrop underscores the need for strategic planning and execution to enhance Vietnam’s competitive edge in the global market.
The Importance of Quality and Market Expansion
Minister Nguyen Hong Dien emphasized the need for robust market and trade strategies. While production forms the foundation, the ability to connect with markets is just as crucial. At the forum, he made it clear that feedback from farmers and businesses would be a priority, pointing to the readiness to engage in problem-solving discussions.
A significant focus emerged around the application of digital technology in market connectivity. Local influencers have begun using livestreams to support farmers; however, doubts linger about the long-term viability of this approach. Farmers expressed a strong desire for the Ministry of Industry and Trade (MOIT) to help elevate local One Commune One Product (OCOP) goods for international markets via e-commerce platforms.
Le Hoang Oanh, the director of the Department of E-commerce and Digital Economy, highlighted that mere advertising or establishing online stores won’t suffice. Quality must be prioritized to meet international standards for products. She cited an example where only one out of several honey producers in Lai Chau met export criteria, thereby illustrating the quality issue.
Connecting Producers with Global Markets
Every year, the trade promotion agency organizes events designed to connect OCOP producers with foreign-direct investment (FDI) companies and domestic retailers. These initiatives have already seen substantial engagement, with thousands of farmers participating in the sales process via livestreams.
However, Minister Dien raised an important point: farmers might be overly focused on exports, neglecting the substantial domestic market, which consists of roughly 100 million consumers. He mentioned an upcoming international trade fair, scheduled for October 24, where farmers would have opportunities to showcase their products to foreign partners. Here, meeting quality standards—including proper packaging and branding—will be crucial for success.
Agricultural Sustainability and Market Needs
As the discussion moved to agricultural economics, it became evident that planning is essential for cultivation areas to meet market demand. Minister Dien stressed that this era, characterized by “two vegetable beds and two pig pens,” is over. Products must meet cleanliness and quality standards to remain viable.
Meanwhile, Chao Thi Yen from Goong Cooperative identified a pressing issue: steep e-commerce platform fees and soaring transportation costs, which often exceed the value of the goods themselves. While profits in agriculture remain low, raising prices could jeopardize competitiveness, creating a challenging dilemma for farmers.
In response to these concerns, Director Oanh reminded attendees that market dynamics make it difficult for the state to intervene directly. Nevertheless, the ministry is working on negotiations with major platforms for better support. Farmers are encouraged to focus on quality improvement, scaling production, and optimizing shipping practices to cut logistics costs.
Learning from Global Models
Agricultural expert Nguyen Thi Thanh Thuc pointed to the need for a rethink of Vietnam’s logistics landscape. She referenced Thailand’s Phuket market, which mandates that 51% of products sold be OTOP, transforming it into a thriving marketplace appealing to both domestic and international visitors. Thuc urged MOIT to consider a similar model to improve the accessibility and marketability of OCOP products in Vietnam.
In her remarks, she also noted a troubling reality: a Korean partner spent seven years looking to build an agricultural industrial cluster in Vietnam but ultimately chose China instead, driven by better infrastructure and favorable policies. This underscores the urgency of enhancing Vietnam’s agricultural infrastructure to attract foreign investment and promote growth.
Investing in Sustainability and Technology
Minister Dien concluded by calling for improved production capacity focused on high-quality, sustainable output. He encouraged farmers and private enterprises to invest in logistics, cold storage solutions, and post-harvest processing systems to minimize losses and enhance the value of agricultural products.
As Vietnam’s agriculture sector pushes toward ambitious growth targets, these discussions highlight a pathway littered with challenges—but also rich in opportunities waiting to be seized.