Shaping Vietnam’s Agricultural Future through Sustainable Growth and Organic Fertilizers

Vietnam’s agriculture is undergoing a transformative shift towards sustainability, driven by environmental concerns, rising consumer demand for organic products, and government policies. Central to this transformation is reducing chemical fertilizer use and boosting organic fertilizer adoption to enhance soil health and secure long-term productivity.

Vietnam’s Agricultural Landscape and Export Strength

• Scale & Diversity: With 8.58 million farm households cultivating 28 million hectares (11.34 million hectares for crops), Vietnam’s agriculture is one of Southeast Asia’s most dynamic sectors.
• Global Export Leader: Vietnam ranks top globally for rice, coffee, cashew nuts, and black pepper exports.
• Economic Impact: Agricultural exports reached USD 62.4 billion in 2024, propelled by a push toward high-value crops, smart irrigation, and precision agriculture.

Sustainability: The New Agricultural Paradigm

• Organic Expansion: By 2023, organic farming covered 74,540 hectares with approximately 17,000 producers and 555 processors, targeting domestic and international markets.
• Goals for 2030: Vietnam aims to increase organic farmland to 2.5–3% of total agricultural land and promote sustainable, high-value farming practices.
• Sustainability Drivers: Public demand for organic food and growing awareness of environmental risks are key motivators.

Fertilizer Use and Challenges

• Heavy Fertilizer Dependence: Fertilizer application rates are three times the global average, with 75% chemical and 25% organic fertilizers.
• Soil Degradation Problems: Overuse of fertilizers results in nutrient imbalances, soil acidification, and water pollution, threatening soil fertility.
• Domestic Production Trends: Organic fertilizer production is rising—from 16.8 million tons in 2020 to 21 million tons in 2022—alongside imports primarily from the USA, the Netherlands, and Belgium.

Market Transformation and Growth Potential

• Market Size: Estimated at USD 3.55 billion in 2025; projected to reach USD 4.2 billion by 2030.
• Organic Fertilizers Growth: Expected CAGR of 6.7% (2025–2030), outpacing the overall fertilizer industry’s CAGR of 3.47%.
• Technology & Adoption: Precision agriculture and controlled-release specialty fertilizers are gaining traction among farmers.
• Export Markets: The US and EU together account for 90% of Vietnamese organic agricultural exports.

Government Initiatives Bolstering Sustainable Fertilization

• Policy Targets: Increase organic fertilizer production by 25% by 2025; achieve 30% organic fertilizer registration and 50% crop land use by 2030.
• Supporting Frameworks: National Environmental Protection Strategy, Soil Health Enhancement Plans, National Organic Agriculture Project 2020–2030, and Decree 109 on Organic Agriculture.
• Alignment with Global Standards: These policies support Vietnam’s participation in high-demand organic markets globally.

Opportunities for Dutch Expertise and Business

• Market Entry Potential: Vietnam’s shift opens doors for Dutch suppliers specializing in organic fertilizers, especially manure granulates.
• Competitive Edge: Dutch strengths include superior nutrient-efficient fertilizers, innovation in waste recycling, and sustainable agriculture technology adaptable to Vietnam’s soil conditions.
• Knowledge Partnership: Beyond product supply, there are opportunities for technology transfer, farmer training, and collaborative sustainability projects.

Conclusion

Vietnam’s agriculture is at a pivotal moment, embracing sustainability and organic practices to ensure long-term productivity and environmental health. The Dutch agricultural sector, with its expertise in organic fertilizers and sustainable farming, plays a crucial role in supporting this transition. Aligning innovation, policy, and market demand, this partnership promises to shape a resilient and competitive agricultural future for Vietnam.

Sources: Agroberichten Buitenland, Netherlands Embassy in Vietnam, Vietnamese Government Policy Documents

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