Vietnam’s Agricultural Future: Embracing Sustainable Growth and Organic Fertilizers

Vietnam’s agricultural sector is undergoing a transformative shift towards sustainability, focusing on reducing chemical fertilizer use and enhancing soil health by increasing reliance on organic fertilizers. This sustainable transition not only aims to improve productivity but also to align farming practices with global environmental standards.

A Dynamic and Export-Oriented Agriculture Sector

Home to 8.58 million farm households and spanning 28 million hectares, Vietnam ranks as a leading exporter of rice, coffee, cashew, and black pepper. In 2024, agricultural exports reached an impressive $62.4 billion USD, propelled by innovations such as smart irrigation, precision farming, and government-backed sustainability policies.

Sustainability Driving the Sector

Vietnam is witnessing rapid growth in organic farming, with organic cultivation covering 74,540 hectares as of 2023. Supported by about 17,000 organic producers and 555 processors, exports primarily target the US and EU markets. The government targets expanding organic farmland to 2.5–3.0% of total agricultural land by 2030, reinforcing its commitment to sustainable, high-value agriculture.

Fertilizer Use and Challenges

Vietnam’s fertilizer consumption is notably high—three times the global average—with chemical fertilizers dominating (75%) over organic fertilizers (25%). In 2023 alone, fertilizer use totaled 11 million tons, with 4.1 million tons imported, mainly chemical fertilizers from China. Organic fertilizers, including manure granulates from the US, Netherlands, and Belgium, make up a smaller share but are growing.

Heavy fertilizer use has caused soil degradation, nutrient imbalances, and water pollution, threatening long-term productivity despite expanding organic fertilizer production from 16.8 million tons (2020) to 21 million tons (2022). Soil application remains the most common fertilization method (96% market share in 2024).

Fertilizer Market Transformation

The $3.55 billion fertilizer market in 2025 is projected to grow to $4.2 billion by 2030, driven by government policies, environmental concerns, and greater demand for organic and specialty fertilizers. Organic fertilizers are expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2025 to 2030, outpacing the overall fertilizer growth of 3.47%.

Farmers increasingly embrace precision agriculture and sustainable fertilization techniques, favoring soil-based specialty fertilizers that are effective at lower application rates. This reflects a broader move towards fertilizers balancing productivity with environmental responsibility.

Government Policies Supporting Sustainability

Vietnam’s government has implemented ambitious targets to foster sustainable agriculture:

• Increase organic fertilizer production by 25% by 2025
• Ensure 30% of registered fertilizers are organic by 2030
• Achieve 50% of crop production areas using organic fertilizers

Policy frameworks like the National Environmental Protection Strategy and the National Organic Agriculture Project (2020–2030) underpin this shift, aligning Vietnam with global sustainability standards and boosting access to demanding markets such as the US, EU, and Japan.

Opportunities for the Netherlands

Vietnam’s sustainability journey opens significant opportunities for Dutch businesses, particularly in organic fertilizer innovation such as manure granulates. Dutch expertise in sustainable agriculture, waste recycling, and nutrient-efficient fertilizer production can meet rising Vietnamese demand for soil-friendly products.

Though Vietnamese farmers are price-sensitive, Dutch suppliers can differentiate through superior product quality and tailored solutions responsive to local soil conditions. Beyond product export, knowledge transfer, training, and technology partnerships will be key in strengthening bilateral collaboration.

In summary, Vietnam is pioneering sustainable agricultural growth by integrating organic fertilizers and reducing chemical dependency. Supported by strong government policies and burgeoning global demand for organic products, this transformation creates a fertile landscape for international partnerships, notably with the Netherlands, to foster innovation and environmentally responsible farming.

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