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

Vietnam’s agricultural sector is undergoing a transformative shift toward sustainability, driven by the dual goals of increasing productivity and improving environmental health. This transition emphasizes reducing chemical fertilizer dependency and expanding the use of organic fertilizers, positioning Vietnam as a global leader in sustainable agriculture within Southeast Asia.

Vietnam’s Vibrant Agricultural Landscape

• Scale & Diversity: With 8.58 million farm households managing 28 million hectares, Vietnam cultivates 11.34 million hectares for crops amid diverse climatic zones. This diversity supports a wide variety of crops such as rice, coffee, cashew, and black pepper, reinforcing Vietnam’s status as a top global exporter.
• Export Growth: Agricultural exports reached $62.4 billion USD in 2024, fueled by government policies promoting sustainability, smart irrigation, and precision farming.

Embracing Sustainability and Organic Farming

• Rising Organic Cultivation: By the end of 2023, organic farmland covered approximately 74,540 hectares, supported by 17,000 organic producers and 555 processors. Organic exports chiefly target the U.S. and EU markets.
• Expansion Goals: Vietnam aims to increase organic farmland to 2.5–3.0% of total agricultural land by 2030, underscoring its commitment to eco-friendly agricultural practices.

Fertilizer Use and Environmental Challenges

• High Fertilizer Reliance: Vietnam uses three times the global average fertilizer amount, primarily chemical fertilizers (75%), with organic fertilizers at 25%. In 2023, fertilizer consumption hit 11 million tons, including 4.1 million tons imported—mostly chemical fertilizers from China and organic types from the Netherlands, the USA, and Belgium.

• Soil Health Issues: Heavy fertilizer use has caused soil degradation through nutrient imbalances, acidification, and water pollution, threatening long-term productivity.

• Self-Production Trends: Vietnamese farmers increasingly produce organic fertilizers locally, with output rising from 16.8 million tons in 2020 to 21 million tons in 2022. ## Transforming the Fertilizer Industry

• Market Overview: Dominated by domestic state-owned and private enterprises, the fertilizer sector is evolving with investments in manufacturing, supply chains, digital platforms, and farmer education.

• Market Growth: Estimated at $3.55 billion USD in 2025, the market is expected to reach $4.2 billion USD by 2030. Organic fertilizers are growing faster (CAGR 6.7%) compared to the total industry (CAGR 3.47%), reflecting rising demand for sustainable agricultural inputs.

• Sustainable Innovation: Precision agriculture and specialty fertilizers with controlled-release technologies are increasingly adopted to improve efficiency and environmental outcomes.

Government Policies Driving Change

• Ambitious Targets: The Vietnamese government aims for a 25% increase in organic fertilizer production by 2025, and 30% of registered fertilizers to be organic by 2030. Half of all crop production areas are targeted to use organic fertilizers.
• Regulatory Support: Frameworks like the National Environmental Protection Strategy, the Enhancing Soil Health Plan, and Decree 109 on Organic Agriculture support the shift toward sustainable fertilization.
• Global Alignment: These policies facilitate Vietnam’s compliance with international sustainability standards, boosting exports to eco-conscious markets such as the U.S., EU, and Japan.

Opportunities for Dutch Partnerships

• Expertise in Sustainability: The Netherlands, renowned for sustainable agriculture and waste recycling, is well-positioned to partner with Vietnam in organic fertilizer development, particularly manure granulates.
• Market Potential: Dutch businesses can offer high-quality, nutrient-efficient fertilizers tailored to Vietnam’s diverse soils, helping to restore soil health and elevate crop productivity.
• Knowledge Transfer: Beyond product supply, there is a strong opportunity for Dutch-led training and technology transfer programs to support Vietnamese farmers’ adoption of organic and precision fertilization techniques.

Conclusion:
Vietnam’s move toward sustainable agriculture and organic fertilizers presents a significant opportunity for innovation, investment, and international collaboration. Supported by robust government policies and growing market demand, the fertilizer sector—and especially the organic fertilizer niche—is poised for dynamic growth. Dutch expertise and products are particularly valuable in fostering Vietnam’s sustainable agricultural future that balances productivity with environmental stewardship.

Sources:

• Agroberichten Buitenland, “Shaping Vietnam’s agricultural future with sustainable growth and organic fertilizers,” April 24, 2025
• Vietnam Ministry of Agriculture and Rural Development
• Netherlands Embassy in Vietnam

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