Brian Jeffrey
Positive Growth in Vietnam’s Agricultural Sector
In 2024, the agricultural sector in Vietnam achieved a GDP growth rate of 3.3 percent, surpassing expectations, despite facing challenges like natural disasters and global market changes.
The export revenue from agricultural, forestry, and fishery products reached an impressive $62.5 billion, marking an 18.5 percent increase from 2023. This resulted in a trade surplus of $17.9 billion, making up 72 percent of the nation’s total trade surplus.
Several products, including coffee, rice, cashews, and various fruits and vegetables, set new export records. Many farmers enjoyed substantial harvests, significantly boosting their incomes.
Hoan, a local official, mentioned that “agricultural economics is beginning to take root,” reflecting a growing awareness among farmers of the importance of adapting production to market demands.
Local governments are not only guiding production but also facilitating market access for farmers through trade fairs and festivals. Regions such as Son La, Hung Yen, and Hai Duong have actively sought to expand market opportunities for their products.
Previously, the government promoted extensive production, but many farmers struggled with market access. Hoan emphasized that establishing connections is crucial to overcoming challenges in the agricultural sector.
Farmers now recognize the distinct characteristics of different markets, including varying standards and technical requirements, for which they are receiving guidance from various ministries.
Hoan remarked, “It’s clear that a market-oriented production mindset is developing. This means producing what the market needs rather than what farmers prefer to grow.”
Statistics indicate that the agricultural sector’s growth has surpassed objectives set for the 2021-2025 period. Notably, fruit and vegetable exports have grown to over $7 billion, exceeding the 2030 target of $6.5 billion.
However, Hoan pointed out a key issue: most of Vietnam’s agricultural exports remain unprocessed, positioning the sector at the lower end of the value chain.
While increasing output has benefited farmers, relying solely on this will eventually lead to stagnation in earnings.
It is essential to explore innovative methods to enhance the value of agricultural products, such as implementing circular agriculture.
For instance, in rice farming, Vietnam can generate revenue not only from selling rice but also from using by-products like husks and stems for mushroom cultivation, energy production, and organic fertilizers. Farmers in Mekong Delta are already seeing positive outcomes from these practices.
In coffee production, while beans are primarily sold, 98 percent of what is produced is typically discarded. However, coffee grounds can be repurposed for hydroponic vegetables, fertilizer, or cosmetic products, and husks can be transformed into premium tea.
Countries worldwide have utilized waste coffee grounds to cultivate mushrooms and convert leftover by-products into animal feed.
By embracing a circular production approach, farmers can prevent waste and reduce environmental management costs.
This strategy is partly why the Ministry of Agriculture and Rural Development (MARD) is focusing on exporting processed goods, such as frozen durian to China, which significantly enhances product value.
As urbanization and industrialization shrink agricultural land, Hoan acknowledges that while production is rising, it will reach a critical point. Therefore, international collaboration in agriculture becomes essential.
Hoan also advocated for cross-border partnerships with countries like Laos, Cambodia, and several African nations to enhance agricultural development.
