The fact that agriculture continues to be affirmed as a “pillar” demonstrates that its function goes beyond direct economic value—it lies in the ability to secure food for over 100 million people, provide livelihoods, and maintain social stability, particularly amid global economic and political volatility. For agriculture to continue developing sustainably and effectively in an integrated economy, the shift from a purely production-based sector to one with high added value is imperative. In this context, agricultural production and processing companies play a pivotal role, acting as a driving force to transform raw resources into high-value products, enhancing competitiveness and positioning Vietnamese agricultural goods in the global market. In this article, we will explore the development journey of Vietnam’s agro-processing sector.
1986–2000: Liberating productive forces and surging output
Before the Đổi Mới reforms (1976–1986), Vietnam’s economy operated under a centrally planned model, commonly referred to as the subsidy period. The five-year plans during this era failed to resolve food shortages, with average annual rice output at only 13–14 million tons.
A historic turning point came with the 6th National Congress of the Communist Party (1986), which initiated Đổi Mới, identifying agriculture as the “frontline sector.” Breakthrough policies were introduced, creating powerful momentum for production. Resolution 20-NQ/TW (1979) allowed a combination of planning and market mechanisms, the revival of private businesses, and authorised localities to engage in import-export activities. Later, Resolution 10-NQ/TW granted land-use rights to farming households, giving producers greater autonomy. Thanks to these policies, rice output soared to 21.5 million tons in 1989 and reached 32.55 million tons by 2000, transforming Vietnam from a food-deficient country into one of the world’s leading rice exporters.
The success of Đổi Mới policies in agriculture solved widespread food security and poverty issues. However, a structural consequence emerged: fragmented, small-scale production. The division of land among over 8.6 million farming households created a dispersed production system with weak linkages. This not only reduced productivity but also hindered the adoption of modern technologies, standardised quality control, and the building of efficient supply chains. Fragmentation was not a random limitation but a direct legacy of policies that successfully mobilised labour in the early stages, leaving a challenge to be addressed in the sector’s next phase of development.
2000–2020: Integration and product diversification
This period witnessed the rise and robust development of agricultural production and processing enterprises across diverse scales and business models. Deeper international economic integration opened major opportunities for exports. Vietnam’s agro-forestry-fishery export turnover grew impressively, from around USD 20 million in 1990 to surpassing USD 53 billion in 2022.
Beyond value growth, agriculture diversified its product structure. Instead of focusing only on rice, Vietnam developed multiple billion-dollar export commodities, including wood and wood products, coffee, fruits and vegetables, and cashews. This diversification helped reduce risks associated with overreliance on a few products and expanded export markets, particularly in major destinations such as the U.S., China, and Japan.
The growth of the agro-processing industry is reflected in enterprise statistics. By the end of 2019, Vietnam had 7,471 agro-forestry-fishery enterprises—up 94.25% compared to the end of 2015, with an average annual increase of 906.3 enterprises. By Q1 2024, the number of newly established enterprises in agriculture, forestry, and fisheries had risen by 10% compared to the same period in 2023. Nationwide, the number of medium and large-scale agro-processing enterprises surpassed 2,100.
2020–present: Strategic shift toward added value and agricultural economy
In recent years, Vietnamese agriculture has undergone a strategic mindset shift—from “agricultural production” to “agricultural economy.” This shift emphasises linking production with processing and markets to enhance growth quality and farmers’ incomes. The goal is to build a modern, market-oriented agriculture with high productivity, quality, and competitiveness, ranking among the leaders in the region and the world.
Government policies have clearly reflected this orientation. The Strategy for Sustainable Agriculture and Rural Development 2021–2030, with a vision to 2050, sets targets of 2.5–3% annual GDP growth in agro-forestry-fisheries and 5–6% average annual growth in export value by 2030. Resolution 19-NQ/TW (2022) and the Government’s Action Program (26/NQ-CP) further reinforced this vision, designating it a central mission for agriculture, farmers, and rural development through 2030, with a vision to 2045.
Initial results in this phase are promising. In the first half of 2025, Vietnam’s agro-forestry-fishery sector recorded export values of approximately USD 33.84 billion, up 15.5% year-on-year. Agricultural products reached USD 18.46 billion (+17.8%), fisheries USD 5.16 billion (+16.9%), and forestry USD 8.82 billion (+9.3%). These figures indicate that the shift from quantity-driven to value-driven growth is progressing positively.
Conclusion
Vietnamese agriculture is clearly transitioning from a volume-based growth model to a value-driven development model, with a focus on deep processing, branding, and expanding access to premium markets. The initial achievements in major exports such as rice, coffee, fruits, and seafood demonstrate that this strategy is on the right track—helping raise farmers’ incomes, boosting competitiveness, and gradually affirming Vietnam’s position on the global agricultural map.
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