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.

How did Vietnam’s agriculture transform between 1986 and 2000?

Between 1986 and 2000, Vietnam’s agriculture underwent a significant transformation, moving away from a centrally planned economy that had previously struggled with food shortages. Before the Đổi Mới reforms (1976–1986), the country’s average annual rice output was a mere 13–14 million tons, failing to meet the population’s needs.

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.

What changes did Vietnam’s agricultural sector see from 2000 to 2020?

From 2000 to 2020, Vietnam’s agricultural sector experienced robust development and significant diversification, driven by deeper international economic integration. This era saw the emergence and growth of numerous agricultural production and processing enterprises, operating across various scales and business models. These developments opened substantial opportunities for exports, leading to an impressive increase in Vietnam’s agro-forestry-fishery export turnover, which surged from approximately USD 20 million in 1990 to over USD 53 billion by 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.

How is Vietnam’s agriculture evolving strategically since 2020?

Since 2020, Vietnamese agriculture has been undergoing a strategic evolution, shifting its mindset from mere “agricultural production” to a comprehensive “agricultural economy.” This strategic change prioritizes the integration of production with processing and market linkages, aiming to enhance the quality of growth and improve farmers’ incomes. The overarching goal is to establish a modern, market-oriented agricultural sector characterized by high productivity, superior quality, and strong competitiveness, positioning Vietnam as a leader in the region and globally.

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.

See More:

• Restructuring Global Supply Chains in the Shadow of Geopolitics (Part 1)
• Vietnam’s Processed Food Sector: Key Drivers of Export Growth