Agro exports rebound: Vietnam sets sights on high-value, sustainable growth

Agro exports rebound: Vietnam sets sights on high-value, sustainable growth

Vietnam's agricultural sector is bouncing back and gearing up for a major leap, driven by a strong market recovery and new-generation trade agreements.

The latest figures, released at the conference on promoting agro-forestry-fisheries exports held on August 12 in Ho Chi Minh City, painted a more optimistic picture than expected.

According to Ngo Hong Phong, director general of the Department of Quality, Processing, and Market Development under the Ministry of Agriculture and Environment, the sector’s total export value approximated $40 billion by the end of July, up more than 14 per cent on-year.

This solid performance has strengthened the ministry’s confidence in achieving the 2025 target of $65 billion, and even stretching to $70 billion.

Coffee exports earned $6 billion in total export value in the first seven months of 2025, showing a staggering 65.1 per cent growth in value on-year

These milestones are viewed as strategic stepping stones towards the sector’s longer-term ambition of touching $80–$100 billion export value within the next five years, powered by consistent double-digit growth.

Experts have identified 2025 as a pivotal year. After weathering significant disruptions from global trade fluctuations, the agricultural sector has recovered and is now facing a rare window of opportunity to accelerate growth.

The three largest markets, the United States, China, and Japan, have maintained stable purchasing power, while regions such as Europe, the Middle East, and Africa have posted impressive growth figures.

Speaking at the conference, Acting Minister of Agriculture and Environment Tran Duc Thang highlighted the strategic importance of the domestic market, with over 100 million consumers. This is not only vital for ensuring production stability but also serves as a training ground where firms can test new products and fine-tune their ability to meet increasingly stringent standards before entering global markets.

Thang noted that next-generation free trade agreements (FTAs) such as the EVFTA, CPTPP, and UKVFTA remain key tools for businesses seeking to expand their profit margins.

“Leveraging the FTAs, Vietnam has a prime opportunity to push value-added, deeply processed products and increase export value,” he said.

However, a long-standing limitation remains pertaining to the low value-added content of Vietnam’s agricultural, forestry, and fisheries exports.

This is largely due to a dependence on imported raw materials and the prevalence of raw exports. Addressing this challenge, the formation of internationally standardised, concentrated raw material zones has become a priority.

High-profile models such as the ‘one-million-hectare high-quality rice production zone’ and the ‘specialised aquaculture zones for export processing’ are receiving significant attention and investment.

One of the major challenges ahead is the United States' new tariff policy. According to industry associations, agricultural exporters will likely face increased costs and pricing pressures when shipping goods to the US market.

“While the full impact is still unclear, it presents both pressure and opportunity,” said Thang. “The US still has strong demand for certain Vietnamese products of which we hold global leadership, like shrimp and processed coffee. If businesses can enhance their processing capacity and meet high-quality standards, this market will continue to offer tremendous value.”

Another key highlight from the conference was the strong commitment to inter-ministerial coordination. The Ministry of Agriculture and Environment, the Ministry of Industry and Trade, and the Ministry of Foreign Affairs pledged closer cooperation, along with more focused trade promotion activities, avoiding overlaps and ensuring resources are used effectively.

To support businesses with timely and accurate market intelligence, the Ministry of Agriculture and Environment has tasked the Department of Quality, Processing, and Market Development with developing a regular newsletter.

This publication will provide up-to-date information on production, import-export data, and analyses of potential markets, serving as a valuable decision-making tool for businesses navigating the global marketplace.

VIR