Green deals help level up agriculture

Green deals help level up agriculture

Local and foreign companies are receiving increased funding to invest in Vietnam’s agricultural sector.

One of the latest initiatives is a three-year project led by food ingredients manufacturer BENEO, in partnership with the non-governmental organisation Rikolto and climate-tech company CarbonFarm, announced in late July.

Government support for low-carbon agriculture makes it an ideal environment for collaboration, Photo: Le Toan

Backed by a €800,000 (nearly $940,000) grant from the Flanders government in Belgium under the Flanders International Climate Action Programme, the initiative aims to encourage sustainable rice production in Vietnam.

The subsidy is used to cover the costs of training farmer cooperatives, monitoring and validating reductions in emissions and water consumption, as well as the separate logistics and processing of the final Sustainable Rice Platform (SRP)-verified rice.

Roland Vanhoegaerden, operations managing director for Speciality Rice Ingredients at BENEO, said, “Global demand for sustainable rice is rising, with SRP-certified supply now covering nearly 50,000 hectares and available in over 20 countries across Europe, Asia, and North America. As one of the world’s top rice exporters, Vietnam holds strong export potential but lacks verified sustainable supply chains.”

BENEO, Rikolto, and CarbonFarm are working to build an innovative value chain market model by connecting small-scale farmers to international markets and creating added incentives for cultivating SRP-verified rice.

Trained farmers are granted guaranteed purchase quantities for their SRP-verified rice. BENEO’s production site in Belgium will process at least 10,000 tonnes of this rice into high-quality starch, flour, and protein ingredients for the global food and pet food industries.

The project helps farmers meet international sustainability benchmarks, strengthening Vietnam’s positioning as a trusted supplier of SRP-certified rice. It also equips cooperatives to support farmers in scaling sustainable production. At the same time, successful business cases will be documented to inspire wider adoption of sustainable practices.

Also last month, the Dutch Fund for Climate and Development (DFCD) also approved origination support to HUSK, a pioneer in biochar-based fertilisers, to accelerate the company’s expansion in Vietnam.

DFCD provides funding to scale HUSK’s production capacity, invest in research and product development, and bring new biochar-based fertiliser formulations to both markets. This enables HUSK to prototype tailored solutions for major crops and support broader market adoption.

Nguyen Anh Tuan, general manager of HUSK Vietnam, said, “We are implementing a comprehensive scale-up plan in Vietnam, with a key component being the establishment of a new production facility. This plant will use locally sourced rice husk to manufacture biochar-based fertilisers tailored for Vietnam’s key agricultural regions.”

Alongside this, HUSK is forming research partnerships with leading institutions such as Can Tho University, Nong Lam University, and others to test and refine its products for crops like rice, coffee, durian, and bell pepper under real farming conditions.

Additionally, the company is also expanding its market presence through demonstration farms, farmer training, and direct engagement, while building strong distribution and offtake partnerships with cooperatives and agribusinesses.

Phuc Sinh Corporation also secured a funding of $15 million from the Dutch Entrepreneurial Development Bank in early April. Chairman Phan Minh Thong said, “With this funding, Phuc Sinh can raise its production capacity, invest in agricultural projects, apply advanced tech to the supply chain, and increase the value of products.”

According to data by the Ministry of Agriculture and Environment, the export value of agro-forestry-fishery products reached $39.68 billion in the first seven months of the year, up 14.7 per cent on-year. Key agricultural products recorded significant value growth than last year – coffee exports soared by 65.1 per cent to $6 billion, while cashew nut exports increased by 17.4 per cent to $2.79 billion.

Following that is pepper, with an export turnover of $1 billion, an on-year increase of 30 per cent. Rice exports saw a 15.9 per cent decrease in value to $2.81 billion due to a significant 18.4 per cent drop in price.

Vanhoegaerden from BENEO noted that the Mekong Delta faces severe climate risks yet remains vital to global rice trade. In this case, Rikolto, leveraging its long-standing partnership with local authorities, leads training for Vietnamese farmers, while CarbonFarm will deploy digital and satellite tools to support data collection and more.

“For these partners, Vietnam presents the opportunity to pilot scalable solutions that reduce environmental impact and support farmers while contributing to national and green goals,” Vanhoegaerden said.

VIR