"Can Vietnamese organic vegetables really be trusted?"
This is something often heard from those in agriculture and food importers. Vietnam is known agricultural power as such, but its organic-farming certification systems are in many respects still developing. Which certification to obtain, and how much it costs, can be hard to judge.
This article explains the overall picture of Vietnam's organic-farming certification systems. From how to obtain PGS, USDA, and EU organic certification, to the realities of the rapidly growing organic market, to the challenges Japanese companies should grasp, it is compiled from an on-the-ground perspective.
Why Vietnam's organic-farming market is drawing attention now
Vietnam's organic-produce market has expanded at an average pace of 15 to 20% a year over the past five years. The main drivers are the growth of the domestic middle class and rising health consciousness.
International demand is also strong, and exports of organic produce to the EU, the United States, and Japan are trending upward year by year. According to statistics from Vietnam's Ministry of Agriculture and Rural Development (MARD), as of 2023 the area of farmland with organic certification reached about 170,000 hectares, becoming one of the largest in Southeast Asia.
At the same time, several types of certification exist, and the standards required differ by export destination. This is the point that troubles on-the-ground staff the most.
What is PGS certification? Vietnam's own participatory guarantee system
A PGS (Participatory Guarantee System) is a mechanism in which quality is guaranteed not by a third-party body but by farmers, consumers, and local communities working together. It is an approach promoted by IFOAM (the International Federation of Organic Agriculture Movements), and in Vietnam it began to spread around 2008.
Features of PGS certification
Compared with conventional third-party certification, there are major differences in cost and procedures.
| Item | PGS certification | Third-party certification (USDA/EU) |
|---|---|---|
| Certification cost | Low cost (equivalent to tens of thousands of yen) | High cost (several hundred thousand to several million yen) |
| Reviewing body | Local community | Accredited certification body |
| Export readiness | For domestic and some developing-country markets | For major markets such as the West and Japan |
| Time to obtain | Relatively short | About 1 to 3 years |
| Reliability | High within the region | High internationally |
PGS certification is suited to small-scale farmers and producer groups. It is often used for sales in the domestic market and for direct sales of produce linked to ecotourism.
Steps to obtain PGS certification
The process has mainly four steps.
- Joining a producer group: join a local PGS group and share the standards and principles of organic farming
- Farm self-declaration: document and submit the pesticides, fertilizers, and cultivation methods used
- Conducting peer inspections: members within the group visit and check one another's farms
- Granting and renewing certification: once approved by the group as a whole, certification is granted; renewal is required once a year
The procedure is simple, but trust within the group and continuous record management are important.
USDA organic certification (NOP): an essential qualification for the US market
The USDA (United States Department of Agriculture) organic certification program, NOP (National Organic Program), must be obtained by farmers and food processors aiming to export to the United States.
Exports of organic produce from Vietnam to the United States have increased in recent years, with Cashew nuts-black pepper and rice as the leading items.
Requirements for obtaining USDA organic certification
- No use of prohibited pesticides or chemical fertilizers for the past three years
- Prepare and submit an Organic System Plan
- Pass an on-site review by a USDA-accredited certification body
- Annual renewal reviews and maintenance of records
Obtaining certification usually takes 1 to 3 years. Costs vary by farm size and crop type, but the first time often requires an investment of several hundred thousand to several million yen, including review fees and documentation costs.
Certification bodies in Vietnam that can conduct USDA-accredited reviews include Control Union Vietnam, ECOCERT, and IMO.
EU organic certification: the standard required to enter the European market
To export organic produce to the EU, certification based on the EU organic regulation (EC No 834/2007, now EU 2018/848) is required. The EU is one of the world's largest markets for organic produce and an important export destination for Vietnam as well.
Main differences between EU organic certification and USDA certification
| Comparison item | EU organic certification | USDA（NOP） |
|---|---|---|
| Governing regulation | EU 2018/848 | NOP rules |
| Certification body | EU-accredited body | USDA-accredited body |
| Conversion period | 2 to 3 years (depending on the crop) | 3 years |
| Genetic modification | Prohibited (contamination of less than 0.9% tolerated) | Prohibited |
| Mutual recognition | Bilateral agreements between the EU and some countries | The US and EU have a partial equivalence agreement |
Since 2012, the EU and the United States have had a mutual recognition agreement for organic farming, but Vietnam is outside this framework. Therefore, to target both the EU and US markets, you must obtain certification for each separately.
Things to watch for when exporting to the EU
From 2024, the EU has tightened pesticide-residue standards (MRLs) and increased the frequency of spot checks on imported produce. Intensified inspections of Vietnamese produce continue, and continuous quality management is required even after certification is obtained. If there are deficiencies in documentation or pesticide residues are detected, there is also a risk of export suspension.
Growth and challenges of the organic market: the reality on the ground
While Vietnam's organic farming has great potential, structural challenges also remain.
A rapidly growing market
- Size of Vietnam's domestic organic-food market: more than about US$500 million as of 2023
- Annual growth rate: 15 to 20% (five-year average)
- Number of organic-certified farms: more than about 1,500 nationwide (as of 2024)
Centered on Ho Chi Minh City and Hanoi, organic supermarkets and farm-direct organic vegetable box services are spreading rapidly.
The main challenges farmers face
The cost barrier: the cost of obtaining and maintaining third-party certification is a heavy burden for small-scale farmers. There are subsidy programs, but large differences in support by region and crop continue.
Gaps in technical capability: conversion to organic farming often takes more than three years, and how to make up for the lower income during that period is a challenge. In rural areas in particular, access to technical guidance is limited.
Fraud and labeling issues: the reliability of labels such as "organic" and "pesticide-free" is being questioned among consumers. Products that claim to be organic without certification circulate in the market, and in some cases the competition with properly certified farmers becomes unfair.
Standards that differ by export destination: because the certifications required differ for the EU, the United States, and Japan, certification costs rise when targeting multiple markets.
The connection with Japan: the current state of organic-produce imports
Japan's imports of agricultural products from Vietnam amount to tens of billions of yen per year. For organic produce as well, mutual recognition with JAS organic certification and the development of import procedures remain challenges.
At present, when USDA- and EU-certified Vietnamese produce is imported into Japan, a separate JAS certification is needed to label it as JAS organic. The development of a system to ease the burden of this double certification is being discussed in the agriculture and food industries of both Japan and Vietnam.
Points to consider when weighing certification
The choice of organic certification varies greatly depending on the sales destination and farm size.
| Sales destination / purpose | Recommended certification | Priorities |
|---|---|---|
| Vietnam's domestic market | PGS certification | Cost control and local trust |
| Export to the United States | USDA NOP | Strict record management |
| Export to the EU | EU organic certification | Pesticide-residue management and documentation |
| Export to Japan | JAS organic certification | Certification bodies that handle Japanese |
| Multiple markets | USDA + EU certification | Cost and schedule management |
Before obtaining certification, the most important thing is first to be clear about "which market you will sell to." Once the purpose is set, the optimal certification and scale of investment come into view.
Summary
For Vietnam's organic-farming certification, the three main options are PGS, USDA, and EU. Because each differs in purpose, cost, and target market, you need to choose according to your farm's size and sales strategy.
Market growth is high at 15 to 20% a year, and demand for organic produce both inside and outside Vietnam is expected to keep expanding. At the same time, challenges such as certification costs, technical gaps, and labeling issues remain a reality.
For farmers newly entering organic farming and for companies considering importing Vietnamese organic produce, understanding the certification systems is the starting point for investment decisions. Begin by sorting out your own objectives and consulting an appropriate certification body.
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