How has Japan been involved in the modernization of Vietnamese agriculture? Many people wonder this. The current reality is that few people have a systematic grasp of JICA's support track record or the effects of yen loans.
This article explains the concrete track record and results that Japan's ODA has had on Vietnamese agriculture. It is content that will be useful not only for people in agriculture but also for those interested in food imports and business in Vietnam.
Japan-Vietnam agricultural ODA, and its background
Japan has continued ODA (Official Development Assistance) to Vietnam for many years. The cumulative amount of aid exceeds about 2 trillion yen, covering a wide range of fields from infrastructure development to agriculture and education.
In the agricultural field, support has been rolled out around three pillars: "strengthening food security," "improving agricultural productivity," and "promoting rural development." JICA (Japan International Cooperation Agency) in particular has played a central role, working through a multifaceted approach of technical cooperation, training, and dispatch of experts.
For Vietnam, agriculture is a core industry accounting for about 12% of gross domestic product. About 40 million people are engaged in agriculture, and the development of the agricultural field is directly tied to the economic growth of the whole country. This is also where the reason Japan's support draws attention lies.
JICA's agricultural technical-cooperation projects
JICA has carried out numerous agricultural technical-cooperation projects in Vietnam. The main ones are summarized below.
| Project name | Period held | Main contents |
|---|---|---|
| Rice-farming technology improvement project | 2005–2010 | Standardization of seed management and cultivation technology |
| Integrated pest management (IPM) support | 2008–2013 | Pesticide reduction and reduced environmental impact |
| Farm-produce quality and safety management project | 2015–2020 | Spread of GAP and conformity with export standards |
| Agricultural extension system strengthening project | 2018–2023 | Training of extension workers and technology transfer to farmers |
Especially noteworthy is the field of IPM (integrated pest management). In Vietnam, where excessive pesticide use was viewed as a problem, JICA succeeded in reducing pesticide use by an average of 30%. It is a track record of clearing the difficult challenge of maintaining yields while lowering environmental impact.
The scale of training and expert dispatch
Japan also puts effort into developing Vietnam's agricultural human resources. Training acceptances within Japan number more than 100 a year, and after returning home they are active across the country as agricultural instructors.
Expert dispatch has also been carried out continuously, with Japanese experts stationed at agricultural experiment stations and universities while advancing technology transfer to local staff. This "nurturing people" approach has become a key to raising the sustainability of the support.
Main initiatives of yen-loan projects
As important as technical cooperation is financial cooperation through yen loans. A great deal of funding has been invested in developing agricultural infrastructure.
Large-scale development of irrigation facilities
Centered on the Mekong Delta region, large-scale development of irrigation facilities was advanced. A canal network with a total length of more than 1,200 km was developed, making stable water supply possible.
As a result, in some regions the annual number of rice crops increased from one to three. Securing stable yields greatly changed the foundation of farmers' livelihoods.
Development of rural roads and distribution infrastructure
Developing infrastructure that supports the distribution of farm produce is also a priority item. With the development of rural road networks, a system was put in place to swiftly carry harvested produce to markets and processing facilities.
Previously, poor road conditions made post-harvest loss a major challenge. The improvement of distribution infrastructure is also directly tied to improving farmers' take-home income.
The concrete results that ODA brought about
What changes has Japan's ODA brought about in Vietnamese agriculture? Let us confirm with figures.
| Indicator | Early 2000s | 2020s |
|---|---|---|
| Rice yield (t/ha) | About 4.0 | About 5.5 |
| Farm-produce export value | About US$2.5 billion | About US$53 billion |
| Number of farms that obtained GAP | Almost 0 | On the scale of tens of thousands of farms |
| Appropriate management of pesticide use | Many exceedances of standards | Management rate greatly improved |
Rice yields improved by 37.5% over about 20 years. Improved quality control has also contributed greatly to the rapid expansion of farm-produce export value. The introduction of GAP (good agricultural practices) promoted by Japan created the foundation for clearing the strict sanitary standards of export-destination countries.
Directly tied to improving farmers' income too
The benefits of technical support are also directly tied to farmers' income. There are reports that at farms participating in JICA projects, average income increased by 20–40% compared with before participation.
In particular, conversion to high-value crops such as vegetables and fruit has advanced, and the agricultural structure that was once all about rice is changing. The number of farms handling diverse crops is increasing.
Challenges and the outlook ahead
While results are emerging, challenges also remain. The "taking root" of technology transfer takes time, and cases of reverting to the original farming practices after a project ends are also seen. How to ensure the sustainability of support is a point of discussion that will continue going forward.
In addition, under the effects of climate change, seawater intrusion in the Mekong Delta is growing serious, and needs for new technical support are rising. Japan is exploring the next phase of support, such as cooperation on developing salt-tolerant varieties.
Going forward, Japan-Vietnam cooperation is also expected in the fields of digital agriculture and smart agriculture. Moves to roll out Japan's advanced technologies at Vietnam's agricultural sites are beginning, such as the use of drones and sensing technology and the introduction of smart irrigation systems.
Summary
Japan's ODA has contributed greatly to the modernization of Vietnamese agriculture. With JICA's technical cooperation and financial support through yen loans as two wheels, there is a track record of steadily advancing productivity improvement, quality improvement, and infrastructure development.
A 30% reduction in pesticide use, a 37.5% improvement in rice yields, and an expansion of more than 20-fold in farm-produce export value—the results shown by the figures are clear. On the other hand, phases that call for continuous support also remain, such as challenges in the taking root of technology and responding to climate change.
Japan's involvement in Vietnamese agriculture goes beyond mere aid and is generating trends worth watching from the perspectives of food imports and agribusiness as well. Having a firm grasp of this flow should be useful for future business decisions too.
At VN AGRI, we share the latest information on Vietnamese agriculture.
