Vietnam and Japan are both countries where agriculture underpins the national foundation. Yet the shape of their agriculture differs considerably.
Some may think, "Isn't Vietnamese agriculture behind the times?" In fact, not really.
This article compares Vietnamese and Japanese agriculture along five axes (scale, efficiency, technology, subsidy systems and distribution structure) and explains points each can learn from the other. If you are in agriculture, food importing, or interested in business with Vietnam, please read to the end.
1. Comparing farm scale: differences in area and number of farms
First, let us look at the most basic factor: scale.
| Indicator | Vietnam | Japan |
|---|---|---|
| Farmland area | About 11 million ha | About 4.3 million ha |
| Agricultural workforce | About 33 million people | About 2.2 million people |
| Average cultivated area per farm household | About 0.5 ha | About 3.1 ha |
| Agriculture's share of GDP | About 14% | About 1% |
Vietnam's farmland area is about 2.5 times Japan's, but its number of agricultural workers is overwhelmingly larger.
The cultivated area per household is just 0.5 ha, about one-sixth of Japan's. A structure of scattered small farms is one of the major features of Vietnamese agriculture.
Japan, meanwhile, has a low agricultural share of GDP at about 1%, and the number of farms is declining rapidly. Aging and a shortage of successors are serious challenges.
Farmland consolidation advances in Vietnam
In recent years, the Vietnamese government has been promoting a farmland-consolidation policy. In the Mekong Delta, large-scale rice-farming zones of several hundred hectares, called the "large-field model," are being developed. A target has been set to raise the farmland-consolidation rate from the current 30% to more than 60% by 2030.
2. Comparing production efficiency: the advantage of climate and multiple cropping
In terms of production efficiency, Vietnam holds overwhelmingly favorable conditions.
In Vietnam's tropical and subtropical climate, farming is possible year-round.
| Crop | Vietnam's annual number of plantings | Japan's annual number of plantings |
|---|---|---|
| Rice | 2 to 3 times (depending on region) | Once |
| Vegetables | 4 to 6 times | 2 to 3 times |
| Maize | 2 to 3 times | 1 to 2 times |
In Vietnam's Mekong Delta, "triple cropping," harvesting rice three times a year, is common. That works out to three times the harvest from the same land as in Japan.
However, multiple cropping puts a heavy load on the soil, also creating challenges such as land exhaustion and increased pesticide use.
Japan is basically one crop a year, but with a high rate of mechanization it holds an advantage in per-person productivity. Agricultural output per farm household is more than about 10 times Vietnam's.
3. Comparing technological capability: the diffusion of smart agriculture
The technology gap is, in fact, narrowing.
Japan has long been known as a leader in agricultural technology. Drone spraying, GPS self-driving tractors, plant factory and other cutting-edge agricultural technologies are among its holdings.
The strengths of Japanese agricultural technology
- Smart-agriculture demonstration trials are under way at more than 300 sites nationwide
- Precision pesticide spraying (by drone) cuts usage by up to 50%
- Real-time management of soil and weather data using sensors
- Protected horticulture High-quality vegetable production in (greenhouses and plant factories)
The current state of Vietnamese agricultural technology
Vietnam is also catching up rapidly. Particularly noteworthy is the activity of startups.
On the outskirts of Ho Chi Minh City, high-tech farms using Israeli-style drip irrigation are increasing. On the Da Lat plateau, greenhouse vegetable cultivation using IoT sensors is thriving. As of 2023, Vietnam's Ministry of Agriculture had certified 23 "high-tech agriculture zones" nationwide, and joint-venture farms with foreign firms are also increasing.
The challenge is that such advanced technology is concentrated in a portion of large farms. The diffusion of technology to small farmers is still only partway along.
4. Comparing subsidies and support systems: national commitment to agriculture
The mechanisms of public support for agriculture also differ greatly between the two countries.
| Item | Vietnam | Japan |
|---|---|---|
| Agricultural budget (as a share of GDP) | About 1.8% | About 0.5% |
| Main recipients of support | Export products and large farms | Small and midsize farms and multifunctionality |
| Farmland-conversion regulation | Trending toward some easing | Strictly regulated |
| Agricultural lending | Low-interest loans and guarantee schemes available | JA-affiliated and policy finance |
Vietnam secures a generous agricultural budget as a share of GDP. Support for major export items such as coffee, shrimp and rice in particular is generous.
In Japan, meanwhile, a high share of agricultural subsidies goes to farmers' income support and to the environmental-conservation functions of rural areas, with a strong emphasis on "protecting agriculture."
Vietnam's new agricultural-support trend
Recently in Vietnam, venture investment in agricultural startups has surged. In addition to government funds, private VCs are also stepping up investment in agri-tech firms. Investment in the agri-tech field is projected to rise 40% year on year in 2025.
The shift from subsidies that "protect" farmers, as in Japan, to investment that makes agriculture a "growth industry" is worth noting.
5. Comparing distribution structure: the distance from farm to table
Differences in distribution structure directly affect food safety, quality and cost.
Japan's distribution structure
In Japan, a multi-stage distribution (producing area, then agricultural cooperative, then wholesale market, then retailer, then consumer) is common. Quality control is thorough, and the quality of vegetables and fruit reaching consumers is among the best in the world.
However, because intermediate margins stack up, farmers' take-home earnings sometimes stay at only about 30 to 40% of the market price.
In recent years, direct-from-farm e-commerce and farm restaurants, DtoC (Direct to Consumer) models that skip intermediate distribution, are also spreading.
Vietnam's distribution structure
In Vietnam, the mainstream distribution runs from producing area to middleman to wholesale market to retailer or market. Many farmers depend on middlemen, and their weak price-bargaining power is seen as a challenge.
On the other hand, change is happening with the spread of e-commerce. Direct sales of produce through TikTok Shop and Shopee are expanding rapidly. In 2024, online sales of produce reached about five times the level of three years earlier.
Especially for high-value fruits such as durian and mango, there are increasing cases of farmers themselves posting on social media and selling directly.
6. Points Japan and Vietnam can learn from each other
Comparing the two countries' agriculture shows that each has different strengths and challenges.
What Vietnam can learn from Japan
Quality control and standardization
One of the biggest challenges for Vietnamese produce is making quality uniform. Japan's GAP and the shipping-standard mechanisms of agricultural cooperatives are useful references for raising export competitiveness.
Agricultural mechanization and labor saving
Aging and labor shortages are advancing in rural Vietnam too, so mechanization is urgent. Japanese compact farm machinery (Kubota, Yanmar and others) has already spread in Vietnam, but there is room for further expansion.
Sixth-industrialization
The sixth-industrialization model, processing produce to add value and raise farmers' earnings, is an idea that can also be applied in Vietnam.
What Japan can learn from Vietnam
Making agriculture a growth industry
Against Japanese agriculture, which has shrunk to about 1% of GDP, Vietnam positions agriculture as an export industry and growth engine. The shift in thinking from "protecting" to "nurturing" agriculture is instructive.
Production techniques for tropical crops
Cultivation techniques for tropical and subtropical fruits in which Vietnam is strong, such as banana, passion fruit and dragon fruit, may have room for application in southern parts of Japan as warming advances.
The wisdom of low-cost agriculture
The ingenuity of Vietnamese farmers in securing earnings while holding down input and labor costs can also be a hint for Japanese farm management struggling with high costs.
Summary
We have organized the comparison of Vietnamese and Japanese agriculture from five perspectives.
- Scale: Vietnam has many small farms, while in Japan the number of farms is declining and scaling up is advancing
- Efficiency: Vietnam's strength is a climate allowing three crops a year, while Japan has high mechanized productivity per person
- Technology: Japan leads, but Vietnam's pace of catching up is remarkable
- Subsidies: Vietnam emphasizes exports and growth-industry development, while Japan centers on rural maintenance and income support
- Developing import agents and managing the cold chain are required: Japan has quality-focused multi-stage distribution, while Vietnam is rapidly moving to direct sales using e-commerce
The two countries' agriculture are not rivals but can complement each other. Japanese firms bring technology and capital into Vietnamese agriculture, and Vietnam delivers high-quality produce to the Japanese market. Just such a win-win relationship is expanding right now.
VN AGRI shares the latest information on Vietnamese agriculture. If you are interested in agribusiness or food importing, please take a look at our other articles too.
