{"id":261,"date":"2026-03-20T13:57:17","date_gmt":"2026-03-20T04:57:17","guid":{"rendered":"https:\/\/vietnam-agri.com\/?p=261"},"modified":"2026-06-10T00:30:29","modified_gmt":"2026-06-09T15:30:29","slug":"vietnam-agri-proscons","status":"publish","type":"post","link":"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-agri-proscons\/","title":{"rendered":"What are the pros and cons of Vietnamese agriculture? Seven key points to know before entering"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/vietnam-agri.com\/wp-content\/uploads\/2026\/03\/thumbnail-262a1c81-785c-461b-9d82-2889819a9973-1.jpg\" alt=\"\u30d9\u30c8\u30ca\u30e0\u8fb2\u696d\u306e\u30e1\u30ea\u30c3\u30c8\u30fb\u30c7\u30e1\u30ea\u30c3\u30c8\u3068\u306f\uff1f\u53c2\u5165\u524d\u306b\u77e5\u308b\u3079\u304d7\u3064\u306e\u91cd\u8981\u30dd\u30a4\u30f3\u30c8\" style=\"width: 100%;height: auto;margin-bottom: 20px; max-width: 100% !important; height: auto !important; display: block; margin: 0 auto 20px;\" \/><\/p>\n<h2>The background to rising attention on Vietnamese agriculture<\/h2>\n<p>As Southeast Asia's agricultural market expands rapidly, Vietnam is drawing particular attention.<\/p>\n<p>This country of about 100 million people ranks second in the world in rice exports, and <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-coffee-production\/\">coffee output<\/a> also ranks second in the world (<a href=\"https:\/\/vietnam-agri.com\/en\/southeast-asia\/robusta-producing-countries\/\">Robusta<\/a> is the largest in the world), and <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-cashew-production\/\">Cashew nuts<\/a> and <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-black-pepper\/\">black pepper<\/a> boasts the world's top production. In 2023, total agriculture, forestry, and fishery export value reached about US$53 billion, accounting for more than 15% of the country's total exports.<\/p>\n<p>This growth market offers attractive advantages and, at the same time, risks that cannot be overlooked. For companies considering entry, accurately understanding both sides is the first step to success.<\/p>\n<hr>\n<h2>[Advantage 1] Abundant labor and a low-cost structure<\/h2>\n<p>The strength of Vietnamese agriculture lies in its abundant labor, with more than 40% of the workforce engaged in farming.<\/p>\n<p>Agriculture accounts for about 12% of GDP, and the countryside still holds many workers. This abundance of labor creates a major cost advantage in terms of wages and is a source of competitiveness, especially in labor-intensive agricultural production.<\/p>\n<p><img decoding=\"async\" style=\"max-width: 100% !important; height: auto !important; display: block; margin: 0 auto 20px;\" src=\"https:\/\/vietnam-agri.com\/wp-content\/uploads\/2026\/03\/content-262a1c81-785c-461b-9d82-2889819a9973-1.jpg\" alt=\"\u30d9\u30c8\u30ca\u30e0\u8fb2\u696d\u306e\u52b4\u50cd\u529b\u3068\u8fb2\u6751\u98a8\u666f\" \/><\/p>\n<p>That said, population outflow to cities has been progressing in recent years. An aging challenge has also become apparent, with about 57% of agricultural workers unskilled and the share aged 50 or older reaching about 43%, so over the long term a strategy that anticipates this change in the labor structure is needed.<\/p>\n<p class=\"citation\">\n<b>Source<\/b><br \/>\n<a href=\"https:\/\/www.maff.go.jp\/primaff\/koho\/seminar\/2023\/attach\/pdf\/231114_01.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\nPolicy Research Institute, Ministry of Agriculture, Forestry and Fisheries, \"Vietnam's Agriculture, Rice Farming, and Land System\"<br \/>\n<\/a><br \/>\n(November 2023), adapted\n<\/p>\n<hr>\n<h2>[Advantage 2] A world-class production and export record<\/h2>\n<p>Vietnam has established a world-class position in several agricultural products.<\/p>\n<ul>\n<li><strong>Rice<\/strong>: annual production of about 43.5 million tonnes, second in the world for export volume<\/li>\n<li><strong>Coffee<\/strong>: the world's largest producer of the Robusta variety<\/li>\n<li><strong><a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-cashew-production\/\">Cashew nuts<\/a>-<a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-black-pepper\/\">black pepper<\/a><\/strong>: first in the world for production<\/li>\n<li><strong>Shrimp<\/strong>: third in the world for production, second for export volume<\/li>\n<li><strong>Fishery products<\/strong>: annual export value of about US$9 billion (Japan, the United States, and the EU are the main markets)<\/li>\n<\/ul>\n<p>This diverse agricultural portfolio spreads the risk of depending on any single item and forms a foundation for stable export income. Exports of high-value-added products in particular are expanding, such as shrimp and seafood for the Japanese market and coffee and pepper for the EU market.<\/p>\n<p class=\"citation\">\n<b>Source<\/b><br \/>\n<a href=\"https:\/\/www.pref.okayama.jp\/uploaded\/life\/917537_8777035_misc.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\nOkayama Prefecture Vietnam Business Support Desk, 'Vietnam Agriculture Report'<br \/>\n<\/a><br \/>\nprepared from\n<\/p>\n<hr>\n<h2>[Advantage 3] A growing domestic market and an expanding middle class<\/h2>\n<p>The huge domestic market of about 100 million people also cannot be overlooked.<\/p>\n<p>As the economy grows, the middle class is expanding rapidly, and demand for food safety and quality is rising. Interest in organic produce and high-quality, traceable produce is growing, especially in cities, widening the opportunities for high-value-added agricultural businesses.<\/p>\n<p><img decoding=\"async\" style=\"max-width: 100% !important; height: auto !important; display: block; margin: 0 auto 20px;\" src=\"https:\/\/vietnam-agri.com\/wp-content\/uploads\/2026\/03\/content-262a1c81-785c-461b-9d82-2889819a9973-2.jpg\" alt=\"\u30d9\u30c8\u30ca\u30e0\u306e\u5e02\u5834\u3068\u8fb2\u7523\u7269\u6d41\u901a\" \/><\/p>\n<p>This growth in the domestic market widens the possibilities for business models that look at domestic sales, not just exports. It is drawing attention as an area where the quality-control techniques and branding strategies that Japanese companies excel at can be put to use.<\/p>\n<hr>\n<h2>[Advantage 4] Active government agricultural policy and the promotion of smart agriculture<\/h2>\n<p>The Vietnamese government has set out its \"Strategy for Sustainable Agriculture and Rural Development to 2030, with a Vision to 2050,\" positioning the adoption of smart agriculture as a national priority.<\/p>\n<p><strong>Examples of advanced technologies being adopted<\/strong><\/p>\n<ul>\n<li>Environmental Monitoring with IoT Sensors<\/li>\n<li>Pesticide spraying by drone<\/li>\n<li>Pest and disease prediction using AI<\/li>\n<li>Lam Dong Province: greenhouse systems for vegetable growing, automated hydroponic vegetable systems<\/li>\n<li>the Mekong Delta: demonstration of water-management systems for rice farming<\/li>\n<\/ul>\n<p>Under the 'Japan-ASEAN Midori Cooperation Plan,' adopted at the Japan-ASEAN agriculture and forestry ministers' meeting in May 2023, the international rollout of Japan's environmental-impact-reduction technologies positioned ASEAN as its most important partner. This policy support has become a major business opportunity for Japanese companies.<\/p>\n<p class=\"citation\">\n<b>Source<\/b><br \/>\n<a href=\"https:\/\/b-company.jp\/ja\/smart-agriculture-future-vietnams-path-to-a-sustainable-high-tech-agricultural-transformation\/\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\nB-Company, 'The Future of Smart Agriculture: Vietnam's Path to Sustainable Agricultural Transformation'<br \/>\n<\/a><br \/>\nprepared from\n<\/p>\n<hr>\n<h2>[Disadvantage 1] Climate-change risk and the threat of natural disasters<\/h2>\n<p>A major risk for Vietnamese agriculture is its vulnerability to climate change.<\/p>\n<p>The Mekong Delta is one of the world's leading production zones, responsible for more than half of the country's rice output, but saltwater intrusion from rising seas, intensifying floods, and water shortages in the dry season are worsening year by year. A one-meter rise in sea level is projected to cut the delta's rice productivity by about 41%, and much of the Red River Delta and the Mekong Delta is said to risk being submerged by 2070.<\/p>\n<p><img decoding=\"async\" style=\"max-width: 100% !important; height: auto !important; display: block; margin: 0 auto 20px;\" src=\"https:\/\/vietnam-agri.com\/wp-content\/uploads\/2026\/03\/content-262a1c81-785c-461b-9d82-2889819a9973-3.jpg\" alt=\"\u30d9\u30c8\u30ca\u30e0\u306e\u30c7\u30eb\u30bf\u5730\u5e2f\u3068\u6c17\u5019\u5909\u52d5\u5f71\u97ff\" \/><\/p>\n<p>This climate risk makes the return on long-term agricultural investment uncertain. Development of salt- and drought-tolerant varieties and improvements in water-management technology are underway, but the pace of countermeasures is not keeping up with the progress of climate change.<\/p>\n<p class=\"citation\">\n<b>Source<\/b><br \/>\n<a href=\"https:\/\/b-company.jp\/ja\/smart-agriculture-future-vietnams-path-to-a-sustainable-high-tech-agricultural-transformation\/\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\nB-Company, 'The Future of Smart Agriculture: Vietnam's Path to Sustainable Agricultural Transformation'<br \/>\n<\/a><br \/>\nprepared from\n<\/p>\n<hr>\n<h2>[Disadvantage 2] A smallholder structure and productivity challenges<\/h2>\n<p>The average cultivated area per farm in Vietnam is about 0.44 hectares, among the smallest in the ASEAN countries.<\/p>\n<p>97% of all farmers are small and medium-sized, and mechanization and the adoption of smart-agriculture technology have not advanced far. This smallholder structure makes economies of scale hard to achieve and is a barrier to raising productivity. Compared with Thailand's average farm size of about 3 hectares, the gap is clear.<\/p>\n<p>On top of this, agricultural workers are aging and young people continue to flow out to the cities. This shortage of successors is also a qualitative problem that hampers the adoption of new technology and the modernization of management, and for entering companies, how to overcome this structural challenge becomes an important strategic point.<\/p>\n<p class=\"citation\">\n<b>Source<\/b><br \/>\n<a href=\"https:\/\/www.maff.go.jp\/primaff\/koho\/seminar\/2023\/attach\/pdf\/231114_01.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\nPolicy Research Institute, Ministry of Agriculture, Forestry and Fisheries, \"Vietnam's Agriculture, Rice Farming, and Land System\"<br \/>\n<\/a><br \/>\n(November 2023), adapted\n<\/p>\n<hr>\n<h2>[Disadvantage 3] Underdeveloped infrastructure and logistics costs<\/h2>\n<p>The underdevelopment of the cold chain (low-temperature logistics) weighs on Vietnamese <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-farming-issues\/\">challenges for Vietnamese agriculture<\/a> of Vietnamese agriculture.<\/p>\n<p>In many cases, post-harvest produce is not stored or transported properly and deteriorates or is discarded, and post-harvest loss weighs on the profitability of agriculture as a whole. For perishable items such as fruit and seafood in particular, a shortage of refrigeration and freezing facilities is holding back improvements in export competitiveness.<\/p>\n<p><img decoding=\"async\" style=\"max-width: 100% !important; height: auto !important; display: block; margin: 0 auto 20px;\" src=\"https:\/\/vietnam-agri.com\/wp-content\/uploads\/2026\/03\/content-262a1c81-785c-461b-9d82-2889819a9973-4.jpg\" alt=\"\u30d9\u30c8\u30ca\u30e0\u306e\u8fb2\u7523\u7269\u7269\u6d41\u3068\u30a4\u30f3\u30d5\u30e9\u8ab2\u984c\" \/><\/p>\n<p>In addition, most agricultural exports are unprocessed primary products, and exports of goods whose value has been raised through processing are limited. Take coffee: despite the world's second-largest production, a high share is exported as green beans, and its brand value as a roasted, processed finished product lags behind competing countries.<\/p>\n<hr>\n<h2>Practical checkpoints to confirm before entering<\/h2>\n<p>When considering entry into Vietnamese agriculture, it is important to check the following practical points.<\/p>\n<h3>Understanding the legal framework and land-use rights<\/h3>\n<p>The 1986 <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/doi-moi-agriculture\/\">Doi Moi policy<\/a> granted land-use rights to individual farmers, but there are restrictions on land acquisition by foreign companies. You need to examine in advance the form of contract with a local partner, the term of the land-use rights, renewal conditions, and so on.<\/p>\n<h3>Food-safety standards and traceability requirements<\/h3>\n<p>Major export destinations such as the EU, Japan, and the United States tighten their pesticide-residue and hygiene standards year by year. Obtaining GAP (Good Agricultural Practices) certification and introducing origin-tracking systems that use blockchain technology may be required.<\/p>\n<h3>A plan for technology transfer and talent development<\/h3>\n<p>Because about 57% of agricultural workers are unskilled, technology transfer and talent development take time and money. Preparing solutions that are simple, easy to use, and suited to the level of education is the key to success.<\/p>\n<h3>Financing and an investment-recovery plan<\/h3>\n<p>About 43% of agricultural companies face difficulties with investment in digitalization, and there is a structural challenge of high costs and low profit margins. It is important to set the scale of the initial investment and the recovery period realistically and to draw up a phased rollout plan.<\/p>\n<hr>\n<h2>Summary: toward a successful entry into Vietnamese agriculture<\/h2>\n<p>Vietnamese agriculture offers attractive advantages: abundant labor, a world-class production record, a growing domestic market, and active government policy support.<\/p>\n<p>On the other hand, there are also structural challenges: climate-change risk, a smallholder structure, and underdeveloped infrastructure. Many parts of these challenges can be overcome with the right strategy and technology, and they can even be seen as business opportunities.<\/p>\n<p>The quality-control techniques, smart-agriculture solutions, and cold-chain know-how that Japanese companies possess have great potential to help resolve Vietnam's <a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/vietnam-farming-issues\/\">challenges for Vietnamese agriculture<\/a> and could make a significant contribution. In particular, technology suited to small and medium-sized farmers and low-cost smart-agriculture models would be strengths that fit Vietnam's realities.<\/p>\n<p>When considering entry, the path to success is to build trust with local partners from a long-term perspective, not just for short-term profit, and to design a sustainable business model. Understand the advantages and challenges accurately and, while managing risk appropriately, make the most of the growth opportunities in the Vietnamese agricultural market.<\/p>\n<p><strong>To those considering entry into Vietnamese agriculture<\/strong><br \/>\nIf you want more detailed information on the latest trends in the Southeast Asian agricultural market and how to partner with local players, please consult an expert. Drawing on practical know-how and a local network, we will guide your Vietnamese agriculture business to success.<\/p>\n<h2>You May Also Like<\/h2>\n<ul>\n<li><a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-business-cases\/\">Seven success stories in Vietnamese agricultural business | What winning patterns should Japanese companies learn?<\/a><\/li>\n<li><a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-pangasius-aquaculture\/\">A complete guide to Vietnam's pangasius-farming business<\/a><\/li>\n<li><a href=\"https:\/\/vietnam-agri.com\/en\/vietnam-japan-export\/\">How to export Vietnamese produce to Japan: eight steps for success<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>A thorough explanation of the pros and cons of Vietnamese agriculture. We introduce the key points on cost, labor, and market access to know before entering.<\/p>","protected":false},"author":1,"featured_media":262,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"swell_btn_cv_data":"","ssp_meta_title":"\u30d9\u30c8\u30ca\u30e0\u8fb2\u696d\u306e\u30e1\u30ea\u30c3\u30c8\u30fb\u30c7\u30e1\u30ea\u30c3\u30c8\u306f\uff1f\u53c2\u5165\u524d\u306e\u8981\u70b9","ssp_meta_description":"\u30d9\u30c8\u30ca\u30e0\u8fb2\u696d\u3078\u306e\u53c2\u5165\u3092\u691c\u8a0e\u3059\u308b\u524d\u306b\u62bc\u3055\u3048\u305f\u3044\u30e1\u30ea\u30c3\u30c8\u3068\u30c7\u30e1\u30ea\u30c3\u30c8\u3092\u6574\u7406\u3057\u307e\u3057\u305f\u3002\u8c4a\u5bcc\u306a\u52b4\u50cd\u529b\u3084\u751f\u7523\u30fb\u8f38\u51fa\u5b9f\u7e3e\u3001\u6210\u9577\u3059\u308b\u56fd\u5185\u5e02\u5834\u3068\u3044\u3046\u5f37\u307f\u3068\u3001\u6c17\u5019\u5909\u52d5\u30ea\u30b9\u30af\u306a\u3069\u306e\u8ab2\u984c\u30927\u3064\u306e\u8996\u70b9\u3067\u89e3\u8aac\u3057\u307e\u3059\u3002","footnotes":""},"categories":[1,4],"tags":[6,52,30,8,7],"crop_category":[],"harvest_season":[],"class_list":["post-261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vietnam-agri","category-agri-business","tag-vietnam","tag-investment","tag-export","tag-agriculture","tag-agri-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/posts\/261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/comments?post=261"}],"version-history":[{"count":5,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/posts\/261\/revisions"}],"predecessor-version":[{"id":879,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/posts\/261\/revisions\/879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/media\/262"}],"wp:attachment":[{"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/media?parent=261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/categories?post=261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/tags?post=261"},{"taxonomy":"crop_category","embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/crop_category?post=261"},{"taxonomy":"harvest_season","embeddable":true,"href":"https:\/\/vietnam-agri.com\/en\/wp-json\/wp\/v2\/harvest_season?post=261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}