{"id":609,"date":"2026-03-20T15:11:23","date_gmt":"2026-03-20T06:11:23","guid":{"rendered":"https:\/\/vietnam-agri.com\/vietnam-agri\/japan-vietnam-agriculture\/"},"modified":"2026-06-10T00:36:22","modified_gmt":"2026-06-09T15:36:22","slug":"japan-vietnam-agriculture","status":"publish","type":"post","link":"https:\/\/vietnam-agri.com\/en\/vietnam-agri\/japan-vietnam-agriculture\/","title":{"rendered":"Successes and Failures of Japanese Companies That Entered Vietnamese Agriculture"},"content":{"rendered":"

\"I want to start an agribusiness in Vietnam, but where should I begin?\"<\/p>\n

Many people in agriculture and food importers are troubled like this. In recent years Vietnam has drawn attention as agricultural power<\/a> and the entry of Japanese companies is increasing year by year. However, while there are companies that succeed, there are also no few cases forced into withdrawal.<\/p>\n

This article explains concretely the success stories<\/a> and withdrawal cases of Japanese companies entering Vietnamese agriculture, the points of entry, and how to choose a local partner.<\/p>\n

Why Vietnamese agriculture now<\/h2>\n

Vietnam's agricultural market is growing rapidly. About 39% of the national land is used as farmland, and exports of agricultural, forestry, and fishery products reached about US$53 billion in 2023. It is a top-class farm-produce-exporting country even in Southeast Asia.<\/p>\n

Climatic diversity is also a major attraction. From the temperate north and the tropical center to the southern Mekong Delta, an environment is in place that can produce different farm products by region. Much of the bananas, mangoes, and papayas that Japan imports are products of Vietnam.<\/p>\n

Labor costs cannot be overlooked either. The average wage of an agricultural worker is about one-fifth that of Japan. It is an environment where it is easy to put in place a system that produces and exports high-quality farm produce while holding down labor costs.<\/p>\n

Furthermore, under the Japan-Vietnam Economic Partnership Agreement (VJEPA), tariffs on farm produce have been greatly reduced. With the export cost to the Japanese market lowered, the profitability of the business has also improved.<\/p>\n

Patterns of Japanese companies entering Vietnamese agriculture<\/h2>\n

The entry forms of Japanese companies can be broadly divided into four types. Each has its merits and risks.<\/p>\n\n\n\n\n\n\n\n\n
Entry pattern<\/th>\nCharacteristics<\/th>\nRepresentative farm products<\/th>\n<\/tr>\n<\/thead>\n
Wholly owned farm management<\/td>\nLand lease + direct management<\/td>\nLeafy vegetables, herbs<\/td>\n<\/tr>\n
Establishing a joint venture<\/td>\nJoint investment with a local company<\/td>\nFruit, rice<\/td>\n<\/tr>\n
Contract-farmer partnership<\/td>\nPurchase contracts with local farmers<\/td>\nCoffee, Cashew nuts<\/a><\/td>\n<\/tr>\n
Agricultural technical support<\/td>\nTechnology provision + royalties<\/td>\nRice farming, aquaculture<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In recent years in particular, the \"contract-farmer partnership\" model is increasing. This is because it is valued for the fact that it can stably source farm produce while holding down the risk of acquiring and managing farmland in-house.<\/p>\n

Three points to learn from success cases<\/h2>\n

Case 1: raising the added value of Da Lat vegetables<\/h3>\n

The area around Da Lat in Vietnam's central highlands is known as a vegetable-producing area that makes use of the cool climate at an altitude of 1,500 meters. One Japanese agricultural trading company set up a trial farm locally and began cultivating Japanese varieties of tomatoes and lettuce.<\/p>\n

It concluded contracts with local farmers, providing seedlings and fertilizer and giving guidance on cultivation technology. It built a mechanism to purchase the harvest at a set price. It now has a network of more than 50 farms and exports 300 tonnes of vegetables a year to Japan.<\/p>\n

The key to success was giving top priority to the farmers'raising incomes<\/a>. By setting the purchase price 15% above the market price, it was able to build a relationship of trust with the farmers.<\/p>\n

Case 2: branding organic coffee<\/h3>\n

This is the case of a food-import company that runs a coffee plantation in Lam Dong province in the central highlands. It obtained Organic JAS certification and rolled out a brand in the Japanese market as \"premium Vietnamese coffee.\"<\/p>\n

As a result of promoting soil improvement and reduced-pesticide cultivation in cooperation with a local NGO, it obtained organic certification in three years. It now supplies high-end cafe chains at home and abroad, trading at 2.5 times the price of ordinary coffee beans.<\/p>\n

The success factors were \"obtaining certification\" and \"making products with a story.\" The transparency that lets consumers know the production background supports the premium price.<\/p>\n

Common success factors<\/h3>\n

What the two cases have in common is that they \"built a structure to gain profit together with local people.\" A structure in which only the Japanese company profits does not last. Designing a mechanism that benefits local farmers and the local community too becomes the foundation of a sustainable business.<\/p>\n

Withdrawal cases and lessons from failure<\/h2>\n

While there are success cases, many companies have also withdrawn. Much of the failure follows common patterns.<\/p>\n

Pattern 1: overlooking laws and regulations<\/h3>\n

Foreign companies cannot own farmland in Vietnam. Only leasing is permitted, with a contract term of up to 50 years. There are cases of companies that entered without fully understanding this system later getting caught up in legal trouble.<\/p>\n

The risk of a land-lease contract being canceled midway also really exists. If you neglect building relationships with the administration, unexpected problems easily arise.<\/p>\n

Pattern 2: collapse of trust with the local partner<\/h3>\n

There are also multiple reported cases of a joint venture being established but the relationship deteriorating due to differences over profit distribution or management policy. Especially when the content of the contract is vague, it easily develops into a dispute.<\/p>\n

In Vietnam there is also a culture that values verbal promises. You need to thoroughly carry out communication in writing while also devoting time to building the relationship.<\/p>\n

Pattern 3: incomplete quality control<\/h3>\n

The quality of farm produce changes with the \"people.\" If training for local staff is insufficient, the rate of occurrence of out-of-spec goods becomes high. There have actually been cases where products could not meet Japan's import standards and became unable to be exported.<\/p>\n

It is essential to prepare a quality-control manual in the local language and continue regular education.<\/p>\n

How to choose a local partner<\/h2>\n

Much of the key to success in Vietnamese agriculture lies in \"choosing a partner.\" Please refer to the following checkpoints.<\/p>\n\n\n\n\n\n\n\n\n\n
Check item<\/th>\nWhat to confirm<\/th>\n<\/tr>\n<\/thead>\n
Corporate registration<\/td>\nWhether they hold a business license related to agriculture and food<\/td>\n<\/tr>\n
Record<\/td>\nWhether they have three or more years of export experience<\/td>\n<\/tr>\n
Network<\/td>\nWhether they have existing relationships with farmers and the administration<\/td>\n<\/tr>\n
Language support<\/td>\nWhether Japanese or English support is possible<\/td>\n<\/tr>\n
Finances<\/td>\nWhether their capital and financial condition are sound<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Especially important are \"existing relationships with farmers and the administration.\" A partner rooted in the region responds quickly when trouble arises and has also earned the trust of farmers.<\/p>\n

Do not judge from the first business meeting alone; be sure to carry out an actual farm visit and interviews with farmers. By seeing the site, you can understand the partner's real capability. Compare multiple candidates, and we recommend interviewing at least three companies.<\/p>\n

Five points to confirm before entry<\/h2>\n

Before considering entry into Vietnamese agriculture, be sure to confirm the following five points.<\/p>\n

    \n
  1. Climate and soil data of the entry region<\/strong> confirm it in reports from the Ministry of Agriculture or the embassy<\/li>\n
  2. Local laws and regulations<\/strong>(farmland-lease law, foreign-capital regulations) consult a specialized local lawyer<\/li>\n
  3. Market research<\/strong> carry it out and grasp the supply-demand balance of the target farm produce<\/li>\n
  4. Logistics routes<\/strong>(refrigerated transport, customs clearance procedures) prepare them in advance<\/li>\n
  5. Multiple local partner candidates<\/strong> list them up and compare them<\/li>\n<\/ol>\n

    Rather than making a large-scale investment all at once, we strongly recommend starting first from a small-scale pilot project. It is important to regard the first one or two years as a \"period of learning\" and take a stance of grasping the local realities while holding down risk.<\/p>\n

    Summary<\/h2>\n

    Entry into Vietnamese agriculture is a major business opportunity but also carries risk. Companies that succeeded commonly had three elements: \"building trust with local farmers,\" \"understanding laws and regulations in advance,\" and \"securing a quality partner.\"<\/p>\n

    The greatest lesson that can be learned from withdrawal cases is that \"a hasty start without enough preparation is to be avoided.\" Advancing entry in stages, after understanding Vietnam's business culture and legal system, leads to long-term success.<\/p>\n

    Agribusiness is a field where short-term recovery is hard to expect, but with the right partner and the right strategy, you can build a stable supply route of farm produce for the Japanese market. Please take the first step, starting from gathering information and a local site visit.<\/p>\n

    At VN AGRI, we share the latest information on Vietnamese agriculture.<\/p>\n

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