Shaping Vietnam's agricultural future with sustainable growth and organic fertilizers

Vietnam’s agricultural sector is one of the most dynamic in Southeast Asia. It is characterized by a strong export orientation and rapid technological advancement. With 8.58 million farm households cultivating 28 million hectares of agricultural land, 11.34 million hectares are dedicated to crop production.

As a result of the country’s diverse climate and topography, Vietnam benefits from the ability to cultivate a wide variety of crops. The country has maintained its position as a global leader in rice, coffee, cashew, and black pepper exports. In 2024, agricultural exports reached $62.4 billion USD. This was driven by the sector’s ongoing transformation toward high-value crops, smart irrigation, and precision farming, supported by government policies promoting sustainability and low-emission practices.

Shift toward sustainability

Vietnam’s agriculture is undergoing a dynamic shift toward sustainability. This transformation is enhancing its competitiveness in global markets, driven by rising consumer demand for organic products and increasing awareness of health and environmental risks. Organic farming has also gained momentum. By the end of 2023, organic cultivation covered 74,540 hectares, and the number of producers and processors has grown to meet domestic and international demand.

The country’s organic sector is expanding rapidly, supported by roughly 17,000 organic producers and 555 processors. Around 60 exporters primarily serve the United States and European Union markets. By 2030, Vietnam aims to expand organic farmland to 2.5–3.0% of total agricultural land. This reinforces the country’s commitment to sustainable and high-value agriculture.

Vietnam’s reliance on fertilizers

Vietnam’s agriculture remains heavily reliant on fertilizers. The average application in Vietnam is three times higher than the global average. Fertilizers are particularly necessary for key crops such as rice, coffee, rubber, and fruits, which require substantial nutrient inputs for high yields. The fertilizer market is predominantly composed of chemical fertilizers (75%) and organic fertilizers (25%).

In 2023, Vietnam consumed 11 million tons of fertilizers, with 4.1 million tons imported. Most imports were chemical fertilizers from China, while organic fertilizers, such as manure granulates, were sourced from the United States, the Netherlands, and Belgium. In addition to industrially produced fertilizers, Vietnamese farmers are increasingly turning to self-produced organic fertilizers. Production has been rising steadily from 16.8 million tons in 2020 to 21 million tons in 2022.

However, despite the widespread use of fertilizers, soil degradation and declining fertility remain critical challenges. The heavy usage of fertilizers has led to critical issues such as nutrient imbalances, soil acidification, and water pollution, which threaten long-term agricultural productivity. Soil application remains the dominant fertilization method, accounting for 96% of the market in 2024. This is largely due to its extensive use in field crops.

Transforming the fertilizer industry

The Vietnamese fertilizer market is shaped by a strong presence of domestic players, with state-owned enterprises and local manufacturers holding significant market positions. Companies are expanding their manufacturing and distribution networks while investing in digital platforms and farmer education initiatives to drive the adoption of advanced fertilizer solutions. Success in this competitive market depends on efficient supply chain management, strong technical support, regulatory compliance, and the ability to adapt to evolving agricultural practices and sustainability demands.

In the meantime, Vietnam’s fertilizer market is undergoing a significant transformation. This shift is driven by government policies, environmental concerns, and changing market demands. The fertilizer market size is estimated at $3.55 billion USD in 2025 and is expected to reach $4.2 billion USD by 2030. While inorganic fertilizers still dominate, the market share for organic fertilizers is growing. Organic fertilizers offer sustainable solutions to address soil degradation, pollution, and long-term agricultural productivity.

Growing demand for organic food

This transition is further fueled by increasing market demand for safe, organic food. As a result, there is a growing need for organic fertilizers and specialty fertilizers with advancements in controlled-release technologies. While the compound annual growth rate (CAGR) of the fertilizer industry is estimated at 3.47%, the CAGR for organic fertilizers is forecasted to be 6.7% during 2025–2030. The soil application fertilizer market is projected to grow at a 5% CAGR (2024–2029).

This reflects the farmers' increasing adoption of precision agriculture and sustainable fertilization techniques. The effectiveness of soil-based specialty fertilizers at lower application rates has made them increasingly attractive to farmers seeking sustainable agricultural solutions. As Vietnam’s agriculture modernizes, businesses that innovate in fertilizer efficiency, supply chain resilience, and environmentally sustainable solutions will play a crucial role in shaping the future of the sector.

For organic produce, the United States and the European Union remain the primary export destinations, collectively accounting for 90% of Vietnamese organic product exports. This highlights the international recognition of Vietnamese organic agricultural products. The future lies in fertilizers that balance productivity with environmental responsibility. Businesses that invest in sustainable innovations will gain a competitive edge in this evolving landscape.

Government commitments and policies for fertilizer transformation

The Vietnamese government is actively shaping the fertilizer sector through a series of policies and initiatives that promote sustainable and organic agriculture. It has set ambitious targets, including raising organic fertilizer production by 25% by 2025 and ensuring that 30% of registered fertilizers are organic by 2030. In addition, it aims for 50% of crop production areas to use organic fertilizers. The National Environmental Protection Strategy, the Enhancing Soil Health and Crop Nutrition Management Plan, the National Organic Agriculture Project 2020–2030, and the Decree 109 on Organic Agriculture reinforce this shift and promote eco-friendly fertilization practices. More information can be found at THƯ VIỆN PHÁP LUẬT, an information portal in Vietnamese that provides a comprehensive database of legal documents, facilitating legal research and discussions.

These efforts align with Vietnam’s commitment to global sustainability standards, facilitating greater exports to high-demand markets like the United States, the European Union, and Japan. With strong government support, the fertilizer sector is expected to undergo a strategic transformation, creating opportunities for innovation and investment in eco-friendly solutions.

Opportunities for the Netherlands in Vietnam's organic fertilizer market

The shift toward sustainable farming in Vietnam presents significant opportunities for Dutch businesses, particularly in the organic fertilizer sector, such as manure granulates. After decades of intensive farming and the overuse of chemical fertilizers leading to soil degradation, Vietnamese farmers are becoming increasingly aware of the connection between soil health and productivity. They are seeking high-quality, nutrient-efficient fertilizers to enhance soil health. While price sensitivity remains a key factor in decision-making by Vietnamese farmers, Dutch suppliers can differentiate themselves through superior product quality, high nutrient efficiency, and tailored solutions that address local soil conditions.

Additionally, the Netherlands’ expertise in sustainable agriculture, waste recycling, and manure granulates production positions Dutch businesses as valuable partners in Vietnam’s journey toward sustainability. Beyond product supply through the export of manure granulates from the Netherlands to Vietnam, there is a growing opportunity for knowledge transfer and training initiatives which can further strengthen Dutch presence in the Vietnamese market, helping farmers adopt organic techniques, maximize fertilizer effectiveness, and rethink waste management.

As livestock farming expands, with 8.3 million cattle, 31 million pigs, and 572 million poultry heads, a large and increasing amount of manure and organic waste is generated. Dutch innovations, know-how, and technology in waste management and nutrient recycling can play a crucial role in production in this market, alongside the export of manure granulates.

While organic fertilizers are gaining traction in Vietnam, they still represent a small portion of the market. However, the organic fertilizer market, particularly the import of manure granulates, is forecast to grow strongly. This growth is driven by the country's commitments to sustainable agriculture, market trends, and environmental awareness. Dutch companies can capitalize on this opportunity by developing cost-effective solutions that are more accessible to farmers, building strong relationships with agricultural cooperatives, and maintaining extensive distribution networks to establish and maintain a market presence.

More information

Would you like to know more about the changing fertilizer market in Vietnam? You can visit the country page of Vietnam at the website Agroberichtenbuitenland.nl of the Dutch Ministry of Agriculture, Fisheries, Food Security and Nature. You can also send an email to the LAN team at the Dutch embassy in Hanoi: HAN-lvvn@minbuza.nl.