In the first four months of 2025, Vietnam’s agriculture and environment sector continued its growth momentum, with total export turnover reaching USD 21.15 billion, up 10.7% year-on-year. However, behind these positive figures lie numerous challenges related to product quality, rising input costs, and heavy dependence on a few key markets.

Positive Growth

According to statistics from the Ministry of Agriculture and Environment, all major sectors recorded positive growth: agricultural products reached USD 11.6 billion (+11.7%), forestry products USD 5.56 billion (+11.2%), seafood USD 3.09 billion (+13.7%), livestock products USD 178 million (+16.8%), and production inputs USD 722 million (+20%).

Six export categories surpassed the USD 1 billion mark, with coffee reaching USD 3.78 billion (+51.1%) and wood products USD 5.2 billion (+5.8%).

However, rice and fruit exports saw sharp declines, down 14.3% and 14.2% respectively, reflecting ongoing risks from unfavorable weather, inconsistent product quality, and mounting pressure from increasingly stringent technical standards in export markets.

Exports to the U.S., China, and Japan continued to account for a large share. However, exports to China declined by 1.1%, and exports to the broader Asian region fell by 1.3%, highlighting Vietnam’s dependence on these markets and the risk of imbalance amid policy shifts. Meanwhile, Europe (+37.7%) and Africa (+78.4%) have emerged as promising alternative markets, offering opportunities for diversification.

On the other hand, total imports for the agriculture and environment sector surged by 16.6% to USD 15.97 billion, narrowing the agricultural trade surplus to USD 5.18 billion. Notably, input costs for livestock and aquaculture increased by 27.8% and 29% respectively, putting significant pressure on profit margins and competitiveness.

The sector now faces risks of unsustainable development, exemplified by durian—where plantation areas have exceeded planned targets, quality remains inconsistent, and heavy reliance on the Chinese market persists.

Mr. Trần Gia Long, Deputy Director of the Department of Planning and Finance, stated: “Although prices of many products have risen sharply, the sector must focus on sustainable development, restructure production, and boost technology adoption to maintain quality and increase value.” In fact, the notable growth of products like coffee, pepper, and rubber in recent times underscores the sector’s potential—if there is well-planned investment in processing and supply chain optimization.

Market diversification

The Ministry of Agriculture and Environment is currently implementing strategic solutions, such as: diversifying export markets and prioritizing Europe, Africa, and the Middle East to reduce overdependence on China; improving seed quality and production processes, especially for declining sectors like rice and fruits/vegetables; applying digital technologies, building databases, and enabling traceability systems to meet standards from the EU and the U.S.; strengthening branding and promotional efforts for Vietnamese agricultural products, particularly in emerging markets; developing modern logistics to reduce costs and enhance competitiveness in demanding markets like the EU and Japan.

In seafood, shrimp exports reached USD 1.24 billion (+28.4%), serving as a bright spot. However, new technical barriers from China and Europe require stricter controls on quality and food safety.

Forestry products, despite high export revenue, have begun to plateau (+5.8%), calling for a shift toward green production, compliance with environmental and social certifications, and expansion into Halal and African markets.

At the Q1 2025 review and planning meeting for April and Q2, Minister of Agriculture and Environment Đỗ Đức Duy called on the sector to enhance preparedness and flexibility amid global uncertainties. He set key targets of ≥4% GDP growth in the sector and a minimum agricultural-forestry-fishery export turnover of USD 65 billion, with a stretch goal of USD 70 billion.

“Communication must take the lead—building the image of Vietnamese agricultural products as high-quality, trustworthy, and ready to conquer new markets,” Minister Đỗ Đức Duy emphasized.

Source: Hai quan Online