Agricultural exports can no longer rely on traditional advantages
From fruits and vegetables to seafood and wood products, many export sectors are maintaining positive growth, yet facing increasing pressure from technical barriers and market volatility. As the room for traditional advantages narrows, Vietnam’s agricultural sector is now confronted with the need to sustain export momentum through value chain restructuring and enhanced competitiveness.
One of the notable highlights is fruit and vegetable exports, with turnover rising sharply from over USD 3.3 billion in 2022 to USD 8.5 billion in 2025, and expected to reach USD 10 billion in 2026. However, according to Ms. Nguyen Thi Thu Huong, Deputy Director General of the Department of Crop Production and Plant Protection, the traditional approach based on expanding acreage and increasing yields is gradually showing limitations. As Vietnam integrates deeper into global markets, agricultural products must meet a wide range of new standards, including low emissions, traceability, food safety and sustainable production. Without fundamental changes, agricultural products may face challenges not only in export markets but also in the domestic market.
Ms. Huong emphasized that developing standardized raw material zones is the foundation for sustainable exports. In practice, without strict control of production areas, efforts to expand markets are unlikely to be maintained in the long term. Currently, Vietnam has issued thousands of planting area codes and packing facility codes to support exports, enabling agricultural products to access markets such as the EU, the United States, Japan, China and Australia. However, this standardization process needs to be further strengthened alongside market expansion.
From a business perspective, Mr. Nguyen Dinh Tung, Vice Chairman of the Vietnam Fruit and Vegetable Association and CEO of Vina T&T Group, pointed out that small-scale and fragmented production remains a major bottleneck. This makes it difficult to implement uniform standards and reduces supply stability. To enhance competitiveness, it is necessary to optimize logistics, improve storage and transportation systems, thereby reducing costs and risks across the supply chain.
The issue of value addition is also increasingly evident. For example, in the coconut sector, despite joining the billion-dollar export group, the proportion of deeply processed products remains limited. A significant share of output is still exported in raw or semi-processed form, while there is considerable potential for higher-value products such as processed foods, cosmetics and industrial ingredients.
Mr. Cao Ba Dang Khoa, Vice Chairman and Secretary General of the Vietnam Coconut Association, noted that the number of coconut processing plants has increased significantly from 8 in 2015 to 75 in 2025. Many enterprises have invested in modern technologies to develop value-added products such as canned coconut water, refined coconut oil, coconut milk, activated carbon and coconut-based cosmetics.
The development of deep processing not only enhances product value but also expands export markets. If investments in raw material zones, technology and green production continue, coconut export turnover could soon reach USD 1.5–2 billion in the coming years, Mr. Khoa added.
In practice, many enterprises believe they need to engage more deeply in the production process rather than simply purchasing raw materials. Cooperation with cooperatives, technical guidance, and strict control of inputs and farming processes can help ensure product consistency, meet market requirements and reduce risks for both businesses and farmers.
For seafood, exports also maintained growth in the first quarter of 2026, reaching USD 2.64 billion, up nearly 8%. According to Ms. Le Hang, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), China has emerged as the main growth driver with an increase of nearly 45%. However, she warned that heavy dependence on a single market carries significant risks, especially as import policies, border controls and technical standards may change rapidly.
“While China is a short-term growth driver, rebalancing market structure remains essential to ensure sustainable growth,” Ms. Le Hang emphasized.
Accordingly, businesses should focus on markets with logistics advantages and take full advantage of free trade agreements, while targeting product segments aligned with actual consumer demand, VASEP recommended.
In the wood industry, global trade fluctuations are forcing businesses to change their approach. Mr. Nguyen Chanh Phuong, Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), said that current challenges are driving the sector toward more sustainable transformation. Competitiveness and traceability of timber sources have become two core factors for maintaining a position in international markets.
He suggested that enterprises should adopt more flexible business strategies, shifting from long-term contracts to shorter negotiation cycles to better adapt to market fluctuations. At the same time, investments in design, technology and sustainability values are needed to strengthen market positioning.
At the macro level, Deputy Minister of Agriculture and Environment Tran Thanh Nam stressed that building stable, high-quality raw material zones is a prerequisite for developing deep processing and sustainable exports. Without proactive planning and protection of these zones, businesses will face significant risks in terms of cost and supply.
Amid ongoing adjustments in local planning, maintaining agricultural land for production should be prioritized. Otherwise, urbanization may reduce available land, directly affecting raw material supply for processing and export.
In terms of trade promotion, Mr. Tran Thanh Nam noted that promotional activities, trade fairs and business matching events need to be strengthened both domestically and internationally to help enterprises access customers directly and reduce price competition pressure.
Given continuous market volatility, the Ministry of Agriculture and Environment has called for closer coordination among associations, businesses and banks to share information and promptly propose policy solutions.
Notably, the agricultural traceability system is currently being piloted for durian and will be expanded nationwide to other agricultural and food products from July 1, 2026. This is considered a key tool to enhance transparency, meet market requirements and build the Vietnamese agricultural brand.
Source: Thong Tan xa Viet Nam
Related Articles
Agricultural exports: Time to build a strong 'immune' system
Proactively adapting to investigation pressures from the US market
Vietnamese fruit and vegetable exports and the challenge of restructuring and market diversification
Opportunities for exporting key commodities to the Middle East