Vietnam is striving to take stronger measures to achieve “net-zero emissions” by 2050. Agriculture has been recognized as a bright spot in the economic development of 2023. Economic and market intelligence played an important part in the sector's growth last year. Traditionally, farmers focused on how to improve production, but higher yields did not always translate to increased income. As prices fluctuate, they may produce more but gain less.

Although Vietnam's GDP 2023 grows by 5.05% in 2023, not reaching the official growth target of 6.5%; Vietnam is one of the fastest growing economies in the region, remaining a positive level. The trade surplus offered USD 28 billion in 2023. The Consumer Price Index (PCI) rose 3.25%, well below the National Assembly target of keeping it under 4%.

The agriculture sector increased by 3.83%, while industry and construction increased by 3.74%, and services increased by 6.82%.

In 2023, the GPD is estimated as USD 431 billion with the GDP per capita of USD 4,316.

The Vietnam agriculture sector has increased by 3.83 percent as compared to 2022; including crop products and husbandry of 3.88%, forestry of 3.74% and fishery of 3.71%. The forest coverage rate obtained 42.02%. The rate of communes meeting new rural standards offered about 78%. Especially, total export turnover of the entire industry is USD 53.01 billion. The communes reached their standard promotion of new rural offered 78%

Labor force (57 million people) shared in agriculture, industry and services of 27%, 33% and 39%, respectively. Labour productivity for the entire economy at current prices is estimated at VND 199.3 million (USD 8,380) per worker, showing an increase of USD 274 as compared to 2022. Labour productivity based on comparative prices has risen by 3.65 per cent due to improved worker qualifications. It is estimated that 27 per cent of the workforce will have degrees or certificates, which is 0.6 percentage points higher than in 2022.

The export turnover of agriculture obtained $US 53.01 billion (1.2% decreased) with its trade surplus of USD 12.07 billion, the highest level in recent years and accounting for over 42.5 per cent of the country's trade surplus (USD 26 billion). It included agro-products ($27.10 billion, 18.8% increased), husbandry products ($0.516 billion, 26.2% increased), aqua-products ($8.98 billion, 17.8% decreased) and processed wood & furniture products ($14.40 billion, 15.8% decreased).

The crop product value obtained VND 120 million per ha (12.8% increased), it means USD 4,920 per ha.

Rice growing areas developed 7.12 million ha with rice production of 43.5 million T (1.9% increased) and average yield of 6.10 t/ha (1.7% increased). The milled rice export of 8.3 million T, obtained its turnover value of $US 4.78 billion (38.74% increased).

Maize growing area is 885.4 thousand ha with average yield of 4.99 t/ha. Total maize production gained 4.42 million T (0.1% decreased).

Soybean growing area is 32,500 ha (11.8% decreased) with the production of 52,200 T (11.9% decreased) and its yield obtained 1.60 T/ha. In 2022, soybean import obtained the volume of 1.84 million ton, with the value of USD 1.28 billion for livestock.

Cassava growing area is 511,400 ha; with the average yield of 20.41 T/Ha and total production of 10.43 million T (1.8% decreased).

Sweet potato growing area is 80,100 ha to obtained 0.91 million T, with the average yield of 11.36 t/ha.

Groundnut growing area covered 153,000 ha (3.7% decreased) with the production of 0,40 million T and average yield of 2.61 t/ha.

Vegetable growing areas extended to 1.0 million ha with the production of 19.07 million T (3.7% increased).

Fruit orchards developed 1.25 million ha (28,600 ha increased). The export turnover of fruit obtained $ 5.6 billion (67% unexpectedly increased). Mango production offerred 1.015 million ton (2.1% increased); dragon fruit of 1.20 million ton (5.7% decreased); pomelo of 1.1 million ton (3.1% decreased); litchi of 370,000 ton (1.2% increased); durian of 1.2 million ton (39% increased); pineapple of 724,000 ton (2.9% increased); banana of 2.48 million ton; longan of 635,000 ton (1.6% increased), rambutan of 325,000 ton (3.4% increased). Especially, the citrus tended to decrease the cultivated areas such as orange of 85,000 Ha (5,400 ha decreased), pomelo of 108,000 Ha (1,800 Ha decreased), mandarine decreased 1,400 Ha.  

Particularly, durian production obtained more than 1 million T of (15.9% increased). Its export turnover created a new record of $US 2.3 billion (5 and 10 folds as compared to the value in 2022 and 2021, respectively). Jackfruit tree’s growing area has been covered 82,000 Ha with the production of 0.98 million T.

Coffee growing areas is 715,000 ha (1% increased) including 650,000 ha harvested. Coffee bean production offered 1.97 million T (1% increased). The export volume offered 1.60 million T (6.6% decreased). The export turnover of coffee offered $US 4.20 billion (8.1% increased).

Tea growing area is 122,000 ha including 111,000 ha harvested. The total production obtained 1.13 million T (1.7% increased) with the productivity of 9.26 t/ha. The export volume offered 118,000 T (28% decreased). The export turnover of tea gained $US 0.21 billion (21.9% decreased).

Rubber area is 909,000 Ha (1.1% decreased) including 745,000 ha harvested. Average yield: 1.42 t/ha. Total latex production obtained 1.29 million T (3.4% decreased). The export turnover of rubber obtained $US 2.8 billion (13.0% decreased) with the volume of 2.10 million T (0.2% decreased).

Cashew nut cultivated area is 301,000 ha (2.6% decreased) including 295,000 ha harvested. The total production obtained 343,000 T (4.4% increased) with productivity of 1.13 t/ha. The export turnover of cashew nut products offered $US 3.6 billion (18% increased) with the volume of 642,000 T (24% increased).

Black pepper growing areas are promoted over 113,000 ha (5,5% decreased) including 112,500 ha harvested. Its productivity offerred 2.40 t/ha. Total production gained 252,000 T (7.4% decreased). Pepper export obtained the volume of 265,000 T (17% increased). The export turnover of black pepper offered $US 0.9 billion (5.7% decreased).

Cinnamon: in 2023,  the export turnover of cinnamon offered $US 260.9 million (10% decreased), with 89,383 T (14.6% increased).

Sugarcane has become stable with 141,906 Ha cultivated area (15.73% increased) to obtain roughly 9.65 million T, average yield obtained 69.3 t/ha. It produced 945,104 T sugar (28% cane increased and 25% sugar increased).

Coconut growing area has been recovered with the figure of 250,000 ha at the big farms from Ben Tre, Tra Vinh and Binh Dinh (70, 13 and 12.5 thousand ha, respectively). At Ben Tre, its productivity reached 9,570 nuts per year with production of 630 million nuts. In 2023, its export turnover of $US 1 billion approximately (Vifa Expo 2023, Vietnam ranking 4^th Asian coconut exporter).

HUSBANDRY: Total meat product production obtained 7.79 million T (6.38% increased) including 4.87 million T of pork (7.2% increased); 2.31 million T of poultry (6.0% increased); 0.61 million T of beaf, and about 50,000 T of goat and sheep meat of all kinds. Fresh milk product gained 1.17 million tonnes (3.6% increased). Egg products got 19.2 billion units (5.2% increased). Fresh milk output is estimated to reach over 1.16 million T (3.6% increased).

Industrial animal feed output equivalent to 20 million tons, down 2.4%. Prices of main feed ingredients all decreased as compared to 2022. For example, corn kernel got VND 7,760/kg (12.5% decreased); soybean meal of VND 14,100/kg (3.1% down); livestock nutrient matters of VND 9,240/kg (7.6% down); wheat bran of VND 6,870/kg (1.9% down); extracted rice bran of VND 6,190/kg (1/7% down).

The total herd of pigs is estimated as 26.3 million (not including more than 4 million piglets that have not been separated yet from their mothers) (4.2% increased).

Buffalo herd is reported 2.2 million (1.0% decreased). Herd of 6.4 million bovines increased by 0.6%. Poultry herd is reported 558.9 million, an increase of 3.3%

The export turnover of husbandry products gained US$ 0.516 billion (26.2% increased). The export of milk and milk products reached US$ 113 million (26% increased). The meat and meet by-products, edible animal by-products reached US$ 123 million (36.4% increased).  

In 2023, Vietnam has imported 16.8 million T of animal feed materials (equivalent to USD $6.8 billion). They included maize with the volume of 7 million T ($2.1 billion); soybean meal of 4.9 million T ($2.4 billion); livestock nutrient matters of 1.15 million T ($394 million); all kinds of bran of 474,000 T ($110 million); broken rice of 414,000 T ($145 million); soybean grain of 343,000 T ($226 million); supplemetary food of 527,000 T ($574 million).   

AQUA-PRODUCTION obtained 0.32 million T (2.3% increased) including natural fishing of 3.86 million T (0.5% decreased). Culture products gained 5.46 million T (4.3% increased).

Vietnam strictly implemented solutions to combat IUU fishing, especially deploy and implement the “180-day action plan to combat IUU fishing”. Vietnam had received the negotiation by the EC inspection team at the 4^th time to remove the yellow card.   

The total turnover offered $USD 8.98 billion (17.8% decreased)

FORESTRY: Vietnam has focussed on directing and improving forest quality and productivity. Seed management and planting large timber forests were paid attention to intensive farming. The proportion of forest area planted from controlled seed sources offered 85-90%. Beside that, Vietnam is lauching the project namely “Planting one billion trees in 2022-2025”.

The forest coverage rate obtained 42.02%. In 2023, the area of ​​concentrated planted forests will reach 281,800 Ha (6.1% decreased) and 116.3 million scattered trees. This year remains challenging for wood sector. Timber output from planted forests was 20.84 million m³ (2.8% increased).

For the first time, Vietnam sold 10.3 million forest carbon credits, earning VND 1,200 billion. There are 465,000 Ha of forests were standarded as FSC certication (reached 93% of the 2025 target).

The exporter turnover of processed wood & furniture products ($14.40 billion, 15.8% decreased).

SALT-MARSH areas developed 10,749 ha including industrial processing salt production of 3,498 ha. Salt production obtained 884,000 T including industrial salt of 278,000 T.

AGRO-INDUSTRY: Agro-product processing industry has been quickly developed with hi-technology, multi-value integration to meet the demand of added value strategy. The mechanization project combined the pilot construction of six models “Completing and expanding large-scale agricultural commodity production associated with synchronous mechanization along the value chain from production to product branding” (i.e. rice in the Mekong Delta; coffee in the Central Highlands). The number of replacement and additional movers, machinery and equipment for agricultural production has increased by 5% as compared to 2022.

Domestic consumption: The consumption market for agro-products continues to expand in both industries and products, focusing on the domestic market. MARD has coordinated with Hau Giang province and others to organize the International Festival of Vietnam Rice Industry, Hau Giang 2023, from December 11 - 15, 2023 with more than 500 exhibition booths, establishing 02 Vietnamese records for rice. Beside that, MARD approved and declared the Sustainable Development Project of one million hectares specializing in high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta until 2030. MARD promoted propaganda, dissemination and consumption of agricultural products through reputable e-commerce platforms such as Postmart, Voso, Shopee, Tiki, Lazada, etc...

COOPERATIVE ECOCOMY: In 2023, MARD has continued to promote cooperative development, linking production with agricultural product consumption with 2,204 cooperatives, 517 cooperative groups, 1,091 businesses and 186,829 participating farmer households. The whole country has 96 Unions of Agricultural Cooperatives and nearly 20,500 agricultural cooperatives. Of which there are about 65% just classified as good and nearly 2,500 agricultural cooperatives apply hi-tech and digital transformation; 4,339 cooperatives fully purchased agricultural products with commitments. Of 19,660 farms, there are 1,034 farms investing in solar power systems, 56 farms participating to agricultural tourism services, and 4,235 farms having their links in production and consumption of products

AGRO-ENTREPRISES: In 2023, there are 1,400 new businesses that have been established, bringing the total number to over 16,100 businesses (7.3% increased). Large enterprises continue to increase investment in hi-tech agriculture such as: Nafoods, TH, Dabaco Vietnam, Masan, Lavifood, Dong Giao Export Export Company, and East Sea Trade and Investment. To date, a safe agro-products supply chain model with 2,510 chains has been built and developed.

RURAL DEVELOPMENT: In 2023, of 8,167 communes, 6,370 ones (78%) have met the new rural standards, 1,612 communes met advanced standards, 256 communes met model new rural standards. There are 270 district-level units recognized for completing their tasks meeting new rural standards. In particular, of the total 20 provinces and centrally run cities, there are 100% of communes meet new rural standards with five provinces i.e. Nam Dinh, Dong Nai, Ha Nam, Hung Yen and Hai Duong   

THE OBJECTIVES IN 2024

The goal of MARD is how to reach “Ecological Agriculture, Modern Rural, Civilized Farmers”. The objectives are as followed:

Agriculture growth will get 3.0-3.5%.

The total agro-exporting turnover will obtain USD 54-55 billion.

The new rural commune number will reach to 80% in the whole country

The forest coverage will be maintained as 42.02% but enhance more forest quality rarer than replanted forest quantity.

The percentage of rural households using clean water according to standards wil be 58%.

The rate of communes meeting environmental and food safety criteria in new rural construction is 82%.

“The market is getting tougher and we not only need to open the market but also need to understand the characteristics of each market” the Minister Le Minh Hoan said. “The market is not only the interaction by supply and demand, but also diplomatic factors”. More spaces must be created for agriculture shifting to intelligent production.

Prof. Dr. Bui Chi Buu

January 2024

All statistical figures are highlighted from the Ministry of Agricutlure and Rural Development’s review in January 3, 2024, and from the General Statistics Office.