Agricultural Policy Monitoring and Evaluation 2026

31. Viet Nam

Main findings

Support to agriculture

Viet Nam’s Producer Support Estimate (PSE) is negative and increasingly so since 2014, with an average of -11.5% in 2023-25. The PSE is largely driven by transfers from farmers to consumers in the form of low domestic prices (negative MPS), most significantly for producers of tea, poultry meat and rubber, and to a lesser extent for producers of rice and cashew nuts. In contrast, producers of maize, sugarcane, peppers and beef benefit from prices above world reference levels. However, the transfers to farmers for these products is outweighed significantly by negative MPS, such that farmgate prices were on average 10% below border reference values.

Budgetary transfers to producers are relatively small. They are primarily delivered through payments based on variable input use, namely an exemption from the payment of irrigation service fees, and subsidies for fertilisers, pesticides and machinery under the Sustainable Poverty Alleviation Programme, which targets producer support to communes in remote and mountainous areas. The government also supports rice production through periodic market stabilisation interventions such as rice purchases for the national strategic reserve, and supportive credit, irrigation and land use policies.

The General Services Support Estimate (GSSE), measured as a percentage of the value of production, fell from 2.2% in 2000-02 to 1.6% in 2023-25. Support for general services for agriculture predominantly goes to the development and maintenance of infrastructure, two-thirds of which goes to hydrological infrastructure for irrigation and the 3.8 million ha paddy field support programme. Expenditures under the Sustainable Poverty Alleviation Programme support the development of infrastructure, including roads and small irrigation schemes, as well as agricultural education, extension and advisory services. Total support accounted for -1.4% of Gross Domestic Product (GDP) in 2023-25, down from +2.1% in 2000-02.

Key policy changes in 2025-26

In early 2025, the Ministry of Agriculture and Rural Development and the Ministry of Natural Resources and Environment were merged to form the Ministry of Agriculture and Environment (MAE).

Agricultural policy implementation was decentralised through the abolition of the district level of administration, establishing a two-tier local governance system at provincial and commune levels.

Support for farmers affected by natural disasters and pest outbreaks was expanded through increased provision of seeds, breeding stock, and partial production cost support. Compensation levels for livestock culled due to disease outbreaks were raised, and financial support was extended to individuals involved in disease prevention and control activities.

VAT exemptions for enterprises and co-operatives trading unprocessed agricultural products were maintained in 2026, and the agricultural land use tax exemption was extended until the end of 2030. Preferential credit policies were amended to allow for loan restructuring, expanded access to unsecured loans, and the use of loan-financed assets as collateral.

The National Action Plan on Circular Economy Implementation was issued in January 2025, identifying agriculture as a key sector for resource efficiency, waste reduction, and environmental sustainability. A national carbon market development plan was approved, with gradual inclusion of agriculture and land use activities supported by monitoring, reporting and verification (MRV) systems. A low-emission production plan for the crop sector was adopted to promote climate smart practices and emissions monitoring.

Viet Nam reduced most favoured nation (MFN) import tariffs on selected agricultural products and inputs, including eliminating duties on maize and soybean meal. Administrative measures were implemented to prioritise customs clearance for agricultural exports, particularly perishable goods. New technical protocols for some agricultural commodities were signed with China, to facilitate agricultural exports through harmonised quarantine, food safety, and traceability requirements. Trade co-operation was further strengthened through ongoing engagement and market access initiatives with key partners, including the United States, South Africa, and the United Arab Emirates.

Assessment and recommendations

• Increase flexibility in land‑use policy by gradually relaxing strict paddy land regulations and shifting from rice‑focused support toward allowing farmers to seek diversified higher‑value production, while maintaining targeted safeguards for food security and rural livelihoods. This would help agricultural support to move away from commodity‑specific measures and irrigation infrastructure to improve resource efficiency, farm incomes, and sustainability.

• Phase out ad hoc market interventions in the rice sector that provide income support but may reduce responsiveness to market signals and replace them with more efficient and less distortionary risk‑management tools. Progressively reallocate budgetary resources toward agricultural R&D and extension services to enhance productivity and address environmental concerns.

• Phase out the special treatment of state‑owned enterprises (SOEs), which play an important role in agricultural value chains and have preferential access to credit and land. This would help eliminate structural inefficiencies and allow prices received by farmers to reflect market value. Further improve market functioning by promoting more competition and private‑sector participation in agricultural value chains.

• Strengthen and align mitigation targets and policy instruments to ensure a clear and feasible pathway to net zero. The current 2030 NDC target still implies rising emissions at the economy-wide level, which may undermine progress toward the 2050 net‑zero goal. Deepen efforts to develop low-emission and circular agriculture systems by scaling up MRV systems and integrate them with carbon market mechanisms.

• Promote integrated climate‑smart agricultural practices to address high nitrogen and phosphorus surpluses and water management challenges, reduce reliance on chemical inputs and enhance soil health. These practices include alternate wetting and drying in rice, site-specific nutrient management, integrated pest management, and circular crop-livestock systems.

• Target investments to improve compliance with food safety, quality, and sustainability requirements to enhance export competitiveness. This will help producers and enterprises to meet international standards, take advantage of new bilateral and regional trade agreements, diversify export markets, and deepen integration into global value chains.

Key indicators on agricultural support

Table 31.1. Viet Nam: Estimates of support to agriculture

Million USD

	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	8 959	59 432	54 865	56 280	67 151
of which: share of MPS commodities (%)	77.51	76.56	71.96	85.26	72.46
Total value of consumption (at farm gate)	7 686	54 974	52 909	51 210	60 803
Producer Support Estimate (PSE)	486	-6 885	-8 060	-5 410	-7 185
Support based on commodity output	364	-7 079	-8 250	-5 615	-7 372
Market price support¹	364	-7 079	-8 250	-5 615	-7 372
Positive market price support	921	2 096	1 274	3 710	1 303
Negative market price support	-557	-9 175	-9 524	-9 325	-8 674
Payments based on output	0	0	0	0	0
Payments based on input use	101	191	187	203	184
Based on variable input use	101	191	187	203	184
with input constraints	0	0	0	0	0
Based on fixed capital formation	0	0	0	0	0
with input constraints	0	0	0	0	0
Based on on-farm services	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	2	2	2	3
Based on Receipts / Income	0	2	2	2	3
Based on Area planted / Animal numbers	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	21	0	0	0	0
Based on long-term resource retirement	21	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	5.22	-11.49	-14.64	-9.58	-10.67
Producer NPC (coeff.)	1.04	0.90	0.87	0.92	0.91
Producer NAC (coeff.)	1.06	0.90	0.87	0.91	0.90
General Services Support Estimate (GSSE)	201	949	670	971	1 205
Agricultural knowledge and innovation system	23	174	139	164	218
Inspection and control	0	0	0	0	0
Development and maintenance of infrastructure	173	677	515	722	793
Marketing and promotion	0	0	0	0	0
Cost of public stockholding	5	98	16	85	194
Miscellaneous	0	0	0	0	0
Percentage GSSE (% of TSE)	29.80	.	.	.	.
Consumer Support Estimate (CSE)	-592	2 541	4 963	2 177	484
Transfers to producers from consumers	-595	5 101	6 449	5 420	3 433
Other transfers from consumers	-19	-3 076	-1 801	-3 893	-3 533
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	22	516	315	649	584
Percentage CSE (%)	-7.56	4.49	9.38	4.25	0.80
Consumer NPC (coeff.)	1.08	0.97	0.92	0.97	1.00
Consumer NAC (coeff.)	1.08	0.96	0.91	0.96	0.99
Total Support Estimate (TSE)	687	-5 936	-7 390	-4 439	-5 981
Transfers from consumers	613	-2 025	-4 648	-1 528	100
Transfers from taxpayers	92	-836	-941	981	-2 548
Budget revenues	-19	-3 076	-1 801	-3 893	-3 533
Percentage TSE (% of GDP)	2.08	-1.43	-1.71	-1.08	-1.51
Total Budgetary Support Estimate (TBSE)	323	1 142	860	1 176	1 391
Percentage TBSE (% of GDP)	1.00	0.28	0.20	0.29	0.35
GDP deflator (2000-02 = 100)	100	580	558	581	601
Exchange rate (national currency per USD)	15 000.33	24 774.72	23 655.98	24 853.08	25 815.10

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient.

A/An/R/I: Area planted/Animal numbers/Receipts/Income.

1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Viet Nam are: rice, rubber, coffee, maize, cashew nuts, sugar, pepper, tea, beef and veal, pig meat, poultry and eggs.

Source: OECD (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Domestic price support is the main form of support for Vietnamese producers, mainly tariffs for import-competing commodities such as beef, veal and sugarcane. Following Viet Nam’s accession to the WTO in 2007, the simple average MFN-applied tariff on agricultural imports decreased from around 25% in the mid-2000s to 17% in 2024. Despite the decline, this is more than double the MFN-applied tariff for non-agricultural goods of 8.3% (WTO, 2025[1]). Applied tariffs are lower on imports originating from countries or regions with which Viet Nam has signed free trade agreements.

Viet Nam is a member of the WTO, the Association of Southeast Asian Nations (ASEAN), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP),1 and the Asia-Pacific Economic Cooperation (APEC), and supports trade liberalisation between ASEAN members and their major trading partners. Outside of ASEAN, Viet Nam has negotiated bilateral free trade agreements with Chile, Cuba, the Eurasian Economic Union, the European Union, Israel, Japan, Korea, the United Arab Emirates (UAE) and the United Kingdom.

State-owned enterprises (SOEs) play an important role in the production, wholesale, and trade of export commodities such as rice, rubber, coffee and tea. They benefit from lower borrowing costs due to guarantees extended by state‑owned banks, and preferential access to land and human resources (OECD, 2022[2]). Key SOEs include the Viet Nam Rubber Group (VRG), which controls about 40% of rubber plantation land and 85% of exports; the Viet Nam Southern Food Corporation (Vinafood II), the largest rice exporter; the Viet Nam National Coffee Corporation (Vinacafe), responsible for about 25% of coffee exports; and the Viet Nam National Tea Corporation (Vinatea), which manages the largest concentrated production area in the country and exports to 15 markets. This dominance allows SOEs to exert market power, discouraging entry and reducing farmgate prices below international reference prices. These lower prices are reflected in the PSE as an implicit tax on farmers, measured as negative MPS.

Provincial support programmes provide funding to local rice growers in order to maintain a target of 3.5 million ha of paddy land. These programmes focus on the adoption of new rice varieties and investments in agricultural and rural infrastructure, among other measures. The State Bank of Viet Nam requires credit institutions to lend to rice producers with interest rates at least 1% below the existing market rates. This is to support the government’s “Sustainable Development of One Million Hectares of High Quality and Low-Emission Rice Associated with Green Growth in the Mekong River Delta By 2030” strategy. Financial support ranging from VND 750 000 (USD 31) to VND 1 500 000 (USD 61) per hectare per year is provided for paddy land, with an extra VND 1 500 000 (USD 61) per hectare per year for dedicated paddy rice in areas reserved for high productivity and high-quality rice cultivation.

Exporters of rice (except organic rice) must have at least one storage and one milling facility (either owned or leased) that meet national standards and maintain rice reserves equivalent to 5% of the volume they shipped in the preceding six months in order to obtain an export certificate. These regulations are designed to encourage stockholding, stabilise domestic rice prices, and fulfil international commitments in the event of natural disasters or crop failures.

An irrigation service fee (ISF) waiver exempts producers from payments to manage, maintain and protect irrigation works above the canal gate. Instead, the central and provincial governments pay compensation to irrigation management companies. Other support based on input use includes central and local government subsidies for certain varieties of rice seeds and seedlings. Support for producers is also provided through the Sustainable Poverty Alleviation Programme (previously known as “Program 135”), which allocates support to communes in remote and mountainous areas. The programme includes subsidies for agricultural inputs and extension services.

Expenditures on irrigation systems represent a major component of general services for the agricultural sector, a strategy that is manifest in the Hydraulic Work Strategy that sets objectives related to the supply of water for paddy fields and total land area in irrigation. Expenditures are allocated through investments by the central government in developing and maintaining irrigation infrastructure and through funding provided under programmes such as the Sustainable Poverty Alleviation Programme to support the construction of small irrigation systems.

In Viet Nam, land is owned by the people, with the state acting as the representative of the owner and administering unified management. Agricultural land use plans tend to favour rice production. Land users obtain a Land Use Right (LUR), under which title holders may conduct transactions, including buying, selling, bequeathing, and leasing land, as well as using land as collateral for mortgages with financial institutions. LURs cover crop choice, conversion of paddy land, and restrictions on land transfers and exchanges. Foreigners may retain a LUR for 50 years, while locals may hold one indefinitely. An agricultural land use tax exemption has been in in place since 2010. Normally, this tax is calculated based on area and land quality (implied yield potential) and so is equivalent to a per-hectare charge.

Funding for extension activities is channelled through both national government agencies and provincial governments. The National Agricultural Extension Centre and the Science and Technology Department of the Ministry of Agriculture and Environment (MAE) administer an open and competitive selection process to allocate central government funding for agricultural extension to both public and non-public providers. Provincial People’s Committees play the same role for local level projects. Funded projects follow a top-down model that emphasises the introduction of new crop varieties or technologies (Gray and Jones, 2022[3]).

Viet Nam is party to the Paris Agreement on Climate Change. In its updated Nationally Determined Contribution (NDC), submitted in October 2022, the country pledged to reduce projected 2030 greenhouse gas (GHG) emissions (927.9 MtCO₂eq under the business as usual (BAU) scenario) by 15.8% using domestic resources (“Unconditional Contribution”) and up to 43.5% with sufficient international financing and support (“Conditional Contribution”) (Government of Viet Nam, 2022[4]). Despite these reductions, emissions would still rise by roughly 2.8 times the 2014 level (284 MtCO₂eq) under the 15.8% scenario and 1.8 times under the 43.5% scenario. Viet Nam also signed the Global Methane Pledge and committed to achieving net-zero carbon emissions by 2050 at COP26 in Glasgow in 2021.

Agriculture, which accounts for almost one-third of the country’s total emissions, has a reduction target of 1.3% by 2030 relative to BAU, as set out in the Unconditional Contribution scenario, and a reduction target of 5.5% in the Conditional Contribution scenario. Adaptation efforts are guided by the National Adaptation Plan in Agriculture (NAP-Ag), under which MAE carries out vulnerability assessments, promotes climate-smart agricultural practices, and implements pilot projects related to early warning systems, disaster response and training of government officials. More broadly, the National Climate Change Adaptation Plan for 2021-2030 was updated in 2024, and in January 2025 a roadmap was approved to establish a national carbon market by 2029.

Recent policy developments

Domestic policy developments in 2025-26

Several ministries were restructured and consolidated in early 2025 to reduce institutional fragmentation and enhance inter-sectoral co-ordination. This included merging the Ministry of Agriculture and Rural Development (MARD) with the Ministry of Natural Resources and Environment (MONRE) to establish a new Ministry of Agriculture and Environment (MAE), which officially came into operation on 1 March 2025.

Agricultural programme delivery was decentralised with the abolition of the district level of administration effective 1 July 2025. The mandate of MAE was refocused on strategy and policy formulation, while a new two-tier system shares responsibility between provincial governments, who co-ordinate policy implementation, and commune-level governments who are responsible for implementing policies at the local level. Other administrative procedures have also been devolved from the central to the provincial and commune levels.

Regulations on periodic reporting of paddy and rice inventories were strengthened, now requiring that both parties to export contracts hold a valid export eligibility certificate, closing a loophole under the previous rules. Additional grounds for revoking export licences (including failure to report) were introduced. The new measures aim to increase stability in the domestic rice market, by improving the availability and timeliness of data for supply and demand balancing.

Support for farmers affected by natural disasters and plant pest outbreaks was increased in February 2025. The core support measures include: (i) provision of seeds and breeding stock (including rice, annual and perennial crops, and livestock) for production recovery; and (ii) in certain cases, partial support for initial production costs, linked to the severity of damage and the type of production system. As of July 2025, financial compensation was increased for producers whose livestock were culled as a result of animal disease outbreaks. Compensation rates are specified in detail by animal species, production system and degree of loss. In addition, financial support is provided to individuals directly involved in disease prevention and control activities (including culling, outbreak handling and surveillance), based on the duration and nature of assigned tasks.

Under the amended VAT law effective as of January 2026, the existing VAT treatment for unprocessed agricultural products was maintained. As such, enterprises and co-operatives trading unprocessed agricultural products are not required to declare or pay VAT, while remaining eligible to deduct input VAT. Applicable VAT rates have also been clarified for unprocessed agricultural products (non-taxable, 5% or 1%, depending on the taxpayer category and calculation method), thereby reducing VAT payment-refund cycles, lowering compliance costs and supporting agricultural exports. Furthermore, the agricultural land-use tax exemption was extended until the end of 2030 for all entities involved in agricultural production (including households, individuals, co-operative members and organisations directly using land for production).

Preferential credit policies for agriculture were amended in June 2025, allowing for the restructuring of loan repayment schedules and the maintenance of existing debt classification for agricultural loans affected by natural disasters, epidemics, or during the transition to sustainable production models (e.g. organic agriculture and circular agriculture). Access to credit was further expanded by increasing ceilings for unsecured loans and permitting the use of assets formed from loan capital as collateral.

The State Bank of Viet Nam also issued detailed guidance in November 2025 for credit institutions and foreign bank branches on lending to the agricultural and rural sectors. The guidance sets out rules on eligible borrowers, loan conditions, and credit principles aligned with agricultural production cycles, and provides for the restructuring of repayment schedules, debt rescheduling, and the maintenance of debt classification for borrowers facing difficulties due to objective causes.

Clearer and more uniform rules for implementing the 2024 Land Law were put in place in January 2026. These cover land parcel subdivision and consolidation, changes in land‑use purpose, and the determination and payment of land‑use fees. This has direct implications for agricultural land and the rights of agricultural land‑using households, particularly in cases of conversion from agricultural land to residential land.

Agriculture was identified as a key pillar in the National Action Plan on Circular Economy Implementation by 2035, issued in January 2025. The plan aims to improve resource efficiency, minimise waste generation, and reduce environmental impacts in production. It focuses on key measures such as encouraging the reuse and recycling of agricultural by-products, strengthening organic waste management, promoting the use of biomass and environmentally friendly materials, and integrating circular economy principles into agricultural and rural development planning and programmes.

The plan to establish and develop Viet Nam’s carbon market was approved in January 2025 and is expected to become fully operational by 2029. The carbon market system is expected to gradually include emission reduction and carbon sequestration activities for Agriculture, Forestry, and Other Land Use (AFOLU). The carbon market is supported by a monitoring, reporting and verification (MRV) system as a basis for recognising carbon credits from activities such as low-emission farming, land and biomass management; a legal framework to participate in carbon credit trading once technical requirements are met; and measures to strengthen environmental management and emissions data transparency.

The Plan for Low-Emission Production in the Plant Production Sector for the 2025-2035 period, with a vision to 2050, was approved in September 2025. The plan aims to support innovations in low-emission crop cultivation, establish an MRV system for crop emissions, provide capacity building and extension services for farmers, co-operatives and local authorities, and implement measures to integrate emission reduction with climate adaptation.

Recent regulatory changes have strengthened the legal framework for plant protection, animal quarantine, veterinary hygiene, and food safety. These include updates to the lists of permitted and prohibited plant protection chemicals, revised rules on veterinary hygiene inspection and food safety, decentralisation of plant protection functions, and new provisions governing the quarantine of terrestrial and aquatic animals and related products.

Policy measures introduced in March 2025 aim to accelerate science, technology, innovation, and digital transformation. These include new funding mechanisms and the mobilisation of resources for R&D and knowledge transfer, alongside efforts to promote the adoption of advanced technologies in sustainable agriculture and environmental management. The changes also emphasise strengthened international co‑operation to support innovation and technology transfer.

Trade policy developments in 2025-26

In March 2025, MFN import tariffs were further reduced for a range of agricultural and food products. In particular, import duties on maize and soybean meal were reduced, with a view to alleviating input cost pressures for the domestic livestock and processing industries. This measure reflects Viet Nam’s efforts to facilitate imports of key agricultural inputs within the framework of its trade commitments and to promote market competition.

Since May 2025, customs authorities are required to facilitate and prioritise immediate customs clearance for exported agricultural products, particularly perishable goods such as durian and products harvested during peak seasons. They are also instructed to promptly resolve export-related bottlenecks and regularly update and disseminate information on importing countries’ trade and tariff policies to exporters.

In the context of ongoing negotiations with China, Viet Nam signed seven new technical protocols in 2025 to facilitate exports of agricultural, forestry, and fishery products through improvements in quarantine requirements, food safety, and traceability. This brings the total cumulative number of technical protocols between Viet Nam and China in the agriculture, forestry, and fishery sectors to 25, providing an important legal framework for exports to the Chinese market.

In October 2025, the United States and Viet Nam announced a Joint Statement on the Viet Nam-United States reciprocal trade agreement, in which the two countries will mutually reduce tariffs and improve market access based on negotiated reciprocal commitments. This followed an Executive Order signed by the President of the United States in August 2025, applying a reciprocal tariff rate of 20% on most goods of Vietnamese origin, including certain agricultural, forestry, and fishery products.

In November 2025, South Africa and Viet Nam concluded a Memorandum of Understanding (MoU) to strengthen bilateral co-operation across crop production, plant protection, animal husbandry, veterinary services, R&D and technology transfer, and agricultural trade. The agreement aims to expand market access, promote sustainable agricultural systems, and facilitate increased trade flows, building on recent successes such as the rapid growth of South African citrus exports to Viet Nam, while deepening long‑term institutional and technical collaboration between the two countries’ agriculture sectors.

The Viet Nam-UAE Comprehensive Economic Partnership Agreement (CEPA) officially entered into force in February 2026. It will progressively remove tariffs on 99% of UAE exports and 98.5% of Vietnamese exports, with immediate tariff removals on several key Vietnamese exports, including agricultural products such as cashew nuts, pepper, and honey. In the first eight months of 2024, the bilateral trade reached over USD 4.47 billion, a 45% increase compared to the same period in 2023 (VCCI, 2024[5]).

Policy context

Key economic and agricultural statistics

Viet Nam is a mid-sized country in terms of land area, but its population of over 101 million makes it the 16^th most populous country in the world. Viet Nam is classified as a lower middle income country, and almost two-thirds of the population live in rural areas. Since the reforms of Doi Moi in the mid-1980s, the country has seen strong and steady growth in GDP, in the order of 5-7% annually from 2000-19 (Figure 31.3). GDP growth slowed in 2020-21 as a result of the COVID-19 pandemic, but a recovery in exports and domestic demand led to a rapid rebound, with growth reaching 7.1% in 2024.

Agriculture contributes 12% to Viet Nam’s GDP and employs 26% of the labour force, although the relative importance of agriculture in the economy is declining. The sector has undergone significant structural changes in recent decades, reflecting a shift away from staple foods to export commodities, such as rubber and cashew nuts, and to livestock production, particularly pig meat. Crops dominate the agricultural landscape, accounting for 64% of the value of agricultural production in 2025 (Table 31.2). Rice alone plays a dominant role, accounting for around one-quarter of the value of agricultural production.

Table 31.2. Viet Nam: Contextual indicators

	Viet Nam		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	202	1 655	0.5%	1.0%
Population (million)	77	101	1.8%	1.8%
Land area (thousand km2)	310	313	0.4%	0.4%
Agricultural area (AA) (thousand ha)	8 780	12 291	0.3%	0.4%
			All countries1
Population density (inhabitants/km2)	246	322	52	64
GDP per capita (USD in PPPs)	2 614	16 386	9 508	31 740
Trade as % of GDP	49.5	78.5	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	22.7	11.9	3.0	3.6
Agriculture share in employment (%)	64.2	25.9	-	-
Agro-food exports (% of total exports)	16.9	7.6	6.4	8.3
Agro-food imports (% of total imports)	6.1	9.6	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	82.2	63.3	62.1	60.4
Livestock in total agricultural production (%)	17.8	36.7	37.9	39.6
Share of arable land in AA (%)	70.6	54.7	33.0	34.0

Note: *or closest available year.

Average of all countries covered in this report. Agro-food trade includes natural rubber.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

With the progressive liberalisation of trade, the value of imports and exports has increased substantially since the early 2000s (Figure 31.4). Agro-food imports, in particular, saw a sizeable jump in recent years, increasing from USD 22.4 billion in 2020 to USD 31.3 billion in 2023. The value of agro-food exports has also steadily increased, reaching USD 26.7 billion in 2023. Viet Nam is among the world’s largest exporters of a range of agricultural commodities, including rice, coffee, tea, cashew nuts, black pepper, natural rubber and cassava.

Two-thirds of Viet Nam’s agro-food exports are delivered as primary or processed goods for household consumption. In contrast, two-thirds of agro-food imports are used as primary or processed inputs for industry, rather than for household consumption. Key imports into production include livestock feedstuffs, such as oil cake and maize, and raw commodities for further processing and export, including cotton and cashew nuts. The remaining 30% are products to meet food demand from domestic consumers, including higher-value food and beverage products.

Agricultural output increased by 3.0% per year from 2014-23 (Figure 31.5). This was largely driven by total factor productivity (TFP), which grew at 2.9% per year, far outpacing the world average TFP growth of 0.8% over the same period. The increased use of intermediate inputs also contributed to output growth, while the contribution of primary factors (labour, land and capital) declined slightly.

However, agricultural production gains have been accompanied by significant pressure on natural resources. The nitrogen and phosphorus balances for Viet Nam exceed the OECD average for the period 2014-23 by a factor of 5 and 19, respectively. Agriculture’s share in total GHG emissions declined considerably from 46% in 2000 to 14% in 2023, but remains slightly higher than the OECD average, although agriculture accounts for a larger share in the country’s economy. Overall, environmental degradation poses a risk to agricultural production in Viet Nam and the capacity of the sector to support sustainable productivity growth in the future.

Table 31.3. Viet Nam: Productivity and environmental indicators

	Viet Nam		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	2.4%	2.9%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	163.4	146.6	32.3	29.0
Phosphorus balance, kg/ha	30.0	43.4	3.3	2.3
Agriculture share of total energy use (%)	1.7	5.5	1.7	2.0
Agriculture share of GHG emissions (%)	46.2	14.3	8.7	10.3
Share of irrigated land in AA (%)	..	..	-	-
Share of agriculture in water abstractions (%)	..	..	46.1	47.7
Water stress indicator	..	..	..	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Following its declaration of independence in 1945 and ensuing reunification into the Socialist Republic of Viet Nam in 1975, the Communist Party of Viet Nam initially structured the country according to the Soviet model, which was grounded in central planning and self-reliance. Within this context, agriculture’s primary role was to support the development of heavy industry by providing food at low prices and achieving food self-sufficiency (OECD, 2015[6]). Production was organised around co-operatives and state farms, with SOEs providing inputs and controlling output markets. By the mid-1980s, food shortages and famine were pervasive, as was inflation.

A long series of reforms embedded within the economy-wide programme known as Doi Moi or “Renovation” progressively liberalised Viet Nam’s economy and its agricultural sector starting in 1986 (OECD, 2015[6]). The paradigm evolved toward a “law-ruled socialist market economy” in which the development of agriculture, forestry, and fisheries became a priority for stabilising the economy. The model for agricultural management shifted from co-operatives to farm households, with farmland redistributed in the form of land use rights, and farm households given the ability to make their own production decisions provided they met certain production quotas. By 1992, prices for most goods and services were determined by markets, though regulation remained for certain commodities, such as fertiliser, sugar, and rice.

From 1993-2000, Viet Nam underwent a period of expansion, in which the country increasingly opened to trade and integrated into the global economy. Reforms introduced more market-oriented policies with the aim of expanding food production for export. A number of these reforms aimed to improve investment and technological innovation, including the 1993 Land Law, the establishment of a national extension service, and credit access for rural households. The Price Stabilisation Fund (PSF) was established from 1993 to 1999 in order to regulate the prices of certain commodities, including urea, paddy and rice, coffee, and sugarcane.

During this period, Viet Nam entered into bilateral and regional trade agreements and partnerships to expand market opportunities, including its accession to the Association of Southeast Asian Nations (ASEAN) in 1995 and its admission to the Asia Pacific Economic Community (APEC) in 1998. Most importantly, the country relaxed restrictions on the export of rice as well as internal barriers to trade between the south and the north. The country saw strong and steady growth throughout the 1990s, in terms of real GDP (7.4% per year) and agricultural output (6% per year), with the relaxation of production quotas, price controls, collectivised agriculture, restrictions on trade and investment, and bans on private enterprises (OECD, 2015[6]; World Bank Group, 2016[7]). Budgetary expenditures for agriculture quadrupled during this period, with several large-scale projects implemented, such as the Building Canals for All Rice Fields programme (Phan, 2014[8]; Ellis et al., 2010[9]).

From 2000-08, the policy framework aimed to stimulate agricultural and rural modernisation and industrialisation by improving yields, quality, and the value of production. Further international integration, including accession to the WTO in 2007, reinforced previous reforms. The remaining few quantitative restrictions on agricultural imports and exports were progressively withdrawn but it was not until the late 2000s that private sector involvement in rice exports was encouraged. Prior to this point, the right to export was limited to national and provincial SOEs.

Since 2008, three major resolutions have guided and reoriented agricultural policy development in Viet Nam. The first, the Tam Nong Resolution, emphasises the advancement of agriculture, rural development, and farmer livelihoods based on a socialist market economy. Alongside this, a resolution to ensure national food security was issued in response to sharp increases in food prices from 2007-09. The resolution sought to ensure national food security by guaranteeing adequate food supplies, particularly for rice. It set specific targets to preserve land for the production of rice and to ensure a farm-gate price such that growers are guaranteed a certain profit margin above production costs. In March 2021, this resolution was updated through 2030 to stabilise 3.5 million ha of land in rice production and to ensure an average profit of 35% above estimated production costs. Thirdly, Resolution No. 19/2022/NQ-TW, focuses on accelerating agricultural production, enhancing rural development, and improving farmers’ livelihoods amidst industrialisation, globalisation, and climate change. It emphasises building a green, sustainable agriculture, large-scale production, applying science and technology, enhancing quality and added value, and improving agricultural infrastructure.

Table 31.4. Viet Nam: Agricultural policy trends

Period	Framework	Changes in agricultural policies
1976-1986	Reunification: Socialist centrally planned system	Centrally planned economy, including the agricultural sector Agricultural production organised into co-operatives that also administered land Upstream and downstream sectors reorganised as state-owned enterprises
1986-1993	Renovation (Doi Moi): Launch of reforms to transition Viet Nam to a socialist-oriented market economy	Farm households replace co-operatives as focus of agricultural and rural development Role of co-operatives reduced: farmers allowed to make production decisions; co-operatives limited to trading and providing services (e.g. irrigation) Economy opened to trade Reduced government control over prices, although prices regulated for some products (including fertiliser, sugar and rice)
1993-2000	Expansion: Further reforms to expand food production and exports	Land Law 1993; land use rights extended to 20 years (annual crops) and 50 years (perennial crops) Land use tax replaces production quota and agricultural output tax Rural households allowed to borrow loans from commercial institutions Price Stabilisation Fund for essential commodities Restrictions on rice exports relaxed Increased budgetary expenditure for agriculture
2000-2008	Consolidation: Policies to promote agricultural and rural modernisation and industrialisation	Policies to encourage production of primary and processed commodities, quality improvement, domestic and international trade, and increase investments from various sources in physical and social infrastructure Regional and bilateral trade agreements WTO accession
2008-present	Reorientation: Shift in emphasis from extensive development of agriculture based on quantity to one focused on quality and efficiency improvements	Agricultural policy guided by three major resolutions: - Resolution No. 26/2008/NQ-TW on agriculture, farmers and rural areas (Tam Nong) - Resolution No. 63/2009/NQ-CP to ensure national food security implemented through the master plan for agricultural development (2012) and the agricultural restructuring project (2013) - Resolution No. 19/2022/NQ-TW on agriculture, farmers and rural areas to 2030 with a vision to 2045

Support provided to Viet Nam’s producers has declined steadily since 2009, largely driven by changes in MPS (Figure 31.6). Since 2014, the %PSE has remained negative, dropping to around -11% in 2018 and remaining at that level since. Total support to agriculture (TSE) has also been negative over the same period, as budgetary transfers to producers and expenditure on general services do not compensate for the high levels of negative MPS.

References

[9] Ellis, K. et al. (2010), Assessing the Economic Impact of Competition: Findings from Vietnam, https://media.odi.org/documents/6060.pdf.

[4] Government of Viet Nam (2022), Nationally Determined Contribution (NDC) (updated in 2022), https://unfccc.int/sites/default/files/NDC/2022-11/Viet%20Nam_NDC_2022_Eng.pdf.

[3] Gray, E. and D. Jones (2022), “Innovation, agricultural productivity and sustainability in Viet Nam”, OECD Food, Agriculture and Fisheries Papers, No. 181, OECD Publishing, Paris, https://doi.org/10.1787/9cc1f47a-en.

[2] OECD (2022), OECD Review of the Corporate Governance of State-Owned Enterprises in Viet Nam, Corporate Governance, OECD Publishing, Paris, https://doi.org/10.1787/a22345d0-en.

[6] OECD (2015), Agricultural Policies in Viet Nam 2015, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264235151-en.

[8] Phan, S. (2014), “A Qualitative Review of Vietnam’s 2006-2010 Economic Plan and the Performance of the Agriculture Sector”, Asian Journal of Agriculture and Development, Vol. 11/1, pp. 39-63, https://doi.org/10.37801/ajad2014.11.1.3.

[5] VCCI (2024), “Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA): Key Details”, Vietnam Center for WTO and International Trade, https://wtocenter.vn/chuyen-de/26216-vietnam-uae-comprehensive-economic-partnership-agreement-cepa-key-details (accessed on 27 May 2025).

[7] World Bank Group (2016), Transforming Vietnamese Agriculture: Gaining More from Less. Vietnam Development Report, World Bank, Washington, DC, http://hdl.handle.net/10986/24375.

[1] WTO (2025), “Viet Nam - Tariffs and imports: Summary and duty ranges”, World Tariff Profiles 2025, https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/VN_e.pdf.

Note

← 1.  The RCEP countries are Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Viet Nam.