Why are global importers choosing Vietnamese agricultural products?

Introduction

In recent years, Vietnamese agricultural products have seen a significant surge in demand on the global market. With a combination of favorable climate, rich soil, and a commitment to quality, Vietnam has emerged as a key supplier of diverse agricultural goods. As of 2025, the country's agricultural exports are on track to reach new heights, driven by impressive growth and strategic market access. This article, inspired by recent features in fruits magazine, explores why Vietnamese agricultural products, including a wide variety of Vietnamese fruits, are becoming an increasingly attractive choice for global importers, highlighting recent export growth, competitive advantages, and the country's readiness to meet international demands in the world market.

1. Impressive Growth in Vietnamese Agricultural Exports

Vietnam's agricultural sector has experienced remarkable growth, with exports reaching new records. In the first quarter of 2025 alone, the total export turnover from agricultural, forestry, and fishery products hit $15.72 billion, marking a 13.1% increase year-on-year, according to the Ministry of Agriculture and Rural Development (Vietnam News). This strong performance sets a solid foundation for achieving the ambitious target of $70 billion in total exports for the year.

Key products driving this growth include:

Vietnam's agricultural exports are diversified across several key markets, including China, the European Union (EU), Korea, the United States (US), Japan, and others. For instance, coffee is primarily exported to Germany (16.2%), Italy (9.9%), and Japan (7.4%), while aquatic products are mainly shipped to China (21.7%), Japan (15.6%), and the US (15.1%) (Vietnam News). This diversification and growth underscore Vietnam's emergence as a key player in the global agricultural market, with a strong presence in both the EU market and US market.

2. Diverse and High-Quality Product Range

Vietnam boasts a wide range of agricultural exports, including rice, coffee, seafood, tropical fruits, spices, and processed foods. The country is known for its high-quality products, with many meeting international food safety and quality standards. Vietnamese fruits, in particular, have gained popularity in the imported fruit market.

• Rice: Vietnam is one of the world's largest rice exporters, with high-quality varieties catering to Asian and African markets. In Q1 2025, rice exports reached 2.2 million tonnes, valued at $1.14 billion (Vietnam News).

• Coffee: Vietnam is the second-largest coffee exporter globally, with Robusta coffee being a major commodity. In Q1 2025, coffee exports totaled 509,500 tonnes, valued at $2.88 billion (Vietnam News).

• Seafood: Products like shrimp and tra fish are highly sought after for their quality and competitive pricing. Seafood exports in Q1 2025 reached $2.29 billion (Vietnam News).

• Tropical Fruits: Dragon fruit Vietnamese, durian (often considered the biggest fruit in the world), jackfruit, and mango have gained popularity internationally. Durian exports alone are expected to reach $4 billion in 2025 (International Trade Council). Other popular Vietnamese fruits include watermelon, passion fruit, and coconut. Interestingly, the debate on whether are coconuts fruit or vegetable continues, but they remain a significant export.

• Spices and Processed Foods: Products like pepper, cashew nuts, and processed foods are also significant exports, with pepper exports valued at $0.3236 billion in Q1 2025 (Vietnam News).

Vietnam's focus on quality improvements, food safety standards, and clean agricultural production ensures that its products meet the stringent requirements of global markets. The country is also investing in deep processing techniques to add value to its agricultural exports.

3. Competitive Advantages of Vietnamese Agriculture

Several factors contribute to Vietnam's competitive advantage in the global agricultural market:

• Strategic Geographic Location: Vietnam's proximity to major Asian markets, extensive coastline, and modern port infrastructure facilitate efficient trade.

• Cost Advantages: Lower labor costs compared to regional competitors like Thailand, coupled with a large and skilled workforce of over 13.9 million in agriculture in 2022 (Statista), make Vietnamese products cost-effective.

• Manufacturing and Processing Capabilities: Vietnam has strong capabilities in agriculture and food processing, enabling the production of value-added products. The food processing industry grew by 7.4% in 2024 to $79.3 billion (USDA), demonstrating the country's commitment to added value in its exports.

These advantages position Vietnam as a reliable and attractive supplier for international buyers looking to import to Vietnam or source Vietnamese products for their markets.

4. Favorable Trade Agreements and Market Access

Vietnam's participation in several free trade agreements (FTAs) has significantly boosted its agricultural exports. Key agreements include:

• EU-Vietnam Free Trade Agreement (EVFTA): Reduced tariffs and trade barriers, making Vietnam the largest source of cashew nuts for the EU, with exports reaching $699 million in the first 10 months of 2022 (Vietnam Briefing).

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Provides access to markets like Japan, Canada, and Australia.

• ASEAN Free Trade Area (AFTA): Enhances trade within Southeast Asia.

These agreements have created more opportunities for Vietnamese exporters and made their products more competitive globally, especially in the EU market and US market.

5. Growing International Demand and Market Expansion

The demand for Vietnamese agricultural products continues to grow, with traditional markets like China, the EU, US, Japan, and Korea remaining significant. New markets, such as the Middle East, Australia, Canada, India, and Russia, are also showing increased interest. For example, fruit and vegetable exports are targeting $8 billion in 2025, aiming to place Vietnam among the top five global exporters in this category.

Vietnam's participation in international trade fairs and business matching events has further expanded its market reach, connecting local producers with global buyers. This market expansion strategy has been particularly successful for Vietnamese fruits and other agricultural products. The growing popularity of fruits in Korea has also opened new opportunities for Vietnamese exporters.

6. Commitment to Sustainability and Innovation

Vietnamese agriculture is increasingly focusing on sustainability and innovation:

• Sustainable Farming Practices: Adoption of eco-friendly practices, supported by collaborations with international organizations like the UNDP and FAO (The Shiv).

• Technology and Innovation: Use of advanced technology in production and supply chain management, including cold storage facilities for preserving fresh produce like fresh coconut and frozen durian.

• International Certifications: Many producers obtain certifications for food safety and environmental responsibility, ensuring compliance with global standards.

For example, the Vietnamese government, in partnership with the World Bank, has pledged to scale up sustainable farming practices, aiming to cover an additional one million hectares and reduce up to 10 million tons of CO2e in the Mekong Delta by 2030 (World Bank).

7. Challenges and Future Prospects

Despite its growth, Vietnam's agricultural sector faces challenges, including trade barriers, logistics issues, and compliance with importing countries' regulations. For instance, meeting the EU Deforestation Regulation may take time for full compliance (The Shiv). Additionally, border inspections and regulations set by the Plant Protection Department can sometimes pose challenges for exporters.

When considering the pros and cons of Vietnam's agricultural sector, it's important to note that while there are challenges, the country's commitment to improvement and innovation often outweighs the drawbacks.

However, with continued efforts to improve infrastructure, meet international standards, and expand into new markets, the sector is poised for further growth.

Future prospects include:

• Reaching new export records, with a target of $70 billion in total agricultural, forestry, and fishery exports for 2025 (Vietnam News).

• Expanding into more markets and increasing value-added processing, particularly for popular items like Vietnamese fruits.

• Leveraging sustainability initiatives to meet global demand for environmentally responsible products.

• Improving cold storage and logistics to enhance the quality of exported fresh produce.

Conclusion

Vietnamese agricultural products are becoming an increasingly attractive choice for global importers due to their diversity, quality, competitiveness, and the supportive trade environment. With a strong commitment to sustainability and innovation, Vietnam is well-positioned to meet the evolving demands of the international market. As of 2025, the country's agricultural exports are on track to achieve significant milestones, solidifying its role as a key player in the global agricultural trade.

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FAQs

Q: What are the main agricultural products exported by Vietnam?

A: Vietnam exports a wide range of agricultural products, including rice, coffee, seafood, tropical fruits like durian and dragon fruit, spices, and processed foods. Popular Vietnamese fruits such as watermelon, passion fruit, and coconut are also significant exports. Some of these fruits, like the eggplant (a fruit with e), showcase the diversity of Vietnam's agricultural offerings.

Q: Which countries are the primary markets for Vietnamese agricultural products?

A: The primary markets include China, the European Union, Korea, the United States, Japan, and increasingly, markets in the Middle East, Australia, Canada, India, and Russia. Both the EU market and US market are particularly important for Vietnamese exports. The growing popularity of fruits in UAE and Taiwan have also made it a significant market for Vietnamese produce.

Q: How have trade agreements benefited Vietnamese agricultural exports?

A: Trade agreements such as EVFTA, CPTPP, and AFTA have reduced tariffs and trade barriers, making Vietnamese products more competitive and accessible in international markets. This has led to significant market expansion for Vietnamese agricultural products.

Q: What is the target for Vietnamese agricultural exports in 2025?

A: The target for total agricultural, forestry, and fishery export turnover in 2025 is US$70 billion, as set by the Ministry of Agriculture and Rural Development.

Q: How is Vietnam addressing sustainability in its agricultural sector?

A: Vietnam is adopting sustainable farming practices, leveraging technology and innovation, and obtaining international certifications for food safety and environmental responsibility. The country is also investing in deep processing techniques to add value to its agricultural exports and improve its competitive advantage in the world market.

Q: What fruits are imported to the US from Vietnam?

A: The US imports a variety of fruits from Vietnam, including dragon fruit, rambutan, longan, and lychee. Recently, there has been an increase in imports of Vietnamese durian and mangoes to the US market.