Agriculture is an important component of the country's economy. The potential of agriculture can be realized if the introduction of modern technologies in agriculture continues. This is especially important given the vulnerability of the country's agricultural sector to climate change.
Agricultural production in Vietnam
The main crop grown in Vietnam is rice, which accounts for more than 90% of grain production and about a third of all agricultural production in Vietnam. According to the General Statistics Office of Vietnam (GSO), 42,660.7 thousand tons of rice were grown in 2022, which is 2.7% less than in 2021. Vietnam is one of the largest producers and exporters of rice in the world, which annually increases the irrigated area and increases the intensity of agriculture. In addition, the country has developed cassava production, which in 2022 it amounted to 10,626.9 thousand tons, which is 0.6% more than in 2021. This crop accounts for about a third of the production of vegetables, root crops and tubers.
In 2022, 2,514.8 thousand tons of bananas and 1,807.9 thousand tons of oranges were also produced, which is 6.9% and 14.0% more in 2020, respectively. The production of these products is growing rapidly. The average annual growth rates of cultivated bananas for 2018-2022 amounted to 3.8%, while oranges — 36.7%.
Vietnam is one of the leading coffee producers in the world. GSO estimates the volume of production of these products in 2022 at 1,954,0 thousand tons, which is 5.9% more than in 2021.
The average annual growth rate for 2018-2022 was 4.6%.
Vietnam's animal husbandry has been actively developing over the past decade. The key areas of animal husbandry in Vietnam are pig farming, poultry farming and dairy cattle breeding. The poultry industry showed the highest growth rates during 2018-2022. Thus, the production of chicken eggs on average increased by 7.3% per year and, according to GSO estimates, by 2022 it reached 18.26 billion pieces. Poultry meat production during 2018-2022 grew at a rate of 17.6%, reaching 2,101.2 thousand tons by 2022. A sharp increase in poultry meat production is associated with the negative situation in pig farming caused by the epidemic of African swine fever (ASF) and the subsequent reduction in livestock.
According to estimates, 3,468.7 thousand tons of pork were produced in Vietnam in 2022, which is 6.0% more than in 2021. Thus, the industry is already beginning to recover after the outbreak of ASF. In addition, dairy cattle breeding is actively developing in the country. Most of the production falls on cow's milk, the production of which is about 1.1 million tons annually.
The production of fish and seafood in Vietnam in 2022, according to GSO estimates, reached 9,108.0 thousand tons, which is 3.2% more than in 2021. The average annual growth rate for 2018-2022 was 3.7%. The aquaculture sector is actively developing in the country, and by 2022 its share in the total structure of the country's fishing and fish farming production amounted to 57.5%, increasing annually.
Import of agricultural products
In 2022, imports of agricultural products of Vietnam amounted to 28.2 billion US dollars, which is 2.9% or 832.6 million US dollars below the level of 2021. Imports of agricultural products of the country for 2018-2022 decreased by an average of 3.9% annually.
In 2022, the largest share in the structure of imports of agricultural products of Vietnam in value terms fell on soybean cakes and meal — 8.7% of the volume of purchases or 2.5 billion US dollars. The top 3 imported items also included corn (8.6%) and wheat (4.8%). The top 10 product categories accounted for 45.1% of imports of agricultural products of Vietnam in value terms.
Of the top 10 imported goods, a decrease in volumes in 2022 was observed for beef and edible offal of cattle, the volume of purchases of which was 1.2% less compared to 2021. There was also a decrease in purchases of cashew nuts, cigars and cigarettes.
In 2022, the main exporting countries of agricultural products to Vietnam in value terms were China (19.4% of imports), Argentina (10.5%) and the USA (8.8%). The share of the three largest suppliers in value terms accounted for 38.7% of imports of agricultural products of Vietnam, the top 10 countries - 78.9%.
The most noticeable increase in the supply of agricultural products to Vietnam compared to 2018 was demonstrated by Indonesia, which increased exports by 2 times or by $988.7 million over five years. Brazil increased supplies by 92.8% or 1.2 billion US dollars, Argentina — by 47.6% or 952.4 million US dollars.
Export of agricultural products
In 2022, Vietnam's agricultural exports reached US$ 30.3 billion, an increase of US$ 4.6 billion or 17.7% compared to 2021. The average annual growth rate of agricultural exports for 2018-2022 was 6.5%.
In 2022, coffee accounted for the largest share of exports of Vietnam's agricultural products in value terms (11.3% of deliveries). Fish fillets and other fish meat (10.9%), as well as crustaceans (9.2%) also entered the top 3 of exported agricultural products in 2022 in value terms.
The largest increase in 2022 relative to 2021 was demonstrated by starch supplies, which increased 2.7 times or by 548.1 million US dollars. The volume of exports of fish fillets and other fish meat increased by 51.8% or 1.1 billion US dollars, coffee — by 43.9% or 1 billion US dollars. The most noticeable decline was observed in rice exports — an annual decline of 11.0% (or 261.7 million US dollars).
In 2022, the main importing countries of agricultural products from Vietnam were China (21.0% of exports) and the United States (18.3%). In total, the top 10 importing countries accounted for 78.5% of Vietnam's agricultural exports in 2022. In 2022, Russia took 11th place in the structure of Vietnamese exports of agricultural products.
For 2018-2022 Vietnam has actively increased the supply of its agricultural products to the Philippines — from 787.6 million US dollars in 2018 to 1.7 billion US dollars in 2022.