Vietnam’s Agri-Export Trade Soars in 2024, Showing Scope for Foreign Investment

Vietnam’s robust agri-export growth in 2024 highlights significant investment opportunities in agri-processing, AgriTech, cold chain logistics, digital transformation, and sustainable production zones, driven by rising global demand and strategic government support.

Vietnam trade performance: January to October 2024

Vietnam has achieved remarkable trade performance in 2024, recording a 16 percent year-on-year increase in trade turnover for the first 10 months, reaching US$647.87 billion, according to the General Department of Customs. Export activities contributed nearly US$335.59 billion, rising 15 percent, while imports surged by 17 percent to reach US$312.28 billion. Despite this robust growth, Vietnam’s trade surplus slightly narrowed, totaling US$23.31 billion compared to US$24.8 billion during the same period last year.

Growth drivers

In October alone, import-export revenue climbed to US$69.19 billion, a 5 percent increase year-on-year, demonstrating sustained momentum. The Ministry of Industry and Trade (MoIT) plays an active role in expanding market access for Vietnamese products and supporting businesses in navigating international trade. MoIT’s efforts in facilitating border trade include implementing promotion programs and alerting businesses to potential trade defense cases. This proactive approach has shielded Vietnamese goods from unnecessary export risks.

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Forecasts from trade experts suggest that Vietnam’s total trade turnover could reach an unprecedented US$800 billion by the end of 2024. However, they emphasize the importance of quality enhancement and product design to solidify Vietnam’s standing in global markets.

The General Statistics Office’s quarterly survey reveals optimism among businesses, with 83.6 percent expecting stable or increased export orders in Q4, underscoring the potential for further growth in Vietnam’s trade.

Vietnam’s fruit and vegetable exports near US$7 billion milestone

Vietnam’s fruit and vegetable exports have also achieved significant growth, totaling US$6.4 billion from January to October, a 33 percent rise from last year and surpassing the US$ 5.7 billion record set in 2023. This surge is attributed to rising demand, particularly for durian, which accounted for nearly 50 percent of total exports at US$3.1 billion. The sector is on track to meet its US$7 billion target by year-end, exceeding the original projection of US$ 6-6.5 billion set by the Ministry of Agriculture and Rural Development.

General Secretary Đặng Phúc Nguyên of the Vietnam Fruit and Vegetable Association highlighted durian’s unprecedented success, which he expects to reach US$3.5 billion in exports by year-end. Vietnamese fruits have increasingly appealed to international markets, bolstered by quality, freshness, and distinct flavors that meet even the most stringent import standards.

Major export markets

Vietnam’s geographic proximity to China, the world’s largest fruit consumer, has been a strategic advantage, enabling cost-efficient logistics and smooth transportation. China remains Vietnam’s largest market, importing US$4.2 billion in fruits and vegetables, marking a 38 percent increase. Thailand, South Korea, Germany, and Canada also contributed significantly to Vietnam’s export growth, with Thailand overtaking the U.S. as the second-largest importer.

Also read: Foreign Investment Outlook of Vietnam’s Warehouse Sector

Challenges for agri-export growth

Despite the sector’s success, competition from other tropical-climate nations poses a challenge, prompting Vietnamese businesses to adopt advanced technologies and strengthen branding. Meeting international quality standards and overcoming technical trade barriers remain critical.

The Vietnam Fruit and Vegetable Association recommends building dedicated production zones to streamline compliance with standards such as VietGAP and GlobalGAP. It also urges further support from the government in infrastructure development, including transportation, warehousing, and processing facilities, as well as investments in digital transformation and e-commerce to foster brand development and sustain growth in exports.

Opportunities for foreign investment

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Based on Vietnam’s recent trade performance, particularly in agricultural exports, several promising business opportunities for investors are emerging:

1. Agri-processing and packaging ventures
   Vietnam’s strong export growth in fruits and vegetables, especially durian, highlights the demand for advanced processing and packaging facilities. Investors could explore opportunities in building or upgrading facilities that extend shelf life, ensure freshness, and meet international quality standards, which would further support Vietnam’s export potential.
2. Technology in agriculture (AgriTech)
   As Vietnamese agricultural producers face competition from other tropical-climate nations, there is a growing need for AgriTech solutions. Investing in technologies like precision farming, crop monitoring, and sustainable pest control can increase yields, improve quality, and reduce costs. This is particularly relevant for production zones dedicated to meeting GlobalGAP standards.
3. Logistics and cold chain infrastructure
   With Vietnam’s exports reliant on efficient and timely delivery, particularly for perishable goods like fruits and vegetables, logistics improvements are essential. Cold chain logistics investments—covering warehousing, refrigerated transportation, and real-time tracking systems—would enhance the quality and competitiveness of Vietnamese exports, especially in nearby markets like China.
4. Digital transformation and e-commerce for agri-exports
   The push for brand development in Vietnamese fruits and vegetables provides an opening for investors to develop e-commerce platforms or digital marketplaces targeting foreign buyers. These platforms could streamline cross-border transactions, facilitate B2B trade, and provide traceability, which is increasingly sought by international consumers.
5. Sustainable and certified production zones
   Developing or financing certified production zones that comply with VietGAP and GlobalGAP standards is another high-potential opportunity. Such zones would enable Vietnamese exporters to meet stringent quality requirements while enhancing product reliability. Investors can collaborate with local businesses and the government to set up these zones, potentially gaining tax incentives or subsidies.
6. Warehousing and export hubs
   Given the increasing export volumes, especially in agriculture, there is a need for large, efficient warehousing and export hubs near key ports and borders. Strategic warehousing facilities would support the increased demand for exports and could offer value-added services like sorting, grading, and packaging for export-ready products.

By focusing on these opportunities, investors can benefit from Vietnam’s rapid export growth in the agricultural sector and contribute to building resilient infrastructure that supports long-term trade expansion.

Also read: EU Updates Food Safety Measures for Vietnam Agrifood Exports

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