Agriculture, fisheries and forestry play crucial roles in Vietnam’s economy, contributing to the country’s food security, employment, rural development and exports.

Over the past decade, Vietnam’s agriculture has made comprehensive and remarkable developments. The country’s view towards the agriculture sector has moved from production to economic development. The agricultural industry has been restructured and transformed towards commodity production, with strengthened linkages along value chains and increased application of science and technology. The sector has also expanded connections from domestic to international markets, while promoting regional potential and advantages, sustainable development and climate change adaptation.

In the years to come, it is anticipated that the agriculture sector will undergo modernisation and mechanisation to improve productivity and sustainability. The industry is also adopting high-value crops and organic farming practices, to meet international consumer demands and market standards.

Rural communities

Vietnam set a target of having more than 90% of communes recognised as new-style rural communes by 2030. However, rural communities in Vietnam still face a range of issues that impact their livelihoods and wellbeing. Most of the country’s poorer people live in rural areas. Farmers are still vulnerable and subject to many risks in production and life. Farmers are often tied to small-scale, unsustainable production with low value-add opportunities. Social services, including healthcare and education, are less accessible to rural communities, also contributing to poverty and inequality.

Enhancing the resilience of rural communities through sustainable practices, improved infrastructure and inclusive policies is crucial to addressing these challenges and ensuring Vietnam’s long-term development.

Political and economic environment

Vietnam’s aspirations for development are both national and global. Vietnam is committed to becoming a high-income country by 2045.

Climate change

Climate change exacerbates the challenges faced by rural communities. According to the Global Climate Risk Index 2020, Vietnam ranks 6th globally in climate vulnerability due to climate variability and extreme weather. Events such as droughts and floods with increased frequency are adversely affecting crop production and fisheries. Vietnam is committed to both mitigation of and adaptation to climate change. It is a signatory to international agreements such as the Paris Agreement on Climate Change, and supports research and development to reduce greenhouse gas emissions, as well as enhance the resilience of farming systems.

Food insecurity

Vietnam currently produces sufficient calories for its entire population. However, significant challenges remain in food accessibility and nutritional habits. Issues such as food safety, anaemia and malnutrition continue to impact many, especially pregnant women, children under 5 years old, and people in remote areas.

Partnering with Australia

Australia and Vietnam are strong partners, who are both committed to the centrality of ASEAN and a shared vision for a region that is peaceful, stable and prosperous and where sovereignty is respected. On 7 March 2024, Australia and Vietnam agreed to elevate bilateral relations to the level of Comprehensive Strategic Partnership, placing Australia among Vietnam’s top-tier partners. The Comprehensive Strategic Partnership will support expanded cooperation on climate, environment and energy, and digital transformation and innovation, and it will build on established collaboration across defence and security, economic engagement, education and development assistance.

Actively contributing to Australia’s development engagement in Vietnam, ACIAR marked its 30th anniversary of collaborating with Vietnam in 2023. Over 3 decades, the collaboration has achieved notable success in helping Vietnam enhance food security, farmer incomes, and capacity of Vietnamese researchers and extension workers.

ACIAR operates in Vietnam under a 10-year strategy for research collaboration between Vietnam and ACIAR from 2017 to 2027. The strategy reflects the changing relationship between ACIAR and Vietnam, from donor–recipient to partnership and co-investment. It highlights agreed priorities in research themes, geographic focus, capacity development and social inclusion. In March 2024, ACIAR and the Ministry of Agriculture and Rural Development signed a Memorandum of Understanding on the enhancement of scientific research for development in agriculture, forestry and fisheries. In addition, ACIAR is partnering with the Ministry of Planning and Investment, Ministry of Science and Technology, and Ministry of Education and Training of Vietnam to provide options for small farmers to develop equally.

Country priorities

Despite remarkable achievements, Vietnam’s agriculture sector still faces many challenges, such as land fragmentation, low productivity, environmental degradation, climate change, market volatility and its ability to expand new export markets. Another issue is the development gaps for ethnic minorities and women in rural areas. To address those problems, the Vietnam Government has issued the Sustainable agriculture development strategy for 2021–2030 and vision to 2050.

The strategy aims to transform the sector into a modern, green and inclusive one that can compete globally while ensuring national food security. The strategy has 6 main objectives:

• restructuring the sector based on local advantages, value chains and market demand
• enhancing productivity, quality, efficiency and sustainability of agricultural production
• developing rural areas with improved infrastructure, services and living standards
• strengthening resilience to natural disasters, epidemics and climate change
• protecting the environment and reducing greenhouse gas emissions
• promoting innovation, digitalisation and institutional reform in the sector.
• In the medium term, to further detail the strategy, the Vietnamese Government has recently endorsed several action plans, including plans for green growth, One Health and food systems.

The strategy for research collaboration between Vietnam and ACIAR from 2017 to 2027 acknowledges the co-investment nature of the relationship. Increasingly, Vietnamese research managers and researchers play important and active roles in project design and implementation. The strategy confirms the desire of both parties to engage the private sector wherever possible to create opportunities for poorer residents in rural and urban areas through inclusive agribusiness systems. It also focuses on transformational opportunities for women in research and agribusiness systems and on farms.

The key ambitions of the Vietnam–ACIAR research collaboration strategy are to:

• develop long-term, equal and highly efficient partnerships in research and technology development
• improve the agricultural research capacity of Vietnam for sustainable and equitable growth, especially in the Mekong River Delta, the Central Highlands and the Northwest Region of Vietnam
• improve the skills, livelihoods and incomes of smallholder farmers, especially ethnic minorities and women, with a strong emphasis on building deeper knowledge of supply chains and stronger access to premium markets
• enhance human health and nutrition through research on integrated farming systems, nutrition-sensitive agriculture, food safety and One Health
• use natural resources more sustainably and efficiently in agricultural production, improving soil health and environmental outcomes while creating more-profitable production systems
• influence policies on managing climate-change impacts on agriculture.

In May 2024, Vietnam’s Ministry of Agriculture and Rural Development and ACIAR co-hosted a Partnership Dialogue with long-standing research partners in Vietnam, and agreed on the key actions of research collaboration in the next few years, including:

• developing pathways and mechanisms to enhance the co-design and co-investment partnership, securing financial contributions and IP ownership of Vietnamese partners
• aligning research priorities of Vietnam and Australia to maximise mutual benefits
• ensuring the best utilisation of Australian expertise, addressing fragmented agricultural investment and avoiding duplicate efforts in agricultural research.

Capacity development is becoming more crucial to achieving Vietnam’s agricultural ambitions. The agriculture sector faces significant human resource challenges, including an aging labour force and rural youth migrating to cities, rural and urban students showing little interest in agricultural careers, and a current brain drain in the research field. Key priorities for scientific and policy capacity development are to:

• address climate change and environmental challenges
• digital transformation » manage the impacts of urbanisation on agricultural production and rural livelihoods
• ensure international standard compliance of export products.

ACIAR support is vital to advance human resource development, retain talent and foster international collaboration. We will help strengthen the capabilities of Vietnamese individuals and organisations to perform effective agricultural research through specific capacity development activities integrated into research projects, collaborative partnerships, and scholarship programs. Additionally, the ACIAR alumni networks is important in shaping collaborative research and supporting agricultural development in Vietnam. These interventions can significantly improve the skills and sustainability of Vietnam’s agricultural workforce, ensuring long-term growth and stability in the sector.

2024–25 research program

In 2024–25, ACIAR supports 21 agricultural research-for-development projects in Vietnam, 9 of which are specific to this country and the remainder are part of regional projects.

The projects address the high-level objectives outlined in the ACIAR 10-Year Strategy 2018–2027, as well as specific issues and opportunities identified by partner countries and ACIAR.

All research investments have the underlying goal of contributing to:

• agrifood systems and rural communities resilient to the impacts to climate change
• equitable research benefits and outcomes for all community members
• increased scientific and policy capability of individuals and partner institutions.

Current and proposed projects in Vietnam, 2024–25