Agricultural production is a key economic sector in Vietnam. It is contributing to about 18% GDP of the country and 39% of Vietnam’s 100 million inhabitants work in agriculture.
Due to the tropical climate, fertile soils, abundant water supply and rich biodiversity, Vietnamese farmers have increased agricultural production with year-on-year growth rates of over 3.5% over the past two decades. Revenues in agricultural exports has increased over the past two decades from USD 4.2 billion in 2004 to USD 41.3 billion in 2019, making Vietnam the 2nd largest exporter in Southeast Asia. Rice is the most dominant crop and provides livelihoods to two-thirds of the rural labor force.
With over 40 million tons annually, rice production positions Vietnam as the world’s second-largest rice exporter. In order to further increase yields and their exportability and to produce more sustainably, the government is promoting the mechanization of the sector with a development plan. This should continue to drive demand for agricultural equipment and machinery.