Australian agricultural exports in Vietnam

Written By Khanh Pham

Rising incomes and a growing food manufacturing sector are expected to drive strong growth in consumption of agricultural products in Vietnam over the next decade.
Australian agricultural, fisheries and forestry (AFF) exports to Vietnam benefit from a strong bilateral relationship, counter-seasonality and geographical proximity. Differences in climatic zones, topography and farming practices allow Australia to supply Vietnam with produce that cannot be produced locally or at sufficient scale.

Australia is especially well placed to meet growing Vietnamese demand for:

  • meat

  • wheat

  • cotton

  • dairy products

  • premium seafood

  • premium horticultural products.

Key drivers of rising agricultural imports:

  • Rising incomes: GDP per capita in Vietnam rose by 644%, from US$500 in 2000 to US$3,720 in 2021. High growth rates are forecast to continue with GDP per capita rising to US$6,680 by 2027 (Source: IMF 2022).

  • A growing population: Vietnam’s population of almost 100 million is forecast to rise to 104 million by 2030 (Source: Our World in Data 2022).

  • Changing consumer preferences: Increasingly wealthy consumers are eating more animal proteins and dairy products. This pattern has been observed in other growing economies, including China.

  • Growing demand for inputs by the manufacturing sector: Vietnam’s food manufacturing, animal feed and textile production capacity is expanding. This is driving demand for agricultural commodities used in the production process.

Khanh Pham
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