Report Overview

Rapid adoption of sustainable horticulture practices and growing awareness about sustainable crops are expected to boost the growth of Vietnam horticulture market during the forecast period between 2023 and 2029.

Vietnam Horticulture Market - Industry Trends & Forecast Report, 2029

Vietnam horticulture market size was estimated to be worth USD 64.18 million in 2022. During the forecast period between 2023 and 2029, the Vietnam horticulture market size is projected to grow at a CAGR of 9.17%, reaching a value of USD 108.65 million by 2029. Major growth factors for the Vietnam horticulture market include the increasing integration of technological advancements into the agriculture sector and a rising focus on adopting sustainable agriculture practices. Furthermore, favorable government initiatives to encourage greenhouse horticulture are anticipated to provide lucrative growth opportunities to the Vietnam horticulture market during the forecast period.

Vietnam Horticulture Market – Overview

Horticulture is the segment of agriculture that focuses on garden crops, primarily fruits, vegetables, and decorative plants. Particularly for the residents of rural and tribal areas, they provide a significant source of nourishment. For human nutrition, horticultural crops are a significant source of carbohydrates, proteins, organic acids, vitamins, and minerals. The two main subfields of horticulture are the cultivation of ornamental plants (floriculture and landscape horticulture) and food plants (pomology and olericulture).

Vietnam Horticulture Market

Growth Drivers

Increasing Exports of Fruits and Vegetables from Vietnam

The strong global demand for exotic Vietnamese fruits and vegetables is among the major factors contributing to the prolific growth of the Vietnam horticulture market. According to the Vietnam Fruit and Vegetable Association, shipments in 2022 will have increased by more than 63% compared to the previous year and are already valued at close to USD 2.8 billion. The top four countries in the world for purchasing fruits and vegetables are China, South Korea, Japan, and the Netherlands, with China accounting for almost 63.5% of all purchases. Experts claim that the quality and price competitiveness of Vietnamese products are rising quickly, increasing their appeal on a worldwide scale.

Restraints

Limited Availability of Skilled Labor and Resources

A high-skilled worker shortage may potentially affect the Vietnam horticulture market. The labor pool for agricultural employees is getting smaller as more people shift into secondary and tertiary industries like manufacturing and services (tourism, finance, and IT). The price of agricultural items from Vietnam is therefore rising.

Impact of COVID-19 on Vietnam Horticulture Market

The unprecedented COVID-19 pandemic affected the Vietnam horticulture market. Infections, quarantine procedures, and restrictions delayed the delivery of agricultural inputs, prevented the arrival of seasonal workers, hindered the harvesting of fruits and vegetables, accumulated goods, and disrupted the distribution grid, sometimes resulting in product shortages in supermarkets. However, with a rising focus on sustainability post the pandemic outbreak, the Vietnam horticulture market is projected to flourish during the forecast period.

Vietnam Horticulture Market

Segmental Coverage

Vietnam Horticulture Market – By Cultivation Type

Based on cultivation type, the Vietnam horticulture market is segmented into food plants and ornamental plants. The food plant segment holds a larger share in the Vietnamese horticulture market, due to the rising demand for Vietnamese fruits and vegetables from countries like China and Korea, as well as the rise in the number of free trade agreements to support regional exports of fruits and vegetables.

Vietnam Horticulture Market – By Propagation

Based on propagation, the Vietnam horticulture market is segmented into seed, vegetative, layering and cutting, grafting breeding, and others. Vegetative propagation accounts for the highest share of the market. It is a more rapid, less expensive, and simpler form of plant propagation than planting seeds. Agriculturists and horticulturists particularly benefit from vegetative propagation since it enables them to cultivate crops that do not produce viable seeds. Vegetative propagation also yields fruit and vegetables without seeds. The modern method of tissue culture can be utilized to create plant species that are virus-free.

Vietnam Horticulture Market – By Application

Based on application, the Vietnam horticulture market is divided into greenhouses, vertical farms, and indoor farms segments. The greenhouse farm segment dominates the Vietnam horticulture market. With the ability to control the weather, greenhouses can maintain plants in an environment with the right temperature and relative humidity, which helps them grow more quickly than they would outside, produce crops earlier, and possibly run more production campaigns per year. In comparison to conventional agricultural practices, it aids in attaining yields that are 10–12% more. As a result, it is gaining huge traction in the Vietnamese agriculture sector.

Competitive Landscape

Major players operating in the Vietnam horticulture market include Hoang Anh Gia Lai, VinEco, Dabaco Group, Saigon Agriculture Incorporation, Lam Son Sugar JSC, PAN Group, TH Group, Southern Seed Corporation (SSC), Quang Minh Greenhouse, and Anova Farm. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Cultivation Type

• Food Plant

• Ornament Plant

By Propagation

• Seed

• Vegetative

• Layering & Cutting

• Grafting

• Breeding

• Others

By Application

• Greenhouse

• Vertical Farms

• Indoor Farms