Vietnam Agrochemicals Market- Trend Analysis & Forecast

Market/ Product Overview

Vietnam’s agrochemicals market stands at the confluence of robust agricultural activity and increasing pressure to enhance crop productivity amid shrinking arable land. In 2024, agriculture contributed 11.6% to Vietnam's GDP, with key crops like rice, coffee, rubber, and pepper being major agrochemical consumers. The market, worth US$ ** billion in 2024, is anticipated to surpass US$ ** billion by 2032, driven by the adoption of modern farming techniques and increasing awareness of plant health.

Pesticides (including herbicides, insecticides, and fungicides) currently account for over **% of agrochemical sales, with herbicides being the dominant segment, holding around 37% market share. Fertilizers form another critical segment, especially urea and phosphate-based fertilizers, supporting high-yield agriculture in Mekong Delta and Red River regions. The surge in greenhouse farming and horticulture further stimulates demand for micronutrient and specialty agrochemicals.

The Vietnamese government’s commitment to sustainable agriculture is reshaping the agrochemical sector. With regulations limiting the use of highly toxic pesticides and encouraging organic substitutes, companies are innovating to stay compliant. For instance, in 2023, the Ministry of Agriculture and Rural Development (MARD) banned 16 active ingredients due to toxicity concerns, prompting an industry-wide shift toward bio-based alternatives.

Significance of Vietnam in Global Agrochemicals Supply Chain

Vietnam’s rising prominence in the global agrochemical supply chain is no longer incidental—it’s strategic. As the world’s third-largest exporter of rice and a top-five exporter of coffee and pepper, the country’s demand for agrochemicals plays a direct role in ensuring consistent, high-quality agricultural outputs for international markets. In 2023, Vietnam exported agricultural products worth over US$ 53 billion, a 9% rise from the previous year, reflecting the growing dependency on crop protection chemicals.

On the supply side, Vietnam is emerging as a regional hub for formulation and distribution. While the country imports most active ingredients (mainly from China and India), several local firms are involved in blending, packaging, and retailing. Notably, companies like Loc Troi Group and An Giang Plant Protection JSC have established formulation units that cater to both domestic and Southeast Asian markets.

Moreover, the country serves as a re-export hub, processing imported bulk agrochemicals and redistributing them across ASEAN, which positions it uniquely in regional supply chain resilience. Vietnam’s relatively low labor and production costs make it an attractive destination for multinational companies looking to establish contract manufacturing bases.

Vietnam Agrochemicals Supply & Demand Trend

Vietnam’s agrochemical demand is tightly interlinked with seasonal crop cycles and export crop dynamics. In 2024, the total agrochemical consumption stood at ** thousand tonnes, a 4.1% increase from 2023, underpinned by increased cultivation of rice (8.1 million hectares) and expanding fruit exports. The Mekong Delta alone accounts for nearly **% of national agrochemical consumption, particularly during peak planting months from May to October.

Demand for insecticides, which saw a dip post-2020 due to pest-resistant crop varieties, is rebounding in high-value crops like coffee and vegetables. Conversely, demand for broad-spectrum herbicides remains stable, with glyphosate-based variants constituting nearly **% of total herbicide sales despite global scrutiny.

On the supply side, Vietnam relies heavily on imports for active ingredients—over **% of agrochemical inputs are imported, primarily from China (**%), India (**%), and Thailand (**%). The total value of agrochemical imports in 2024 was estimated at US$ ** million, reflecting a slight decline from 2023 due to tighter inspection protocols and a stronger push for domestic alternatives.

The demand-supply balance is also influenced by climate variability. In 2024, prolonged droughts in southern Vietnam led to increased use of soil conditioners and drought-resilient inputs, while pest outbreaks in northern provinces spurred short-term spikes in insecticide demand.

Vietnam Agrochemicals Market Growth Factors

Vietnam Agrochemicals Market Segmentation

The Vietnam agrochemicals market can be segmented by product type, crop type, and formulation. Among product types, pesticides dominate with a **% market share, further categorized into herbicides (**%), insecticides (**%), fungicides (**%), and others. The herbicide segment leads due to extensive use in rice paddies, especially glyphosate and paraquat-based products. However, paraquat has been officially banned since 2022, prompting a shift toward safer alternatives like glufosinate ammonium.

Fertilizers form the second-largest segment, with nitrogenous fertilizers—primarily urea—holding **% of the category share. Phosphate-based and potassic fertilizers make up the rest, driven by fruit, coffee, and rubber plantations. Specialty fertilizers, including micronutrients and slow-release products, are gaining traction, accounting for **% of fertilizer sales in 2024.

By crop type, rice remains the primary consumer of agrochemicals, utilizing over **% of total pesticide volumes. Fruits (especially dragon fruit, lychee, and mango) and industrial crops (coffee and rubber) follow, particularly in provinces like Lam Dong and Dak Lak. Vegetables, which make up **% of total agricultural exports, are pushing demand for safer and certified agrochemicals.

In terms of formulation, liquid-based products (suspension concentrates, emulsifiable concentrates) dominate the market with over **% share due to ease of application. However, granular and powder-based products are seeing renewed interest among large-scale farms adopting precision farming techniques.

Vietnam Agrochemicals Trade (Export & Import) Trend

Vietnam’s agrochemicals trade is marked by heavy reliance on imports. In 2024, the country imported US$ ** million worth of agrochemical products, primarily from China (US$ ** million), India (US$ ** million), and Thailand (US$ ** million). Active ingredients like glyphosate, chlorpyrifos, and imidacloprid dominate the import list.

On the export front, Vietnam shipped about US$ ** million worth of agrochemical formulations, mainly to Cambodia, Laos, and Myanmar. Domestic producers like Loc Troi and Vinh Hi-Tech are expanding their regional presence with customized crop protection products tailored for tropical climates.

Tariff structures are favorable under Vietnam’s participation in ASEAN Free Trade Area (AFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Import duties on most agrochemical products from ASEAN countries stand at 0–5%. However, non-tariff barriers such as registration delays and compliance with Vietnamese safety standards can complicate market entry.

Vietnam’s trade balance in agrochemicals remains negative, but the government is encouraging backward integration. The National Chemicals Strategy 2021–2030 emphasizes domestic production of key intermediates, and discussions are underway to offer tax breaks and land subsidies to foreign firms willing to establish manufacturing in industrial zones like Long An and Binh Duong.

Influence of Vietnam in Global Agrochemicals Price

Vietnam, though not a dominant producer of active ingredients, exerts considerable influence on regional agrochemical pricing due to its formulation capacity and re-export dynamics. The country’s role as a blending and packaging hub enables it to dictate prices across Indochina markets. In 2023, wholesale agrochemical prices in Vietnam influenced over **% of pricing benchmarks in Cambodia and Laos.

From a historical trend perspective, Vietnam’s import prices saw a 9% jump in 2021–2022 due to China’s production curbs and shipping disruptions. By 2024, prices stabilized but remained 4–6% above pre-pandemic levels. For instance, average import price of glyphosate was US$ 3.8/kg in 2024, compared to USD 2.9/kg in 2019.

Domestically, the average retail price for common herbicides like butachlor hovered around US$ 7.1/liter in 2024, reflecting both logistics costs and inflationary pressure on packaging materials. Seasonal fluctuations—particularly during rice planting months—cause 10–15% price volatility annually.

Vietnam’s policy on restricting certain high-risk chemicals often leads to short-term price surges, as seen after the 2022 paraquat ban when substitute herbicide prices surged 18% within three months.

Market Competitive Landscape

Future Outlook

The Vietnam agrochemicals market is on a steady growth trajectory, projected to reach US$ ** billion by 2032 from US$ ** billion in 2024, expanding at a CAGR of 5.6%. This growth will be driven by increased demand for high-value crops, technological adoption in farming, and regulatory support for safer alternatives.

By 2032, bio-based agrochemicals are expected to account for at least **% of total market value, up from just **% in 2024. Precision agriculture and drone-based application are likely to become mainstream, reshaping demand patterns and encouraging manufacturers to innovate.

Despite geopolitical risks and environmental scrutiny, Vietnam’s role in the regional agrochemical supply chain is poised to strengthen, underpinned by trade liberalization, digital agriculture, and growing investor interest in agri-input startups.

For stakeholders, the path forward is filled with both opportunity and complexity, requiring agile strategies, sustainable innovation, and deep market understanding.