Cover With its pledge at COP26 to reach net zero emissions by 2050, Vietnam is moving swiftly towards a greener, more circular and sustainable future
With its pledge at COP26 to reach net zero emissions by 2050, Vietnam is moving swiftly towards a greener, more circular and sustainable future
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With its pledge at COP26 to reach net zero emissions by 2050, Vietnam is moving swiftly towards a greener, more circular and sustainable future.
In the misty forests of the northern highlands, where cinnamon and anise grow wild, Nguyen Thi Huyen, CEO of Vinasamex, once trekked rugged trails to meet with Tay and Nung farmers. It was more than a decade ago that she began urging them to change how they worked the land. At the time, raw cinnamon and anise were sold for a pittance to Chinese and Indian traders. But Huyen saw something more. With conviction and tireless effort, she established an organic growing region and transformed these traditional crops into internationally certified products, now welcomed in discerning markets from the US to Europe, Japan and South Korea.
Thousands of kilometres south, in the sunbaked coffee farms of the Central Highlands, farmer Nguyen Tung scatters fertiliser made from coffee husks—once burnt and discarded—across fields showing signs of revival. “The soil breathes again, the plants are healthier, and I no longer have to buy expensive chemical fertilisers,” he shares. Elsewhere, in the lush Mekong Delta, many families continue a more holistic practice: the garden-pond-barn system, where manure nourishes rice crops, pond water irrigates vegetables, and straw becomes feed for livestock.
From the forests in the North to the fertile deltas of the South, these stories interlace like threads in a new tapestry, quietly confronting the long-standing struggles of Vietnamese agriculture: waste, pollution, and vulnerability. At the same time, Vietnam’s commitment to net zero emissions by 2050 signals more than policy; it suggests a shift in identity. Agriculture is no longer viewed as a burden to the environment, but as a wellspring of regeneration, and a cornerstone of sustainable growth and prosperity.
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The burden of tradition
Agriculture, long a backbone of Vietnam’s economy, is now facing an ecological reckoning. According to the World Bank, the sector accounted for 19 per cent of the country’s total greenhouse gas emissions in 2020, second only to energy. Rice farming alone was responsible for 48 per cent of that figure, while livestock accounted for 15.3 per cent. More than 70 per cent of these emissions came in the form of methane (CH₄) and nitrous oxide (N₂O), both significantly more potent than CO₂ in terms of their impact on global warming.
Above Agriculture, long a backbone of Vietnam’s economy, is now facing an ecological reckoning
Agriculture, long a backbone of Vietnam’s economy, is now facing an ecological reckoning
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Above The agricultural system also leaves behind an enormous trail of by-products
The agricultural system also leaves behind an enormous trail of by-products
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The agricultural system also leaves behind an enormous trail of by-products. Each year, Vietnam generates around 160 million tonnes of agricultural residue: 42.8 million tonnes of straw, 15 million tonnes of sugarcane bagasse, and 1.4 million tonnes of coffee husks, according to the General Statistics Office. Yet most of these remain underutilised, often incinerated, an act that turns potential into pollution. Many of these by-products are lost not for lack of value, but for lack of opportunity. Constrained by limited awareness and resources, farmers have long regarded these remnants as waste rather than raw material. The absence of accessible processing technologies and the lack of supportive policies only deepen the net zero issue, leaving circular agriculture struggling to gain ground. Meanwhile, climate volatility and increasing global standards are exposing the fragility of Vietnam’s agricultural model.
Rewrite the game
Vietnam is working to break the cycle, championing circular and green agriculture in its pursuit of net zero emissions by 2050. In April 2023, the Ministry of Agriculture and Rural Development introduced Decision 1693, outlining a plan to cut greenhouse gas emissions, including methane, to 121.9 million tonnes of CO₂ equivalent by 2030, with longer-term goals reaching to 2050. At its heart, the strategy marks a shift from a production-driven mindset to one focused on economic sustainability, where “green value” is measured not just by output, but by practices, consumption, and responsible markets.
Above Vietnam is working to break the cycle, championing circular and green agriculture in its pursuit of net zero emissions by 2050
Vietnam is working to break the cycle, championing circular and green agriculture in its pursuit of net zero emissions by 2050
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Above Among the standout initiatives is the ambitious plan to cultivate one million hectares of high-quality, low-emission rice in the Mekong Delta
Among the standout initiatives is the ambitious plan to cultivate one million hectares of high-quality, low-emission rice in the Mekong Delta
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Among the standout initiatives is the ambitious plan to cultivate one million hectares of high-quality, low-emission rice in the Mekong Delta. But its scope reaches far beyond economics. It aims to reshape the entire ecosystem surrounding rice: how it is grown, how trade is organised, and how cooperatives operate—impacting everyone from farmers to exporters.
Across the country, a growing number of enterprises have begun this green journey. Over a decade ago, the CEO of Vinasamex began visiting households in remote areas, encouraging farmers to shift away from traditional cinnamon and star anise cultivation. “People who depended on the forest were, for the first time, introduced to standards for clean soil and clean water,” Ms Huyen recalled. Gradually, collaboration between the business and local communities began to bear fruit. Since 2016, Vinasamex has secured four international organic certifications—from the US, Europe, Japan, and South Korea—opening doors to the most selective markets worldwide. Farmers who once earned only a few million VND per hectare are now seeing returns in the hundreds of millions, lifting their standard of living and offering more secure livelihoods across entire communities.
Nguyen Thi Huyen, CEO, Vinasamex
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From the mountains of Yen Bai to the bright, windswept fields of Tay Ninh, the spirit of innovation continues to ripple through the agricultural landscape. Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS) has reimagined its sugarcane fields as “green laboratories”, infused with technology. By deploying IoT sensors to track soil and water conditions and using drones to monitor crops, TTC AgriS maximises efficiency while maintaining high yields. At its sugar factories, the company embraces a circular model—turning bagasse into energy, molasses into ethanol, and filter sludge into organic fertiliser. The result is less waste and more value, showcasing a path where profitability meets environmental care.
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Above From the mountains of Yen Bai to the bright, windswept fields of Tay Ninh, the spirit of innovation continues to ripple through the agricultural landscape
From the mountains of Yen Bai to the bright, windswept fields of Tay Ninh, the spirit of innovation continues to ripple through the agricultural landscape
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High in the Da Lat plateau, Vinamilk is laying the groundwork for a new model in organic agriculture through its Green Farm initiative. Backed by an investment of US$300 million, the company spent three years returning the land to its natural state, removing all traces of chemicals and pesticides. This dairy farm now runs on solar power and biogas, reuses both water and waste, and forms a completely closed-loop system. The numbers are compelling: water savings equivalent to 86 Olympic-sized pools and carbon neutrality on par with 30,000 green football fields. These achievements not only speak to environmental impact but also to the growing role of major corporations in shaping the future of sustainable agriculture.
Journey of ambition
Looking abroad, Vietnam may find inspiration in the Netherlands. The Dutch approach to circularity follows a philosophy of “re”: recycle, remanufacture, repair, and reuse—to stretch resources and reduce waste. Their thinking is simple: every discarded item represents lost energy, land, or water. By closing the loop of the linear supply chain, circular agriculture helps conserve what matters most. Manure, for example, is converted into biogas on Dutch dairy farms, cutting methane emissions by 40 per cent while supplying clean energy to the national grid. Meanwhile, high-tech greenhouses produce vegetables using just four litres of water per kilogram, five times less than traditional methods. Even onion skins, grape pomace, and tomato peels are repurposed, saving the country an estimated six billion euros and cutting supply chain losses by 15 per cent.
Above Vietnam, with its abundance of agricultural by-products, stands to gain much by learning from these international examples
Vietnam, with its abundance of agricultural by-products, stands to gain much by learning from these international examples
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Vietnam, with its abundance of agricultural by-products, stands to gain much by learning from these international examples. Coffee husks, bagasse and straw, once seen as waste, are gradually being reclaimed, finding new purpose in more valuable and practical forms. Yet for circular agriculture to scale meaningfully, strong and sustained policy backing is essential.
According to estimates from the World Bank, achieving net zero in agriculture will demand investment in the hundreds of billions across infrastructure, energy systems, and sustainable practices. Vietnam’s agricultural development strategy for 2021–2030, with a forward-looking vision to 2050, along with methane reduction plans and the Glasgow Declaration, all reinforce the seriousness of this national commitment.
Above The “five-house” alliance model, comprising the State, banks, scientists, enterprises and farmers, offers a potential blueprint for comprehensive transformation
The “five-house” alliance model, comprising the State, banks, scientists, enterprises and farmers, offers a potential blueprint for comprehensive transformation
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Cooperation will be pivotal. The “five-house” alliance model, comprising the State, banks, scientists, enterprises and farmers, offers a potential blueprint for comprehensive transformation. A dedicated investment mechanism like an “AgriTech & Green” fund, featuring preferential lending rates, could help unlock the sector’s momentum similar to the green credit programmes currently offered to rice farmers in the Mekong. Businesses are expected to continue leading in technology, supply chains and circular frameworks. Researchers, meanwhile, must focus on practical innovations such as drought-resilient crop varieties and affordable by-product processing tools for small-scale use. Farmers, in turn, must be equipped for the new era: digital literacy, market access, and participation in next-generation cooperatives will be key. Within this alliance, the role of the State is perhaps the most critical: acting as a “midwife” to ensure a clear, stable and enabling policy environment. Tangible reforms in land use, streamlined access to credit, and robust certification systems are all essential if circular and sustainable agriculture is to flourish at scale.
Above Vietnam is showing that circular agriculture is not just a choice, it is an inevitable path forward
Vietnam is showing that circular agriculture is not just a choice, it is an inevitable path forward
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From clean dairy farms to sensor-driven smart fields, Vietnam is showing that circular agriculture is not just a choice, it is an inevitable path forward. Coffee husks and sugarcane bagasse may seem modest, but they are reshaping the fabric of an agricultural legacy centuries in the making.
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