Vietnamese cassava industry poised for a golden opportunity to achieve sustainable growth

Vietnam’s cassava industry is well positioned for a major breakthrough through value-added processing and the diversification of export markets. These strategies will not only reduce the industry’s dependence on China but also enhance product value. They will create a more sustainable growth path for both farmers and businesses.

Vietnam’s cassava industry is widely developed across more than 40 provinces, with production concentrated in five key regions: the Northern Midlands and Mountains, North Central Coast, South Central Coast, Central Highlands, and Southeast, which together account for 98% of the country’s cassava-growing area and output. The national average yield stands at approximately 20.4 metric tons per hectare, with Tay Ninh Province leading at 33.3 metric tons per hectare. Dong Nai and the former Ba Ria–Vung Tau Province follow, with yields ranging from 25 to 27 metric tons per hectare.

According to the Department of Crop Production and Plant Protection under the Ministry of Agriculture and Environment, Vietnam produces approximately 10.4 million metric tons of cassava annually, with the majority destined for export. China remained by far the largest export market, accounting for 93.2% of Vietnam’s cassava and cassava product exports during the first seven months of 2025. In the first five months alone, China imported nearly 586,000 metric tons of dried cassava chips worth USD 114.4 million. This represented increases of 115% in volume and 61% in value compared with the same period a year earlier. During the same period, China also imported more than 1.14 million metric tons of cassava starch from Vietnam. This accounted for nearly half of its total cassava starch imports from all supplying countries.

Despite strong export demand, the industry’s performance has been weighed down by falling prices. During the first seven months of 2025, the average export price declined by 33.4%, resulting in decreases of 11.1% in export volume and 11.4% in export value compared with the same period in 2023. Economists warn that such overwhelming dependence on a single market leaves Vietnam’s cassava industry highly vulnerable to changes in import policies or consumer demand. When conditions in the primary market shift, Vietnamese exporters are quickly exposed to rising inventories and falling domestic prices.

Against this backdrop, Hoang Trung, Deputy Minister of Agriculture and Environment, emphasized that the industry’s future should not rely on expanding cultivation areas. Instead, Vietnam should focus on improving productivity, diversifying processed products, and expanding export markets. Local authorities are encouraged to develop cultivation practices suited to each ecological region, promote disease-free and cassava mosaic disease-resistant varieties, and strengthen production linkages between farmers and processing factories. These efforts will help create a more professional and sustainable value chain.

Vietnam currently has around 140 cassava processing plants with a combined design capacity of 13.4 million metric tons of fresh cassava roots per year. However, their actual processing volume is only about 9.3 million metric tons. Many facilities continue to rely on outdated technologies with low processing efficiency, limited utilization of by-products, and potential environmental risks. Industry experts therefore recommend accelerating the transition toward value-added processing, including the production of modified starch, bioethanol, and animal feed. These products offer higher profit margins and stable demand in markets such as Europe and Japan.

The EU–Vietnam Free Trade Agreement (EVFTA) further strengthens these prospects by allowing Vietnam to export 30,000 metric tons of modified starch annually to the European Union at a zero-percent tariff. This creates significant opportunities to diversify export destinations and gradually reduce reliance on the Chinese market. At the same time, adopting circular economy practices can improve production efficiency and minimize environmental impacts. These include converting cassava residues into fertilizer and bioenergy while treating wastewater for reuse.

Experts also stress the importance of developing a national brand for Vietnamese cassava. A strong national brand would enhance export value, expand distribution channels, and build greater confidence among international buyers. Combined with technological innovation and stronger trade promotion in promising markets, these measures would enable Vietnam’s cassava industry to achieve sustainable growth. They would also help the industry fully realize its competitive potential and generate higher incomes for farmers.

Against this backdrop, Hoang Trung, Deputy Minister of the Ministry of Agriculture and Environment, emphasized that the future development of Vietnam’s cassava industry should focus not on expanding cultivation areas but on improving productivity, diversifying processed products, and broadening export markets. He called on local authorities to develop cultivation practices tailored to each ecological region, promote disease-free and cassava mosaic disease-resistant planting materials, and strengthen production linkages between farmers and processing factories. Such measures would ensure mutual benefits while fostering a more professional and sustainable cassava value chain.

Vietnam currently has around 140 cassava processing plants with a combined design capacity of 13.4 million metric tons of fresh cassava roots per year. However, their actual processing volume is only about 9.3 million metric tons. Many facilities still rely on outdated technologies with low processing efficiency, limited utilization of by-products, and potential environmental risks. Industry experts therefore recommend accelerating the transition toward value-added processing, including products such as modified starch, bioethanol, and animal feed. These products offer higher added value and enjoy stable demand in markets such as Europe and Japan.

The EU–Vietnam Free Trade Agreement (EVFTA) allows Vietnam to export up to 30,000 metric tons of modified starch annually to the European Union at a zero-percent tariff. This creates significant opportunities to diversify export markets and gradually reduce dependence on China. In addition, adopting circular economy practices can improve economic efficiency and minimize environmental impacts. These include reusing cassava residues and converting wastewater into fertilizer and bioenergy.

Experts also emphasize the importance of developing a national brand for Vietnamese cassava. A strong national brand would enhance export value, expand distribution channels, and strengthen consumer confidence in international markets. Combined with technological innovation and more proactive trade promotion in promising export destinations, these efforts would enable Vietnam’s cassava industry to achieve sustainable growth. They would also unlock its full potential and move closer to the goal of improving farmers’ incomes.