Vietnam’s coconut industry transforms to meet increasingly stringent market requirements

Vietnam's coconut industry

To enable Vietnam’s coconut industry to develop along a low-emission pathway, comprehensive solutions are needed across policies, science and technology, businesses, and producers. These solutions will help the sector meet the green standards of international markets. These efforts will help build sustainable value chains that are resilient to climate change.

Ms. Nguyễn Thị Kim Thanh is the Chairwoman of the Vietnam Coconut Association. She said that Vietnamese coconut cultivation is facing increasingly severe impacts from saltwater intrusion, extreme weather, and the growing incidence of pests and diseases. Meanwhile, export markets continue to tighten requirements on pesticide residues, product traceability, carbon emissions, and green production standards. These challenges are driving Vietnam’s coconut industry to adopt more sustainable farming practices. These include reducing chemical inputs, implementing integrated pest management (IPM), increasing the use of biological products, and protecting coconut-growing ecosystems.

Adjusting production practices is not merely about meeting technical standards. It also requires a fundamental shift in the mindset of farmers and businesses throughout the value chain. As demanding export markets impose increasingly stringent barriers, compliance with strict cultivation standards has become a crucial passport for agricultural products to access global markets. Efforts ranging from policy reforms to improved farming practices at the local level are gradually reshaping Vietnam’s coconut industry. Environmental value is now taking precedence over production volume alone.

Vietnam's coconut industry

Vietnam’s coconut industry

In addition, obtaining planting area codes has become a mandatory requirement for official Vietnamese agricultural exports. This serves as an important catalyst for encouraging producers to adopt electronic farming records. Greater transparency through traceability systems not only enhances the reputation of Vietnam’s coconut industry in global markets. It also lays the foundation for the agricultural sector to adapt proactively to climate change. It also supports the ecological and modern development goals set out by the 13th Central Committee of the Communist Party of Vietnam.

To bring scientific advances into practice, many Vietnamese coconut businesses have shifted from the traditional procurement model to direct investment in raw material production areas. They work alongside farmers throughout the cultivation process. Together, they have developed more than 450 hectares of coconuts certified under both organic and Fair Trade standards. In addition to providing technical support and facilitating international certification, they allocate community welfare funds to improve rural infrastructure.

Nguyễn Ngọc Trai is the Deputy Head of the Faculty of Agriculture and Fisheries. From his view, the application of biotechnology, particularly embryo culture techniques, has marked a breakthrough in breeding and propagating wax coconuts. The technology has increased the proportion of wax coconuts to more than 80% and shortened the growing period.

It has also improved seedling quality and generated significantly higher economic returns for growers. Meanwhile, research on salt-tolerant varieties, low-emission cultivation practices, and the utilization of agricultural by-products for a circular economy is laying a solid foundation. It also supports the industry’s sustainable development through deep processing.

Vietnamese coconut exports

Vietnamese coconut exports

Business participation is also encouraging many localities to accelerate the development of standardized raw material production areas. The province with the country’s largest coconut-growing area now has more than 122,000 hectares of coconut plantations. Of this total, nearly 36,000 hectares have obtained organic coconut certification. Meanwhile, more than 81,000 hectares are cultivated using high-tech farming practices.

In Tiểu Cần Commune, nearly 800 farming households, managing more than 440 hectares of coconut plantations, have secured international organic certification. Mr. Nguyễn Văn Tám is the Secretary of the Tiểu Cần Commune Party Committee. According to him, the locality is working with businesses to develop a 1,000-hectare raw material production area linked to planting area codes. This will help organize production more systematically and meet export requirements.

To support farmers during this transition, policy-based credit has become an important source of capital alongside science, technology, and business investment. Mr. Dương Văn Khén is the Director of the Cầu Kè Transaction Office of the Vietnam Bank for Social Policies. He stated that the office disbursed more than VND 116 billion in loans to over 2,300 borrowers during the first six months of 2026. This brought its total outstanding loans to more than VND 634 billion. The bank will continue prioritizing funding for projects that develop coconut raw material areas, rehabilitate fruit orchards, and promote green agriculture.

Vietnamese coconut harvesting

Vietnamese coconut harvesting

Farmer Huỳnh Văn Đức, from Hamlet I in Phong Thạnh Commune, has used policy loans effectively to expand production. In 2016, he borrowed VND 50 million to rehabilitate six công of mixed gardens and invest in embryo-cultured wax coconut cultivation. Today, his orchard has grown to 120 trees, generating annual profits of around VND 60–70 million.

Mr. Khưu Chí Cường is the Chairman of the Phong Thạnh Commune Farmers’ Association. He said that policy-based credit has enabled local farmers to develop wax coconut production, high-quality rice cultivation, and aquaculture. Professional farmer groups also help members exchange experience, strengthen production linkages, and participate in agricultural value chains.

Experience has shown that with coordinated support from science and technology, accessible financing, and guaranteed purchasing commitments from businesses, farmers can build prosperous livelihoods on their own land. They can also ensure the long-term sustainability of the industry. This also highlights the inevitable direction of a green agricultural economy in the years ahead.

Vietnamese source: https://thuonghieusanpham.vn/nganh-dua-chuyen-doi-truoc-yeu-cau-ngay-cang-cao-cua-thi-truong

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