Medium-term 2026-2030: VND 166 trillion needed for agricultural investment

Agricultural investment needs greater balance

On the morning of October 28, the National Innovation Center (NIC) under the Ministry of Finance, in collaboration with the Crawford School of Public Policy at the Australian National University (ANU) and the Viet Nam-Australia Scholars and Experts Association (VASEA), organized a workshop titled “Innovation and Efficiency: Perspectives from agricultural investment” in Hanoi.

The event aimed to share research findings on the efficiency of agricultural investment in Viet Nam, discuss innovation trends, and propose directions for restructuring and enhancing investment effectiveness in the coming period.

Professor Janine O’Flynn, Director of the Crawford School of Public Policy, emphasized the vital role of agricultural investment in fostering inclusive and sustainable growth and strengthening the resilience of Viet Nam’s economy. She noted that assessing agricultural investment efficiency provides an essential scientific foundation for public policy planning, helping to optimize resources for sustainable development.

According to Mr. Vu Quoc Huy, Director of NIC, innovation and the application of science and technology are the only paths to breakthroughs in agricultural development. He underscored that only through innovation can Viet Nam build an efficient, sustainable, and competitive agricultural sector capable of asserting its position in the global value chain.

According to Dr. Nguyen Nhat Mai, a member of the research team from the Crawford School of Public Policy, between 2020 and 2024, the share of GDP allocated annually to agricultural investment ranged from 10.78% to 12.61%, while investment in the industrial and construction sectors accounted for around 38%, and services accounted for about 50%. This indicates that investment in agriculture needs to be more balanced and receive greater strategic attention. In particular, priority should be given to high-potential and high-value areas, and investment initiatives should be developed at the provincial level, with strong participation from the private sector.

VND 166 trillion in public investment needed over the next five years

Ms. Le Thi Ha Lien from the Crawford School of Public Policy stated that to achieve the goals set out in Resolution 19, public investment in the agricultural sector must continue to increase in the coming period.

If public investment in agriculture from 2011 to 2020 was VND 152.5 trillion, then during 2021 to 2030, it needs to reach VND 305 trillion, double the previous decade’s amount.

“In the period 2021-2025, public investment in agriculture stands at VND 139 trillion. Therefore, for the 2026–2030 medium-term period, an additional VND 166 trillion will be required to meet the established targets,” Ms. Lien emphasized.

In particular, current public investment remains heavily concentrated in hard infrastructure, especially in the irrigation sector, which accounts for 80.8% of total central government budget investment during the 2021-2025 medium-term period. Meanwhile, the share of investment in science and technology, which are the key drivers of growth, productivity improvement, value addition, resilience, environmental protection, and climate change adaptation, remains relatively low.

Sharing insights on innovation within agricultural value chains, Ms. Thu Nguyen, Founder of the MEVI Sustainable Agriculture Ecosystem, presented several examples of economically practical models in Viet Nam.

One notable example is in Ung Hoa District (Hanoi), where farmers implement a low-emission smart farming model using the SRI–AWD cultivation method and the J02 rice variety. Evaluation results show that this model has helped reduce input costs by about 30%, increase profit margins by 50%, and cut greenhouse gas emissions by 10%.

In particular, once international certification is obtained, farmers can sell carbon credits at prices ranging from USD 50 to 60 per ton of CO2. Faeger Co., Ltd. has committed to sharing 40% of the carbon credit revenue, equivalent to about USD 20–25 per ton, with local farmers and communities, with payments made annually after verification.

Another example is the Meha sweet orange production model in Van Ho District, Son La Province, which applies circular economy principles in agricultural production. The model involves treating coffee wastewater, composting manure with coffee husks and other agricultural by-products (such as cassava pulp and arrowroot waste) into organic fertilizer, and producing odorless fish-protein fertilizer as well as natural pesticides made from bamboo shoots, galangal, garlic, and chili. These innovations have helped reduce input costs by 40% and increase yields by 18%. Meha oranges are known for their delicate sweetness, thin peel, and rich flavor, allowing wholesale prices to reach VND 40,000–60,000 per kilogram.

Speaking about investment cooperation opportunities in the next phase, Ms. Thu Nguyen emphasized that there remains significant potential for collaboration along the agricultural value chain, from raw material production and processing to market distribution. She called for stronger partnerships between technology enterprises and cooperatives to implement smart agriculture models, alongside efforts in training, research, and technology transfer aligned with sustainable development trends and the growth of the agricultural carbon credit market.

Workshop participants agreed that to meet growth and sustainability goals, Vietnam must increase agricultural investment while simultaneously restructuring and improving the efficiency of public spending.

Future policies should focus on regions and sectors with comparative advantages and high added value, linking agricultural transformation with green growth, technological innovation, and competitiveness enhancement. Doing so will amplify the catalytic role of public investment in attracting private capital and mobilizing broader social resources for agricultural modernization and rural development.

* Currency exchange: 1 USD = 26.075 VND (source: Vietcombank)