{"id":25981,"date":"2026-09-24T11:28:23","date_gmt":"2026-09-24T04:28:23","guid":{"rendered":"https:\/\/b-company.jp\/?p=25981"},"modified":"2026-09-29T16:57:50","modified_gmt":"2026-09-29T09:57:50","slug":"agricultural-byproducts-in-vietnam-industry-overview-and-business-opportunities","status":"publish","type":"post","link":"https:\/\/b-company.jp\/ja\/agricultural-byproducts-in-vietnam-industry-overview-and-business-opportunities\/","title":{"rendered":"\u30d9\u30c8\u30ca\u30e0\u306e\u8fb2\u696d\u526f\u7523\u7269\uff1a\u696d\u754c\u6982\u6cc1\u3068\u30d3\u30b8\u30cd\u30b9\u6a5f\u4f1a"},"content":{"rendered":"

\"B&Company-Vietnam<\/em><\/a><\/p>\n

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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/em><\/p>\n

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher. <\/p>\n<\/div>\n\t

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By-products from agriculture, forestry, and fisheries are a significant resource, and utilizing them can promote sustainable agriculture and environmental protection. However, inconsistent policies, low technology, and weak market infrastructure hinder progress. On the other hand, these challenges also create opportunities for innovation and investment. As policies encourage a circular economy in agriculture, foreign companies specializing in environmental treatment, green technology, and circular business models have opportunities to collaborate with local partners through technology transfer and investment.<\/p>\n

Government Support for the Circular Economy<\/strong><\/h3>\n

Decision 540\/Q\u0110-TTg (2024) “Science and Technology Development Plan to Promote the Circular Economy in Agriculture Towards 2030” positions the recycling and reuse of agricultural by-products (including those from livestock, forestry, and fisheries) as a strategic priority and outlines three strategies for circular agriculture: (1) Advancing research and application of applicable technologies in production processes, (2) Technology transfer, and (3) Development of outlet markets.<\/p>\n

Foreign investors can explore opportunities to utilize technology in line with the priority solutions outlined in the decision. Operational models include technology transfer, equipment provision, consulting, and partnerships with domestic manufacturers and suppliers.<\/p>\n

Entry into this sector requires a strategic and informed approach, considering fragmented market conditions, regulatory complexities, and differences in suitable technologies across regions and business segments. Understanding the varying needs, regional differences, and potential partners specific to each subsector is key to identifying viable entry points.<\/p>\n

Potential of Agricultural Byproducts<\/strong><\/h3>\n

Agricultural byproducts are secondary materials generated during the production processes of agriculture, forestry, and fisheries. While not directly used as primary products, they are recyclable or reusable. Vietnam is a major agricultural nation in Southeast Asia, producing vast quantities of agricultural byproducts annually. In 2022, approximately 159 million tons of agricultural byproducts were generated, with 57% originating from crop production and 39% from livestock production[1]<\/a>.<\/p>\n

Agricultural Byproducts (2022)<\/strong><\/p>\n

100% = 159 million tons
\n\"Agricultural<\/p>\n

Source: Japan-ASEAN Science, Technology and Innovation Forum, B&Company analysis<\/p>\n

The majority of byproducts from crop production are organic residues such as stems, leaves, husks, and cores, with rice accounting for the largest share at approximately 37%[2]<\/a>. Annually, agricultural byproduct biomass from major crops like rice, corn, sugarcane, and vegetables can yield 43 million tons of organic fertilizer and urea, while also supplying millions of tons of nutrients such as superphosphate and potassium sulfate. This represents a crucial renewable resource for soil and crop nutrition.[3]<\/a><\/p>\n

Livestock byproducts are primarily processed materials such as cattle and poultry manure, meat and bone meal, poultry meal, feather meal, and animal fats. Alongside crop production, livestock farming also generates massive amounts of waste annually. In 2022, pigs accounted for 44.9% of livestock waste, followed by beef cattle at 26.7% and buffalo at 15.3%.[4]<\/a><\/p>\n

In forestry, by-products primarily include bark, branches, tops, wood chips, and sawdust. In 2022, approximately 16 million m\u00b3 of wood cores and 8.6 million m\u00b3 of sawdust, shavings, and wood waste were produced. In fisheries, typical by-products are shrimp heads and shells, fish trimmings, bones, fat, and offal[5]<\/a>.<\/p>\n

Utilization Status of Agricultural Byproducts<\/strong><\/h3>\n

These resources remain largely underutilized. Approximately half of crop residues go unused, with rice straw often burned or buried, leading to soil nutrient loss, greenhouse gas emissions, and air pollution. Contributing factors include inconsistent policies, technological gaps, high costs, insufficient awareness of markets for byproducts and CO\u2082, and inconsistent sorting practices that hinder large-scale implementation.<\/p>\n

In livestock farming, conversion of waste into organic fertilizer remains at only about 23%. The prevalence of small-scale farms, capital constraints, outdated processing systems, and inadequate infrastructure contribute to the low conversion rate.<\/p>\n

Forestry by-products are utilized for wood pellets, biomass power generation, drying kilns, bio-mulch, and organic fertilizers, but supportive policies and technical guidance are scarce. Despite ranking second globally in wood pellet exports in 2020 (approximately 3.2 million tons, worth about 363 million USD), palletization of forestry residues remains at only about 15%, suggesting weak broad-based collaboration.<\/p>\n

Uses of Rice Straw (2022)<\/strong><\/p>\n

100% = 45 million tons
\n\"Use<\/p>\n

Source: Crop Production Bureau<\/p>\n

In contrast, the fisheries sector has high utilization rates but low added value. While approximately 90% of fishery byproducts were recovered in 2022, the value generated was only about 275 million USD, with most being low-value-added fishmeal and feed. Redirecting approximately 1 million tons of byproducts toward high-value processing (functional ingredients, collagen\/ peptides, specialty oil feedstocks, premium organic fertilizers) could elevate this sector to 4-5 billion USD. However, challenges include overcoming small-scale operations, outdated technology, cold chain deficiencies, price volatility, stringent standards, and climate risks.<\/p>\n

Key Applications for Major Agricultural Byproducts<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
By-products<\/strong><\/td>\nUses<\/strong><\/td>\n<\/tr>\n
Crop Cultivation<\/strong><\/td>\n<\/tr>\n
Rice<\/td>\nRice Straw<\/p>\n

Rice Bran<\/td>\n

Fuel for household and small-scale business use, raw material for biobeds in livestock farming (mixed with rice husks, other materials, and probiotics), mushroom cultivation substrate, organic fertilizer<\/td>\n<\/tr>\n
Rice hulls<\/td>\nBiomass fuel, power generation<\/td>\n<\/tr>\n
Sugarcane<\/td>\nBagasse<\/td>\nBiomass fuel for power plants<\/td>\n<\/tr>\n
Molasses<\/td>\nRaw material for ethanol production<\/td>\n<\/tr>\n
Microbial products (Ash, residue, sludge)<\/td>\nFertilizer<\/td>\n<\/tr>\n
\u00a0Coconut<\/td>\nFiber<\/td>\nCoir yarn, carpet, plywood, pallets<\/td>\n<\/tr>\n
Peat (produced from crushed shells, excluding fibers)<\/td>\nPotting soil and soil conditioner<\/td>\n<\/tr>\n
Shell<\/td>\nProcessed into handicrafts<\/td>\n<\/tr>\n
Livestock<\/strong><\/td>\n<\/tr>\n
Livestock and poultry (pigs, water buffalo, cattle, chickens)<\/td>\nManure and wastewater<\/td>\nUsed as biogas fuel for power generation, fuel, lighting, and heating<\/td>\n<\/tr>\n
Biomaterial bedding for livestock (breaks down manure and reduces toxic gases and odors in livestock barns)<\/td>\n<\/tr>\n
Compost<\/td>\n<\/tr>\n
Forestry<\/strong><\/td>\n<\/tr>\n
\u00a0<\/em><\/td>\nDried leaves, wood, sawdust<\/td>\nBiomass fuel<\/td>\n<\/tr>\n
Tree bark, leaves, twigs<\/td>\nWood pellets<\/td>\n<\/tr>\n
Aquaculture<\/strong><\/td>\n<\/tr>\n
Catfish, shrimp<\/p>\n

 <\/td>\n

Fish heads, bones, guts, shrimp shells<\/td>\nLivestock feed<\/td>\n<\/tr>\n
Fish fillets, fins, stomachs, fish fat, shrimp heads<\/td>\nFood<\/td>\n<\/tr>\n
Fish skin, fish oil, fish fat
\nShrimp heads, shells<\/td>\n		Pharmaceuticals, bioactive ingredients (EPA, DHA, gelatin, collagen, chitin, chitosan, glucosamine, etc.)<\/td>\n<\/tr>\n
Sludge waste<\/td>\nOrganic microbial fertilizer, compressed bricks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Ministry of Agriculture and Rural Development (MARD) Explanatory Report on Decision 540\/QD-TTg (2023)<\/p>\n

In reality, except for large-scale applications like biomass fuel production, most agricultural byproducts are used on a small scale by households and small-to-medium enterprises. Due to limited technology, funding, and human resources, many valuable byproducts remain underutilized.<\/p>\n

Key players in the agricultural by-products market<\/strong><\/h3>\n

In recent years, ODA has established the policy framework and practical foundation for effective utilization of residues.<\/p>\n

– The German Agency for International Cooperation (GIZ), in collaboration with Vietnam’s Ministry of Industry and Trade (MOIT), implemented the Climate Protection through Bioenergy Markets program (2019-2023), advancing legal frameworks, bankability, and technical cooperation for biomass power generation and thermal utilization. Concurrently, the International Rice Research Institute (IRRI) and GIZ are demonstrating rice straw recycling across the entire Mekong Delta. As of December 2024, 24,062 farmers and 294 cooperatives\/SMEs across 6 provinces are participating.<\/p>\n

– UNDP conducted practical training on rice straw recycling for cooperatives and extension workers in An Giang Province.<\/p>\n

– JICA is building utilization capacity through woody biomass power generation in Yen Bai and Tuyen Quang provinces.<\/p>\n

– The World Bank provides necessary environmental management guidance for livestock waste initiatives, bridging the gap from policy to implementation.<\/p>\n

FDI and private sector entities are expanding into commercial projects. In April 2025, Japanese developer EREX commenced operations of a 20MW biomass power plant in Hoa Binh Province fueled by rice husks and wood chips (using approximately 130,000 tons of rice husks annually), selling electricity to the grid. This exemplifies an ODA project transforming into a profitable business. In forestry residues, Vietnam has become a major regional player in wood pellets. Analysts report 2024 exports reached a record high (estimated over 5.8 million tons). Shipments in the first half of 2025 reached 3.9 million tons, valued at 565 million USD, with Japan and South Korea as the primary buyers. Key exporters include An Viet Phat Energy, one of the world’s largest pellet suppliers.<\/p>\n

In aquatic byproducts, Vinh Wellness has commercialized collagen\/gelatin production from pangasius skin, reporting increased byproduct revenue. Sao Mai Group has mass-commercialized edible pangasius fish oil (Ranee), while Vietnam Food JSC (VNF) produces chitin\/chitosan derived from shrimp shells.<\/p>\n

Vinh Hoan Company Factory<\/strong><\/p>\n

\"Vinh<\/p>\n

Source: Baodautu<\/p>\n

The establishment of profitability, ranging from energy utilization of rice straw and rice husks to wood pellets and high-value-added marine-derived materials, signifies a transition from the demonstration phase to effective utilization at an industrial scale. Policy, technology, and demand are converging to reveal a significant circular economy value chain.<\/p>\n

Challenges<\/strong><\/h3>\n

– The lack of consistent policies and regulations guiding the collection, processing, and utilization of by-products makes large-scale implementation of waste recycling and circular utilization across different sub-sectors difficult.<\/p>\n

– Production methods, scale, and technical capabilities are limited, with few facilities, especially small-scale household-level operations, adopting appropriate processing technologies. Existing technologies are outdated and fail to unlock the potential value of diverse by-products.<\/p>\n

– High processing and production costs, low market value of by-products, and a shortage of skilled personnel discourage farmers from recycling or reusing by-products, leading to their disposal.<\/p>\n

These challenges present opportunities for foreign companies to introduce new solutions and enter the untapped, high-potential agricultural byproduct market. Given current technical constraints, large-scale investment in biomass production remains promising. Potential also exists in byproduct collection systems, processing technologies, and microbial agents for small-scale farms.<\/p>\n

<\/a>Read more<\/strong><\/h3>\n

Vietnam\u2019s Agriculture: Current landscape and business opportunities<\/a><\/p><\/blockquote>\n