Market Overview

Vietnam is an agricultural giant in Southeast Asia, and as such, it also produces an extraordinary quantity of agricultural by-products annually. According to 2022 statistics, total agricultural by-products in Vietnam are around 159–160 million tons, including Crop residues Livestock waste, Forestry waste, and Aquatic processing waste¹

Agricultural by-products in Vietnam (2022)

Unit: %; 100% = ~159 million tons

Source: GSO, Reports of Ministry of Agriculture and Rural Development; BC’s synthesis

While ~52.3% of crop by-products are recycled or reused³, sectors like livestock and forestry still exhibit untapped potential, pointing toward a major opportunity for promoting green transformation in Vietnam. If effectively managed, this resource could yield 43 million tons of organic fertilizer, 87 million liters of bioethanol, and substantial volumes of biomass energy.

Moreover, according to the Ministry of Agriculture and Rural Development, improper management of these by-products, especially through open-field burning of rice straw, accounts for significant greenhouse gas emissions, contributing nearly 15% of Vietnam’s total emissions²

New Changes in Utilizing By-Products in Agriculture

Vietnamese farmers and enterprises have pioneered new and innovative ways to repurpose agricultural waste, enhancing both sustainability and profitability.

a. In Planting

Fertilizer made from rice straw – New trends in Vietnam’s agriculture industry

Source: lamgiau.laodongthudo.vn

Organic Fertilizer Production

Composting agricultural residues into organic fertilizers is gaining traction:

Common Materials: Rice straw, coffee husks, sugarcane leaves

Applications:

– In the Mekong Delta, rice straw is composted and reused as organic fertilizer for rice paddies and vegetable gardens⁴

– In Bac Giang, farmers switched from burning rice straw to bio-composting with microbial inoculants. Through professional evaluation, the area applying this farming technique has reduced 20-30% of chemical fertilizers, while enhancing soil health and crop resilience⁵

Mushroom Cultivation

Utilizing waste materials for mushroom farming provides a sustainable revenue stream:

Common Materials: Rice straw, sawdust, bagasse

Applications:

– Farmers in Vinh Long and Can Tho have embraced mushroom cultivation using rice straw, increasing their annual income by approximately 20%⁶

– In Nam Dinh, the use of PAN organic leaf fertilizer has boosted mushroom yield while reducing costs⁷

Mushroom growing model using agricultural waste in Soc Trang province

Source: soctrang.gov.vn

Soil Mulching

Natural mulching with agricultural residues helps conserve soil moisture and improve yields:

Common materials: Straw, dry leaves

Applications:

– Tien Giang’s fruit orchards are encouraged to actively use straw mulch to retain soil moisture, reduce erosion, and lower irrigation costs⁸

– Dong Nai farms utilize banana leaves and coconut fiber for mulching, enhancing soil quality⁹

Biomass Material Production

Biomass Material Production – New step in utilizing agricultural waste in Vietnam

Source: nguyenlieudot.vn

Transforming by-products into biomass fuel contributes to Vietnam’s energy sustainability:

Common materials: Coffee husks, sugarcane bagasse

Some typical examples:

– A company in Phu Tho produces biomass pellets from agricultural waste, offering a renewable energy alternative to coal¹⁰

– Companies in Gia Lai and Dak Lak have invested in building power plants using biomass fuel technology, primarily utilizing agricultural by-products (bagasse, rice husks, coffee husks, etc.) from production activities as fuel, helping to significantly reduce industrial emissions and create a sustainable circular economy model¹¹

b. In Animal Husbandry

Farmers in Tien Giang utilize a local surplus of jackfruit and jackfruit fibers for goat farming

Source: THVL

Animal Feed

Repurposing agricultural residues into livestock feed is a cost-effective strategy:

Common materials: Corn stalks, soybean hulls, young jackfruit

Some typical examples:

– In Tien Giang, farmers feed goats with jackfruit waste¹²

– In Central Highlands, cattle are fed with corn stalks and soybean residues¹³

– Animal feed companies have begun using spent grain as raw material for producing livestock feed¹⁴

Biological Bedding

Biological bedding: New Trend to reduce pollution and labor in Vietnam’s Livestock farming

Source: VTV

Animal welfare practices are improving with natural bedding solutions:

Common materials: Treated sawdust, rice husks

Typical example:

– Que Lam Group Join Stock Company purchases agricultural and forestry by-products to produce biological products that help reduce odors in pig farms¹⁵

– In Ba Ria-Vung Tau, the application of biological bedding in livestock waste treatment has been adopted by many large-scale pig and chicken farms in the area, yielding high effectiveness¹⁶

– A chicken farm in Tuyen Quang combines rice husks and biological additives to create environmentally friendly bedding¹⁷

Handicrafts

Eco-friendly handicrafts thrive again thanks to agricultural waste

Source: handicraftsthx.com

Materials: Rice straw, coconut husks

Some typical examples:

– In Ben Tre, coconut husk crafts are exported worldwide¹⁸

– An Giang artisans create decorative items from rice straw¹⁹

– Quang Nam villages weave mats and baskets from dried sedge and straw²⁰

Support from Local Authorities

Vietnam’s proactive government policies have been instrumental in promoting the sustainable use of agricultural by-products:

Policy Implementation

– Decision No. 5190/QD-BNN-BVTV on approving the project on Organic Fertilizer Development Plan until 2030, with a vision to 2050: Aims for 80% of provinces to create value chains integrating organic fertilizer usage; Increase proportion of organic fertilizer used in total fertilizer consumption to 30% by 2030 and 50% by 2050²¹

– Law No. 31/2018/QH14 on Crop Production and Environmental Protection: Support sustainable waste management and promote recycling²²

– Law No. 72/2020/QH14 on Environmental Protection 2020 mentions enforces recycling of crop residues and restricts harmful practices like open-field burning²³

Financial Support²⁴

– State-owned banks, institutions and agricultural research centers Subsidized organic seeds and bio-fertilizers

– Banks pledge to provide preferential loans for enterprises investing in green technologies and biomass energy projects

Training Programs

– Nationwide educational campaigns to teach farmers sustainable waste management. Notable examples include Make the World Cleaner Campaign, “Green Vietnam”

– Collaborations with research institutions for transferring best practices and innovations. GIZ–IRRI collaboration on green technology transfer in agriculture, the WISDOM project on environmental monitoring^25, and research projects but the Vietnamese Institute of Agricultural Environment related to the utilization and development of biological products for processing agricultural residues and by-products²⁶

– Local initiatives, such as the “No Straw Burning” campaigns from 2019 in northern provinces²⁷, have significantly raised public awareness about environmental protection.

Cooperation Opportunities for Japanese Enterprises

Vietnam’s shift towards a circular economy and green agriculture presents exciting opportunities for international partners, particularly Japan. First cooperation projects between Vietnamese and Japanese enterprises have been launched. These include:

Technology Transfer

– Introduction of advanced composting machines and rapid organic waste fermenters²⁸

– Deployment of biomass pellet production technology²⁹

Joint Ventures

Collaborations in producing high-quality organic fertilizers, animal feed, and biogas units. Co-developing efficient biogas systems tailored for small and medium-sized farms in provinces like Long An and Tien Giang³⁰

Vietnam Animal Husbandry Association visited and worked with Kyodo Sojitz Company

Source: nhachannuoi.vn

Investment in Renewable Energy

The power plant in Hau Giang Province, southern Vietnam, is the first biomass power generation project in Vietnam by Erex – a Japanese corporation specializing in biomass energy development. The plant burns approximately 130,000 tons of rice husks per year. The electricity generated is sold under Vietnam’s Feed-in Tariff (FiT) support scheme. There are also explorations into ethanol production from cassava and rice husks³¹

Agricultural Circular Economy Chains

Long An Province has signed memorandum of understanding for cooperation with major Japanese corporations in the fields of biomass feedstock supply and wastewater treatment. Among these, Sumitomo Forestry Group has invested in the Vina Ecoboard project in Long An, specializing in producing wood panels from acacia trees and supplying biomass feedstock for biomass power plants³²

Memorandum of Understanding (MOU) and Investment Cooperation Exchange Ceremony between Sumitomo Forestry Group and Local Enterprises

Source: vnanet.vn

Challenges and Future Outlook

Investing in agricultural waste recycling technology requires significant capital and specialized expertise. Many farmers and small businesses lack access to funding or the knowledge to apply new technologies, leading to inefficient use of agricultural waste³³

Nevertheless, with Vietnam’s strong government commitment, an increasingly aware farming community, and international support, the future of green transformation through the effective use of crop by-products is bright.

Conclusion

Vietnam’s green transformation, rooted in the effective use of crop by-products, is setting a new benchmark for sustainable agriculture and circular economic growth in Southeast Asia. By converting waste into valuable resources, Vietnam not only addresses environmental concerns but also strengthens rural economies.

Through continued innovation, supportive policies, and robust international collaboration—especially with partners like Japan—Vietnam is poised to become a promising player in green agriculture.

¹https://www.researchgate.net/

² BC’s synthesis from many articles on the internet

³ According to the Department of Crop Production

⁴ https://www.vietnamplus.vn/tai-su-dung-rom-ra-gia-tang-gia-tri-cay-lua-o-dong-bang-song-cuu-long-post826438.vnp

⁵ https://hoinongdan.bacgiang.gov.vn/21804-su-dung-hieu-qua-phu-pham-nong-nghiep.html

⁶ https://baocantho.com.vn/tan-dung-rom-ra-nang-cao-thu-nhap-a164904.html

⁷ https://baonamdinh.vn/tin-nong/202406/danh-gia-mo-hinh-trinh-dien-su-dung-phan-bon-la-huu-co-pan-0fc0815

⁸ https://tiengiang.gov.vn/chi-tiet-tin?%2Fhuong-dan-nong-dan-ung-pho-han-man-tren-cay-trong%2F19627917

⁹ https://baodongnai.com.vn/phong-su-ky-su/202309/nhan-giong-va-nuoi-trong-nam-rom-tren-than-la-chuoi-8084a72

¹⁰ https://www.vietnamplus.vn/ung-dung-san-xuat-vien-dot-biomass-tu-phe-phu-pham-nong-nghiep-post288763.vnp

¹¹ BC’s synthesis from many articles on the internet

¹² https://www.thvl.vn/lam-giau-tu-viec-tan-dung-mit-dat-xo-mit-de-nuoi-de.html

¹³ https://baolamdong.vn/kinh-te/202501/ho-tro-nong-dan-trong-bap-nuoi-bo-sua-d6818dc/

¹⁴ http://bahemdongphat.com/

¹⁵ https://www.youtube.com/watch?app=desktop&v=i-_gwvdadOc&utm

¹⁶ https://baria-vungtau.gov.vn/

¹⁷ https://vtv.vn/video/nong-nghiep-xanh-tan-dung-phu-pham-cay-trong-hieu-qua-730016.htm

¹⁸ https://handicrafthx.com/news/learn-about-ben-tre-coconut-handicrafts-and-coconut-handicraft-products/675.html

¹⁹ https://vinahandicrafts.com/san-pham-gobojime-tet-ben-tu-lua-non/

²⁰ https://culaochamtour.com/thong-tin-du-lich-quang-nam/lang-chieu-ban-thach-duy-xuyen-quang-nam.html

²¹ https://thuvienphapluat.vn/van-ban/Linh-vuc-khac/Quyet-dinh-5190-QD-BNN-BVTV-2023-De-an-Phat-trien-san-xuat-su-dung-phan-bon-huu-co-den-2030-603661.aspx

²² https://thuvienphapluat.vn/van-ban/Linh-vuc-khac/Luat-Trong-trot-2018-336355.aspx

²³ https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Luat-so-72-2020-QH14-Bao-ve-moi-truong-2020-431147.aspx

²⁴ BC’s synthesis from many articles on the internet

²⁵ Reference document: https://collections.unu.edu/eserv/UNU%3A1892/pdf3946.pdf

²⁶ https://tapchi.vaas.vn/sites/tapchi.vaas.vn/files/tapchi/2021-10/tc1_0.pdf

²⁷ https://nongnghiepmoitruong.vn/ha-noi-khong-khi-bi-o-nhiem-do-dot-rom-ra-d609822.html

²⁸ https://www.argusmedia.com/en/news-and-insights/latest-market-news/2682422-japan-s-erex-starts-up-biomass-power-plant-in-vietnam

²⁹ https://www.bioenergy-news.com/news/japanese-and-vietnamese-companies-initiate-biomass-pellet-production-trial

³⁰ https://theinvestor.vn/japanese-investors-eye-biomass-feedstock-wastewater-treatment-projects-in-southern-vietnam-d15191.html

³¹ https://www.argusmedia.com/en/news-and-insights/latest-market-news/2682422-japan-s-erex-starts-up-biomass-power-plant-in-vietnam

³² https://sfc.jp/english/news/pdf/20160219.pdf

³³ https://www.taiwannews.com.tw/news/6093445