Vietnam Organic Fertilizer Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam Organic Fertilizer Market Trends and Insights

Government Target to Raise Organic Fertilizer Utilization

Vietnam's target of 50% organic fertilizer usage by 2050 significantly impacts input procurement strategies across the agricultural sector. In 2025, the government's Decision 5190/QĐ-BNN-BVTV outlines specific targets for organic fertilizer development through 2030, including production capacity requirements and quality certification standards. While implementation varies by province, initiatives such as Bac Giang's target to recycle 80% of livestock waste by 2025 demonstrate how regional authorities implement national directives^{[1]Source: Bao Bac Giang, “Circular Agricultural Production in Bac Giang Increases Economic Value, Protects Environment,” baobacgiang.com.vn}. The 2025 consolidation of agricultural and environmental oversight reduced regulatory approval times, allowing producers to launch new products more efficiently. These policy measures support consistent demand across crop varieties, providing stability to Vietnam's organic fertilizer market.

Surging Demand for Certified Organic Exports

The price premiums for certified organic produce in export markets drive the adoption of organic fertilizers in Vietnam's fruit and vegetable sectors. Vietnam's organic export revenues reached USD 335 million in 2025, with continued growth driven by increased supplier audits from European, North American, and developed Asian markets^{[2]Source: WTO Center, “Import and Export of Processed Food Expands Opportunities for Sustainable Production,” wtocenter.vn}. The 20-30% premium over conventional produce encourages fruit and vegetable growers to transition to organic inputs, particularly near Ho Chi Minh City, where cold-chain facilities provide efficient port access. Producers in Southern Vietnam benefit from their proximity to Ho Chi Minh City's export infrastructure and distribution networks. These price premiums enable producers to absorb higher organic fertilizer costs while maintaining competitiveness in international markets.

High Chemical-Fertilizer Prices Widen the Cost-Competitiveness of Organic Inputs

The narrowing cost difference between chemical and organic fertilizers, driven by global price volatility, supply chain disruptions, and geopolitical tensions, has increased the economic viability of organic alternatives. Smallholder farmers in the Red River Delta achieved significant cost savings by replacing half of their urea applications with compost and microbial fertilizers. The increased cost of chemical fertilizer imports has encouraged organic fertilizer adoption nationwide, with usage continuing even after chemical fertilizer prices decrease. The economic benefits become more apparent when considering the long-term advantages of improved soil health and reduced reliance on imported chemical inputs, making organic alternatives attractive to farmers prioritizing sustainable profitability over maximum short-term yields.

Degraded Soils Require Long-Term Organic-Matter Replenishment

Vietnam's agricultural regions face soil organic matter depletion due to long-term chemical fertilizer use, necessitating organic matter restoration. The Soils and Fertilizers Research Institute has developed microbial-based fertilizers to address soil degradation caused by chemical fertilizers, drought, and intensive cropping. Field trials show these fertilizers increase productivity by 15-20% while reducing chemical fertilizer requirements by 15-20%. The restoration of organic matter provides long-term benefits across multiple growing seasons, as improved soil health leads to sustained productivity gains and lower fertilizer dependency, justifying the initial higher investment costs.

Quality Variability and Counterfeit “Organic” Products Erode Farmer Trust

The widespread presence of low-quality and incorrectly labeled organic fertilizers reduces farmer trust and limits market growth, especially affecting small-scale farmers who cannot risk purchasing ineffective products. In Vietnam, only about 50 out of 1,000 bio-preparations in circulation have received national certification, creating significant quality control issues that allow counterfeit products to enter the market. This quality inconsistency is particularly problematic in Northern Vietnam's small-scale farming sector, where limited agricultural extension services make it difficult for farmers to identify genuine products from counterfeits, resulting in reluctance to adopt organic fertilizers. 

Limited Cold-chain for Organic Produce Tempers Demand Pull

Limited cold-chain infrastructure in Vietnam restricts market access for organic produce, reducing economic incentives for farmers to adopt organic fertilizers. The lack of comprehensive cold-chain networks affects rural producers who cannot maintain product quality during transport to urban markets, making it difficult to obtain price premiums that offset higher organic fertilizer costs. This infrastructure deficit creates geographic differences in organic fertilizer adoption, where producers near urban centers and export facilities have better market access, while rural producers face weak demand for organic certification.

Segment Analysis

By Product: Organic Residues Hold Structural Advantage

Organic residues account for 64.2% of the Vietnam organic fertilizer market share in 2024, driven by the availability of livestock manure, rice husks, and coffee pulp as cost-effective feedstock compatible with existing composting systems. Farmyard manure dominates the sub-segments, while BIWASE's 420-metric tons-per-day municipal-waste composting facility supplies the peri-urban vegetable farming regions. These sources support an established distribution network that maintains consistent pricing throughout the year, securing the dominant position of residues in the market.

Biofertilizers are projected to grow at a 10.2% CAGR through 2030, as domestic laboratories develop Azotobacter, Rhizobium, and Mycorrhiza strains specific to Vietnam's soil conditions. These products see the highest adoption in fruit orchards, where farmers can invest in premium inputs to enhance micronutrient absorption and product longevity. The ongoing support through Resolution 36-NQ/TW for biotechnology development is anticipated to expand field testing and accelerate commercial production, establishing biofertilizers as a significant growth segment in the Vietnam organic fertilizer market.

Note: Segment shares of all individual segments available upon report purchase

By Form: Liquid Concentrates Gain on Precision Farming

Dry granules accounted for 71.5% of the Vietnam organic fertilizer market size in 2024. This dominance stems from their compatibility with existing storage, transport, and broadcasting equipment, particularly in rice paddies and rubber plantations. Their resistance to tropical humidity and extended shelf life reduces dealer inventory risks, maintaining their position in conventional supply chains. The format aligns with outputs from traditional composting operations and municipal waste processing facilities, enabling distribution through established fertilizer dealer networks across Vietnam's rural agricultural regions.

Liquid and suspension concentrates are projected to grow at a 10.8% CAGR, driven by increased adoption in fertigation systems for greenhouse vegetables and drip-irrigated coffee estates. Advancements in production methods, including enzyme-assisted processing and microbial fermentation, improve product effectiveness and stability. Companies, including Vedan Vietnam, produce advanced formulations, such as amino-acid-based products and foliar fertilizers, which command higher prices in specialized agricultural applications. The high solubility enables precise micro-dosing, resulting in measurable yield improvements that justify premium pricing. Increased investment in irrigation automation indicates sustained demand for liquid fertilizers, supporting market diversification.

By Application: Fruits and Vegetables Capture Premiums

Grains and Cereals dominated the Vietnam organic fertilizer market with a 45.3% share in 2024, primarily due to rice's importance in national food security. The government's sustainable rice initiatives promote compost blends that enable exporters to meet the strict residue requirements in Japanese and Korean markets. The adoption of organic fertilizers in rice cultivation complements traditional Vietnamese farming methods while supporting the government's goals to reduce chemical fertilizer dependence and maintain food security.

The Fruits and Vegetables segment is projected to grow at a 9.1% CAGR, driven by 20-30% export premiums and increasing urban consumer demand. Dragon fruit farmers who convert 12-15 metric tons of pruned branches per hectare into compost report reduced costs and improved Brix levels^[3]. Organic fertilizer formulations for fruit trees, including mycorrhizal inoculants and slow-release compounds, show improved results in perennial crops where soil health affects fruit quality and yields. The Turf and Ornamentals segment maintains steady growth through urban landscaping and golf course projects that emphasize environmental sustainability.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Southern Vietnam controlled a significant portion of the Vietnam organic fertilizer market, driven by its dense fruit orchards, aquaculture waste availability, and proximity to Ho Chi Minh City export terminals. Facilities such as Baconco's multi-line complex in Phu My Industrial Park optimize last-mile logistics for bulk compost and specialty liquids. The region's intensive fruit and vegetable production systems generate substantial organic waste streams for fertilizer production while supporting established composting operations and waste-to-fertilizer conversion facilities.

Central Vietnam is advancing agricultural development through Agribank's VND 50,000 billion (USD 2.08 billion) low-interest credit program in 2024. The program supports high-tech greenhouses, processing facilities, and waste-to-fertilizer operations. Provincial governments are implementing circular agricultural practices, with Bac Giang province setting targets of 80% livestock waste recycling and 60% agricultural by-product reuse by 2025. The region's biotechnology sector is developing microbial fertilizers and biochar production technologies through international research collaborations to improve organic fertilizer efficiency.

Northern Vietnam represents the smallest market segment, where smallholder farming and cooler climates create demand for low-odor microbial blends over raw manure. Government initiatives for sustainable agriculture and circular economy implementation drive market expansion through cooperative-based procurement and application programs. The region benefits from its proximity to China for cross-border trade opportunities, while local agricultural research institutions provide technical support for product development and farmer education programs.