Vietnam’s coconut industry is accelerating the shift to organic farming and sustainable practices, to enhance product quality, stabilise production, and strengthen the national brand globally.
The Vietnam Coconut Association (VCA) and the International Finance Corporation (IFC) recently held a working session on December 1, which aimed to enhance the competitiveness and sustainability of the country’s coconut sector.
Chairwoman Nguyen Thi Kim Thanh, emphases that the local coconut industry was “moving towards building intangible value and a national brand” for Vietnam while simultaneously working towards the country’s environmental and Net Zero commitments.
She highlighted that the association is currently researching the use of medicinal herbs in coconut groves to reduce pests and diseases, enhance biodiversity, and develop a circular value chain.
Cao Ba Dang Khoa, secretary-general of the VCA, said the sector was “strongly” shifting from inorganic inputs to organic and biological fertilisers, a transition that is improving fruit quality and helping to stabilise production.
Nguyen said the VCA hopes IFC will support the industry through livelihood development, policy initiatives, and programmes designed to stabilise conditions for communities in coconut-growing areas.
With support from IFC, Vietnam aims to expand its sustainable supply chains, strengthen export competitiveness, and establish a robust foundation for the coconut sector in the 2026–2030 period.
A strategic crop
Vietnam currently has 18 coconut-growing provinces with more than 200,000 hectares under cultivation, producing over 2.26 million tonnes of coconuts annually.
The country hosts 145 processing factories and around 600 businesses in the sector, with 2024 export turnover reaching U$1.089bn.
According to VCA, 32 businesses have developed raw material areas through specialised cultivation models or household linkages, with 68 hectares of coconut now certified to international organic standards.
Fresh coconuts have emerged as one of Vietnam’s top fruit exports, only surpassed by durian and dragonfruit in export value.
Once an “overlooked” product, fresh coconut exports reached USD390m in 2024, accounting for 31% of total coconut export, according to Vietnam’s Department of Crop Production and Plant Protection.
Challenges in the coconut sector
Despite ongoing development efforts, Vietnam’s coconut sector continues to face significant challenges.
Over the past two years, raw coconut prices in Vietnam and across Asia have been unstable, creating challenges for growers and processors.
In response, Vietnam has proposed creating a regional price information exchange under the International Coconut Community (ICC) to improve transparency, reduce volatility, and safeguard producers.
VCA intends to deepen cooperation with other coconut-producing countries and is working on a strategy to strengthen its raw material supply chain.
However, the fresh coconut segment remains constrained by poor cultivation planning and limited data, making it difficult for businesses to develop reliable long-term supply chains.
As a result, Vietnamese fresh coconut has yet to build a strong presence in global markets.
