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Vietnam Agriculture Finance Diagnostic Report

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Agriculture remains economically and socially important in Vietnam despite agriculture’s declining share of gross domestic product (GDP). The share of primary agricultural activity in the GDP has fallen to 13 percent, compared with more than 30 percent two decades ago. The active labor force in agriculture remains as high as 45 percent. However, agriculture is still very important in some regions such as the Central Highlands and the Mekong River Delta. The agriculture sector’s growth rate has been trending downward since 2010, which calls for a search of new sources of growth to meet the growth target of 3 percent per year in the Agriculture Restructuring Plan (ARP) for 2017–2020. The assessment of both supply and demand for agricultural finance, together with an examination of the enabling environment, reveals a series of challenges that limit the development of agricultural finance. 

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