Representatives of Vietnamese agribusiness Langbiang Farm and Dutch company Rijk Zwaan Việt Nam at a partnership review in Lâm Đồng Province in July 2024. — Photo courtesy of Langbiang Farm

Nhật Hồng

HÀ NỘI — Delicious, nutritious and of high economic value, crystal lettuce, purple corns, cold-resistance cucumbers and even the social media sensation Sweet Palermo peppers, have been making their way into farms and agribusinesses across Việt Nam.

But while these products have seen success among Vietnamese consumers, only some are aware that they originate from the Netherlands and that their growing popularity is part of a long history of agricultural cooperation between the two countries.

“The Netherlands has been holding the top spot for the most productive, effective and sustainable collaboration for Việt Nam’s agriculture,” said Trần Huy Đường, owner of Langbiang Farm in Lâm Đồng Province.

“The Dutch have been the pioneers in this aspect for years, not just recently and today their support continues.”

Working together with private sector 

Đường has been working with Dutch seed cultivating giant Rijk Zwaan since he started expanding his flower-growing business to include fruit and vegetables, with some of his most popular products now including Lalique lettuce, tomatoes and baby spinach.

Throughout their seven years of collaboration, they go beyond improving seed varieties to testing cultivation procedures and potential markets – a comprehensive effort to ensure yields and output for both sides of the partnership.

“Their insights are very helpful and impressive – from the markets for certain types of vegetables to the specifications, standards, quality and even networking to ensure outlets for our products,” said Langbiang Farm director Đường.

Both countries have been aligning efforts for Dutch agribusinesses to grow their markets and for Vietnamese farmers to develop smart and resilient agriculture.

Managing director of Rijk Zwaan Việt Nam Đặng Văn Niên said: “Cultivation techniques are crucial in high-tech agriculture, therefore, our teams stand ready to accompany the farmers in the process of technical transfer.

“This process starts early, from seed variety selection to potting, irrigation and fertilisation methods that are tailored to each type of crop.”  

Lettuce seedlings at Langbiang Farm in Lâm Đồng Province. — Photo courtesy of Langbiang Farm

Langbiang Farm is among the Vietnamese local businesses that have gained a competitive edge in the market thanks to the Netherlands-Việt Nam agricultural cooperation, many of whom were able to gain a foothold in nationwide outlets such as Mega Market and Big C (GO!), with the help of their Dutch partners.

Meanwhile, WinEco, the supplier of 80 per cent of vegetables at the nationwide supermarket chain WinMart, is estimated to use about ten tonnes of seeds from Rijk Zwaan annually. This gives an annual yield of about 2,500 tonnes across WinEco’s production facilities, which are certified to GlobalGAP and VietGAP standards.

WinEco’s CEO Chu Việt Hà said: “This partnership helps increase our productivity by about 15-30 per cent compared to that in the past and these yields facilitate Vietnamese consumers’ access to new, locally-produced vegetables, that are clean and nutritious in place of import products.”

These partnerships represent a few among the many agricultural collaborations between the Netherlands and Việt Nam in recent years, with Rijk Zwaan a prime example of Dutch investments into Việt Nam’s agriculture, alongside other major players like Bejo, Enza Zaden and East-West Seed, who have established a presence in this market.

Agricultural counsellor from the Dutch Embassy in Việt Nam, Ingrid Korving, believes that their choice to be based from Việt Nam can be seen as a strategic move to explore the rest of Asia. 

At the Việt Nam-Netherlands Mekong Delta Business Forum in March this year, 13 of the 18 cooperation agreements signed focused on sustainable agricultural development. These extend beyond companies to include educational institutions, thereby enhancing knowledge, developing skills and actively engaging young people and academics in sustainable growth.

Sprouting with possibilities

Local eating habits include a large amount of greens in everyday meals, reflecting substantial vegetable consumption in the country, General Manager of East-West Seed Việt Nam, Kang Chengrui explained.

“As a foreign investor, we see Việt Nam as a highly potential market,” he said, observing that Việt Nam has seen improvements in knowledge, technical expertise and regulations over the past couple of decades.

A recent report by Mordor Intelligence on Việt Nam’s propagation materials market shows that agriculture accounts for almost 20 per cent of the Southeast Asian country’s GDP.

During the forecast period of 2023-28, this figure is projected to grow with increasing State support, overseas investments and rising demands. The expanding vegetable harvesting area, which topped one thousand hectares in 2021, also testifies to the government’s commitment to agricultural development, the report said. 

Taking advantage of Lâm Đồng Province’s favourable conditions as the largest vegetable production zone of Việt Nam, Rijk Zwaan has chosen the Central Highlands locality to establish its research and development (R&D) centre for the Southeast Asia region.

Rijk Zwaan’s R&D centre in Lâm Đồng spans 3.8 hectares with easy access to Liên Khương International Airport. — Photo courtesy of Rijk Zwaan Việt Nam

Bejo is another Dutch company that has recognised Việt Nam’s agricultural potential. In 2019, it opened a seedling research and production centre in the northern Hà Nam Province, which focuses on developing the ideal seed varieties for Việt Nam.

These R&D activities are also further supported by the membership of both the Netherlands and Việt Nam in the International Union for the Protection of New Varieties of Plants (UPOV). Việt Nam is one of the only two Southeast Asian countries participating in this convention, the other being Singapore. 

Rijk Zwaan Việt Nam’s managing director said: “We can submit plant variety protection applications in the Netherlands or in other countries and they will also be accepted for protection in Việt Nam without having to redo the process.

“I believe that this is a very good policy that protects the rights of seed companies, especially those that engage in seed variety imports.”

Flower power

Việt Nam’s ornamental flower domestic sales and exports have also seen positive signs in recent years.

From 2015 to 2021, the gross output value of the flowers and ornamental plants sector nearly doubled, with the highest average growth rate of 11.8 per cent annually in comparison with the crop sector and other sub-sectors, according to a study by AGROINFO, an agricultural market and policy research agency under Việt Nam’s Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD).

The sector’s gross output increased from VNĐ37.97 trillion (US$1.56 billion) in 2021 to VNĐ45 trillion ($1.83 billion) in 2023, according to Đặng Văn Đông, deputy director of the Institute of Vegetable and Fruit Research. The export turnover of ornamental flowers rose from $61.8 million in 2021 to $67 million in 2022, then $80 million in 2023.

Việt Nam’s flowers and ornamental plants have been exported to more than 40 countries, with Japan, South Korea, the Netherlands, the US and Australia being the top five largest markets, according to AGROINFO.

In particular, Dalat Hasfarm emerges as a leading business in sustainably bringing Việt Nam-grown flowers to foreign markets. 

Dalat Hasfarm reports revenue of nearly VNĐ2.7 trillion ($109.6 million) in 2023. — VNA/VNS Photo Vũ Sinh

Việt Nam’s coordinator of the Netherlands-Việt Nam Horti Business Platform (NVHBP) Mai Hồng, observed that this is a prime example of Dutch horticultural technology finding success in Việt Nam, with over 30 years of experience in this Southeast Asian market.

“They are diligent and have been providing training and creating jobs for Vietnamese labour,” said Hồng. 

“Most importantly, they have fostered a new consumer habit in the Vietnamese market, as before they arrived, locals did not have access to Dutch flowers in such abundance and at such affordable prices.”

On a broader scale, the Dalat Flower Association (DFA) and the NVHBP signed a cooperation agreement for research, development and commercial projects in the flower industry in September 2023. They expect to continue their exchanges on horticultural technology and market insights in the coming years. 

Room for growth

However, while Việt Nam’s horticultural progress is evident, industry experts observe that there is still room for growth, especially in improving processes for plant materials imports and plant breeders’ rights protection.

Việt Nam has fostered remarkable agricultural collaborations with the Netherlands, but for a multi-national company like Rijk Zwaan, importing plant varieties from their overseas breeding facilities to Việt Nam remains a challenge.

For example, the company cannot import lettuce from its locations in Australia, or watermelon from Spain and Peru under the current regulations.  

“I hope that in the future, regulations can be relaxed to a certain degree that allows for greater openness in [plant variety] imports,” Niên said.  

Meanwhile, plant variety registration can also be more streamlined through better data connection between state departments, thereby avoiding redundant procedures and duplicated applications, East-West Seed Việt Nam’s general manager Kang recommended.

“Although some areas can still be improved, compared to 20 years ago, it has been quite a development,” Kang added. 

Cultivated connections

These Dutch-Vietnamese horticultural achievements are the culmination of years of collaborative efforts between the two countries, spanning all levels – from government to businesses and individuals.

In 2024, the two countries celebrated five years of their Comprehensive Partnership (2019-24) and ten years of Strategic Partnership on Sustainable Agriculture and Food Security (2014-24). Their Strategic Partnership on Adaptation to Climate Change and Water Management also reaches the 15-year milestone in 2025. 

In March 2024, a delegation of 50 agribusiness representatives visited Việt Nam, led by the Dutch Minister of Agriculture, Nature and Food Quality. Lâm Đồng Province was among the localities they visited to look at investment and cooperation opportunities. 

An economic mission from the Netherlands in Lâm Đồng Province in March 2024. — Photo courtesy of the Embassy of the Kingdom of the Netherlands  in Hà Nội

Langbiang Farm’s owner Đường said: “The Netherlands has undertaken specific and practical initiatives, from facilitating trade connections between businesses, farmers and government agencies.”

Between the Dutch and Vietnamese businesses, field visits, seminars, training sessions, fairs and exhibitions are held every year and vice versa.

“Dutch experts visit Việt Nam to learn our practices and assist us – we say ‘travel broadens the mind’ and that is truly valuable in this case. Not only sharing their wealth of experiences, they are also willing to provide support in every aspect, including technology challenges – and that is a comprehensive partnership,” said Đường. — VNS