Vietnam Greenhouse Market By Type (Plastic Greenhouse, Glass Greenhouse), By Crop Type (Fruits & Vegetables, Flowers & Ornamentals), By End User (Commercial Growers, Retail Gardens, Others), By Region, By Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Vietnam Greenhouse Market was valued at USD 36.45 Million in 2024 and is expected to reach USD 38.13 Million by 2030 with a CAGR of 3.71% during the forecast period. One of the primary drivers of the greenhouse market in Vietnam is the rising demand for high-quality and year-round produce. Consumers, with their increasing awareness of the benefits of fresh, locally grown fruits and vegetables, seek options that are available throughout the year, irrespective of the season. Greenhouses, with their controlled environments, play a crucial role in meeting this demand by enabling farmers to cultivate crops consistently all year round.

The growth of Vietnam's greenhouse market is also fueled by advancements in greenhouse technologies. Companies like Teshuva Agricultural Projects (TAP, Israel) are at the forefront of constructing advanced greenhouses in Vietnam. These cutting-edge greenhouses are expected to revolutionize crop production by boosting yields and enhancing the quality of locally consumed vegetables. These technologically advanced greenhouses employ innovative systems to control and regulate temperature, humidity, and light levels, ensuring an optimal growing environment for a wide variety of crops. With these advancements, farmers in Vietnam can now cultivate crops that were previously challenging to grow due to the country's unique climate conditions.

The growth of the Vietnamese greenhouse market is further bolstered by a significant shift towards more sustainable farming practices. Greenhouse farming allows for the efficient use of water and land resources, contributing to sustainability and food security in the country. This sustainable approach aligns with global efforts to reduce the environmental impact of agriculture and ensure a more sustainable future. In August 2023, during the launch of the 2023 Summer Youth Volunteer Campaign, the forestry sector reinforced its dedication to enhancing forest quality and ecosystems through strategic initiatives. These efforts include the protection of 10.3 million hectares of natural forests and the expansion of large-timber forests, which currently cover over 300,000 hectares, with a target of reaching 1 million hectares by 2030. These initiatives support biodiversity conservation, improve soil fertility, and ensure a sustainable supply of raw materials for forestry product processing and trade.

The Vietnam greenhouse market is on an upward trajectory, driven by consumer demand for high-quality produce, advancements in greenhouse technologies, and a strong commitment to sustainable farming practices. However, to ensure the long-term sustainability of the industry, it is essential to address environmental concerns related to the use of plastic greenhouses and explore more eco-friendly alternatives. By doing so, the Vietnam greenhouse market can continue its growth while minimizing its ecological footprint.

Key Market Drivers

Rising Demand for Year-Round Crop Production

The modern consumer's desire for fresh, locally grown fruits and vegetables all year round is a primary factor driving the growth of the greenhouse market in Vietnam. Traditionally, the availability of certain produce has been dependent on seasons, limiting the consistent supply and variety. However, greenhouses provide a transformative solution to this challenge. Greenhouses offer farmers a controlled environment that allows them to grow crops throughout the year, irrespective of external weather conditions. This capacity to produce crops in off-season periods not only helps meet the consistent consumer demand for fresh produce but also contributes to the overall food security in Vietnam. With a growing population and the impacts of climate change threatening traditional farming methods, the country faces the challenge of ensuring a steady food supply. In August 2024, AEON Vietnam reinforced its commitment to green consumption by driving green transformation initiatives and expediting the integration of digital technologies to advance sustainable retail practices.

By enabling year-round crop production, greenhouses help stabilize food supply, reducing dependency on imports and making Vietnam more self-sufficient in terms of food production. This aspect further propels the demand for greenhouses in the country. The economic benefits of greenhouse farming extend beyond food security. For farmers, the ability to grow and sell crops throughout the year translates into a steady income stream, reducing the financial uncertainties often associated with seasonal farming. Crops grown in greenhouses generally fetch higher prices due to their superior quality and off-season availability. These economic incentives are encouraging more farmers to adopt greenhouse farming practices, thus fueling the growth of the market. In 2022, the Vietnamese company AgriGreen Vietnam and the Israeli company Netafim signed a strategic partnership agreement to jointly develop and operate a state-of-the-art 50-hectare greenhouse complex in Vietnam. This groundbreaking collaboration aims to leverage the advanced Israeli agricultural technology to establish a cutting-edge facility dedicated to producing an abundant supply of high-quality vegetables and fruits for the Vietnamese market. By bringing together the expertise and resources of both companies, this partnership strives to revolutionize the local agricultural landscape, enhance food security, and contribute to sustainable farming practices in Vietnam. The greenhouse market in Vietnam is driven by various factors, including the consumer demand for year-round fresh produce, the need for food security, and the economic benefits for farmers. As the country continues to face challenges in traditional farming methods, greenhouses offer a sustainable and profitable solution for both farmers and consumers alike.

Rise in Crop Diversification

The Vietnamese government has been actively encouraging farmers to diversify their agricultural practices and grow a wider range of crops. This push is aimed at improving the resilience of the agricultural sector and increasing income for farmers. By embracing crop diversification, farmers can mitigate risks associated with relying solely on one crop and adapt to changing market conditions.

As urbanization escalates and income levels rise, there is a growing demand for dietary diversification in Vietnam. This trend has resulted in an increased demand for a broader range of agricultural products, which is encouraging farmers to diversify their crops. In response to this demand, greenhouses are playing a crucial role in facilitating crop diversification. These controlled environments offer optimal conditions for cultivating a wider variety of crops, including those that might not traditionally grow well in Vietnam's climate.

For instance, farmers can now grow high-value crops such as robusta coffee, which was previously challenging to cultivate due to specific land and climate requirements. This ability to diversify crop production is driving the demand for greenhouses and contributing to the growth of the market. Greenhouses not only provide farmers with the opportunity to expand their crop varieties but also ensure a consistent supply of fresh produce throughout the year.

Crop diversification is seen as a strategic approach for managing climatic changes and market uncertainties. By diversifying their crops, farmers can reduce their dependence on a single crop and thereby increase their resilience to adverse weather conditions or market fluctuations. Greenhouses play a key role here as well, providing the ability to grow diverse crops year-round, thus ensuring a steady income for farmers and contributing to food security. The rise in crop diversification is a significant driver of Vietnam's greenhouse market. As the demand for a diverse range of agricultural products grows and farmers seek to increase their resilience, greenhouses are set to play an increasingly important role in Vietnam's agricultural landscape. With continuous support from the government and advancements in greenhouse technology, farmers can embrace diversification and thrive in the ever-changing agricultural sector.

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Key Market Challenges

Variability in Climatic Patterns

Climate variability and extreme weather events pose a severe threat to agriculture, including greenhouse farming. Unpredictable weather patterns can cause significant damage to greenhouse structures, compromising the controlled environment within and adversely affecting crop growth.

For instance, during severe storms, the protective coverings of greenhouses may get damaged, leaving the crops vulnerable to the elements. The harsh winds and heavy rains can infiltrate the greenhouse, subjecting the plants to potential harm. Similarly, excessive heat can lead to overheating inside the greenhouse, creating stress for the plants and potentially reducing both the yield and quality of the crops.

In order to maintain optimal conditions within the greenhouse amidst fluctuating external temperatures, additional energy consumption becomes necessary. Heating systems may be required to keep the greenhouses warm during unusually cold spells, while cooling systems might be necessary during periods of intense heat. This increased reliance on energy not only escalates operational costs but also contributes to greenhouse gas emissions, further exacerbating the issue of climate change. As a result, greenhouse farmers face the challenge of balancing the need for crop protection and maintaining a sustainable environmental footprint. Developing innovative solutions that improve the resilience of greenhouse structures, maximize energy efficiency, and mitigate climate impacts becomes crucial for the future of agriculture in the face of climate variability.

High Initial Investment and Operational Costs

One of the most significant challenges in the Vietnam greenhouse market is the high initial investment required to establish modern greenhouse facilities. The cost of building and equipping a greenhouse with climate control systems, automated irrigation, and hydroponic setups is considerably higher than traditional open-field farming. For small and medium-sized farmers, the financial burden of acquiring advanced greenhouse technology, including temperature regulation systems, shading mechanisms, and artificial lighting, poses a major barrier to adoption.

Beyond construction costs, operational expenses such as energy consumption, maintenance, and skilled labor further increase the financial strain on greenhouse owners. Many advanced greenhouses rely on high electricity usage to maintain optimal growing conditions, particularly in regions with extreme weather fluctuations. The cost of imported greenhouse materials and technology, often sourced from countries like the Netherlands, Israel, and South Korea, adds another layer of expense, making it difficult for local farmers to remain competitive.

Access to financing is another critical challenge. While the Vietnamese government offers some support in the form of agricultural subsidies and low-interest loans, these are often insufficient to cover the full costs of greenhouse installation and upgrades. many small-scale farmers lack the collateral or credit history needed to secure private financing from banks or investment firms. To address this challenge, industry stakeholders are advocating for increased financial support, including government-backed grants and public-private partnerships to make greenhouse farming more accessible. While the demand for high-tech greenhouses continues to grow, overcoming the cost barrier remains a key challenge that must be addressed for the market to reach its full potential.

Limited Technical Expertise and Skilled Workforce

The shortage of technical expertise and a skilled workforce is another major challenge facing the Vietnam greenhouse market. Operating a modern greenhouse requires specialized knowledge in climate control, nutrient management, integrated pest control, and precision irrigation. Many traditional farmers transitioning to greenhouse farming struggle with the learning curve, as they are unfamiliar with advanced technologies such as hydroponics, aeroponics, and automated environmental monitoring systems.

The lack of agricultural training programs tailored to greenhouse operations limits the availability of skilled workers who can manage and optimize greenhouse facilities. While universities and agricultural institutes in Vietnam offer general farming education, there is still a gap in specialized training focused on controlled-environment agriculture. This lack of expertise often leads to inefficient resource use, increased operational costs, and suboptimal crop yields, reducing the profitability of greenhouse investments.

Foreign technology providers and agribusiness investors have attempted to bridge this gap by offering training programs and technical support. However, these efforts remain concentrated in specific regions such as Da Lat and the Mekong Delta, leaving many greenhouse farmers in other provinces without access to adequate training. Language barriers and differences in farming practices further complicate the adoption of foreign greenhouse technologies. To overcome this challenge, Vietnam needs stronger collaboration between the government, educational institutions, and private sector players to develop comprehensive greenhouse farming training programs. Establishing technical assistance centers and on-site demonstration farms can also help farmers gain hands-on experience with modern greenhouse techniques. Addressing the skills gap is essential to ensuring the long-term growth and efficiency of the Vietnam greenhouse market. 

Key Market Trends

Growing Use of Hydroponics and Soilless Cultivation

Hydroponics, a method of growing crops without soil, has experienced a significant surge in adoption in Vietnam's greenhouse market. This growth can be attributed to several factors that have driven its popularity. One key driver is the increasing demand for higher crop yields to meet the needs of a growing population and address concerns about food security. Hydroponics presents an attractive solution in this regard.

By allowing the cultivation of crops in a controlled environment, hydroponics offers the potential for increased productivity and efficiency. This technique eliminates the reliance on soil, which can be advantageous in regions where soil quality is poor or land availability is limited. With hydroponics, farmers can have precise control over growing conditions, optimizing plant growth and resource utilization. The incorporation of advanced technologies such as HVAC, LED grow lights, control systems, and irrigation systems in modern hydroponic setups has also played a crucial role in driving this growing trend.

Moreover, alongside hydroponics, soilless cultivation is emerging as another notable trend in Vietnam's greenhouse market. High-tech soilless-culture farms are being established, providing an additional avenue for crop production. Similar to hydroponics, soilless cultivation enables the growth of crops in a controlled environment without the need for traditional soil. This technique can be particularly advantageous for crops that require specific growing conditions, further expanding the range of crops that can be cultivated in Vietnam's greenhouses.

The adoption of hydroponics and soilless cultivation techniques in Vietnam's greenhouse market showcases the continuous efforts to innovate and enhance agricultural practices. These sustainable farming methods not only address the increasing demand for food but also offer potential solutions to challenges related to soil quality, land availability, and resource efficiency. As the agricultural landscape evolves, hydroponics and soilless cultivation are poised to play a crucial role in shaping the future of crop production in Vietnam.

Growing Adoption of Sustainable and Climate-Resilient Greenhouse Solutions

Vietnam’s vulnerability to climate change, including rising temperatures, unpredictable rainfall, and extreme weather events, is pushing farmers toward sustainable and climate-resilient greenhouse solutions. Many greenhouse growers are shifting to resource-efficient designs, incorporating water recycling, renewable energy integration, and eco-friendly materials to minimize environmental impact while ensuring crop productivity. In August 2024, UYTAN Recycling Company and Ajinomoto Vietnam entered into a cooperation agreement under the Extended Producer Responsibility (EPR) program to strengthen plastic packaging collection and recycling efforts. This initiative seeks to reduce plastic waste and promote a circular economy in waste management. Ajinomoto Vietnam remains committed to the Ajinomoto Group’s sustainability objectives by implementing strategies to lower greenhouse gas emissions, reduce food loss, and enhance packaging sustainability across the product lifecycle.

The adoption of hydroponic and aeroponic farming within greenhouses is also gaining traction as it significantly reduces water usage compared to traditional soil-based farming. These methods not only conserve water but also enhance crop growth efficiency, making them ideal for regions facing water scarcity. Solar-powered greenhouse systems are being explored as a sustainable alternative to conventional energy-intensive greenhouse operations.

 Government policies promoting climate-smart agriculture are further driving this trend, with financial incentives being provided for farmers who adopt environmentally friendly greenhouse technologies. Companies specializing in sustainable greenhouse solutions are expanding their presence in Vietnam, offering innovative designs that optimize resource use while maintaining high yields.As climate challenges persist, the transition towards sustainable greenhouse farming is expected to accelerate, ensuring long-term resilience and stability for Vietnam’s agricultural sector.

Segmental Insights

Type Insights

Based on the category of type, the plastic greenhouse segment emerged as the dominant player in the Vietnamese market for greenhouse in 2024. One of the primary reasons for the dominance of plastic greenhouses is their cost-effectiveness. Plastic greenhouses are generally less expensive to construct and maintain compared to glass greenhouses, making them a more affordable option for farmers. This affordability is particularly attractive to small-scale farmers who may have limited resources and budget constraints.

In addition to their cost-effectiveness, plastic greenhouses are well-suited to Vietnam's tropical climate. They provide excellent light transmission, ensuring optimal conditions for plant growth. These greenhouses offer protection from heavy rainfall and high temperatures, which are common in the region. The ability to regulate ventilation more easily than glass greenhouses further helps prevent overheating and maintains the ideal growing environment for crops. With their lower costs, adaptability to the climate, and enhanced control over environmental factors, plastic greenhouses have become a popular choice among farmers in Vietnam, allowing them to maximize their agricultural productivity and ensure the success of their crops.

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Regional Insights

Central emerged as the dominant region in the Vietnam Greenhouse Market in 2024, holding the largest market share in terms of value. Da Lat, often referred to as the "city of eternal spring," boasts a consistently mild and pleasant climate throughout the year. With its high elevation and mountainous terrain, the region experiences cooler temperatures compared to other parts of Vietnam. The cool climate, combined with abundant rainfall, creates optimal conditions for the cultivation of a wide variety of crops including fruits, vegetables, and flowers.

The unique microclimate in Da Lat allows for the successful growth of delicate and sensitive crops that may struggle in other regions. Farmers in this area take advantage of the favorable conditions to produce high-quality produce that is sought after both locally and internationally.

To further optimize crop production, farmers in Da Lat utilize greenhouses to have better control over environmental factors such as temperature, humidity, and light. These greenhouses enable year-round cultivation and provide protection from extreme weather conditions, ensuring a steady supply of fresh and quality produce regardless of the season.

The central location of Da Lat also plays a significant role in its dominance in the greenhouse market. Situated in close proximity to major urban centers, including Ho Chi Minh City, Da Lat enjoys efficient transportation networks that facilitate the distribution of produce to local markets. Furthermore, its accessibility for export to international markets enhances the growth and development of the greenhouse industry in this region.

Recent Developments

• In September 2024, the delivery of two VitaLite systems from Ridder Group and water tanks from Royal Brinkman facilitated the installation and commissioning of two drain water collection and recycling systems by two pilot farmers and project partners. This initiative is part of the “Improving Water Availability and Safety through Optimized Irrigation and Fertilizer Application by Hydroponic Growers in Vietnam” project, implemented under the Partners for Water program.
• In August 2024, BAT Vietnam reaffirmed its commitment to environmental protection and social responsibility through Nature-based Solutions (NbS). The company seeks to integrate business growth with environmental and social sustainability, particularly in the agricultural sector. During the 7th Training Program for Media Agencies on Sustainable Development, organized by the Vietnam Business Council for Sustainable Development (VBCSD) under the Vietnam Chamber of Commerce and Industry (VCCI), BAT Vietnam presented its initiative to develop sustainable material-growing areas and restore biodiversity, aligning with its broader sustainability strategy.
• In April 2023, Rachio introduced its 4th-generation Smart Sprinkler Controller, offering enhanced Wi-Fi connectivity, advanced scheduling capabilities, and customized watering for individual plants. The system also integrates with smart home ecosystems, such as Apple HomeKit and Google Home, for seamless automation.
• In August 2024, UYTAN Recycling Company and Ajinomoto Vietnam entered into a cooperation agreement under the Extended Producer Responsibility (EPR) program to strengthen plastic packaging collection and recycling efforts. This initiative seeks to reduce plastic waste and promote a circular economy in waste management. Ajinomoto Vietnam remains committed to the Ajinomoto Group’s sustainability objectives by implementing strategies to lower greenhouse gas emissions, reduce food loss, and enhance packaging sustainability across the product lifecycle.
• In June 2023, Netro launched the Pixie Smart Sprinkler Controller, a solar-powered device tailored for environmentally conscious consumers. Equipped with AI, the system optimizes irrigation schedules by analyzing soil moisture levels and incorporating weather conditions to enhance water efficiency.

Key Market Players

• Netafim Limited
• Watanabe Pipe Vietnam Co., Ltd.
• Nova Agri Group
• Fresh Studio Innovations Asia
• Vingroup Joint Stock Company (Vingroup JSC

Report Scope:

In this report, the Vietnam Greenhouse Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vietnam Greenhouse Market, By Type:

o   Plastic Greenhouse

o   Glass Greenhouse

• Vietnam Greenhouse Market, By Crop Type:

o   Fruits & Vegetables

o   Flowers & Ornamentals

• Vietnam Greenhouse Market, By End User:

o   Commercial Growers

o   Retail Gardens

o   Others

• Vietnam Greenhouse Market, By Region:

o   Northern

o   Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Greenhouse Market.

Available Customizations:

Vietnam Greenhouse Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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