Vietnam Hydroponics Market By Type (Aggregate Systems, Liquid Systems), By Crop Type (Lettuce, Sweet Potato, Tomato, Cucumber, Melon, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Vietnam Hydroponics Market was valued at USD 58.45 Million in 2024 and is expected to reach USD 64.07 Million by 2030 with a CAGR of 4.50% during the forecast period. Vietnam's arable land is rapidly decreasing due to the continuous expansion of urbanization and industrialization. As cities expand and industries grow, the available land for agriculture is shrinking at an alarming rate. This significant decline has sparked a growing interest in exploring alternative farming methods that can efficiently utilize smaller spaces. One such method gaining popularity is hydroponics, which involves growing plants in a nutrient-rich water solution instead of traditional soil-based cultivation.

Vietnamese consumers, now more than ever, are demanding high-quality and safe produce. They are increasingly aware of the potential risks associated with soil-borne diseases and pests commonly found in traditional farming methods. Hydroponics, with its soil-free growing environment, provides a solution that ensures the production of premium quality fruits and vegetables, free from such risks. Additionally, the controlled environment of hydroponics allows for year-round cultivation, regardless of weather conditions, further fueling its appeal to both farmers and consumers. Not only does hydroponics offer a solution to the constraints of limited arable land and consumer demand, but it also presents a path to higher crop yields. Compared to traditional farming methods, hydroponics has proven to deliver significantly higher productivity. This has been a driving factor behind its increasing adoption in Vietnam, a country heavily dependent on agriculture for its economy. Improved productivity and efficiency in farming are warmly welcomed as they contribute to overall food security and economic growth.

The hydroponics market in Vietnam is on a promising upward trajectory. The combination of shrinking arable land, increasing consumer demand for high-quality produce, and the pursuit of enhanced crop yields has created a perfect environment for the growth and flourishing of hydroponics. In May 2021, the ISU Chemical-L&P Consortium facilitated the establishment of a local subsidiary in Vietnam. Last month, the consortium secured a contract valued at $1.04 million for the development of a strawberry vertical farm.

As Vietnam continues to embrace this innovative farming method, the sector is poised to thrive, offering sustainable solutions to the challenges faced by traditional agriculture.

Key Market Drivers

Increasing Demand for Safe and Organic Produce

Hydroponics is a soil-less method of agriculture where plants are grown in nutrient-rich water solutions. This innovative and sustainable farming technique offers numerous advantages, making it an ideal solution for meeting the increasing demand for safe and organic produce in Vietnam.  Vietnamese consumers' demand for safe and organic produce is on the rise. Concerns about food safety, coupled with a growing understanding of the health benefits of organic food, have led to a strong preference for such products. Hydroponics perfectly aligns with this narrative as it eliminates the risk of soil-borne diseases and pests, ensuring the safety and quality of the produce.

One of the key benefits of hydroponics is its ability to provide efficient use of space. With the vertical farming approach, crops can be grown in stacked layers, maximizing the yield per square meter. This is particularly advantageous in densely populated areas where arable land is limited. Additionally, hydroponics allows for precise control over nutrients and environmental conditions, ensuring optimal plant growth and maximizing the nutrient content of the produce. Another advantage of hydroponics is its potential to yield fully organic fruits and vegetables. The nutrients used in hydroponic systems can be derived from organic sources such as fish waste, duck manure, or other natural alternatives. This eliminates the need for chemical pesticides, making the produce not only safe but also truly organic. As the demand for organic food continues to grow, hydroponics provides a sustainable solution to meet this market need.

The growth of hydroponics in Vietnam is also supported by the government's initiatives to promote safe and sustainable farming practices. Recognizing the importance of food safety and environmental sustainability, the government has been actively encouraging farmers to adopt hydroponics as a viable alternative to traditional farming methods. This support from the government further solidifies hydroponics as a reliable and efficient method for meeting the country's agricultural needs. The increasing demand for safe and organic produce is a significant driver of Vietnam's hydroponics market. According to government data, solar projects must compete with land allocated for agriculture and aquaculture, potentially complicating development in regions like the Mekong Delta. This area plays a critical role in Vietnam’s food supply, contributing over 90% of the country’s rice exports, 50% of domestically consumed rice, and 90% of national aquaculture production.

As consumers continue to prioritize health, safety, and environmental sustainability in their food choices, hydroponics stands out as a sustainable and efficient farming method. With its ability to provide space efficiency, controlled nutrient delivery, and truly organic produce, hydroponics offers a promising solution to meet the growing consumer demand in Vietnam's agricultural sector.

Surge in Rapid Urbanization

Hydroponics offers an innovative and effective solution to the challenges of modern agriculture. By eliminating the need for soil and utilizing mineral nutrient solutions in water, hydroponics revolutionizes the way we grow plants. This method not only allows for the cultivation of crops in limited spaces like urban homes, rooftops, and balconies but also offers a sustainable and efficient solution to meet the increasing demand for food in urban environments. One of the key advantages of hydroponics is its ability to maximize space utilization. With traditional farming, large areas of land are required to grow crops. However, hydroponics requires significantly less space, making it a perfect fit for densely populated urban areas. This means that even in the face of rapid urbanization and limited available land, hydroponics enables individuals and communities to engage in agriculture and produce their own food.

Another notable benefit of hydroponics is its efficient use of water resources. Traditional farming methods often involve excessive irrigation and water wastage. In contrast, hydroponics consumes significantly less water, making it a more sustainable choice for urban agriculture. As water scarcity becomes an increasingly pressing issue, hydroponics presents itself as a solution that can help conserve this precious resource.

In Vietnam, the hydroponics market is experiencing significant growth, thanks in part to the support and encouragement from the government. Recognizing the need for innovative and sustainable farming practices, the Vietnamese government has taken steps to promote hydroponics and other similar techniques. This support has not only propelled the growth of the hydroponics market but also contributed to the overall development of a more sustainable and resilient agricultural sector. In conclusion, the surge in rapid urbanization in Vietnam has led to a growing demand for sustainable and efficient agricultural practices. Hydroponics, with its space-saving capabilities, water efficiency, and government support, emerges as a key player in addressing these challenges. By embracing hydroponics, Vietnam can ensure food security, reduce dependence on traditional farming methods, and pave the way for a more sustainable future.

Download Free Sample Report

Key Market Challenges

High Initial Investment and Operating Costs

The Vietnam hydroponics market faces a significant challenge due to the high initial investment required for setting up hydroponic systems. Unlike conventional farming, hydroponic cultivation relies on advanced infrastructure, including specialized nutrient delivery systems, climate control units, artificial lighting, and automated monitoring tools. The installation of greenhouse structures and controlled environment agriculture (CEA) technology adds to the capital expenditure, making it financially difficult for small and medium-scale farmers to adopt hydroponic farming. 

Beyond the initial setup, operational costs pose another challenge. Hydroponic farming requires continuous monitoring of nutrient levels, pH balance, and water quality, necessitating the use of sophisticated sensors and filtration systems. Electricity expenses also contribute significantly, particularly for temperature and humidity regulation in controlled environments. Additionally, the reliance on imported hydroponic nutrients, substrates, and equipment further escalates costs, as Vietnam has limited domestic production capacity for specialized hydroponic inputs. 

For many farmers, securing financial resources for hydroponic farming remains a hurdle due to the lack of affordable credit options. While government subsidies and private investments have started to emerge, they remain insufficient to drive large-scale adoption. Without substantial financial assistance or cost-effective alternatives, hydroponics remains an expensive proposition for the majority of Vietnam's agricultural community, limiting its widespread adoption. 

Limited Technical Expertise and Knowledge Gap

Hydroponic farming requires a deep understanding of plant nutrition, water management, and controlled environment techniques, which are still relatively new concepts for many farmers in Vietnam. Traditionally, Vietnamese agriculture has relied on soil-based cultivation methods, and the transition to soilless farming presents a steep learning curve. Farmers unfamiliar with hydroponic techniques often struggle with system management, leading to suboptimal crop yields and financial losses.  One of the primary challenges is the lack of specialized training programs and professional expertise in hydroponic farming. While some universities and agricultural research institutions have introduced courses on hydroponics, these initiatives are not yet widespread. Additionally, smallholder farmers often lack access to technical guidance on selecting appropriate hydroponic systems, optimizing nutrient solutions, and managing environmental factors such as temperature, humidity, and lighting. Mistakes in these areas can lead to plant stress, disease outbreaks, and reduced productivity, discouraging farmers from investing in hydroponic cultivation. 

Furthermore, the absence of extension services and dedicated hydroponic consultants makes it difficult for farmers to troubleshoot problems in real time. Unlike traditional farming, where issues such as soil quality and irrigation can be managed with existing knowledge, hydroponic farming requires precision and immediate intervention. The knowledge gap is particularly pronounced in rural areas, where access to hydroponic expertise is scarce. Without adequate training, mentoring, and technical support, many farmers remain hesitant to adopt hydroponic farming, slowing market growth. 

Inconsistent Market Demand

Despite the numerous benefits of hydroponically grown produce, including pesticide-free crops, higher yields, and reduced dependency on soil conditions, consumer awareness in Vietnam remains relatively low. Many consumers still prefer conventionally grown vegetables due to their familiarity and perceived taste, making it difficult for hydroponic farmers to secure a stable market for their produce. Additionally, traditional markets, which are the primary sources of fresh produce for Vietnamese households, have limited availability of hydroponic vegetables, further restricting consumer exposure to these products. 

One of the key barriers is the higher price of hydroponic vegetables compared to conventionally grown produce. The costs associated with advanced cultivation techniques, infrastructure, and controlled environments make hydroponic farming more expensive, translating into premium pricing in retail markets. While high-income consumers in urban centers, such as Hanoi and Ho Chi Minh City, are more willing to pay for organic and hydroponic products, middle- and lower-income consumers remain price-sensitive and hesitant to adopt these alternatives.  Furthermore, branding and marketing efforts for hydroponic products remain underdeveloped in Vietnam. Many consumers are unaware of the nutritional benefits, safety, and sustainability advantages of hydroponic farming. On December 29, 2022, Nguyễn Thị Kim Anh was recognized as a pioneer in implementing hydroponic technology in agriculture. At 41 years old, Kim Anh, who also serves as the chairwoman of the commune’s Women's Union, shared that her family's 1,650-square-meter farm in Gò Sạn Village was once prone to flooding and overgrown with weeds.

 Without strong promotional campaigns, certification programs, and retail partnerships, the demand for hydroponic produce remains inconsistent. This uncertainty discourages investors and farmers from expanding hydroponic operations, as they lack assurance of a steady market for their products.  

Key Market Trends

Growing Practice of Vertical Farming

Vertical farming is a revolutionary agricultural technique that involves cultivating crops in vertically stacked layers, utilizing structures such as skyscrapers, repurposed warehouses, or even shipping containers. This innovative practice can employ various growing methods, including soil-based, hydroponic, or aeroponic systems. Among these options, hydroponics stands out as a popular choice due to its numerous advantages. In hydroponics, plants are nurtured and grown in a nutrient-rich water solution, eliminating the need for traditional soil. By vertically stacking the plants, vertical farming maximizes space utilization, enabling higher crop yields within a fraction of the area required by conventional farming methods. This aspect alone addresses the challenge of land scarcity, making it an attractive solution for densely populated urban environments.

Notably, the Vietnam hydroponics market has emerged as a frontrunner in adopting vertical farming practices. The market segmentation in Vietnam encompasses various aspects, including different types of hydroponic systems, equipment used, inputs required, farming techniques employed, and the types of crops grown. Across all these categories, vertical farming has gained significant traction, showcasing its versatility and potential for widespread adoption. Several factors contribute to the growth of the Vietnam hydroponics market. Firstly, there is a rising demand for increased crop yield to meet the growing population's food requirements. Additionally, the practice of urban farming and vertical agriculture has gained prominence as a means to achieve sustainable and locally sourced food production.

Furthermore, vertical farming offers several benefits that make it an attractive option for hydroponic cultivation. Apart from higher crop yields, it provides ease of operation and relatively low installation costs. Moreover, the hydroponic technique used in vertical farming conserves approximately 95% of water compared to traditional farming methods, making it an environmentally friendly alternative. The practice of vertical farming is not just a passing trend but a growing movement in the Vietnam hydroponics market. As urbanization continues to accelerate and the demand for sustainable farming practices rises, vertical farming emerges as a viable solution that could shape the future of agriculture in Vietnam and beyond.

Expanding Commercial Hydroponic Greenhouses

Vietnam is experiencing rapid expansion in commercial hydroponic greenhouses, driven by rising consumer awareness and demand for high-quality, pesticide-free produce. Large-scale hydroponic farms are being developed in regions with favorable climatic conditions, such as Da Lat, a hub for greenhouse farming. Hydroponic greenhouses provide farmers with a controlled environment, enabling year-round crop production and protection against extreme weather conditions. Advanced climate-control technologies, including automated irrigation, CO₂ enrichment, and temperature regulation, enhance plant growth while ensuring higher yields. Additionally, greenhouse structures reduce water consumption by up to 90% compared to traditional farming, making them an attractive choice for sustainable agriculture.

The commercial hydroponic sector is benefiting from increased partnerships with retailers, hotels, and food service providers seeking premium quality vegetables and herbs. Major supermarket chains are expanding their selection of hydroponic produce, capitalizing on consumer demand for fresh, chemical-free food. Export opportunities are also growing, with hydroponic farms positioning themselves to supply regional markets.

However, the expansion of commercial hydroponics faces challenges, including the high setup cost and maintenance of climate-controlled systems. Skilled labor shortages and energy consumption associated with greenhouse operations are additional concerns. According to government data, solar projects must compete with land allocated for agriculture and aquaculture, potentially complicating development in regions like the Mekong Delta. This area plays a critical role in Vietnam’s food supply, contributing over 90% of the country’s rice exports, 50% of domestically consumed rice, and 90% of national aquaculture production To address these challenges, Vietnamese agritech startups and international organizations are collaborating to introduce cost-efficient greenhouse technologies and training programs for farmers. As technology becomes more accessible and cost-effective, commercial hydroponic greenhouses are expected to play a significant role in modernizing Vietnam’s agricultural landscape, ensuring consistent and high-quality food production.

Segmental Insights

Crop Type Insights

The tomato segment was projected to experience rapid growth during the forecast period. Tomatoes grown using hydroponic methods have been observed to have a significantly higher growth rate compared to those grown using traditional farming methods. This is because hydroponics allows for precise control over nutrient delivery, ensuring that plants receive the optimal amount of nutrients they need for vigorous growth. The absence of soil in hydroponic systems also eliminates the risk of soil-borne diseases and pests, further contributing to the plants' to health and overall productivity.

Moreover, hydroponic farming requires less land compared to traditional farming methods, making it an attractive option in densely populated countries like Vietnam. With limited arable land available, hydroponics offers a solution to maximize food production while minimizing the use of valuable resources. Additionally, the year-round cultivation made possible by hydroponics ensures a continuous supply of fresh tomatoes, meeting the ever-increasing demand driven by Vietnam's growing population.

In Vietnamese cuisine, tomatoes are a staple ingredient in many dishes, lending their vibrant color and refreshing taste. The versatility of tomatoes makes them a popular choice among locals, whether in salads, soups, or stir-fried dishes. As the demand for this crop continues to rise, hydroponic farming emerges as an ideal method to meet the needs of the Vietnamese market, providing a sustainable and reliable source of high-quality tomatoes throughout the year.

By embracing hydroponics, Vietnam can not only address the increasing demand for food but also promote sustainable agriculture practices. Through this innovative farming technique, the country can achieve higher crop yields, conserve water resources, and reduce the environmental impact associated with traditional farming methods. With its numerous advantages, hydroponics holds great potential in shaping the future of agriculture in Vietnam and ensuring food security for its growing population.

Download Free Sample Report

Regional Insights

Central emerged as the dominant region in the Vietnam Hydroponics Market in 2024, holding the largest market share in terms of value. One of the main reasons for the central region's dominance in the hydroponics market is its favorable climatic conditions. The central region of Vietnam experiences a tropical monsoon climate, characterized by high humidity and abundant rainfall. These conditions create an ideal environment for hydroponic farming, as the crops can receive the necessary water and nutrients without relying on rain or soil. This makes hydroponic farming in the central region less affected by adverse weather conditions, ensuring a more stable and consistent supply of fresh produce.

In addition to climatic conditions, urbanization has also played a significant role in the central region's dominance in the Vietnam hydroponics market. As cities continue to grow and expand, the demand for fresh and locally grown produce has been on the rise. However, limited space in urban areas poses a challenge for traditional farming methods. Hydroponics, with its ability to cultivate crops in a soil-less environment, has emerged as a viable solution. The central region's urban areas have embraced this method of farming, setting up hydroponic systems in rooftops, vertical gardens, and even indoor spaces. This urban farming trend has further contributed to the central region's dominance in the hydroponics market, meeting the growing demand for fresh, locally sourced produce while utilizing limited space efficiently.

Recent Developments

• In Aug, 2024, 188 Green Farm has invested 15 billion VND to establish 12 state-of-the-art greenhouses dedicated to hydroponic vegetable and fruit cultivation. Utilizing cutting-edge recirculating hydroponic technology from Israel and the Netherlands, the farm integrates the latest advancements to enhance efficiency, sustainability, and crop quality.
• On May 20, 2024, as part of its commitment to achieving net-zero emissions by 2050, Vietnam set ambitious targets to reduce carbon emissions in the energy sector. Under the latest Power Development Plan (PDP8), approved in May 2023, the country aims for renewable energy to account for 32% of its total energy supply by 2032. Additionally, Vietnam plans to leverage its substantial solar and wind potential to achieve a capacity of 170 GW and 130 GW, respectively, by 2050.
• A recent development in Vietnam's agricultural sector is the launch of AgriVietnam in  June 2025, the 5th International Exhibition, showcasing advancements in agribusiness, technology, and sustainable farming practices. This event serves as a key platform for industry stakeholders to explore innovations, foster collaborations, and drive growth in Vietnam’s agriculture market.
• In January 2025, K-Smart Farms achieved export growth of $6 million in Saudi Arabia and Vietnam. The Ministry of Agriculture, Food, and Rural Affairs announced on the 2nd that it successfully secured two international projects in the previous year through the 'Smart Farm Consortium Bid Support Project.' As part of these efforts, the 'MannaCEA-Dohwa Engineering Consortium' secured a contract in May for an aquaponics smart farm valued at $4.83 million in Saudi Arabia. Aquaponics, an innovative farming method that integrates fish farming with hydroponic plant cultivation, leverages biomass from aquatic organisms as a sustainable energy source for plant growth, aligning with eco-friendly agricultural practices.

Key Market Players

• Vingroup Joint Stock Company (Vingroup JSC)
• Green Farm Việt Nam.
• Truong Phuc Farm Co., Ltd
• Fresh Studio
• Famifarm Hydroponics

Report Scope:

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

• Vietnam Hydroponics Market, By Type:

o   Aggregate Systems

o   Liquid Systems

• Vietnam Hydroponics Market, By Crop Type:

o   Lettuce

o   Sweet Potato

o   Tomato

o   Cucumber

o   Melon

o   Others

• Vietnam Hydroponics Market, By Region:

o   Northern

o   Central

o   Southern

Competitive Landscape

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

Available Customizations:

Vietnam Hydroponics 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).

Vietnam Hydroponics Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com