Viet Nam’s poultry industry: opportunities and challenges in the global value chain

Strong poultry growth amid import pressure

Viet Nam’s poultry sector is facing significant hurdles, such as unstable pricing, unsustainable production models, fluctuating consumption markets, and fierce competition from imported products. In this context, transitioning from traditional farming to a poultry-based economy and gradually integrating into the global value chain is seen as an essential path toward sustainable development.

According to Tran Ngoc Yen, Head of Poultry Products at Agro Monitor, from 2020 to 2025, Viet Nam’s broiler chicken population has been growing at an average annual rate of over 4%. By the end of 2025, total chicken meat output is projected to reach nearly 2 million tonnes, with white-feathered broilers accounting for approximately 40%. Currently, annual consumption of indigenous (coloured) chicken is estimated at around 1.1 million tonnes.

Since 2022, demand for chicken meat has risen significantly, partly due to the African swine fever outbreak that drove up pork prices, making chicken a more competitive option. Chicken has increased its share in the national meat consumption structure—from 29% in 2022 to 33% in 2024—while pork has dropped from 53% to 48%.

In 2024, Viet Nam’s total poultry population reached 584.4 million—the highest in recent years—up 3.3% year-on-year. Poultry meat output reached 2.46 million tonnes (up 6.9%), and egg production hit 20.352 billion units (up 5.1%), including 13.516 billion chicken eggs and 6.913 billion waterfowl eggs. Viet Nam currently ranks 10th globally in chicken population and second in waterfowl population.

From 2020 to 2024, Viet Nam spent around 200–300 million USD annually to import 200,000–300,000 tonnes of frozen chicken meat—a sharp increase compared to 2016–2019.

Despite strong domestic production, the industry remains heavily dependent on imports, including breeding stock, meat, and processed poultry products. These imports represent about 15%–17% of domestic output but account for up to 30% of white-feathered chicken consumption in Viet Nam.

Cut-up chicken products are mainly imported from the US, while whole chickens are sourced from the Republic of Korea (RoK). Notably, since 2020, imports from the US have declined due to rising prices. From 2020 to 2023, chicken thighs were the dominant imported product. However, by 2024, chicken feet overtook them as the most imported item, sourced from various countries.

“Poultry is becoming an increasingly significant component in Viet Nam’s consumption structure, with imported frozen chicken accounting for about 15%,” Yen said. She also noted that reduced import tariffs have intensified competition for domestic poultry producers.

According to Pham Thi Kim Dung, Head of Livestock Breeds at the Department of Animal Husbandry and Veterinary Medicine, poultry diseases have been largely contained in recent years, with only small-scale outbreaks occurring due to incomplete vaccination. She also highlighted several favorable conditions for the poultry industry: a consistent legal framework, a promising domestic market, lower and more stable feed costs, better access to technology, and improved investment attractiveness.

However, the industry continues to face several issues including fragmented consumption habits that hinder biosecurity measures, dependence on imported raw materials, weak production linkages, and intense market competition.

Changing mindsets to overcome crisis

According to Nguyen Thanh Son, Chairman of the Viet Nam Poultry Association, the country’s poultry industry has gone through five distinct development phases. Among them, the 2011-2021 period was considered the most dynamic, marked by high growth rates, efficient farming practices, and significant investments from both domestic and foreign enterprises. This era also witnessed a breakthrough in industrial-scale poultry farming models.

“However, since 2022, the sector has entered a crisis phase, particularly in terms of market performance. Many businesses and farmers have become disoriented, leading to poor production outcomes, stagnating growth, and prolonged consumption bottlenecks. As a result, numerous poultry farms and enterprises have suffered heavy losses,” Son shared.

A poultry farm in Tay Ninh. (Photo: NDO).

Son also added that to overcome the crisis and achieve sustainable development, the industry must shift its mindset—from merely focusing on production to developing a poultry-based economy that prioritises quality, efficiency, and added value. Restructuring the production and commercial systems and unblocking export channels are now imperative tasks.

Deputy Minister of Agriculture and Environment Phung Duc Tien noted that the current supply of chicken and eggs from farms and households has exceeded demand, largely because the products remain in raw form and are not processed. In contrast, developed countries have established deep processing chains offering hundreds of poultry-based products. The Deputy Minister emphasised that deep processing is a key factor in balancing supply and demand and increasing the added value of poultry products.

To improve competitiveness and elevate Viet Nam’s position in the global poultry value chain, Deputy Minister Phung Duc Tien proposed seven core solutions. Foremost is the construction of centralised slaughtering systems integrated with deep processing facilities to enhance product value and ensure food safety. Additionally, there is a need to train high-quality human resources and expand international cooperation to access advanced technologies and boost productivity.

The Deputy Minister also stressed the importance of addressing environmental issues, aligning with the goal of achieving net-zero emissions by 2050 as pledged at COP26. At the same time, reviewing and amending legal regulations and accelerating administrative reforms are essential to creating a more favourable environment for businesses.

Another strategic solution is the development of a closed-loop ecosystem, involving enterprises, cooperatives, and farmers in all stages—from breeding and feed production to farming, slaughtering, processing, and distribution. Moreover, the application of modern technologies such as IoT, AI, and blockchain in traceability and production chain management plays a vital role. Lastly, it is necessary to intensify trade promotion efforts and improve the investment climate to attract major companies into the poultry sector.

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