Vietnam’s livestock sector has posted robust growth, even as geopolitical tensions in the Middle East drive up logistics costs. Export turnover in the first two months of 2026 surged, fueling optimism that the sector could soon reach the billion-dollar milestone.
At a March 12 conference, the Ministry of Agriculture and Rural Development reported that livestock exports reached USD 141 million in January-February 2026. This figure represents an 84% year-on-year increase, a breakthrough achieved despite mounting risks to global supply chains.
Shift in export structure
Export restructuring trends are also evident:
- ✅ Animal feed: Increased from 388,000 tons in 2024 to nearly 420,000 tons in 2025.
- ✅ Meat and meat products: Remained stable at 15,400-15,600 tons annually.
- ✅ Emerging trend: A marked shift away from live animal exports (declining from 308,000 heads to 70,500 heads) toward higher value-added processed products that meet stringent international sanitary and phytosanitary standards.
Challenges of volatility and dependency
Despite strong growth figures, the sector continues to face geopolitical volatility. Deputy Director General Pham Kim Dang highlighted how disruptions along key maritime routes, including the Red Sea, have raised freight and insurance costs while extending delivery times.
Two pressing issues remain. First, import dependency is high: more than 65% of raw materials and over 90% of feed additives are sourced abroad. Rising oil prices and logistics costs quickly inflate domestic production expenses.
Second, supply chain risks tied to Middle East volatility threaten the continuity of raw material flows, complicating efforts to stabilize production.
Path to global competitiveness
To achieve the USD 1 billion export target, Vietnam’s livestock industry is prioritizing improved breeding stock and enhanced processing.
In 2025, the country imported 7.54 million breeding animals, underscoring its commitment to strengthening herd quality. At the same time, investments in processing capacity aim to boost competitiveness and secure a stronger foothold in global markets.