Floriculture Market In Vietnam Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Vietnam Floriculture Market size is estimated at USD 170.04 million in 2023, and is expected to reach USD 280 million by 2028, growing at a CAGR of 10.49% during the forecast period (2023-2028).

Key Highlights

• The drivers identified in this market are favorable agro-climatic conditions for rose, chrysanthemum, and other ornamental plants and lower prices of floricultural produce. The restraints identified in this market are a lack of adequate awareness of cultivation measures and marketing of flowers and the high cost of the adoption of modern technology.
• With the country's stability and diversity in production, along with its high-quality flower market, the number of flowers being exported to other markets, such as Japan, Australia, Korea, Singapore, and Hong Kong, is projected to increase. Exports to Japan have seen an increase in recent years. According to International Trade Center (ITC) data, the export value to Japan is USD 34.7 million, a 30.9% increase from 2017. This is mainly due to the companies in Japan and Taiwan starting their own operations with advanced technologies. The seedlings required are being exported from Vietnam to Japan.
• Vietnam has signed in free-trade agreements due to the increasing demand. For instance, it signed a free-trade agreement with the European Union in 2020, which is expected to boost the sector significantly.
• Further, the country also imports many flowers to cater to domestic demand. According to UN Comtrade data, the major countries that supply flowers to Vietnam are Thailand, China, Ecuador, and the Netherlands. In recent times, imports have increased significantly, especially from China. In 2021 the total import was valued at USD 17.3 million.

Floriculture in Vietnam Market Trends

Conducive Agro-climatic Conditions Favoring Production and Export

• Vietnam has two different climatic regions: the subtropical region in the north and the tropical region in the south. Moreover, there are regions with a particularly temperate climate. Due to varied climatic conditions, tropical, subtropical, and temperate flowers can be grown throughout the country.
• Lam Dong province is considered the 'golden land' for developing tropical and temperate flowers in the country due to its ideal conditions, such as suitable day and night temperatures and enough flat land for large-scale production. Vietnam accounts for several river deltas with fertile alluvial soil, which is suitable for the large-scale production of cut flowers.
• Vietnam has the potential to become one of the world's largest flower exporters. Favorable conditions in the country for large-scale production of cut flowers help in attracting numerous foreign investors. The government policies and foreign investors' support help export cut flowers at a lower price to Japanese and other markets. The comparatively lower price after import for certain flowers when compared to the domestic price in Japan and its adjacent markets like Malaysia and China also favors the export market to a great extent.

Among Cut Flowers, Rose Dominates the Market

• In Vietnam, the rose is one of the largest cut flowers exported to other countries. With the sector taking shape, the share of roses will likely improve over the forecast period. The major production areas are concentrated in big cities such as Hanoi, Ho Chi Minh City, Hai Phong, and Dalat. The area under roses has expanded significantly during recent years and is likely to increase further in the coming years. Rose is the most popular flower in Vietnam.
• It can be planted and harvested around the year in different provinces of the country as the weather and climatic conditions favor it. In addition to roses being the prominent cut flower and popular choice in the domestic market, the country has been exporting a considerable value of roses. As per the UN Comtrade, the country exported USD 670 thousand worth of roses.
• The popular varieties are the white and red rose in Quang and light yellow, light pink, dark yellow, and dark red in Dalat, and black red and creeping rose in other places. The favorable conditions of Vietnam for growing flowers have helped attract more foreign investors to the Lam Dong province. These investments have developed growing areas, provided cultivation techniques, and helped establish distribution centers.

Floriculture in Vietnam Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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