Introduction

Viet Nam faces significant environmental challenges, including sea level rise, saltwater intrusion, and increasingly frequent typhoons, floods, and droughts driven by climate change. The agricultural sector remains a critical pillar of food security and the rural economy, supporting the livelihoods of tens of millions of people. Despite this, climate change adaptation has historically remained peripheral in trade policy-making. This relationship is beginning to change; in 2025, the 30th United Nations Climate Change Conference formally acknowledged the relevance of trade to climate action by establishing a technical dialogue on the subject. Trade serves as both a prerequisite for continuity and a vector for adaptation by facilitating access to advanced technologies and services.

Methodological approach and key definitions

This report results from a collaborative research partnership between the International Institute for Sustainable Development (IISD) and the Ministry of Agriculture and Environment (MAE). The analysis is based on desk research, four consultation workshops with policy-makers, and 54 interviews conducted during field research in eight provinces in Central and Southern Viet Nam: Ben Tre, An Giang, Ca Mau, Trà Vinh, Khanh Hoa, Phu Yen, Quang Nam, and Thua Thien Hue. These locations were selected for their strong agricultural trade sectors and high vulnerability to climate impacts. For the purposes of this report, adaptation goods and services are defined by their purpose of contributing to adaptation in the country where they are consumed or provided.

Climate impacts and adaptation priorities in Viet Nam’s agricultural sector

Climate risks currently impact 70% of the cultivated areas in Viet Nam that rely on rainwater. Long-term changes and extreme events have devasted thousands of hectares of rice and fruit trees, with saline intrusion in 2015–2016 and 2019–2020 being the most severe recorded in over 60 years. In An Giang, flooded areas have reduced from a peak of 235,300 hectares in 2000 to just 25,500 hectares between 2014 and 2023. By 2050, climate-related damages could cost Viet Nam 12%–14.5% of its GDP, representing cumulative costs between USD 400 billion and USD 523 billion. The national adaptation plan (NAP) identifies 27 priorities to manage these risks, 19 of which are considered related to international trade as they involve the exchange of goods or services.

Identification of key adaptation goods and services for Viet Nam’s agricultural sector

The research classifies critical adaptation goods into four categories: climate-resilient crop and livestock varieties, efficient irrigation systems, post-harvest handling and storage equipment, and protective infrastructure. Specific priorities include salt-tolerant rice varieties, drip irrigation technology, solar-powered salinity monitoring equipment, and cold storage facilities. Adaptation services are also vital, falling into categories such as consulting and capacity-building (e.g., climate-smart agricultural training), analytical and data services (e.g., weather forecasting), financial and market services (e.g., agricultural insurance), and engineering services for storm-resilient construction. Identifying these items requires a contextualised approach based on specific regional conditions and production systems.

Identification of trade barriers to adaptation goods and services in Viet Nam’s agricultural sector

While Viet Nam has signed over 17 free trade agreements (FTAs), significant barriers remain. Tariffs on some raw materials and core minerals range from 5% to 40%, and misclassification often prevents high-tech components from accessing 0% tariff rates. However, non-tariff barriers (NTBs) are the primary obstacle, including complex sanitary and phytosanitary (SPS) authorisation requirements, mandatory labelling, and lengthy product registration procedures. For services, barriers include restrictions on foreign equity and commercial presence in certain sensitive sectors, as well as administrative burdens regarding work permits for international experts. Data localisation and cross-border transfer requirements may also restrict access to sophisticated global climate modelling and weather forecasting services.

Conclusions

The report recommends that Viet Nam establish an official category and regularly updated list of adaptation goods and services to support trade policy-making. A formal coordination mechanism between agriculture, trade, and infrastructure agencies is recommended to review how policy can support adaptation priorities. Authorities should consider reducing or eliminating import tariffs on identified adaptation goods and simplifying tax exemptions to reduce administrative burdens. For non-tariff measures, the report suggests pursuing mutual recognition agreements (MRAs) with trading partners and aligning standards with international norms. In the services sector, streamlining visa and work permit regimes for foreign specialists and integrating data flow facilitation clauses into FTAs will be necessary to advance the country’s adaptation goals effectively.