Shrimp, rice and coffee are three flagship sectors of Vietnamese agriculture, but they are confronting pressure over emissions, resource use and the increasingly strict sustainability requirements of export markets. Processing and cultivation across these chains generate large volumes of by-products that, if not handled effectively, raise costs and add to environmental burden.

A circular economy offers a way forward by adding value to by-products, cutting emissions and using resources more efficiently. It was this shared challenge that brought together research institutions, businesses and development organisations to launch a joint initiative for the shrimp, rice and coffee sectors.

Vietnam Food Joint Stock Company (VNF) signs a cross-sector MoU on circular economy

On 9 July 2026 in Ca Mau, Vietnam Food Joint Stock Company (VNF) signed a Memorandum of Understanding with Rikolto International, the Vietnam Sustainable Shrimp Alliance (VSSA), Tay Nguyen University, Leanwares Corporation and the Institute for Circular Economy Development (ICED) to promote a cross-sectoral circular economy across the shrimp, rice and coffee industries in the Mekong Delta and the Central Highlands.

The signing took place within a workshop co-organised by Rikolto International and the Delegation of the European Union in Vietnam, launching the initiative “Promoting cross-sectoral circular economy for the sustainable development of the shrimp, rice and coffee sectors in the Mekong Delta and the Central Highlands, Vietnam.” Under the Memorandum of Understanding, the parties will jointly conduct research, share knowledge, connect resources and develop circular economy models.

VNF said it will draw on its R&D and manufacturing strengths in processing and shrimp by-product valorization, while developing applications for soil improvement, crop nutrition, disease prevention and crop preservation — helping to expand circular economy models across the shrimp industry and neighbouring value chains.

Circular economy opens new value for Vietnam’s shrimp, rice and coffee chains

The initiative is designed to strengthen cooperation among research organisations, businesses, regulators and farming communities, building a circular economy ecosystem that raises the value of agricultural products and supports green growth. By valorizing by-products from the shrimp industry and other chains, the model seeks to lift value across the whole supply chain while easing environmental pressure.

Vietnam Food Joint Stock Company (VNF) expressed its thanks to Rikolto International, the Delegation of the European Union in Vietnam and its partners for accompanying the initiative and working to bring circular economy solutions into practice. As sustainability moves from a market expectation to a competitive requirement, cross-sector collaboration of this kind shows how Vietnamese agriculture can turn by-products into value and take a deeper role in global sustainable value chains.

Vietnam Food Joint Stock Company (VNF) was honored to welcome the interns of the Prime Minister’s Advisory Council – Private Sector Development Committee IV for a visit and exchange at our company.

With its role in researching, advising, and proposing policies on the private economy, while promoting public-private dialogue and connecting businesses with the policymaking process, Committee IV also focuses on nurturing the next generation through its internship program.

During the meeting, Ms. Phạm Thị Ngọc Thủy, Director of Committee IV, shared that Vietnam’s development strategy should be built on the country’s core strengths, among which agriculture plays an important role.

This perspective is also aligned with VNF’s approach to agricultural development: focusing on research and development of solutions that add value to shrimp co-products, contributing to the effective use of local resources and expanding practical applications for Vietnamese agriculture.

During the exchange, VNF shared how R&D activities help transform shrimp co-products into products serving agriculture, food, pet care, and water treatment. This is also an example of how innovation and circular economy thinking can help make better use of available resources.

Through these practical stories, VNF hopes to open a perspective for young people: innovation does not always have to begin with grand ideas. It can start by looking back at available resources and creating new value from them.

VNF sincerely thanks Committee IV for creating the opportunity for the company to accompany the program and meet the interns. We wish the students many meaningful experiences on their learning journey, as they continue nurturing new ideas and contributing to Vietnam’s development.

Overuse of chemical pesticides in farming brings a chain of consequences: residues on produce, degradation of soil microbial life, and health risks for both growers and consumers. The need for a biological crop protection solution that is effective yet environmentally friendly is therefore growing urgent. At the same time, Vietnam’s shrimp-processing industry generates large volumes of shrimp heads and shells each year; left unused, they are both an environmental burden and a waste of valuable chitin.

Vietnam Food Joint Stock Company (VNF) turns shrimp by-products into crop-protecting ChitoBlossom (Chitosan)

Vietnam Food Joint Stock Company (VNF) has chosen to extract value from shrimp by-products through biotechnology. From chitin — a natural derivative found in crustaceans, insects, fungi and algae — the company extracts and refines ChitoBlossom (Chitosan), an active ingredient with four notable functions: antifungal and antibacterial action, gel- and film-forming, coagulation and complex-forming, and biostimulation for crops.

In terms of mechanism, ChitoBlossom (Chitosan) works on two levels. On stems and leaves, chitosan disrupts the cell-wall structure of fungi and bacteria through electrostatic interaction, while forming a film that blocks pathogen development. In the root zone, it directly inhibits nematode activity, promotes beneficial soil microorganisms, activates the plant’s natural defense system, and helps crops resist oxidation and stress. In short, chitosan does not merely kill pathogens — it “trains” plants to defend themselves.

Trial results point to potential for replacing chemical pesticides

According to trials conducted by Vietnam Food Joint Stock Company (VNF), on Dai Thom 8 rice, spraying Oligochitosan twice at the heading stage reduced the rate of dirty-panicle (grain-spotting) infection by about 17% compared with the control — on par with a commercial product but more cost-efficient. For nematode control, the Kito-Nim preparation delivered over 80% eradication efficacy after 48 hours.

These results suggest that chitosan derivatives such as ChitoBlossom (Chitosan), Oligochitosan and Kito-Nim can control pests while nourishing the soil ecosystem — something chemical pesticides struggle to achieve at once. VNF says similar trials are being expanded across durian, rice and vegetable crops.

From shrimp by-products to sustainable agriculture The story of Vietnam Food Joint Stock Company (VNF) points to a direction for modern agriculture: turning a discarded by-product into a “biological shield” for crops. As biological crop protection gradually replaces conventional chemicals, farmers gain another option for healthier plants, microbe-rich soil and safer produce — contributing to sustainable farming and to the circular economy of Vietnam’s shrimp industry.