Vietnam generates nearly 160m tonnes of agricultural waste and by-products annually, with post-harvest crop residues accounting for over 90m tonnes (56.2%).
Thank you for reading this post, don't forget to subscribe!At the same time, this large volume presents significant potential for upcycling initiatives.
“Vietnam’s agricultural sector has advanced in waste valorisation, converting crop residues, seafood, and fruit by-products into biomass energy, biofertilisers, animal feed, and high-value derivatives like collagen, chitosan, and protein hydrolysates. Fruit waste is repurposed into jams, snacks, cider, and functional ingredients, while fermentation and enzymatic hydrolysis extract starch and essential oils.
“Despite this progress, challenges remain in fully adopting circular agriculture and upcycling technologies. As a food scientist, I see technological and infrastructural limitations as a major bottleneck. The high cost of equipment, coupled with a lack of research tailored to local agricultural conditions, makes it challenging to scale solutions that are both economically viable and technically feasible,” Dr Tuyen Truong, Program Manager of Food Technology & Nutrition at RMIT University Vietnam, told FoodNavigator-Asia.
Furthermore, low market value, limited consumer demand, high processing costs, and a shortage of skilled labour are also said to discourage small and medium-sized producers from investing in waste utilisation.
“Beyond technical constraints, low awareness and engagement from stakeholders, including farmers, processors and regulatory bodies, also pose significant challenges. Many producers still follow conventional, linear production models, with limited consideration for circular economy principles.
“The absence of structured incentives and support mechanisms further delays the adoption of sustainable waste-processing solutions. Despite these challenges, Vietnam’s commitment to circular agriculture is growing. Strengthening policies, incentives, and industry training will be key to advancing upcycling technologies.”
Innovating functional and sustainable food applications
At RMIT Vietnam, the team led by Dr Truong has conducted close to three years of research dedicated to upcycling agri-food waste using advanced technologies.
One of its key projects focuses on precision fermentation using molasses, a by-product of sugar production, as a substrate to cultivate microbial oil. The aim is to develop a sustainable edible oil alternative with a nutritional profile similar to dairy lipids.
In the initial phase, the team has managed to isolate microbial strains from Vietnamese food sources capable of producing non-toxic oils, with one strain particularly rich in beta-carotene. This extra functional nutritional benefit could “add significant value” for local farmers and food manufacturers.
“Additionally, we are collaborating with RMIT Australia to upcycle pomelo peel and corn cobs — through hydrothermal treatment and freeze-drying — into fibre-rich sorbents that function as fat replacers in meat products, without compromising the mouthfeel of fat-reduced foods.
“In our trials with semi-dry chicken sausages, we achieved 100% fat substitution, successfully replicating fat functionality while enhancing dietary fibre content and reducing caloric value.
The core innovation lies in converting pomelo peel into aerogels, allowing just 5% of pomelo peel powder to absorb up to 95% oil. This approach maintains the juiciness and texture of traditional fat-containing products, which helps ensure consumer acceptability.
“This technique is highly adaptable and can be applied to other fruit and vegetable by-products that contain bioactive compounds, fibres, and antioxidants, broadening its impact across the agri-food sector.
Unlocking potential
In Vietnam, rice straw is the most abundant agricultural by-product (42.8m tonnes per year), but it is still largely burned (46%).
“However, with advanced upcycling technologies, rice straw can be converted into bio-based packaging, biodegradable materials, and biochar for soil enrichment,” said Dr Truong.
Cassava waste is another major by-product, with 700,000 tonnes of cassava peels and 4m tonnes of cassava pulp generated annually.
While some of it is used in bioethanol production and animal feed, fermentation and enzymatic processing can unlock its potential for prebiotic fibers, organic acids, and bioplastics.
Similarly, sugarcane by-products, such as bagasse and molasses, can be utilised for biofuels, biodegradable tableware, and natural sweeteners.
“Many of Vietnam’s agricultural by-products can be upcycled into high-value food products. There are local innovations that have turned seafood waste into valuable products. For example, shrimp shells, shrimp heads and fish waste are processed into chitosan, protein hydrolysates, and fish meal into functional foods.
“For low-value fruit by-products, fruit vinegar, fermented juices, dragon fruit seed oil, and herbal teas offer new applications. Given Vietnam’s abundant agri-food waste, the focus should be on extracting bioactive compounds, prebiotics, dietary fibres, vitamins and phenolic acids, to create clean-label, functional food ingredients.”
In addition, natural pigments from by-products provide safer alternatives to synthetic dyes, with potential applications in food, pharmaceuticals, and cosmetics.
“Our ultimate goal is to establish a strong foundation for upcycling techniques. By developing scalable, science-driven solutions, we aim to increase economic opportunities for farmers and food processors, and contribute to a more sustainable food system and environment.
“Looking ahead, metabolic engineering of microorganisms holds vast potential. Once the integration between biotechnology and advanced food processing is fully realised, we can translate these techniques to utilise other agri-food by-products and further expand waste valorisation solutions.”
