Vietnam’s planted area for coconut is fast declining from 220,000 ha in 1992 to 150.000 ha in 2002. In many places the planted areas have fallen due to strong competition from other income generating crops. Low productivity, declining coconut prices and small planted area per household are some of the difficulties faced by the coconut industry. A number o f coconut products are being exported from Vietnam such as coconut oil, desiccated coconut and shell charcoal. Many coconut oil producers are forced to close down due to lack of raw material and price fluctuations. However, desiccated coconut has made better sales where in 2003 export volume was double that of 2001. Vietnam’s Government has recently formulated a long-term strategy for oil plants up to the year 2010 including coconut. The Government planned to increase coconut area to 159,000 ha and invest US$. 25 million for coconut cultivation and provide various support program for the coconut industry.