Vietnam is an agricultural country with the population about 91.7 million, of which 66% are living in the rural area based mainly on crops, fishery, and livestock. Even the government try to reduce agricultural sector but it is still dominated as agriculture employed 44.0% of the labor force, contributed 17.0% of the GDP and 15.6% of total export values in the year 2015 (GSO, 2016a). Therefore, development of scientific research and the application of innovations in the agricultural sector is an importance policy in the country. Since 1993, the agricultural extension system was created by the Prime Minister’s Decree No. 13/CP. Under this Decree, the agricultural extension network has been spread out from national to provincial and district levels. Establishment of extension services has contributed to food security, agricultural development and poverty reduction during the last some decades. However, under socio-economic and environmental changes presently the agricultural extension system is required to improve. The objective of this paper is to study the current status of agricultural system in Vietnam and its challenges through desk study and analyzing of available data and information such as institutional arrangement, human resource, financial investment, activities and related policies in order to develop suitable recommendations for further development in agricultural extension services in particular and agricultural sector in general.