Innovation capacity is broadly seen as an essential component of firm’s competitiveness and many scholars have emphasized the importance of different forms of innovation in fostering the performance of firms. While there is a general acknowledgment of the significance of innovation within any organization, the debate persists regarding the factors that determine innovation at the firm level. Also, studies on the impacts of innovation capacity on the performance of agricultural firms in Vietnam context still very limited. The aim of this study is to investigate the impacts of innovation capacity on the performance of agricultural firms in Vietnam from the survey data of 195 respondents in the central Vietnam. The results of this study shown that four types of innovation that significantly impact on the firm performance are arranged sequentially, from high to low as follows: marketing innovation, process innovation, product innovation and organizational innovation. The study results suggest that agricultural firm’s managers should focus on practices that enhance the effectiveness of marketing, product innovation to improve the firm performance.