The aim is to substantiate the development of vegetable growing industry in the process of diversification of the economy of Atyrau region. In the methodological aspect, the research on vegetable crops cultivation was carried out on the basis of the deduction method, the consequence of which is the logical conclusion that vegetable production of farms in the region is environmentally safe. Methods of analysis and synthesis were used in determining the competitive parameters of production and the level of its intensification in the period of rising prices for fuels and lubricants. Results - the current state of the vegetable sector of the region, problems and potential opportunities were analyzed, the profitability of the vegetable subcomplex was shown. Recommendations aimed at expanding the scope of management, providing agricultural enterprises with timely and objective information important for making management decisions have been developed. Conclusions - it is necessary to constantly intensify research and development work on the development of new vegetable varieties, their approbation and introduction into practice, which will increase productivity at lower costs. Sectors should pay attention to the quality of vegetable products, their shelf life, useful properties for human health and adaptation to local climatic conditions. The authors note the feasibility of establishing workshops for processing biomass waste and rejected low-grade products. It is concluded that the vegetable market has a high capacity and is characterized by stable demand, which makes it attractive for investment. Investments are the decisive factor of technological, economic and social renewal of economic entities. In dynamics, the innovation activity of agricultural entities is increasing, although it is lower than in the economic system as a whole. The state should become the coordinator of innovation processes in the industry. There are all prerequisites for building up the competitive advantages of the industry.