Abstract: Studying the vulnerability of rural industrial development from the perspective of farmers is different from traditional studies. Based on relevant vulnerability theories and combining farmers’ subjective feelings towards industrial development with various influencing factors of their livelihood, this paper developed a vulnerability assessment index system incorporating three aspects of exposure, sensitivity, and adaptability to assess the vulnerability of five villages in Qingyuan County of Liaoning Province and discussed its influencing factors. Results show that the overall vulnerability of rural industrial development in Qingyuan County is at the moderately vulnerable level (0.479). Different villages show different levels of vulnerability. The vulnerability in Chuanzigou is the lowest (0.397) because of its strong adaptability and low exposure. In terms of factor analysis, the difference of income security factor among villages is the most obvious: Chuanzigou village has the lowest income security among all the villages. Per capita income of rural households has the greatest impact on the vulnerability. Environmental risk and aging rate also have great impacts on vulnerability. Among different industries, cash crop planting has the most obvious pulling effect on farmers per capita income, which can reduce vulnerability of rural industrial development in Qingyuan County. To reduce the vulnerability, this paper suggests: expanding Chinese herbal medicine industry to promote farmers’ income, focusing on environmental protection practices to retain the “lucid waters and lush mountains”, and addressing human capital shortage problems to promote human capital.