Modernizing Vietnamese agriculture involves addressing a range of interconnected challenges through strategic policy, technology adoption, and market development.
Main Challenges for Vietnamese Agriculture
Several key obstacles to the modernization and sustainable development of Vietnam's agricultural sector:
• Structural and Scale Issues: A significant challenge is the small, fragmented nature of production, with as much as 70% of farming households operating on less than 0.5 hectares. This 'manh mún' (fragmented) scale makes it difficult to apply modern technology and achieve economies of scale.
Additionally, while cooperatives are being developed, their numbers are
increasing slowly, and many are not yet effective in connecting farmers
with businesses.
• Environmental and Climate Pressures: The agricultural sector frequently faces difficulties from natural disasters, climate change, and complex disease outbreaks.
Specific issues include intense heat, drought, saltwater intrusion, and
storms, which have severely impacted production and infrastructure,
particularly in regions like the Mekong Delta and the Central Highlands.
• Technology and Knowledge Gaps: While technology is a key solution, its adoption faces barriers. The cost of implementing advanced technologies like the Internet of Things (IoT) can be high, potentially increasing the final price of agricultural products.
Furthermore, many farmers are not in the habit of using smartphones or
computers to manage their farms, preferring traditional, manual
inspection methods.
In the startup ecosystem, particularly in organic farming, many
entrepreneurs lack a comprehensive vision and knowledge, often being
strong in agriculture but weak in finance or management. Many also have short-term business plans (1-3 years) which is insufficient for long-term success in organic agriculture.
• Market and Regulatory Hurdles: Vietnamese agriculture faces various market barriers. These include the European Commission's (EC) "Yellow Card" against illegal, unreported, and unregulated (IUU) fishing, which Vietnam has not yet succeeded in removing. Other issues include the illegal import of livestock, which disrupts domestic production and risks spreading diseases, and the need to adapt to new international standards for markets like Halal foods.
Global trends such as protectionism and non-tariff barriers based on
environmental standards also pose a challenge to agricultural exports.
• Resource Constraints: The sector is affected by the shrinking availability of land and labor, as these resources are increasingly shifting to other economic sectors due to urbanization and industrialization.
Solutions and Strategies for Modernization
Outline a multi-faceted approach to modernizing Vietnamese
agriculture, focusing on strategic reorientation, technology,
sustainable models, and market expansion.
Strategic Reorientation and Policy:
◦ There is a significant push to shift from a purely production-based mindset to a more holistic "agricultural economy" mindset.
This involves integrating multiple values into agriculture, such as
developing it as a high-tech industry connected to services, tourism,
and the green/carbon economy.
◦ The government is driving this change through frameworks like Resolution 19, which aims to promote sustainable development in agriculture, for farmers, and rural areas ("tam nông").
◦ Provincial governments are also creating detailed plans, such as Kiên Giang's project to develop organic agriculture, which includes specific targets, zoning for organic crops and livestock, and financial support for farmers and businesses.
Technology, Mechanization, and Science:
◦ Smart Agriculture (IoT): Applying IoT solutions can help farmers gain better control over production.
This includes using sensors to collect real-time data on weather and
soil conditions, monitoring crop growth and livestock health, and
automating processes like irrigation and fertilization. Drones are also being used for tasks like spraying pesticides and sowing seeds.
◦ Scientific Advancement: Modernization is supported by research and the application of new technologies, including the development of 42 new crop varieties and 14 technical advances in 2024 alone. These innovations aim to create high-yield crops and breeds that are resilient to diseases and climate change.
◦ Mechanization and Processing:
Efforts are underway to increase mechanization across the production
chain and invest in deep processing to enhance product value and reduce
post-harvest losses.
Sustainable and High-Value Farming Models:
◦ Organic and Green Agriculture: There is a strong focus on developing clean, organic, and circular agriculture.
Models like integrated rice-shrimp farming create an ideal environment
for organic production, forming a closed-loop system where waste from
one process becomes input for another
.
◦ Production Restructuring: The sector is being restructured to prioritize products with a competitive advantage and high value
Market Development and Economic Integration:
◦ Expanding Exports: A key solution is to expand market access for agricultural products. This includes negotiating to remove trade barriers, leveraging Free Trade Agreements (FTAs), and entering new potential markets like the global Halal food industry, which requires international cooperation on certification standards
.
◦ Strengthening Value Chains: The government is promoting a "6-house" linkage model (farmer – enterprise – scientist – bank – State – distributor) to create stronger value chains
.
◦ Domestic Market and E-commerce: Alongside exports, the domestic market is being strengthened through the use of e-commerce platforms like Postmart, Shopee, and Tiki, which help connect producers directly to consumers
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