Developing Digital Agriculture and Rural Development

Bringing agricultural households onto e-commerce platforms is the first breakthrough in digital agricultural development, Deputy Minister of Information and Communications Pham Anh Tuan said in a request delivered to localities, demanding quick coordination with businesses to build detailed plans in August.

Bringing 5 million agribusinesses onto e-commerce platforms

The National Digital Transformation Program, announced by the Prime Minister in 2020, defines agriculture as one of eight priorities to accelerate economic growth, agricultural economic development, and rural development. On July 21, 2021, the Ministry of Information and Communications also issued Decision 1034/QD-BTTTT on a plan to support agricultural households on e-commerce platforms and foster digital agriculture and rural development.

This plan aims to bring agricultural production households onto e-commerce platforms to connect, promote and introduce products; add new distribution channels and expand domestic and international markets; support business households to boost agricultural consumption on e-commerce platforms; and accelerate consumption and prevent congestion of agricultural products.

Speaking at an online conference on dissemination and guidance for the implementation plan to bring agricultural businesses onto e-commerce exchanges and promote digital agriculture and rural areas on August 11, Mr. Nguyen Trong Duong, Deputy General Director of Enterprise Management Department under the Ministry of Information and Communications, said developing digital agriculture means exploring the market, and introducing agricultural businesses to e-commerce floors by digital technology. Digital application changes agricultural production methods and digital agricultural forms, and leads all-embracing digital transformation in agriculture and rural development.

Citing experiences in selling lychee for Bac Giang in May 2021, he emphasized that more than 8,000 tons were sold in 63 provinces and cities through two platforms, Postmart and Voso. Many people had the opportunity of tasting Bac Giang fresh lychee for the first time because platforms pledged to deliver the product to them in 48 hours. This was also the first time that Vietnam exported agricultural products under the “Make in Vietnam” cross-border e-commerce model. More than 1,000 Vietnamese families living in Belgium, Germany and the Czech Republic enjoyed fresh lychee fruits, which were worth VND4 billion.

According to Deputy Minister of Information and Communications Pham Anh Tuan, in late 2021, the ministry and localities planned to bring five million agribusinesses onto e-commerce platforms and gradually apply this approach in 2022 and beyond.

Participation of central and local authorities and businesses are needed

According to experts, agricultural sales on e-commerce platforms remain very modest, incommensurate with the potential and strengths of many localities. Data from the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development) showed that, up to now, 7,987 farming households and 14,594 agricultural products are present on e-commerce platforms. This is a very small number relative to conventional selling channels.

In addition, selling products on e-commerce platforms still faces many obstacles. For example, farmers are not familiar with selling products by this new method. Furthermore, infrastructure is not good enough and traceability of products is a difficult issue because of consumer habits or logistical problems, especially for fresh products. Therefore, to achieve the goal of digital transformation in the agricultural sector, it is necessary to engage central and local agencies and businesses.

Mr. Nguyen Khac Lich, Director of Lang Son Department of Information and Communications, said that the department has coordinated with the Department of Industry and Trade, the Department of Agriculture and Rural Development, districts, communes and villages across Lang Son province to develop digital stores and electronic payment accounts for customers. As of August 10, Lang Son had 4,445 booths, 2,971 e-wallets/electronic payment accounts, 2,759 concluded orders and 3,500 product types. Total revenue was nearly VND519 million.

He suggested central agencies assist in shipping to buyers, especially in large markets. In addition, Lang Son Department of Information and Communications asked Voso and Postrmart exchanges to regularly modify and upgrade technology to match local realities.

Mr. Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development under the Ministry of Agriculture and Rural Development, said the ministry is directing accelerated digital transformation in the agricultural sector, especially encouraging the digital economy to each farmer, and taking farmers as the cross-cutting component in agricultural restructuring. In order to support farming households on e-commerce platforms, the Ministry of Agriculture and Rural Development will provide input information such as fertilizers, drugs, farming, weather and natural disasters, which are necessary for farmers.

To carry out Plan 1034, the Ministry of Information and Communications will also focus on bringing farmer households onto two e-commerce platforms, Postmart.vn of Vietnam Post and voso.vn of Viettel Post. The ministry will direct postal companies, especially Vietnam Post and Viettel Post, to send agricultural businesses on e-commerce platforms, focusing on maximizing domestic consumption, and introducing Vietnamese agricultural products on media channels.

Deputy Minister Pham Anh Tuan directed Provincial/Municipal Departments of Information and Communications to advise the provincial government to coordinate with the Departments of Agriculture and Rural Development, the Departments of Industry and Trade, and the two postal service providers to develop a detailed action plan in August.

Agencies under the Ministry of Information and Communications and the Departments of Information and Communications will provide support on communication for people. The ministry’s technology units will support the two postal service firms to provide digital platforms and guide agricultural businesses to bring their products to such platforms. Special attention should be paid to the fact that households on the platforms must have their information about accounts, records and identity standardized. Platforms must be standardized to act as the foundation for the digital economy.

By Thu Ha, Vietnam Business Forum