Removing Barriers to Hi-Tech Agriculture Development

Agriculture is an important component of the Vietnamese economy, but it faces many challenges. Increasing food demand, shrinking agricultural land, and the need for higher labor productivity underscore the sector’s pressures to ensure food security, meet quality standards, and uphold environmental responsibilities. Consequently, the advancement of high-tech agriculture has become an essential trend for Vietnam’s agricultural sector.

Developing high-tech agriculture is necessary for countries around the world, and particularly important for Vietnam

Shortcomings in agricultural development policy

Thanks to successful agricultural development, after nearly 40 years of innovation, once a country struggling with food shortages, Vietnam has been able to meet the food needs of its 100 million people and achieve a significant increase in income, which has risen 2.3 times over the past decade. The country now boasts agricultural export turnover exceeding US$50 billion annually. This success is largely attributed to the application of advanced science and technology and improved management practices, which have markedly enhanced the quality and value of agricultural products. Between 2010 and 2022, agricultural revenue per hectare nearly doubled, increasing 1.95 times, while aquaculture revenue surged by 2.45 times, according to the General Statistics Office.

However, despite many achievements, Vietnam's agricultural sector is still facing many difficulties in development, especially high-tech agriculture. According to Mr. Le Van Tuan, Deputy Head of Credit Policy Department, Vietnam Bank for Agriculture and Rural Development (Agribank), recent policies aimed at advancing high-tech agriculture have faced several shortcomings. Challenges include difficulties in issuing asset ownership certificates for agricultural land and supporting customers with mortgage procedures for bank loans. The criteria for high-tech and clean agriculture programs remain unclear, with no designated agency responsible for project verification. This lack of clarity has left commercial banks without a reliable basis for issuing loans under these programs.

An important factor in developing high-tech agriculture is the inadequate investment capital. High-tech agriculture requires substantial funding for infrastructure, environmental management, plant and livestock improvements, machinery, technology, and workforce training. For instance, establishing a medium-sized high-tech livestock farm can cost approximately VND140-150 billion - 4 to 5 times more than a traditional farm. Similarly, constructing a complete greenhouse with Israeli technology for automated irrigation and fertilization can cost between VND10 billion and VND15 billion per hectare.

In addition, to produce high-tech agriculture, it is necessary to have a large area of land in a favorable location for production and circulation of goods. However, at present, agricultural development lacks planning, the process of land accumulation and concentration is still slow. Agricultural land policies have not encouraged farmers to protect land and invest long-term in agricultural land is still very fragmented.

Moreover, Vietnam's endogenous capacity in agricultural science and technology remains insufficient, failing to meet production demands. Challenges include inadequate research and technology transfer, and a lack of mastery in deep processing technologies. Consequently, enterprises often rely on foreign technology transfers, hindering the advancement of high-tech agriculture in the country.

In particular, the compliance of parties when participating in the value chain and the agricultural insurance market has not developed commensurately.

Notably, the quality of human resources in Vietnam's agricultural sector falls short of development and integration requirements. The qualifications of the labor force significantly impact their ability to adopt modern science and technology. Additionally, the training programs for agricultural experts are inadequate and do not sufficiently align with real-world needs, further impeding progress.

Establishing legal frameworks for financial institutions in high-tech agriculture

Developing high-tech agriculture is necessary for countries around the world and is especially important for Vietnam. However, reality shows that the process of applying high-tech in agriculture still faces many difficulties and complications, requiring many synchronous and drastic solutions. According to Tuan, to effectively support high-tech agri-enterprises, ministries and agencies should establish legal frameworks, regulations, and guidelines. These measures are needed to create a clear legal environment for businesses and financial institutions, facilitating their involvement in the high-tech agricultural sector and green finance initiatives. In addition, the Government should implement policies to support the costs associated with designing fields and infrastructure, establishing concentrated production zones for commodity agriculture, and covering expenses related to measurement, documentation, and land conversion. This support should extend to organizations, farmer households, and enterprises investing in high-tech agricultural production areas.

For enterprises, organizations, individuals, Tuan said that support for market promotion is required and should include diverse strategies such as participation in international conferences, seminars, and fairs. Assistance should be provided to enterprises and farmers for branding and marketing high-tech agricultural products.

Regarding science and technology, according to Tuan, it is necessary to develop application models and transfer scientific and technological advancements to agriculture. This includes collaborating with departments, institutes, universities, scientific organizations, businesses, and international entities to gather existing data and documents. It is also necessary to build and apply a system of standards, technical regulations in agricultural product quality management gradually in accordance with international standards (Global Gap), create many environmentally friendly agricultural products with outstanding quality, features, high added value, and ensure public health.

“Human resources play a very important role in developing high-tech agriculture. Universities, institutes and academies need to have quality training programs, attracting young workers with research ability in high-tech application in agriculture. In addition, it is necessary to offer both short-term and ongoing vocational training for farmers, as well as provide targeted education for businesses and farmers on high-tech agriculture practices,” Tuan shared.

By Lan Anh, Vietnam Business Forum