Investing in high-tech agriculture not only enhances the value of Vietnam’s agricultural products but also contributes to environmental protection, meets the stringent requirements of international markets, and builds a sustainable agriculture sector for the future. Compliance with international regulations on sustainable agricultural production is key to enabling Vietnamese agricultural products to access new and expand existing export markets.

Politburo Resolution No. 57-NQ/TW dated December 22, 2024, on breakthroughs in science, technology, innovation, and national digital transformation, along with a National Assembly (NA) resolution on piloting specific mechanisms and policies to address challenges in scientific and technological activities, holds significant importance for high-tech industry. These policies have a broad impact on the development of high-tech and smart agriculture in Vietnam, and create favorable conditions for research and the application of modern technologies, attract investment in smart agriculture, improve productivity and product quality, and help Vietnam’s agriculture sector meet international standards for sustainable development.

The application of high technologies such as AI, the Internet of Things (IoT), big data, automation, and sensors in agricultural production optimizes production processes, reduces cost, conserves resources, and enhances land-use efficiency.

Sustainable & smart

A key solution for sustainable and smart agricultural development is to enhance research and technological innovation, particularly in precision farming, smart supply chain management, and production system optimization. Policies should focus on encouraging businesses to invest in agricultural technology, supporting cooperatives in accessing capital, and applying modern technology in production.

The implementation of pilot projects on digital agriculture, such as utilizing sensors and real-time monitoring systems for land, water, and crop management, will improve productivity while minimizing any environmental impact. The government should establish mechanisms to encourage businesses to develop technological solutions for agriculture while facilitating technology transfer to farmers and agricultural cooperatives.

Compliance with international regulations on sustainable agricultural production is crucial for Vietnam’s agricultural products to access and expand export markets. The European Union Deforestation Regulation (EUDR), which mandates that agricultural products imported into the EU must not be associated with deforestation and strictly adhere to traceability requirements, presents significant challenges. However, it also creates a chance for Vietnam to promote sustainable agricultural models, leveraging technology to monitor and certify product origin.

The country must develop a transparent traceability data system and adopt blockchain technology to manage supply chains, ensuring that products meet international standards. Supporting farmers in transitioning to sustainable production models, minimizing the use of harmful chemicals, and adopting environmentally-friendly farming practices will also enhance the global competitiveness of Vietnamese agricultural products.

Research and innovation in smart agriculture have made notable progress around Vietnam but challenges remain. Leading players such as VinEco, TH True Milk, and HAGL Agrico have pioneered the adoption of technology in agricultural production, but most smallholder farmers and small enterprises face difficulties in accessing advanced technology due to constraints in capital, human resources, and technical infrastructure. Thus, the government needs to introduce financial support policies, provide skills training, and expand international cooperation to accelerate digital transformation in agriculture.

Learning from EU programs such as Horizon Europe and the Digital Europe Programme, particularly projects leveraging big data and smart sensors for agricultural monitoring, will enable Vietnam to rapidly develop a smart and sustainable agriculture sector.

Digital agricultural models must be promoted to enhance the efficiency of high-tech agriculture, utilizing data platforms for analyzing farming conditions, weather forecasting, and supply chain optimization. The integration of advanced technologies such as AI, IoT, and cloud computing into farm management systems will improve production efficiency, mitigate climate change risks, and optimize resource utilization.

It is also essential to build a smart agricultural ecosystem by connecting researchers, businesses, cooperatives, and farmers, facilitating the sharing of information, expertise, and technological applications in real-world production.

Comprehensive strategy and multilateral coordination

With support from Resolution No. 57 and the NA’s reform policies, Vietnam’s agriculture sector has a significant opportunity to develop in a more sustainable and smart direction.

This requires close coordination between the government, businesses, research institutes, and science and technology organizations to implement comprehensive solutions, from financial support and workforce training to technology transfer and expanding export markets. Investing in high-tech agriculture will enable Vietnam to enhance the value of its agricultural products, contribute to environmental protection, meet the stringent requirements of international markets, and build a sustainable agriculture sector for the future.

Firstly, Vietnam must accelerate research, innovation, and capacity building in smart and sustainable agriculture, leveraging science and technology as the foundation for development. Drawing lessons from programs like Horizon Europe, the country should focus investments in AI, IoT, big data, cloud computing, and automation in agricultural production. These solutions will optimize production processes, reduce resource losses, increase productivity, and ensure sustainable development. Additionally, establishing a real-time agricultural data monitoring system will help farmers and businesses make more precise decisions, thereby improving production efficiency.

Secondly, developing digital infrastructure and a shared data space for the agriculture sector will strengthen connectivity and information sharing between stakeholders. Inspired by European models, Vietnam can establish a national agricultural data platform where real-time information on climate, soil, supply chains, yields, and traceability is stored and analyzed. This will enhance forecasting capabilities, ensure transparency, and elevate the export standards of Vietnamese agricultural products.

Thirdly, the government should support farmers and businesses in accessing digital technology through agricultural innovation centers and technology testing hubs. Following EU models and establishing advanced testing facilities for AI, agricultural robotics, and environmental sensors, will facilitate the evaluation, verification, and effective deployment of technology. At the same time, investing in innovation centers in key agricultural production regions will bridge the gap between businesses, research institutes, and farmers, accelerating the transition from research to practical application.

Fourthly, enhancing digital skills training for the agricultural workforce is crucial to ensuring a successful digital transformation. Comprehensive training programs in agricultural technology, covering data management, automated machinery operation, and AI applications, will help workers improve their skills and adapt to modern production trends. Specialized courses for farmers should also be developed, to guide them in utilizing advanced technologies in cultivation, preservation, and product distribution.

Fifthly, Vietnam must actively implement circular economy models and ecological agriculture to minimize any environmental impact. Applying technology in water resource management, waste treatment, and renewable energy development for agricultural production will optimize resource use, reduce greenhouse gas emissions, and meet international sustainability standards, especially the new requirements in the EUDR.

Sixthly, fostering international cooperation in high-tech agriculture will allow Vietnam to leverage resources and expertise from developed countries. It will be able to participate in collaborative projects with Europe, Japan, South Korea, and Israel to access cutting-edge technology, expand markets, and enhance research capabilities. The government should establish mechanisms to support businesses in accessing international funding programs such as Horizon Europe and the Digital Europe Programme to finance innovation projects in smart agriculture.

Overall, developing smart and sustainable agriculture in Vietnam requires a comprehensive strategy with coordinated effort from the government, businesses, research institutes, and the farming community. Only by fully harnessing the potential of technology and innovation can Vietnam’s agriculture sector compete internationally, meet increasingly stringent standards, and move toward a greener, more efficient, and sustainable production system.

^(*) Associate Professor Nguyen Dinh Tho and Ms. Dinh Thu Trang are from the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE)