The application of high technology and digitalization in agriculture has become a breakthrough trend, playing an important role in the development of sustainable agriculture of the country.
One of the biggest benefits of digitizing agriculture is improved productivity and production efficiency. High technologies such as the Internet of Things (IoT), artificial intelligence (AI) and smart sensors, allow farmers to monitor and manage critical factors such as water, soil, light and temperature on the farm. Through the use of automation systems and data analysis, farmers can optimize production processes, from planting, crop care to harvesting, which increases productivity and reduces waste,…
DIGITAL TRANSFORMATION IN AGRICULTURE IS STILL … FRAGMENTATION
The latest report of Deloitte Vietnam has shown that in the next 5-10 years, Vietnam’s agriculture will face “great” trends related to issues such as population, urbanization, agricultural technology, climate change, trade globalization, etc.
According to Ms. Nguyen Thi Hiep, Director of SAP Services and Digital Practive, Delloitte Vietnam, it is forecasted that by 2050 the global population will reach over 10 billion people. With such rapid population growth, ensuring food security requires increasing productivity and increasing agricultural output in the near future.
In addition, farmers in the future will also face and compete with new players, so embracing new technological solutions and ecosystems is necessary.
“Application of digitalization, biotechnology, new technological techniques,… will enable higher productivity for agriculture, reduce costs and contribute to environmental protection. The accuracy in the process of growing crops and agricultural production will reduce up to 40% of the amount of fertilizer used”, Ms. Hiep emphasized.
However, according to Nguyen Minh Tuan, co-founder of TechCoop Technology and Investment Cooperation Joint Stock Company, the implementation of digitalization and technology in agriculture in Vietnam still faces difficulties.
- One of the first difficulties to mention is that the situation of agricultural production in Vietnam is still fragmented, small, seasonal production, so access to capital is still difficult or impossible. “Farmers’ loans are small, for a short period of 3-9 months and without collateral, so it is difficult for financial institutions to accept,” Tuan said.
- The next difficulty is that the implementation and application of the traceability system requires a huge investment of funds. There are many other difficulties mentioned by businesses such as the system of documents, standards and regulations that are not detailed; traceability has not been implemented synchronously and uniformly across the country…
- Statistics from the Vietnam Cooperative Union also show that digital transformation is still slow and small. Of the 1,718 cooperatives applying high technology, only 240 cooperatives used smart production and management software, accounting for 1.5%. These cooperatives also only focus on the application of irrigation technology, net house system, traceability stamping. The application of digital transformation to processing, managing cooperatives, trading products has not really been focused.
NEED LINKS TO ACCELERATE DIGITALIZATION
Although there are still many difficulties in the process of application, implementation of digitalization and technology, many businesses have actively promoted cooperation projects towards the development of green and circular agriculture.
For example, since 2011, Nestlé Vietnam has cooperated with the Central Highlands Institute of Agriculture and Forestry Science and Technology, the Provincial Agricultural Extension Center, the Ministry of Agriculture and Rural Development,… initiated the NESCAFÉ Plan. The program has successfully linked with farmers in the Central Highlands, improved the quality of Vietnamese coffee beans, applied sustainable farming methods, replanted old coffee trees, and increased income for farmers.
Nestlé Vietnam said that regenerative agriculture also helps improve soil quality and fertility as well as protect water resources and biodiversity. Improving soil quality also helps increase the ability to absorb carbon into the soil, reducing emissions. The program has helped farmers replant 63,000 hectares of old coffee, reduce irrigation water by 40% and chemical fertilizers/pesticides by 20%, increase income by 30-100% by applying a rational intercropping model and reduce carbon emissions per kilogram of coffee harvested.
With the aim of raising awareness and digital transformation capacity for agricultural producers, in the past year, Grab has collaborated with the Department of Agricultural Product Processing and Market Development (Agrotrade), the Department of Enterprise Development (AED), the Trade and Investment Promotion Center – Vietnam Cooperative Alliance (ITPC-VCA) to implement many communication programs, training to train digital skills and support digital transformation for more than 800 agricultural cooperatives in some provinces and cities.
In addition, many technology “giants” have also aimed to cooperate in raising the level of agricultural production, processing and export in Vietnam. Recently, True Digital Vietnam and TechCoop Technology and Investment Cooperation Joint Stock Company signed a strategic cooperation agreement to provide a comprehensive solution package for agricultural companies with the aim of promoting the rapid and sustainable growth of green and modern agriculture in Vietnam.
This cooperation project is implemented according to the orientation of the Ministry of Agriculture and Rural Development of Vietnam on piloting the construction of agricultural and forest material areas meeting standards for domestic consumption and export in the period of 2022 – 2025. This is one of the important goals in Vietnam’s agricultural development strategy to increase productivity, product quality, and export value of Vietnamese agricultural products to the world.
Previously, at the end of April 04, TechCoop also signed an investment cooperation agreement worth USD 2023 million with Sen Dai Viet to apply digital technology 10.4, ensuring the supply to the market of safe, high-quality products that meet export standards.
With what is happening, analysts have high expectations for public-private cooperation between businesses, cooperatives, farmers in the fields of science, technology and technology,… will contribute to improving productivity and product quality in Vietnam’s agriculture in the future, as well as actively contributing to the implementation of the country’s high-tech agricultural development strategy.