Key Takeaways
- Vietnam’s agricultural technology sector is largely untapped, with only 3% of its enterprises utilizing high-tech solutions.
- Challenges include limited technology adoption due to inadequate telecom infrastructure and an older farmer demographic.
- The government aims to enhance broadband access and 4G/5G coverage by 2025-2030 to facilitate agricultural modernization.
Growth Potential in Vietnam’s Agricultural Technology
Vietnam’s agricultural technology market shows substantial potential despite current underdevelopment, as noted at a recent forum on digital innovation in agriculture. Held by the Center for Trade and Agriculture Promotion, the event highlighted the modest progress in digital transformation within this sector.
Deputy Director Nguyen Kim Phuc of the Department of Digital Transformation revealed that Vietnam has approximately 290 high-tech agricultural enterprises, which represent only 3% of the industry. There are also 690 high-tech production zones and nearly 2,000 cooperatives leveraging modern technologies. This limited adoption hints at an immense opportunity for growth within agricultural technology.
Opportunities for innovation, particularly in smart mechanization, are becoming apparent. The use of around 3,000 drones in production illustrates a shift towards modern practices, while the emergence of digital farming is paving the way for a more advanced agricultural landscape. Technologies such as blockchain and the Internet of Things (IoT) have enhanced product traceability and quality control, with many exported goods now equipped with area codes and QR codes to satisfy global standards.
Despite these advancements, obstacles remain. The uptake of technology across the agricultural value chain is hampered by weak telecommunications infrastructure, particularly in rural and mountainous regions. Unstable 4G coverage and inadequate broadband access lead to inflated costs for deploying IoT solutions and drones. Additionally, an aging farmer population poses challenges to the embrace of modern technology.
To combat these difficulties, the Ministry of Agriculture and Environment has called for increased investments in rural telecom and IT infrastructure. The goal is set to achieve comprehensive broadband access, stable 4G/5G services, and widespread smartphone availability in every village and hamlet by 2025-2030. This initiative aims to establish the groundwork for a more inclusive and modern agricultural sector in Vietnam.
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