Development of High-tech Agriculture in the Context of Industrialization and Urbanization: The Case of Vietnam

Nội dung text: Development of High-tech Agriculture in the Context of Industrialization and Urbanization: The Case of Vietnam

1. ISSN 2588-1299 VJAS 2020; 3(3): 663-678 Vietnam Journal of Agricultural Sciences Development of High-tech Agriculture in the Context of Industrialization and Urbanization: The Case of Vietnam Nguyen Anh Tru, Tran Huu Cuong & Vu Ngoc Huyen Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Hanoi 131000, Vietnam Abstract The aim of this article is to assess the importance and development of high-tech agriculture in Vietnam under the context of industrialization and urbanization. Due to pressure from international economic integration and climate change in recent years, high-tech agriculture seems to be an affordable direction for Vietnam to renovate the agricultural sector. Although high-tech agriculture has existed in different locals and sub-sectors of agriculture such as crop, livestock, and aquaculture, and Vietnam has obtained initial achievements in adopting high-tech agriculture, this country has to face a number of challenges related to land, credit, information technology, and human resources in the process of developing high- tech agriculture. Lastly, policies are recommended to facilitate the development of high-tech agriculture in Vietnam. Keywords High-tech agriculture, industrialization, urbanization, Vietnam Introduction By 2050, the world must produce 70 percent more food, using less energy, fertilizer, and pesticides while lowering levels of greenhouse gases (GHGs) and coping with climate change. To deal with these issues, agriculture 4.0 has been created with the central roles of science and technology. This means the future of agriculture will use sophisticated technologies such as robots, temperature and moisture sensors, aerial imaging, and global positioning system (GPS) technology, which will support businesses to operate more Received: June 11, 2020 Accepted: November 10, 2020 profitably, efficiently, safely, and environmentally friendly. With agriculture 4.0, farmers can use the minimum quantities of water, Correspondence to fertilizers, and pesticides across entire fields (Clercq et al., 2018). nguyenanhtru@vnua.edu.vn Many countries all over the world have encouraged the ORCID application of modern technology in agriculture, especially the Nguyen Anh Tru technologies of the 4th Industrial Revolution. In developed countries, 1419 “precision agriculture” or “smart farming” are common concepts 663
2. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam before the occurrence of “Agriculture 4.0”. In the Vietnam lags behind regional peers such as U.S., the first official definition of “precision Thailand and China in agricultural land, labor, agriculture” (PA) was proposed by the U.S. and water productivity, and these have led to a House of Representatives in 1997, which decline of the total factor of productivity in identified PA as an integration of information recent years. In the domestic market, concerns and production-based farming system that is about food safety are growing. Further, designed to increase long-term, site-specific, and Vietnamese agriculture is facing domestic whole-farm production efficiency, productivity, competition from cities, industries, and services and profitability as well as minimizing any for laborers, land, and water. As a result, overuse unintended effects on wildlife and the of inputs (fertilizer, pesticides, etc.) and natural environment (Gebbers & Adamchuk, 2010). In resources, which impact both the environment the European Union (EU), about 70-80 percent and farmer profitability, are increasing. Some of new farm equipment traded in the market has environmental problems negatively affect both some content of PA (EU, 2014). Between 2018 productivity and the international position of and 2020, the EU committed to spending around Vietnam’s commodities (World Bank, 2016). 100 million EUR to facilitate the application of Although Vietnam has gained some digital technology in agriculture. The main achievements on developing high-tech purpose of this budget is to train farmers to use agriculture in recent years, the adoption of high- new technology, develop data analysis tools, tech agriculture still presents limitations such as invest in digital infrastructure, establish an low labor productivity, low efficiency, and low innovation ecosystem, and construct digital and income for farmers, and high-tech agriculture has data platforms for agriculture. In Asia, the only been applied in some big businesses Republic of Korea began implementing the (Nguyen Xuan Cuong, 2019). strategy “Agriculture’s smartization” in 2013 to In Vietnam, the agriculture sector employs expand the adoption of the Information and the most natural and human resources of the Communication Technologies (ICT) and the country. The development of high-tech model of smart farming across the country. In agriculture enhances not only economic Taiwan, the “Productivity 4.0 Initiative” for the efficiency, but also helps achieve sustainable period 2016-2024 was approved in 2015, in environmental development. Therefore, the which one important component is the development of high-tech agriculture has been “Agricultural Productivity 4.0” program. This defined as a feasible alternative for countries that program includes two main orientations, namely depend on the agricultural economy like Vietnam smart production and digital services. In (Nguyen Thi Ngoc Anh, 2020). Due to Thailand, “Agriculture 4.0” has been defined as agricultural development, the ecological one of three pillars of the “Thailand 4.0” environment in Vietnam is degraded and initiative (PRD, 2017). worsening the livelihoods of humans. Further, The export turnover of agro-products of the processes of globalization, urbanization, and Vietnam is still very low because most of the industrialization of the economy facilitates agricultural commodities of this country have agricultural production, but they may also lead to been produced by backward production unsustainable development (Nguyen Thanh Tuan technologies, exporting in raw forms or, in other & Nguyen Duc Hoang Tho, 2020). High-tech words, just supplying raw materials for foreign agriculture has been identified as an alternative companies to further process them into higher to boost production efficiency, achieve value items. Thus, technology innovation in sustainable development, and minimize agricultural development in combination with unintended impacts on the environment in high-tech applications in agriculture is the right Vietnam, especially in the expansion of direction for Vietnam to increase the industrialization and urbanization. This article productivity, quality, and value of agricultural aims to assess the importance and development products (Le Tat Khuong & Tran Anh Tuan, 2014). of high-tech agriculture in Vietnam under the 664 Vietnam Journal of Agricultural Sciences
3. Nguyen Anh Tru et al. (2020) context of industrialization and urbanization. of agricultural products in addition to making More importantly, policies are recommended to them safe and environmental-friendly (Duong facilitate the growth of high-tech agriculture in Anh Dao, 2012; Luu Tien Dung & Nguyen Thi this country. Kim Hiep, 2017). The remainder of the paper is organized as follows. The second section analyzes the Characteristics definitions, characteristics, and roles of high-tech First, the objects of high-tech agriculture are agriculture. The third section presents the crops and animals. However, unlike traditional research methodologies. The fourth section agriculture, high-tech agriculture creates new highlights an overview of high-tech agriculture varieties that are of a high quality and have in countries around the world and lessons for shorter life cycles. Second, soil may be Vietnam. The fifth section analyzes the effects of substituted by another landscape due to reductions industrialization and urbanization on high-tech of cultivated land areas in the world. Third, high- agriculture in Vietnam. In the sixth section, we tech agriculture is integrated with advanced discuss high-tech agriculture in Vietnam. Lastly, technologies. Fourth, massive quantities of conclusions and policy implications are agricultural products are produced by adopting summarized in the seventh section. high-tech agriculture. Last, the production process of high-tech agriculture is a perfect round, running from research to production and consumption Definitions, Characteristics, and Roles (Duong Anh Dao, 2012). of High-tech Agriculture Definitions Roles In Western countries, high-tech agriculture First, high-tech agriculture produces and is defined as advanced agriculture by employing supplies food to humans to ensure the modern technology, biotechnology, development of socio-economics and provides environment, and ecology in order to develop raw materials to processing industries. Second, agriculture in a safe and sustainable orientation high-tech agriculture assists in attracting such as green agriculture, organic agriculture, resources from both domestic and foreign and ecological agriculture. The main purpose of individuals and organizations in order to develop high-tech agriculture is to produce and supply the agriculture sector. Third, high-tech enough agricultural products to the society in agriculture is in charge of boosting yields and addition to protecting the natural environment improving the quality as well as reducing (Duong Anh Dao, 2012). production costs of agricultural products. Fourth, high-tech agriculture assists in improving the According to Chinese scientists, high-tech abilities of laborers and adjusting the labor agriculture is the adoption of new technologies structure. Fifth, high-tech agriculture encourages such as biotechnology, information technology, people to maximize land use and increases the cosmos technology, and automatization, etc. in significance of land. Finally, high-tech agriculture agricultural production. facilitates the industrialization and modernization In India, since 1999, the term “high-tech of the country (Duong Anh Dao, 2012). agriculture” has been understood as all modern technologies, which depend less on the environment, that are applied in agriculture in Research Methodology order to enhance productivity and improve the Data collection quality of agricultural products (Duong Anh Secondary data for this research was gathered Dao, 2012). from various sources, including reports and studies In Vietnam, high-tech agriculture is released by the General Statistics Office of identified as modern farming methods that Vietnam, the Food and Agriculture Organization of reduce the costs of inputs and increase the value the United Nations (FAO), and the World Bank. 665
4. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam Methods of analyses and greenhouses (over 11,000 hectares, accounting for 25 percent of total area of the Descriptive statistics were employed to world’s greenhouses) along with modern and analyze the effects of industrialization and automatic facilities and equipment. urbanization on high-tech agriculture and Consequently, production performance is 5–6 describe the importance and development of times higher than that of outdoor production high-tech agriculture in Vietnam. For instance, (Duong Anh Dao, 2012). the trend of contribution of sectors, namely agriculture, forestry, and fishery (AFF), and Every year, this country sells to the market industry and construction, and services to GDP about 5.5 thousand types of cut flowers, 2 for five years (2012-2016) has been discussed to thousand varieties of plants, 2.2 thousand types address that contribution of AFF to the of horticulture plants, and 7 billion root flowers, Vietnamese economy tends to decrease, while on average. There are about 200 varieties of tulip contribution of services to the economy grown in the Netherlands on 8.5 thousand increases. Further, index of industrial production hectares. Several high-yielding fruits and of Vietnam tended to increase between 2012 and vegetables are produced in this country such as 2016 and this implies a rise of industrialization tomatoes (600-700 tons/hectare/year), sweet process in the country. Lastly, the urban chilies (300 tons/hectare/year), apples, and peas population rate of Vietnam increased by 6.1 (20 tonnes/hectare/year). The market share of percent from 29.1 percent in 2008 to 35.2 percent potatoes exported from the Netherlands accounts in 2017 and this reflects the development of for 60-70 percent of the global market. The urbanization in this country. Dutch husbandry sector is extremely developed with 20 million dairy-cows, 20 million meat- cows, 13.5 million pigs, and nearly 100 million An Overview of High-tech Agriculture in chickens. Further, the aquaculture sector also the World and Lessons for Vietnam presents high efficiency (Duong Anh Dao, 2012). High-tech agriculture in the U.S. The success of Dutch agriculture is a result In the U.S., the government has adopted of the following reasons: (1) construction and technological advances on agriculture in order to adjustment of production structures to foster the enhance productivity since the early 20th century. competitive ability of agricultural production in Since the early 1980s, there have been more than the world market; (2) innovation of production 100 scientific and technological zones for practices by increasing production scales and agriculture. investments, and adopting technological Agriculture practices that have been applied advances in production; (3) development of farm in this country include high-tech irrigation and agricultural cooperative models toward systems, new variety development, specialization; and (4) establishment of biotechnological advances in planting, and important roles for the State in policy genetically modified organisms (GMOs). involvement, market, and infrastructure Agricultural production in traditional farms in development, and environment protection the U.S. has been transformed into modern (Duong Anh Dao, 2012). production based on science, research, and development such as high-yielding GMO High-tech agriculture in Israel potatoes and slim-trunk banana varieties Since the early 1980s, ten high-tech (Nguyen Thu Phuong, 2018). agricultural zones have been constructed in Israel that created a total revenue of 200,000 USD per High-tech agriculture in the Netherlands hectare. With greenhouse technology, tomato With a strategy of “high investment - yields reached 300 tonnes/hectare, which is four massive production”, agricultural infrastructures times higher than that of outdoor production. of the Netherlands have been known as the most Israel only has 360,000 hectares of arid soil for modern in the world, including irrigation systems agriculture and a shortage of water, but it 666 Vietnam Journal of Agricultural Sciences
5. Nguyen Anh Tru et al. (2020) produces and supplies enough food for domestic infrastructures. Fifth, the State assists farmers in demands and exports. Within the past 5 years, the establishing and looking for markets for their value of agricultural production of this country products (Vu Thi Thuy Hang, 2019). exceeded 3.5 billion USD, in which exports now account for more than 20 percent. Currently, an Lessons for Vietnam Israeli farmer can produce enough to feed 100 Some lessons have been identified and can people (Nguyen Thu Phuong, 2018). be applied to the development of high-tech The above achievements are the result of agriculture in Vietnam. First, construction on efforts of the Israeli government in constructing high-tech agriculture zones expresses the a national plan for high-tech agriculture interests of the State in agriculture, farmers, and development with the stages of planning, rural communities. Second, biotechnology is constructing projects, and managing projects. defined as an essential assignment. Third, Israel has been known as a leading country in support policies from the government for terms of distributing national budgets to research developing high-tech agriculture zones is and implementing high-tech agriculture. necessary. Fourth, the success of high-tech Recently, this country has been able to control agriculture needs to be supported by various the volume and quality of agricultural products factors such as infrastructure, land, capital, such as fruits and vegetables, milk, eggs, typology, and climate. Finally, it is necessary for potatoes, and chickens (Nguyen Thu Phuong, Vietnam to develop human resources for high- 2018). tech agriculture. High-tech agriculture in India Effects of Industrialization and Starting in the early 21st century, the Indian Urbanization on High-tech Agriculture government began to implement the second renovation in agriculture which has three major in Vietnam themes as follows: (1) enforcement of investments In the eleven years following reunification, in agriculture; (2) priority of electrification in rural the unified country followed the socialist areas and irrigation; and (3) eradication of subsidy development model placing greater emphasis on mechanisms in agriculture and enhancement of rural areas and on building a ‘planned economy’ international cooperation in agriculture (Vu Thi that entailed the distribution and concentration of Thuy Hang, 2019). industries in select centers. Since the This country enacted many policies related implementation of “Doi Moi” policies in 1986, to high-tech agriculture. First, the expansion of the Vietnamese government began to introduce accessing advanced technologies. The main liberal market mechanisms, which encourage objective of this policy is to foster productivity, private-sector initiatives, while retaining its role reduce production costs, and improve the quality as the nation’s strategic planner and enforcer. of agricultural products. Second, enhancement of Although Vietnam has embarked on a trajectory adopting information technology on agriculture of rapid economic liberalization with the in order to promote information support services inception of Doi Moi, its government has also to farmers. By April 2016, this country released implemented a variety of policies to facilitate a the electronic National Agriculture Market (e- more even distribution of economic growth and NAM) which covers 585 wholesale markets urban development. For instance, Government across the country. In addition, the electronic Decision No. 10 in 1998 on the Urban System farm (e-Farm) program has been developed to and Development Strategy to 2020 called for the assist consumers in terms of decreasing concerns development of medium and small sized cities about food reservation. Third, concentration on while containing the growth of the largest cities. training high-quality human resources to satisfy Subsequently, the Government accepted the the requirements of modern agriculture. Fourth, possibility of the rise of mega-cities with investment in market research and populations over 10 million (Government 667
6. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam Decision No. 445 in 2009). The 2011-2020 in 2017. This reflects the trend of urbanization in Socio-Economic Development Strategy accepts this country (Figure 1). that urbanization will be necessary to promote During the decade from 2007 to 2016, the the country’s goals of industrialization and percentage of the Vietnamese urban population modernization (World Bank, 2011). having access to electricity reached 100 percent, Over a five-year period, the share of and this implies that all households in urban areas agriculture, forestry, and fisheries (AFF) can use electricity for their living needs (Figure contributing to the gross domestic product (GDP) 2). of Vietnam decreased by about 3 percent from As seen in Table 3, the area of new housing more than 19 percent in 2012 to more than 16 construction in Vietnam increased by about 12 percent in 2016. By contrast, the contribution of million square meters from more than 81 million services to the GDP increased by about 3 percent square meters in 2012 to more than 93 million in the same period, while industry and square meters in 2015. In terms of housing type, construction (IC) contributed about 33 percent to most construction areas were private houses. In the GDP. These imply that the economic the whole country, regions with large areas of structure of Vietnam has been transformed housing construction included the Red River through reducing the contribution of AFF, while Delta, Mekong River Delta, and North Central increasing contributions of services and IC to the and Central coastal areas (Table 3). economy (Table 1). As seen in Table 2, the index of industrial production of Vietnam presents a moderate High-tech Agriculture in Vietnam growth for the half decade from 2012 to 2016, The importance of high-tech agriculture to especially in the sub-sectors of electricity, gas, Vietnam steam, and air conditioning supply and Due to the adverse effects of climate change, manufacturing (Table 2). the agriculture sector in Vietnam will face major The proportion of the Vietnamese urban changes by the end of the century. For example, population increased by about 6 percent from the salinization of the Mekong Delta and the about 29 percent in 2008 to more than 35 percent decrease in agricultural land highlight the issues Table 1. Contributions of economic sectors to the gross domestic product of Vietnam (%) Items 2012 2013 2014 2015 2016 Agriculture, forestry, and fisheries (AFF) 19.22 17.96 17.70 17.00 16.32 Industry and construction (IC) 33.56 33.19 33.21 33.25 32.72 Services 37.27 38.74 39.04 39.73 40.92 Products taxes less subsidies on production 9.95 10.11 10.05 10.02 10.04 Total 100.00 100.00 100.00 100.00 100.00 Source: General Statistics Office of Vietnam (2017) Table 2. Index of industrial production of Vietnam (%) Items 2012 2013 2014 2015 2016 Mining and quarrying 105.0 99.4 102.4 107.1 93.2 Manufacturing 105.5 107.6 108.7 110.5 111.3 Electricity, gas, steam, and air conditioning supply 111.5 108.4 112.5 111.4 111.5 Water supply, sewage, waste management, and remediation activities 108.2 109.5 106.3 106.9 108.0 Total 105.8 105.9 107.6 109.8 107.4 Source: General Statistics Office of Vietnam (2017) 668 Vietnam Journal of Agricultural Sciences
7. Nguyen Anh Tru et al. (2020) 40 34.5 35.2 33.1 33.8 35 31.1 31.8 32.4 29.1 29.8 30.4 30 25 % 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Figure 1. Urban population changes in Vietnam over a ten year period Source: World Bank (2020d) 100.1 100 99.9 99.8 99.7 % 99.6 99.5 99.4 99.3 99.2 99.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Figure 2. Urban population access to electricity in Vietnam over a ten year period Source: World Bank (2020e) Table 3. Area of new housing construction by type of house and by region in Vietnam (thousand m2) Items 2012 2013 2014 2015 Type of house Apartment 1,844 3,361 2,326 2,324 Private house 79,469 83,260 87,517 91,098 Region Red River Delta 18,841 22,345 21,618 20,659 Northern midlands and mountainous areas 10,829 12,329 12,662 14,327 North Central and Central coastal areas 17,382 17,717 19,023 19,237 Central Highlands 5,321 5,640 5,966 6,092 South East 10,338 10,875 11,271 13,736 Mekong River Delta 18,602 17,715 19,303 19,371 Total 81,313 86,621 89,843 93,422 Source: General Statistics Office of Vietnam (2017) 669
8. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam the nation will face. High-tech and climate-smart tends to depend on other sectors such as industry agriculture, which incorporate sustainability, and services rather than AFF (Figure 4). economic growth, and environmental pressures, The crop, livestock, and food production can formulate new farming methods and indices of Vietnam significantly increased for a products to mitigate this trend. The government decade (2007–2016), especially in the livestock has already taken steps in promoting high-tech production index. This implies remarkable agriculture with its 4.4 billion USD credit line for achievements of this country in the programs high-tech agriculture projects. To maintain concerning food security for this decade and the growth and commitment to high-tech and transformation in the structure of the agricultural climate-smart agriculture from farmers in the sector by increasing the share of the livestock region, introducing a pilot program or proof of concept to stakeholders will build trust and buy- sub-sector and reducing the contribution of the in that will ultimately lead to implementation crop sub-sector (Figure 5). (Ong, 2017). In Vietnam, there are a number of sources As seen in Figure 3, the proportion of leading to carbon dioxide (CO2) emissions in agricultural land of Vietnam increased by nearly agriculture. The majority of CO2 emissions in 7 percent from more than 32 percent in 2007 to agriculture are caused by rice cultivation, more than 39 percent in 2016 due to the followed by synthetic fertilizers. Thus, it is exploitation of non-use land areas. However, in necessary to foster high-tech agriculture in order the last three years of the period (2014-2016), the to build up advanced cultivation practices and rate of agricultural land remained nearly stable at fertilizer applications to reduce CO2 emissions in about 39 percent (Figure 3). agriculture (Figure 6). In Vietnam, the GDP growth rate was higher The gross output of products from cultivated than the AFF growth rate between 2007 and land increased by about 12 million VND (516 2016. The AFF growth rate dropped by nearly USD) from more than 72 million VND in 2012 three times from 4 percent in 2007 to 1.4 percent to more than 84 million VND in 2016, while the in 2016, while the GDP growth rate decreased by gross output of products from aquaculture nearly one percent in the same period. During the increased by about 42 million VND (1,806 USD) period of 2014-2016, the AFF growth rate in the same period. These results imply the sharply declined, while the GDP growth rate importance of the adoption of science and remained stable at more than 6 percent. This technology in agriculture in terms of enhancing suggests that the economic growth of Vietnam the gross value of products per hectare (Table 4). 2016 39.3 2015 39.3 2014 39.2 2013 35 2012 34.8 2011 34.7 2010 34.7 2009 33.2 2008 33 2007 32.5 0 5 10 15 20 25 30 35 40 45 Figure 3. Percentages of agricultural land out of the total land area of Vietnam Source: World Bank (2020c) 670 Vietnam Journal of Agricultural Sciences
9. Nguyen Anh Tru et al. (2020) 8 7 6 5 % 4 3 2 1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Annual AFF growth rate Annual GDP growth rate Note: AFF denotes agriculture, forestry, and fisheries. GDP means gross domestic product. Figure 4. Annual growth rate of AFF and GDP of Vietnam Source: World Bank (2020a) 160 140 120 100 80 2006=100 - 60 2004 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Crop production index Livestock production index Food production index Figure 5. Crop, livestock, and food production indices of Vietnam Source: World Bank (2020b) 35000 30000 25000 20000 15000 gigagrams 10000 5000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Manure management Rice cultivation Synthetic fertilizers Manure applied to soil Manure left on pasture Crop residues Figure 6. Carbon dioxide emissions in agriculture of Vietnam Source: FAO (2020) 671
10. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam Table 4. Gross output of products per hectare of cultivated land and aquaculture water surfaces in Vietnam (million VND) Items 2012 2013 2014 2015 2016 Cultivated land 72.8 75.7 79.3 82.6 84.5 Aquaculture water surfaces 145.3 157.6 177.4 178.1 187.1 Source: General Statistics Office of Vietnam (2017) Note: VND means Vietnam Dong (Vietnamese currency unit) There are numerous reasons that have been growth. The number of firms operating in the identified to develop high-tech agriculture in agriculture, forestry, and fishery industry Vietnam. First, there are drawbacks to the increased from 3,517 enterprises in 2012 to 4,500 development of agriculture in Vietnam in recent enterprises in 2016 and 5,661 in 2017. In years. According to the estimation of the General addition, the expansion of start-up enterprises in Statistics Office of Vietnam, by January 2019, agriculture is attractive to young laborers and there were nearly 5.7 thousand households in corporations in recent years. For example, some poverty (equivalent to 19.6 thousand poverty corporations are investing in high-tech inhabitants). Although agriculture contributes agriculture such as VinEco Agricultural only 20 percent of the GDP, the number of Investment, Development and Productions, LLC. agricultural laborers decreased by about 1.6 (a member of Vingroup), TH Group, and Viet million from 20.8 million in the first quarter of UC Seafood Corporation, etc. This is an 2018 to 19.2 million in the same period of 2019. important element to establish high-tech Technological progress in agriculture is agricultural corporations in Vietnam. evaluated to lie between Agriculture 1.0 and Fourth, policies on the development of Agriculture 2.0. Natural disasters such as socio-economics of Vietnam support developing typhoons, floods, and drought, and risks related high-tech agriculture. The development of high- to deforestation, soil erosion, and environmental tech agriculture is one of the prioritized pollution negatively affect agricultural directions that was presented in policies issued production and exportation. by the Vietnam Communist Party and the Second, the development of high-tech Government of Vietnam, including the High-tech agriculture is a crucial trend in recent times, Law in 2009, Decision No. 176/QD-TTg issued especially in developing countries like Vietnam. by the Prime Minister on 29 January 2010 on the For instance, Vietnam is concentrating on Approval for a Plan of Application of High-Tech developing the economy, but sometimes social Agriculture toward 2020, Decree No. 55/ND-CP and environmental issues have been neglected. of the Government on Preferential Loans for Thus, sustainable agricultural development Agriculture and Rural Development, the Plan for models should be encouraged since these are Development of High-Tech Agriculture issued of suitable for the development of Vietnamese the Ministry of Agriculture and Rural agriculture. Development, and a credit package of 100,000 Third, Vietnam has huge potentials for billion VND provided to high-tech agricultural developing high-tech agriculture. By 2018, 22 enterprises (Nguyen Thi Ngoc Anh, 2020). high-tech agricultural zones were planned based on the decision of the Prime Minister; 35 high- Policies on High-tech Agriculture of tech agricultural enterprises were approved by Vietnam the Ministry of Agriculture and Rural Development; and 3 high-tech agricultural areas The high-tech law have been approved by provinces and cities in the This law was issued by the National whole country. Support policies on science and Assembly of Vietnam on July 1, 2009. The main technology are essential motivators to foster scope of this law is to regulate high-technology agricultural growth, and technological advances policies and solutions in order to encourage and contribute about 30-40 percent to agricultural foster high-tech activities. 672 Vietnam Journal of Agricultural Sciences
11. Nguyen Anh Tru et al. (2020) Decision 2457/QD-TTg of the Prime Minister high-tech agricultural zones, including This decision was issued by the Prime vegetables, fruit, coffee, tea, dragon fruit, cows, Minister on December 31, 2010, and regulates poultry, and shrimp; (3) develop legislation, the approval of the national program on organization, and human resources for the high- development of high-tech until 2020. The overall tech agricultural zones; and (4) construct aim of this decision is the promotion, ownership, mechanisms and policies for the high-tech and creativity of high-tech; efficient application agricultural zones. of high-tech to socio-economic sectors; product Toward 2030: manufacturing and establishment of high-tech (1) Complete the build-up of infrastructure industries; and construction of infrastructure and for the high-tech agricultural zones; and (2) human resources for high-tech. expand the scope and objectives for the high-tech agricultural zones. Decision 1895/QD-TTg of the Prime Minister This decision was issued by the Prime Decision 19/QD-TTg of the Prime Minister Minister on December 17, 2012, and refers to the This decision was issued by the Prime approval of the program in development of high- Minister on April 19, 2018, and regulates the tech agriculture within the National Program on criteria, rights, procedures, and formalities for Development of High-Tech toward 2020. The high-tech agricultural enterprises. decision demonstrates three major objectives in the period 2016–2020. First, enforcement of developing high-tech in agriculture in order to Aspects of High-tech Agriculture in create from two to three new varieties for crops, Vietnam cattle, and aquaculture, which have high yield, In Vietnam, science and technology premium quality, and adequate disease applications in agricultural production are resistance. Second, enforcement of the adoption engaged by various stakeholders such as the of high-tech agriculture on the production of State, scientists, businesses, and farmers. A agri-products that have high yield, premium credit package of 4.4 million USD with interest quality, competitive capacity, and are safe to rates 0.5-1.5 percent lower than the average enhance the share of high-tech agricultural interest rate for high-tech and clean agriculture, products which currently accounts for about 35 has been provided to agricultural enterprises to percent of the total value of agricultural expand their production. Commercial banks in production in whole country. Third, Vietnam, namely Agribank, Vietcombank, and establishment of 200 agricultural enterprises that the Bank for Investment and Development of can adopt high-tech in provinces and cities Vietnam (BIDV) are in charge of offering credit located in pilot economic zones; and the packages for these high-tech agriculture project construction of one or two high-tech agricultural loans disbursed for agriculture equipment, zones in each agricultural-ecology zone. technology, production, fertilizer, and pesticides. A recent issue of enterprises is that Decision 575/QD-TTg of the Prime Minister their property and assets are not acceptable This decision was issued by the Prime collateral for bank loans. Other incentives are Minister on May 4, 2015, and regulates the also available for investments to manufacture overall plan on high-tech agricultural zones until agricultural equipment or production of 2020 and the direction toward 2030. The decision biological products. If an enterprise builds a addresses specific goals until 2020 and toward plant to process agro-forestry-aqua products, 2030. the government will support up to 60 percent of Until 2020: the total investment which is equivalent to 7 billion VND (318,000 USD). (1) Construct ten high-tech agricultural zones; (2) concentrate on key agri-products in the Apart from national incentives, many cities and provinces have established specific 673
12. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam mechanisms to assist businesses and attract more processing, and preserving products, and investors. Some locations have become desirable technology transfer. destinations for high-tech agricultural In 2016, a solution in planting vegetables via businesses, such as Ho Chi Minh City, Lam smart phones was developed by the agriculture Dong, Vinh Phuc, and Quang Ninh provinces. start-up Hachi and it obtained remarkable Currently, Vietnam has three high-tech outcomes. This system uses the Internet of Things agricultural zones in Hau Giang, Phu Yen, and (IoT) to design crop apps, which are convenient for Bac Lieu provinces. In addition, 28 agricultural customers living in the city. Risks in the planting businesses applying high technologies are process such as drought and soil nutrition shortages certified by the government. Nine firms are reduced by the assistance of the application. As specialize in growing vegetables and flowers, a result, productivity increases from 30 to 50 eight others breed animals, and eleven operate percent compared to traditional planting methods in aquaculture. Three other provinces have and more importantly, it can also be applied to rice plans to construct high-tech agricultural zones, plantations. First, farmers enter data relating to the namely Thai Nguyen, Thanh Hoa, and Lam status of their rice crops through a smartphone app, Dong provinces. By the end of 2017, there were which is then sent to a processing unit. Second, 15 high-tech agricultural projects supported by based on information about soil, climate, and plant the government. Investments of the State range growth, a quick summary with advice is then from 156.3 billion VND to 284.5 billion VND. recommended to farmers. Most projects have small and medium scales High-tech agriculture should meet three and consequently, these have negligible impacts basic requirements, namely economies of scale, on society and industry. Some high-tech linkage to value chains, and ensuring bargaining projects applied in agricultural zones are power of farmers. However, the majority of inconsistent because of capital shortages and agriculture models are just in a period of unfavorable locations. transformation, with small land plots and In the domestic market, many corporations, backward technology, and consequently, it is companies, and large enterprises invest more in very difficult to apply high-tech to large-scale high-tech agriculture such as Hoang Anh Gia Lai agriculture. Moreover, land is another issue that Group, Hoa Phat Group, and Vingroup. For interrupts both domestic and foreign investors to example, Loc Troi Group, through its Centre for invest in Vietnam’s agriculture sector. The Research and Production of Biological Products, starting point of agriculture in Vietnam is at a low has produced advanced and high-quality bio- level and inferior in both information technology organic crop protection products. TH True Milk (IT) application and production compared to uses world-class technologies for its water other countries in both regional and international purification, cattle breeding, management levels. Rugged terrain in the mountainous areas software system for monitoring animal health, is also a constraint to building up a good Internet comfort, and milk production, and dairy network, which is an essential condition to processing plant. Vingroup is implementing the implement high-tech agriculture. The credit first phase of a 650 billion VND (29.8 million support policy for high-tech agriculture is USD) high-tech agricultural center project on 43 ineffective because the application of high-tech out of 200 hectares, producing about 20 types of requires a huge amount of investment, while vegetables and fruits based on VietGap capital recovery is slow. The shortage of high- standards. Cutting-edge technologies from quality human resources to manage and operate Japan, Israel, and the Republic of Korea are modern equipment is another problem for employed to ensure products meet VietGap, Vietnam to implement high-tech agriculture. GlobalGap, and organic food standards. They are With large-scale agricultural production, farmers striving to shape a high-tech agricultural should be agricultural workers and shareholders production zone with a center for procuring, of agricultural enterprises (Luu Tien Dung & Nguyen Thi Kim Hiep, 2017). 674 Vietnam Journal of Agricultural Sciences
13. Nguyen Anh Tru et al. (2020) The application of ICT in Vietnamese concentrates on technologies such as preventing agriculture is still in its early stages. Some soil erosion, protecting soil and soil moisture, enterprises have started to provide services that calculating farming possibilities, and terrace support decision-making by providing field methods for sloping terrains to increase information on weather, production vegetation covers; adopting active irrigation by methodologies, or markets. Some have also building reservoirs and applying more effective established experimental farms, allowing them to methods like spraying and dripping; and measure the effectiveness of their production designing complete processes for fertilization, system using ICT equipment. Although there has nutrition, and wastewater treatment. not yet been sufficient analysis of these Due to the development care of agricultural experiments, there is a growing expectation that authorities as well as strengthening international ICT application will make agriculture more investments for environment and climate change efficient and create more added value. Given adaptations, high-tech agriculture development urban consumers’ increasing interest in “safe” or of Vietnam has made progress in recent years. “green” products and the growing presence of Vietnamese enterprises have opportunities to foreign retailers, demand for precision access soft loans or non-refundable aids for agriculture will surely increase in the future. agricultural practices towards environmental Increased opportunities to export agricultural protection and adaptations to climate change products thanks to Vietnam’s participation in from the UK Aid, the Australian Aid, the World free trade agreements will also increase demand Bank, and the ADB through the Vietnam for ICT applications since those products must be Business Challenge Fund (VBCF), Vietnam produced in accordance with importers’ Inclusive Innovation Project (VIIP), and other certification requirements. The increased projects financed by the World Bank and connectivity brought by ICT may also benefit the coordinated by the Ministry of Planning and many who have recently shifted to these new Investment (Nguyen Huu Ninh & Hoang Thi commodities, including corporate farms and the Bich Hop, 2019). farmers who switched from grain to non-grain crops, who will need information on production Challenges methodology and markets. Moreover, ICT Although there are many opportunities for application is also expected to enable more developing high-tech agriculture in Vietnam, the efficient production, reduce water use and other country is also facing various challenges. High- inputs, and reduce the labor requirements tech agriculture development not only requires a (Sakata, 2019). full legal basis but also needs synchronous technological development, risk management, Opportunities and Challenges for High- and risk forecast systems as well as enhancing tech Agriculture in Vietnam international cooperation and facilitating massive participation of the private sector in Opportunities agricultural production through public-private In order to respond to climate change and partnership (PPP) to expand economic ensure food security and agricultural opportunities for the private sector to ensure sustainability, the Government of Vietnam has efficient agricultural production. adopted the “National Target Program to Although the cooperation pattern between Respond to Climate Change and Rising Sea authorities, scientists, enterprises, and farmers Levels” and the “Green Growth Strategy in the has been expanded in agricultural production of period 2011-2020, with a vision toward 2050” as Vietnam in recent decades, this pattern must well as developing organic farming methods and overcome numerous existing bottlenecks. These safe agriculture in Vietnam through challenges include an inconsistent environment collaborations with international organizations. for the engagement of the private sector in Sustainable agricultural development usually agricultural production and a shortage of 675
14. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam investment capital in agriculture due to high risk, There are several policies we recommended slow capital recovery, and low profitability. that should be implemented to facilitate the Further, a lack of truth between parties in development of high-tech agriculture in agricultural contracts is defined as another Vietnam. First, high-tech agriculture must be challenge. Both enterprises and farmers may considered as the top priority in agricultural easily break contracts signed in the cases that reform. The government should clarify and solve firms are unable to process and sell final products land issues in order to encourage land to the market or farmers sell their products to accumulation for large-scale agricultural merchants to obtain higher prices. In addition, development. Specifically, quotas on agricultural scientific and technical farming improvements in land in the 2013 Land Law need to be removed Vietnam lag behind advanced countries and the or loosened to establish large-scale agricultural process of technology transfer from foreign zones that are suitable for adopting high-tech counties to Vietnam is expensive. agriculture. Second, implementation of consistent credit policies that assist businesses Finally, Vietnam is one of the largest rice- exporting countries in the world. Climate change and farmers to develop and apply high-tech affects not only Vietnam but also food security in agriculture. For instance, a credit package worth the region and the world. According to an 100 trillion VND (4.4 billion USD) to invest in estimation of the United Nations in 2013, the the development of high-tech agriculture at lower global population will continue to rise, and the than market rates provided by the government is world’s population is predicted to reach 8.2 necessary to encourage, support, and promote the billion in 2025 and 9.6 billion in 2050. development of high-tech farming applications. Worldwide agricultural production is more Third, the country should continue to improve complex due to the adverse effects of climate policies on the promotion of research, change. Thus, Vietnam should promote innovation, incubation, transfer, technology regulations for a green and adaptive agricultural development, and technology application to economy and support small and medium-sized agricultural production, with an emphasis on enterprises to take part in global value chains that policies to promote the scientific and look toward sustainable development (Nguyen technological potential of the contingent of Huu Ninh & Hoang Thi Bich Hop, 2019). scientists to assist enterprises in developing high- tech agriculture. Fourth, the country should encourage both domestic and foreign enterprises Conclusions and Policy Implications to invest in high-tech agriculture. To tackle this This article aims to examine the importance assignment, the government should introduce and development of high-tech agriculture in more specific policies in both medium and long Vietnam under the context of industrialization terms. The public-private partnership model and urbanization. Due to pressure from should be promoted to attract more investments international economic integration and climate in agriculture. Fifth, partnerships among the change in recent years, high-tech agriculture can State, scientists, businesses, and farmers should be identified as a feasible direction for Vietnam be consolidated to ensure success of adopting to renovate the agricultural sector. Although high-tech agriculture. For example, the State high-tech agriculture has existed in different should focus on constructing and releasing macro locals and sub-sectors of agriculture such as policies related to land, credit, taxes, science and crop, livestock, and aquaculture, and Vietnam technology, and human resource management. has gained initial achievements in adopting Scientists have responsibilities in researching high-tech agriculture, this country has to face a and inventing new varieties, technology, and number of challenges related to land, credit, IT, practices that can be adopted in high-tech and human resources in the process of agriculture. Enterprises and farmers are in charge developing high-tech agriculture. of investing and implementing high-tech agriculture models. Finally, high-tech agriculture 676 Vietnam Journal of Agricultural Sciences
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16. Development of high-tech agriculture in the context of Industrialization and urbanization: The case of Vietnam of urban population access to electricity in Vietnam. ce=2&series=NV.IND.TOTL.ZS&country=# on April Retrieved from 20, 2020. World Bank (2020e). World development indicators. Rate &series=EG.ELC.ACCS.ZS&country=# on April 20, 2020. 678 Vietnam Journal of Agricultural Sciences