February 24, 2024

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Vietnam Approves Plan to Boost Digitisation in Agriculture Sector

Image credit: Ministry of Information and Communications

The Ministry of Information and Communications (MIC) has approved a plan to enable agricultural production households to operate on e-commerce platforms, aiming to develop the agricultural and rural digital economy. According to a press release, the plan has set the following objectives:

  • All agricultural production households must meet the criteria to operate on either the Vietnam Post Corporation or Viettel Post JS Corporation e-commerce portals.
  • All products of the One Commune, One Product programme that meets the three-star criteria of provinces and centrally-run cities will be traded on e-commerce platforms.
  • All production households will be trained in digital and business skills.
  • The Ministry will help promote the consumption of agricultural products on e-commerce sites as well as advertise products and expand domestic and international markets.
  • The Ministry will select raw materials and tools for agricultural production from reputable brands and set reasonable prices.
  • Production households will be provided with information on product markets, demand forecasts, agricultural production capacity, weather data, crops, and fertilisers through e-commerce and digital platforms.

MIC stated that to achieve these goals, close and effective coordination is needed among relevant ministries and agencies, namely the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, local departments, and e-commerce floors to guide and support production households, individual business households, cooperatives, and small traders. Last July, MIC approved a plan to move agricultural production households online to boost the digital economy in rural areas. After more than four months since the plan began, over four million agricultural production households joined e-commerce floors, more than 49,000 agricultural products were put online, and over 67,500 transactions were clocked.

By February 2022, more than 5.2 million agricultural production households were trading their products on e-commerce floors. Over 5.7 million agricultural production households were trained in digital skills, and more than 65,000 products were posted on the e-commerce floor with nearly 79,000 transactions processed.

The Minister of Agriculture and Rural Development recently informed that Vietnam’s agriculture sector aims for a growth target of 2.5-3% annually until 2030 with agricultural productivity at 5.5%. Measures have been taken to explore potential markets for Vietnamese products, which could increase in value at 5-6% a year. The objective is to transform Vietnam’s rural areas into modern, developed agricultural production centres that employ advanced and environmental-friendly technology by 2050. The ministry’s top priority is the adoption of green technologies with a focus on preserving and protecting natural resources.

Experts believe that rapid digital transformation is the best way for the Vietnamese agricultural sector to recover in the post-pandemic period. Data-driven digitisation in agricultural management is expected to help boost the sector’s growth through better market forecasting and planning, as OpenGov Asia reported. Last month, the Deputy Foreign Minister said that businesses and farmers must bolster the application of smart and digital technologies to maintain stability in production and farm produce supply.

Along with optimising local resources for the development of the value agriculture multiple and trademark building, Vietnam should build a data system and make its agricultural data more transparent, enabling it to reach more markets. On the other hand, many Vietnamese farmers are still hesitant to upgrade their cultivation practices and use new farming techniques. The government needs to strengthen communication with farmers, demonstrating the benefits of digitisation, and equipping them with the knowledge and skills to operate online.

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