Banks support high-tech agriculture

Transforming lives thanks to high-tech agriculture

After many years in pig farming marked by ups and downs, including periods when disease outbreaks nearly wiped out his livelihood, farmer Tran Son Tay in Ba Can hamlet, Tan Hoi commune, Lam Dong, decided to shift to a more sustainable model in 2012: high-tech greenhouse vegetable production.

In high-tech agriculture, capital is the most critical factor, as the initial investment costs are substantial. According to Mr. Tay, the greenhouse frame alone for a 1,000-m² facility costs around VND 320 million. Without financial support from banks, it would be impossible for farmers to adopt high-tech agricultural production. With the support and close partnership of Agribank Lam Dong 2 Branch, Mr. Tran Son Tay boldly invested in greenhouse facilities to grow tomatoes and bell peppers.

He initially started on a small scale before taking out additional bank loans to gradually expand his operation. Today, he has 1.75 hectares of high-tech greenhouse tomato and pepper production, equipped with an automated irrigation system that can be controlled via smartphone. Of this area, 6,500 m² are cultivated using organic practices, without chemical pesticides. Instead, crops are protected through natural enemies and insect traps. The remaining 1.1 hectares continue to use pesticides in accordance with regulations.

Since investing in high-tech agriculture, farmer Tran Son Tay has achieved stable, sustainable production and earned a significantly higher income than before. In 2025, his 1.1-hectare cultivation area, where pesticides were applied in accordance with safe production protocols, generated VND 1.2 billion in revenue.

In the cultivation area without pesticide use, revenue per unit area is significantly higher. For example, 5,000 bell pepper plants grown on 2,000 m² generate revenue of VND 554 million/crop (eight months), while 3,000 tomato plants cultivated on approximately 1,000 m² bring in VND 382 million/crop.

High-tech agriculture requires significant capital

For enterprises investing in large-scale high-tech agriculture, capital plays an increasingly important role in infrastructure investment and farm operations. Mr. Nguyen Tuan Truong, Director of Lan Anh Da Lat Orchid Co., Ltd. in Ninh Gia commune, Lam Dong, opened a Phalaenopsis orchid store in Hanoi in 2013, with most of his products imported from China.

Recognizing the strong development potential of the Phalaenopsis orchid market, Mr. Truong had long considered investing in domestic production to secure a stable supply. He even sent family members to Taiwan to learn cultivation techniques. When the COVID-19 pandemic disrupted imported supplies, he became more determined to invest in Phalaenopsis orchid production.

After evaluating various locations, Mr. Truong decided to purchase land and build a high-tech Phalaenopsis orchid farm in Ninh Gia, Lam Dong, establishing Lan Anh Da Lat Orchid Co., Ltd. The costs of land acquisition, road construction, and development of the high-tech farm amounted to tens of billions of dong. The company currently operates 1.55 hectares of high-tech orchid production, supplying markets nationwide and exporting to Laos and Cambodia.

To produce high-quality Phalaenopsis orchids with attractive and diverse colors that meet consumer preferences, Lan Anh Da Lat imports all of its tissue-cultured seedlings from Taiwan. Each year, the company imports 400,000-500,000 seedlings at an average landed cost of VND 25,000/plant. This means that the expenditure on imported seedlings alone is substantial.

In addition, the company invests heavily in premium production inputs, including Chilean moss used as a growing medium for orchids for its durability, high water absorption, and moisture retention. To ensure uninterrupted farm operations, the company maintains an inventory of production materials worth approximately VND 5 billion.

Given the high demand for working capital, Lan Anh Da Lat consistently needs financial support from banks, particularly Agribank Lam Dong 2 Branch. Mr. Truong said he chose Agribank because of its numerous financing policies for agricultural investment and because local Agribank staff consistently work to identify the most appropriate solutions whenever businesses encounter difficulties

A need for mechanism to certify ownership of land-attached assets

The development of high-tech agriculture has become a major trend in Lam Dong. This is clearly reflected in the growth of both outstanding balances and the number of customers accessing high-tech agricultural loans at Agribank Lam Dong 2 Branch.

According to data from Agribank Lam Dong 2 Branch, as of May 31, 2026, outstanding balances for high-tech agricultural production reached VND 8.251 trillion, with 9,971 borrowers maintaining outstanding balances. This represented an increase of VND 1.255 trillion and 84 borrowers compared to the beginning of the year, equivalent to growth of 15.76%.

Credit capital has been directed toward supporting modern production models, including greenhouses, net houses, automated irrigation systems, and other models that apply science and technology to production, management, and product consumption.

Mr. Nguyen Huu Phung, Deputy Director of Agribank Lam Dong 2 Branch, said that the former Duc Trong district has become a major hub for investment in high-tech agriculture, particularly in vegetable and flower production using advanced technologies. Some farms are accelerating the adoption of biotechnology solutions, including the use of natural enemies and insect-based pest management, while avoiding chemical pesticides to achieve the highest standards of food safety.

Demand for capital in high-tech agriculture remains substantial. However, a major obstacle is the lack of a clear mechanism to certify ownership rights in land-attached assets. This makes it difficult for banks to appraise land-attached assets as collateral, thereby limiting their ability to provide financial support for high-tech agricultural projects.

According to Mr. Nguyen Huu Phung, if a mechanism were established to certify ownership of land-attached assets such as net houses and greenhouses, enabling banks to accept these assets as collateral, access to bank financing for high-tech agricultural projects would become much easier. Thereby promoting the further development of high-tech agriculture.

$1 = VND 26,410 - Source: Vietcombank.