Innovation - The key to green and sustainable agricultural development

Developing agriculture toward a hi-tech path

Over nearly four decades, Viet Nam’s agriculture has recorded significant achievements, significantly contributing to food security and national economic growth. In 2024, the export turnover of agricultural, forestry, and fishery products reached 62.4 billion USD, an increase of 18.5% compared to the previous year, setting a record trade surplus.

Dr. Tran Cong Thang, Director General of the Institute of Policy and Strategy on Agriculture and Environment (IPSAE), said that science and technology have played a crucial role in Viet Nam’s agricultural success over nearly 40 years.

However, the sector’s growth still relies heavily on natural resource exploitation, while total factor productivity (TFP) - representing the contribution of science and innovation - accounts for only about 74-75% of agricultural GDP growth. Investment in science and technology remains limited, accounting for only 0.82% of total budget expenditure in 2023, down from 2022.

In response to the urgent need for breakthroughs in science, technology, and innovation, in line with Resolution 57-NQ/TW and Resolution 193/2025/QH15, the establishment of a comprehensive agricultural innovation system is considered an essential step to realize the goals of 4% agricultural growth and 8% economic growth in the coming period.

On November 6 in Hanoi, the Institute of Policy and Strategy on Agriculture and Environment, in coordination with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia, organized a workshop titled “Revisiting agricultural innovation system: Aligning with evolving national priorities” within the framework of the Aus4Innovation Program. The event sought input from experts, policymakers, and stakeholders on ways to promote innovation in agriculture, connect research with practice, and adapt to the rapidly developing agri-food sector in Viet Nam.

Dr. Kim Wimbush, CSIRO counselor at the Australian Embassy and Director of the Aus4Innovation Program, affirmed that Australia is ready to support Viet Nam in improving its innovation system to meet the goals of its science and technology development strategy.

Viet Nam faces great opportunities to reform institutions, promote public–private partnerships, and accelerate digital transformation in green agriculture. The study recommends building a digital platform connecting institutes, universities, enterprises, and cooperatives; reforming the science and technology financial mechanism toward “funding based on final products”; establishing a Green Innovation Fund; and setting up Provincial Agricultural Innovation Centers - places for model testing, human resource training, and spreading local initiatives.

According to Dr. Tran Cong Thang, the agricultural innovation system links organizations, individuals, policies, and supporting mechanisms to bring knowledge, technology, and new organizational models into socio-economic development. This system creates knowledge and spreads, connects, and forms new markets, promoting green industry, reducing emissions, conserving resources, and improving quality of life through access to clean energy, clean water, and sustainable nutrition.

Dr. Thang said that science and technology have long been the backbone of Viet Nam’s agricultural success over nearly 40 years, shown through the outstanding productivity of many sectors such as rice, coffee, pepper, and tra fish. However, the growth rate is slowing due to limited resources, reduced investment, and the slow transformation of production structure.

“To maintain growth momentum, it is necessary to continue restructuring the sector toward high-tech, circular, and sustainable agriculture; promote land accumulation, digital transformation, human resource training, reform investment-financial mechanisms, and develop agricultural markets. These solutions will help increase productivity, add value, and enhance resilience to climate change while reducing risks for the national agriculture”, Dr. Tran Cong Thang emphasized.

Repositioning agriculture in development thinking

Science and technology have greatly contributed to Viet Nam’s agricultural success over the past nearly 40 years of reform. Thanks to improved varieties, mechanized production and the application of disaster forecasting technology, Viet Nam’s rice yield is now twice that of Thailand, coffee productivity is 1.7 times higher than Brazil, and tra fish yield reaches an average of 300 tons/ha - among the highest in the world.

Prof. Andrew J. Hall, senior scientist at CSIRO - Australia’s National Science Agency, and Head of the Innovation Policy Team of the Australia-Viet Nam innovation partnership programme (Aus4Innovation), said that Viet Nam has built a relatively complete public research and development (R&D) system.

According to the Institute, fisheries and forestry are currently the two sectors with the greatest growth potential, with average annual increases of 6.08% and 3.34% respectively. However, limitations in land resources, investment capital, an aging labor force, and slow innovation in production organization have become barriers to agricultural growth.

To overcome these challenges, experts propose restructuring the sector toward high-tech, circular and ecological agriculture. Land accumulation, the application of advanced technologies, training high-quality human resources, increasing public investment, and attracting private sector participation are seen as key solutions. In addition, it is necessary to improve institutions, reform administrative procedures, develop agricultural market,s and strengthen adaptation to climate change.

Presenting at the workshop, Prof. Andrew J. Hall noted that Viet Nam has built a relatively complete public R&D system, but the R&D capacity of the private sector accounts for only about 14% of total activities. He suggested raising this proportion to 60% through public–private cooperation and encouraging enterprises to invest in applied research.

According to Prof. Andrew J. Hall, today’s agricultural innovation challenges are interdisciplinary, including climate change response, emissions reduction, ensuring healthy nutrition, economic security, and global trade disruptions. Therefore, Viet Nam must reposition agriculture as a high-tech industry that drives broader national development goals.

He also emphasized that non-profit organizations and community groups currently initiate many innovative activities related to environmental and social goals. Still, they have not received adequate support from the R&D system. Thus, it is necessary to scale up and invest in potential models, especially initiatives aimed at sustainability and social inclusion.

In addition, building a mechanism to connect R&D with the non-profit sector through technology brokerage organizations could be an effective direction. The innovation system should operate toward continuous improvement, with mechanisms for regular monitoring, evaluation, and learning to adjust goals in line with changing contexts.

Commenting on this issue, Dr. Kim Wimbush, Counselor of CSIRO at the Australian Embassy and Director of the Aus4Innovation Program, said that research cooperation within the Aus4Innovation framework has enabled both sides to share experiences and solutions to address agricultural challenges. He affirmed that Australia is ready to support Viet Nam in improving its innovation system to meet its science and technology development strategy.

Innovation is becoming the key to developing a green, modern, and climate-resilient agriculture. Centering science and technology will enable Viet Nam’s agriculture to remain a pillar of the economy while evolving into a high-tech driver of sustainable development.