Policies paving the way for large-scale production

Remarkable advances in agriculture

Professor, over the past 80 years, Vietnamese agriculture has matured and undergone remarkable changes in both quantity and quality. In your view, what factors have contributed to the achievements of Vietnam’s agricultural sector?

First of all, we must recognize that Vietnamese agriculture has developed very strongly over the past 80 years. When the country was newly established, we faced famine, with more than 2 million people dying of hunger. Even after national reunification, we were still a country with food shortages. In the 1970s and 1980s, we still had to rely on food aid from other countries…

However, after the implementation of Khoán 10, agriculture underwent a remarkable transformation and experienced miraculous growth. Vietnam shifted from being a food-deficient country to becoming a globally ranked agricultural exporter. In particular, many products such as coffee and rice became multi-million-dollar export commodities.

Even today, when discussing breakthroughs in Vietnam’s economic development, people still refer to the Khoán 10 milestone, often using agriculture as a prime example. These were truly remarkable innovations.

Agriculture has become a pillar of the economy for several reasons: although its contribution to the national income is not high and its growth rate is not as fast as the overall economic growth, it represents stable and sustainable growth.

The particularly important role of agriculture lies in its sustainability and its ability to provide essential sectors comprehensively, thereby creating stability for the socio-economic system. During the most challenging periods, such as pandemics or economic crises, agriculture has been the sector that stabilizes people’s livelihoods. The agricultural products we produce help maintain CPI stability. Even in years of global hyperinflation, when commodity prices fluctuated sharply, the living standards of Vietnamese people were only minimally affected, if at all.

Moreover, many Vietnamese agricultural products have earned prestige and recognition in international markets, especially in demanding ones. Some products are highly competitive, which means they face significant trade barriers. Over the past ten years, agricultural exports have consistently grown at a stable rate, generating income that underpins sustainable development.

Green, ecological, and circular agriculture: an inevitable trend

Vietnam is implementing numerous effective and sustainable agricultural production models, such as cultivating one million hectares of high-quality rice with reduced emissions, organic and ecological coffee replanting areas, and relocating fruit and flower production from the Mekong Delta to the northern mountainous provinces. In your view, what key issues should this approach focus on?

Vietnam’s current agricultural achievements are the result of many factors, the most important being the unique natural conditions which give us the potential to develop tropical, ecological agriculture and diversify crop and livestock structures. Seasonal variations shape cropping patterns that few countries possess. To continue leveraging these advantages, we need strategies that use and protect these ecological characteristics.

Products generated from green agriculture have a much higher value than conventional agricultural products. The more high-end the market, the higher the income for farmers. Consumers are willing and able to pay for ecological organic products. This represents both an advantage and a goal for moving toward green and organic agriculture. Maintaining clean production conditions is the best way to fully leverage the advantages we currently possess.

We are confident that there is great potential to pursue this trend. It brings value to the producers themselves in terms of health and a cleaner living environment.

To promote this path, many factors are required: green transformation involves very high investment costs, far higher than traditional production models. Without establishing large-scale production areas, it is very difficult to invest in modern machinery, equipment, and scientific technologies. No one would dare to invest in the long term. For example, providing seedlings, irrigation water, and pest control requires stable and large cultivation areas for synchronized implementation. Additionally, there are issues such as assigning cultivation area codes, geographical indications, and post-harvest processing technologies.

Liberating land resources paves the way for large-scale agriculture!

Policies and strategies for agriculture require a long-term vision because agricultural investments are long-term and it takes a long time to recover capital. For farmers to dare to invest in this sector, they need stability in these factors.

Previously, our perception was that agricultural production was seasonal, following the natural cycles of crops and livestock. Therefore, cultivation cycles were seen as short-term investments rather than long-term ones. As a result, agricultural policies and orientations were often short-term, reflecting a fragmented, nature-driven approach to farming.

Now, we are shifting toward modern agriculture, with standardized processes, strict criteria, and rigorous benchmarks. Agricultural investment is no longer unlike industrial investment. Agricultural infrastructure, irrigation systems, and water management require substantial, long-term capital and may take decades to fully realize their value and capacity.

Agricultural land policies must allow for land consolidation and extended usage periods. In my view, a 50-year land use term is still not long enough; even longer durations are needed to assure investors. Agricultural investment is not limited to seeds, inputs, livestock feed, or fertilizers, it must include major investments in infrastructure, technology, and processing facilities. These are the key components of long-term, modern agricultural development.

Currently, we are encouraging agricultural enterprises to expand investments and granting them the right to transfer land. New preferential policies for agriculture include tax exemptions for farmers and tax incentives for agricultural businesses. These are the policies we are promoting to build a concentrated, large-scale agricultural sector.

As you just analyzed, agriculture is a cyclical, seasonal industry. Production tools and machinery are not used continuously; there are always idle periods, leading to underutilization of equipment and seasonal inefficiencies. Investment left unused is clearly wasteful, tying up capital and reducing efficiency.

“Sustainable policy + modern technology = agricultural boost”

Large investors, agricultural enterprises, and corporations can establish large, systematic, and organized production areas, forming value-generating production chains. They can proactively control diseases without relying on the state. Individual farmers are highly affected by outbreaks such as crop or livestock diseases, including African swine fever. Large agricultural corporations, however, have preventive plans in place, establishing safe zones for livestock and controlling outbreaks from the outset.

The key issue in agricultural production is the output stage - processing and exporting. Only enterprises have the capacity to handle these final steps. Farmers alone cannot manage this, so partnering with companies allows them to become part of a closed-loop, organic production ecosystem.

Vietnam is building an open economy. To achieve high added economic value, we must aim for exports and international markets. Agricultural production must align with this because commodity agriculture generates massive quantities. Domestic consumption alone is insufficient, so post-harvest processing, preservation technology, and export planning are necessary. To enter high-end international markets, we must comply with strict international regulations such as IUU and EUDR. These stringent rules require us to play by global standards.

Regarding Resolution 57 on breakthroughs in science and technology development and Resolution 68 on private sector development, what impacts will these have on agriculture and the environment?

Resolution 57 paves the way for development based on science and technology to create new value-added products. There is still much room for applying science and technology in agriculture. For example, lychee currently has a harvesting window of about one month. Applying science and technology to extend the harvesting period and using preservation methods to deliver fresh fruit to consumers would clearly create much higher economic value.

Similarly, biological potential and new crop varieties can be leveraged. Currently, there is growing interest in “wholesome” agriculture, using products moderately while ensuring health. Linking agriculture with scientific and technological research can increase value without expanding cultivation areas.

In summary, under any circumstances, agriculture provides stability and balance for the economy. Therefore, good strategies and orientations are essential to ensure that this pillar remains stable and sustainable.

Thank you, Professor!