Hi-tech agriculture has increasingly attracted attention from small and large sized enterprises.

Intensive investment in hi-tech agriculture

According to Skyfarm JSC Director Tran Thai Duong, investment flows into hi-tech agriculture are increasing in Vietnam. Although more expensive than traditional cultivation in terms of costs, hi-tech agriculture would yield much higher. Skyfarm has invested more than US$1 million in a 10ha area in Hoa Binh Province’s Luong Son District. During the pilot period, Skyfarm produces about one tonne of agricultural products per month worth of VND200 million.

“Hi-tech agriculture should be conducted carefully and without any hurry. Skyfarm targets to expand production in cooperation with domestic and foreign investors of the same interest,” Tran Thai Duong said.

The Anh Nguyen Co., Ltd has invested more than VND35 billion in its pig farm in Ta Chai Commune in Lao Cai Province’s Bac Ha District. The farm applied a modern farming model with smart roofing, automatic troughs and an advanced waste treatment system. In addition, it also invested in a 2,500sq.m greenhouse with computerized irrigation and fertilization systems, said Director of the Anh Nguyen Co., Ltd Vu Kim Hai.

“We target hi-tech agriculture on the consideration of local potential in climate, soil and workforce. Our high-quality products have satisfied demanding consumers,” Vu Kim Hai said.

Nguyen Cam Tu, Director of the Lao Cai-based Viet Tu Co., Ltd, said “We have applied Korean tissue culture propagation and Israeli irrigation techniques to a four hectare area of high-class hydroponic flowers. The total investment reached VND48 billion but we may yield around VND15 billion per year.”

Unveiled potential

Recognizing Vietnam’s potential for target hi-tech agriculture, domestic and foreign investors like Vinamilk, Hoang Anh Gia Lai, FPT, Vingroup and some Japanese and Korean companies have promoted investment in several hi-tech agricultural segments. Some small firms have also followed the trend. However, just 1-2 percent of domestic investors are really interested in hi-tech agriculture, according to the Ministry of Agriculture and Rural Development.

Investing in Vietnam’s agricultural development is regarded as wise and sustainable. However, investors should invest based on market demand, adopt hi-tech applications and target high-quality products. Hi-tech applications will help businesses develop sustainably especially in the restructuring process.

According to Deputy Chairman of the Lam Dong Province Committee Pham S, hi-tech agricultural businesses are rated the richest in the province, with annual income per ha hitting from VND100-1,000 million. Some businesses may reach VND2.5 billion per ha per annum. The province’s hi-tech agricultural value accounts for 30 percent of its total agricultural value.

Foreign investors and agricultural experts say that Vietnam has ample potential in agricultural development, especially in terms of soil, climate and an increasing demand for agricultural quality products. In addition, Vietnam is geographically favorable for export to large markets like China and other ASEAN countries.

The government has so far issued some hi-tech agricultural development policies and incentives including Prime Ministerial Decision 176 to approve the Hi-tech Agricultural Development Master Plan until 2020 and Governmental Decision 210 to approve incentives for investors in hi-tech agricultural development.

“Some of the most difficulties for investors in hi-tech agricultural development relate to land rent, production site and output support,” Tran Thai Duong said.