The Prospects for IoT Development in Vietnamese Agriculture

The Rise of Smart Agriculture in Vietnam: Opportunities and Challenges

The development of smart agriculture in Vietnam presents a wealth of opportunities while simultaneously posing significant challenges to current production and consumption chains.

"High-tech agriculture is an inevitable direction and must be strongly promoted; otherwise, Vietnamese agricultural products will lose on their home ground," stated Mr. Vu Manh Hung, Vice Chairman of the Digital Agriculture Association (DAA), in a recent interview.

His sentiment is echoed by experts who point out that by the end of October 2017, Vietnam had 13.8 million farming households with 78 million small land plots, necessitating a restructuring of the agricultural sector. A crucial solution identified is the application of technology to drive agricultural development.

IoT's Role in Transforming Agriculture

Agriculture utilizing the Internet of Things (IoT) involves the digitalization of production, business, processing, and consumption activities through sensor devices, control technology, and automation. This transition moves farming from a qualitative to a data-driven approach, allowing farmers to monitor crop and livestock conditions through real-time data and automated analysis. This empowers them to make precise and effective decisions.

As of early 2018, Vietnam had 64 million internet users, accounting for 67% of its population. This technological development, coupled with government support for agricultural restructuring and new rural development, has led to initial successes in effectively applying IoT in agriculture.

Promising Examples of Smart Agriculture in Vietnam

Several notable examples illustrate this progress:

• iQShrimp by Cargill: This software solution leverages machine learning, mobile devices, and sensors to provide information on water quality, health conditions, and weather for shrimp farms. It offers a management strategy to optimize aquaculture efficiency. Cargill has established two technology application centers for shrimp and fish farming in Bac Lieu and Tien Giang provinces, enabling aquaculture farmers to access and apply the best available farming technologies.
• Smart Agri by Global CyberSoft: This application has been in use in Vietnam since 2015. Through a smartphone or tablet, farmers can monitor and control weather conditions, vegetable and fruit quality, crop cycles, and even automate production processes from seeding to care and irrigation, all from the comfort of their homes.

These examples demonstrate how smart agriculture, driven by IoT and supported by strong internet penetration and government initiatives, is beginning to reshape Vietnam's agricultural landscape, aiming for higher efficiency, better quality, and increased competitiveness.

IoT in Vietnamese Agriculture: Government Support Meets Practical Challenges

The application of Internet of Things (IoT) technology in Vietnamese agriculture is gaining significant government support. The Prime Minister has decided to establish three high-tech agricultural zones in Hau Giang, Phu Yen, and Bac Lieu provinces. On April 24, 2017, the State Bank of Vietnam (SBV) issued Decision No. 813/QD-NHNN, launching a program to encourage high-tech agricultural lending. Under this program, the Prime Minister tasked the SBV and commercial banks with preparing a VND 100 trillion credit package to support businesses adopting high technology.

Organizations are also being formed to support agricultural IoT, such as the Vietnam IoT Open Community, initiated by the Institute of Business Informatics (Vietnam Chamber of Commerce and Industry) in March 2017. This community, comprising 21 technology companies, aims to develop specific IoT software solutions for various agricultural production models.

Investment Costs and Limited Application Scope Remain Hurdles

Despite the clear benefits, the investment cost for IoT systems in agriculture poses a significant challenge for technology companies and small-scale farming households. The cost for an IoT farm management application can range from VND 2-20 million per sao (a unit of area), or even hundreds of millions of dong, depending on the desired level of modernization and precision. Consequently, only farms with large output, stable revenue, and customer bases can currently afford such investments.

Furthermore, the ideas for IoT applications in Vietnamese agriculture are not yet diverse. They primarily revolve around basic functionalities like using sensors, programming irrigation, controlling sunlight, and automated indoor hydroponics, mostly applied by medium-sized businesses. Experts suggest that such IoT applications represent only a small part of what's possible. A comprehensive vision for agricultural IoT needs to encompass five key elements: inputs, cultivation, processing, distribution, and consumption.

Additionally, many farming households and cooperatives are still quite unfamiliar with high technology and hesitant to change traditional production methods. Therefore, it's crucial to have companions who can guide them, applying simple and flexible processes and technologies to help them adapt quickly.

Tremendous Potential for Traceability and Quality Enhancement

Vietnam possesses extensive experience in agriculture. Experts believe this provides significant potential for developing high-tech agriculture and integrating IoT into production, with the contribution of technology enterprises. Crucially, given the current pressing issue of agricultural product quality, IoT in agriculture will help enhance productivity and transparency throughout the production chain, while also supporting product traceability.

(Source: VNExpress Newspaper)

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