Vietnam's agricultural sector is currently undergoing a significant transformation through the implementation of a green rice production model and straw-based circular agriculture in Ninh Binh. This initiative, spearheaded by VAG Group, has drawn the attention of many stakeholders, including the Chairman of the General Association of Agriculture and Rural Development of Vietnam, Ho Xuan Hung, who considers this step reminiscent of agricultural modernization in Japan.
One crucial aspect of this model is its ability to resolve a classic problem in Vietnam: land fragmentation. By integrating advanced mechanization and applied technology, the company was able to consolidate 20 hectares of land for large-scale production. This approach not only reduces operational costs that have long burdened farmers due to labor shortages, but also enhances efficiency through the use of superior seeds and measured nutrition.
The utilization of rice straw as part of a circular economy has also come into the spotlight. While straw was previously only composted conventionally, the application of microbial technology now accelerates the decomposition process into high-quality organic fertilizer. This step is seen as highly strategic for reducing environmental impacts and supporting the government's agenda to build a low-emission agricultural sector.
The success of this model heavily relies on the synergy between corporations and farmers. Ho Xuan Hung emphasized that the company's role is not merely as a land aggregator, but as a technology facilitator and market guarantor for farmers. With guaranteed off-take of products, the supply chain becomes more transparent and provides healthier profit margins for actors in the upstream sector.
Despite its promise, the sustainability of this model requires more concrete policy support from the government, particularly regarding access to green credit and incentives for high-risk investments. The General Association of Agriculture and Rural Development of Vietnam is committed to continuing to promote this replicable model through strategic partnerships to ensure a more modern, competitive, and sustainable future for the rice industry for all stakeholders.
