Hundreds of billions in revenue thanks to technology application
According to Mr. Trung, in the past, when talking about agriculture, people often mentioned the refrain "good harvest, low price" or vice versa. However, at present, thanks to the application of technology, agricultural start-up models have had a clear change.
Participating in the startup support program with young people very early, Mr. Trung witnessed the transformation and clear changes. Many models have proven that the trend of starting an agricultural business, especially smart agriculture, is the right choice.
Like the startup model from plants and flowers of two young people of the 9X generation. They know how to apply the knowledge when studying chemistry, combined with their acumen and curiosity, to create natural beauty care products, such as shampoo, shower gel, facial cleanser...
What's special is that these products are all organic, made from familiar, easy-to-find ingredients such as ginger, lemongrass, lemon leaves, etc. Currently, the revenue of these two young people is up to hundreds of billions of VND per year, he shared.
According to Mr. Trung, thanks to the application of technology in production, the projects have increased in value, creating businesses valued at hundreds of billions of dong, contributing to changing production thinking as well as increasing income for farmers.
Mr. Tran Van Tan, Chairman of the Thanh Hoa Province Organic Agriculture Association, said that he himself also started a business with high-tech agriculture and organic agriculture.
“Up to this point, we have chosen and found the right path, which is to build a raw material area for growing Thanh Hoa pennywort,” he said. According to him, from the wild pennywort growing in many places, the company has now successfully built a raw material area, with a processing factory. The company's raw material area for growing pennywort, perilla, fish mint, etc. is now over 200 hectares wide.
The price of fresh pennywort purchased by his unit is 15,000-20,000 VND/kg. Pennywort growers have an average income of 12-15 million VND/month, the highest household earns up to 40-60 million VND/month.
“Gotu kola processed products are exported to Japan, Korea, Qatar, Australia, etc. This September, a partner in Japan invited us to cooperate in importing gotu kola powder,” said Mr. Tan.
To be where he is today, Mr. Tan spent 4-5 years struggling with many difficulties in land accumulation, procedural mechanisms... especially capital for production investment.
Mr. Tan hopes that the Government will support startups in terms of interest rates and capital so that startups like him can reduce product costs. He personally aims to build more processing plants by 2025, reducing costs by 25-30% so that everyone can buy pennywort powder, and at the same time promote the export of this product.
Must know how to catch the 'trend', step out of the safe zone
Mr. Nguyen Van Tien, former Director of the Department of Agriculture, Central Economic Committee, said that there are currently many open policies in agriculture, such as the Land Law encouraging farmers to accumulate land and move towards large-scale production.
To access support policies, he said, startups need a team of consultants on production organization to convince management agencies to step in and support. For example, Mr. Tan has approached local departments and agencies to get support on credit capital and land, Mr. Tien cited.
In addition to difficulties in capital, policy issues, and lack of traceability, Mr. Nguyen Tien Trung acknowledged that young people need to “step out of their comfort zone”. From there, change their mindset, integrate new trends with new conditions and standards, and at the same time “do small but think big” to bring products throughout Vietnam and the world.
Mr. Trung pointed out that using clean and organic agricultural products is still a trend that needs to be pursued, thereby increasing the selling price and reputation of the product. In our country, we can aim for 4-5 star OCOP products, creating a difference in the market.
In addition, he noted that it is necessary to find ways to boost exports. In fact, our country's agricultural exports are a strength, and export figures are a bright spot for the industry. It is necessary to take advantage of and catch these "trends" to export better.
Mr. Trung also shared about the trend of choosing refined products applying high technology.
“The director of a unit specializing in producing resistant starch from green beans and bananas revealed that they have partnered with P&G to exploit banana raw material areas in Quang Nam, and partnered with confectionery manufacturing enterprises to introduce resistant starch to increase value and suit modern consumption trends. Instead of selling fresh bananas for only a few tens of thousands of VND per kilogram, they extract resistant starch and sell it to large corporations, bringing in hundreds of billions of VND,” he said.
Similarly, startups must take advantage of the rapidly growing logistics network to boost online distribution channels. Project sales have increased tenfold thanks to this. For example, the Phu Tho sour meat project, after building a system of 5,000-6,000 online distributors, increased revenue from VND500 million/year to VND100 billion after about ten years.
During the process, it is necessary to understand the product clearly and build a reputable brand. More importantly, honesty in business must be put first, Mr. Trung emphasized.
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