The inevitable trend of increasing the value of agricultural products
10 years ago, the construction of an organic product model was still very new in Vietnam, however, Vietnam Cinnamon Production and Export Joint Stock Company (Vinasamex) was determined to start implementing it. This means that businesses must invest in technology, digital transformation in the production process right from the raw material growing area, trace the origin, and control the source of raw materials.
According to Ms. Nguyen Thi Huyen - General Director of Vinasamex, for businesses, digitalization, or digital transformation, is a transformation of the entire business strategy with a broad vision and mission. "We identify that digitalization aims to achieve the strategic goal of exporting Vietnamese spice products to the most demanding markets in the world such as the United States, Europe, Japan, Korea, etc. " - Ms. Huyen shared.
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| Applying technology to agricultural production is an inevitable trend. Photo: VNA |
Previously, Vinasamex mainly exported spices, cinnamon, and star anise to the Indian and Bangladeshi markets - markets that do not require high quality standards. However, Ms. Huyen said that when choosing a high-standard production model, the business had to accept finding customers from the beginning, only buying very small quantities, from 500 kg to 1 ton. "Customers can buy smaller quantities but the products are sold at much higher values and the business can return to buy at higher prices for the people. In particular, what we achieved was to create a difference, creating new development opportunities " - Ms. Huyen said.
Thanks to the application of technology and digitalization in the production and business process, Vinasamex has been granted dozens of international certificates for product quality and origin. From here, the company's products are exported to 20 countries around the world, including many of the most demanding markets in the world such as the US, Europe, Japan, and Korea. In particular, the determination to digitize and improve product quality has also made Vinasamex, after 10 years of operation, a pioneering high-end cinnamon and star anise brand in Vietnam, building and producing according to a closed value chain, sustainably accompanying farmers in the highlands of Yen Bai, Lang Son, Lao Cai, etc., contributing to raising the level of Vietnamese cinnamon and star anise products in the international market.
Identifying the trend early, as well as the important role of digital transformation, applying technology to production and business, the Circular Organic Agriculture Cooperative has also come a long way in applying technology to clean agricultural production and business. Thanks to promoting digitalization, this unit is confident in bringing its products to the shelves of many domestic supermarkets as well as exporting to foreign markets.
Mr. Tran Thanh Binh - Chairman of the Board of Directors of the Circular Organic Agriculture Cooperative said that, in response to the high demand for product quality from the market, as well as product purchasing units, the application of technology to update data and trace the origin is the top concern of this unit. Along with that, it is necessary to regularly raise awareness among farmers about transformation in farming through training programs on digital transformation.
Assessing the impact of digital transformation, according to agricultural expert Hoang Trong Thuy, it has helped reduce input costs and increase product prices. This has created conditions for farmers, economic organizations, cooperatives, and businesses to be enthusiastic about production and determined to innovate. In addition, businesses and cooperatives have also been proactive in production, orienting production to meet market needs, thereby helping to improve the trade process and reduce intermediaries. "The recent export successes of agricultural products have had the impact and role of digital transformation. And importantly, it has helped to increase the value of exported agricultural products," Mr. Thuy emphasized.
Promoting digital production linkage
However, the process of digital transformation in production and business to increase the value of agricultural products, for economic organizations and enterprises, is not an easy process because it involves investment resources, finance and human resources. In particular, Mr. Nguyen Thanh Binh said that the difficult problem is related to the human problem. Because each region and area has different farming habits, changing the way of production is a process, requiring training, coaching and, importantly, awareness of digital transformation. Therefore, digitalization is a trend, but to keep up without support and determination, it will be very difficult to implement.
Referring to the issue of resources, especially human resources, Ms. Nguyen Thi Huyen also acknowledged that whether a business can develop and go far or not is related to the human issue. And the issues of forming value chains, linking models with the application of modern production technology, whether or not it is successful also depends on the human.
“More than 10 years ago, when we contacted people in Lao Cai and Yen Bai to build a value chain model and apply for international organic certification, we encountered many difficulties, because at that time very few people knew what organic was; applying smart technology to trace the origin and update data on growing areas were completely new concepts. Therefore, businesses had to spend a lot of time and persistent efforts to convince people as well as local authorities to implement it,” said Ms. Huyen.
Currently, digital transformation is the main solution to help Vietnamese organizations and enterprises approach international standards to increase the value of exported agricultural products. However, in order for Vietnamese agricultural products to go far and establish a solid position in the global market, it requires the cooperation and proactive participation of State management agencies to remove barriers, support workers, organizations and enterprises to overcome difficulties in the digital transformation process.
Ms. Nguyen Thi Huyen shared that in the past, the enterprise has received a lot of support from the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and local authorities to apply production technology and promote exports. However, in the coming time, the enterprise hopes that the authorities and local authorities will take deeper and more drastic actions to work with enterprises to train and guide farmers to strictly and seriously implement organic standards and apply technology.
“Enterprises need to have programs and projects to encourage them to implement the chain model, creating motivation for them to transform their business models; have policies to provide preferential capital sources according to this linkage model. Support propaganda so that farmers can access information and have awareness to be ready for digital transformation in production, ” Ms. Huyen suggested.
According to Mr. Nguyen Thanh Binh, the application of technology in production and the enhancement of agricultural product value is an inevitable trend. To increase the effectiveness of digital transformation, it is necessary to strengthen the connection between farmers, scientists, businesses and the government. In particular, the authorities need to have policies and guidelines to create motivation and trust to implement digital production for economic organizations, cooperatives and businesses.
From the perspective of an agricultural expert, Mr. Hoang Trong Thuy also said that it is necessary to develop policies; have mechanisms to encourage people, organizations, and businesses to apply technology to agricultural production and business. In particular, local management agencies need to accompany businesses and cooperatives, create conditions for farmers in terms of land for organic production; support the construction of ecosystems to develop growing areas that meet the requirements of the purchasing unit, as well as the high standards of the export market.
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