As the world undergoes profound geopolitical and economic transformations, including fierce technology competition, climate change, and supply chain shifts, these challenges also present a rare “window of opportunity” for adaptive nations.
With flexible diplomacy, cooperative spirit, and a central location in Southeast Asia, Vietnam holds a historic opportunity to rise - if it chooses the right path.
Clear-headed strategy: Building a foundation from inner strength
In an increasingly uncertain world, Vietnam needs a strategic mindset that is calm and proactive. In the short term, this means ensuring socio-economic stability; in the medium and long term, it requires building resilient domestic foundations from Vietnam’s natural strengths - affordably and effectively.
The question is: where should Vietnam begin?
The first and clearest answer is agriculture, which still provides livelihoods for over 60% of the population. But the full answer lies in smart agriculture.
Vietnam enjoys major advantages: vast arable land, diverse climates, and a wide range of leading export products such as rice, coffee, cashew, pepper, and seafood. However, challenges persist: soil degradation, lack of proper crop research - particularly for cashew and pepper - and intensifying climate change.
Just across the border, Cambodia has introduced high-yield cashew varieties, while Vietnam, despite being the global cashew export leader, still lacks a foundational seed research program.
Without urgent change, Vietnam risks losing its advantage in its own fields.
Digital technology: A key to adding value to agriculture
Integrating digital technology - like IoT, AI, and blockchain - can transform traditional farming into smart agriculture, significantly boosting value. In Lam Dong, greenhouse and drip irrigation technologies have increased fruit and vegetable yields by 40%. In the Mekong Delta, smart sensors reduce water use by 20%, fertilizer by 30%, and increase rice yield by 12-15%.
Blockchain enables transparent traceability, unlocking access to high-end export markets and increasing product value by up to 20%.
If agricultural productivity grows by just 10% annually, and ripple effects multiply even modestly at 1.7 times, Vietnam’s GDP growth could rise from its current 7% to nearly 10% within 3 to 5 years.
High-tech sector: Driving the transition to a knowledge economy
Smart agriculture is inseparable from high technology - a domain where Vietnam is gradually establishing a foothold.
In 2024, the IT sector contributed approximately 14% of Vietnam’s GDP, with software exports reaching USD 7 billion. Vietnam also benefits from a youthful demographic - 70% under age 35 - with strong math skills and fast tech adoption.
AI helps analyze soil, water, and climate data for optimal production. Drones cut pesticide use by 50%. Big data and cloud computing build real-time supply chains.
This technological edge not only modernizes agriculture but also opens doors for Vietnam to step into a creative, knowledge-based, high-value economy.
Building a value-synergized ecosystem: The missing ingredient for success
Smart agriculture and high-tech innovation are necessary - but not sufficient. The key to success lies in building a value-synergized ecosystem that integrates everything from land and genetics to technology, training, finance, market access, and policy.
High-quality soil and crop varieties combined with sustainable biotech lay the foundation. Smart agri-tech (IoT, AI, blockchain) enhances productivity and market connectivity. A digitally skilled workforce ensures effective tech operations. Flexible financing - loans and investment funds - drives innovation. Digitalized supply chains provide stable market access. Government policy must unite farmers, businesses, and startups in cooperative models that ensure sustainable, high-value development.
Vietnam must aggressively promote high-tech agricultural zones, innovation incubators, digital skill training for farmers, and an open legal framework for new business models.
Only with such a synergized ecosystem can innovation truly blossom and spread across the entire economy.
Deep processing and specialty exports: Leveraging Vietnam’s unique strengths
Modernizing agriculture must go hand-in-hand with developing a robust food processing industry - essential for sustainable value creation.
Establishing deep processing research hubs in the Red River and Mekong Deltas is a strategic move. It allows Vietnam not just to export raw produce, but premium processed foods.
Nafoods and Vinamit: Successful case studies
Nafoods leads in deep-processing Vietnamese agricultural products. With passion fruit as its flagship product, the company uses cutting-edge technology to produce concentrated juice and other processed items, exported to over 70 countries, including demanding markets in the EU and US.
Vinamit is another notable brand, known for its soft-dried and freeze-dried fruit products. It exports to over 20 countries, including the US, Japan, and South Korea. The company has invested in clean raw material zones and modern processing lines.
Success stories like Nafoods, Vinamit, GC Food, Dong Giao, and ADC highlight the immense potential of deep processing and brand-building for Vietnamese agricultural products on the global food map.
Choosing the future: A path of independence and self-reliance
Vietnam stands at a historic crossroads: ahead lies a world full of uncertainty; behind are decades of externally dependent growth.
If it remains clear-headed and builds from within - through smart agriculture, high technology, deep processing, and a value-synergized ecosystem - Vietnam can break through and transform into a modern, independent, knowledge-based economy.
Agriculture played a crucial role in the early rise of many developed nations, including South Korea, Taiwan, Japan, Australia, the US, the Netherlands, and Denmark.
This is no longer a distant dream. It is an achievable future - if we have the resolve and act now.
Tran Si Chuong
Tran Si Chuong, an economic expert, is the co-author (with Professor James Riedel, Johns Hopkins University) of the first World Bank/IFC report in 1997 evaluating the potential of Vietnam’s private sector and proposing policies for industrialization.
He has over 30 years of experience in economic and business strategy consulting in the US, Asia, and Vietnam, and has advised U.S. congressional committees on monetary and foreign policy.
This article includes contributions from Professor Nguyen Quoc Vong (Plant Science, RMIT University and Gosford Agricultural Institute, Australia) and Nguyen Thi Thanh Thuc, CEO of AutoAgri Technology JSC.
Vietnamnet.vn
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