Technology as the catalyst for green growth

Viet Nam, with more than 60% of its population living in rural areas, still relies heavily on traditional farming methods characterised by intensive resource use, low efficiency, and vulnerability to climate change.

The circular economy offers new opportunities by using resources efficiently, maximising recycling and reuse, minimising waste, protecting the environment, and adding value. Science and technology play a decisive role—optimising resources, transforming by-products into assets, and boosting productivity and profits.

Across the country, localities are adopting technologies such as biotechnology, physicochemical methods, AI, and IoT to enable clean, closed-loop production, advancing sustainable agriculture and climate resilience.

In the northern midlands, Red River Delta, and Mekong Delta, mechanised straw collection models for mushroom cultivation, livestock feed, and organic fertiliser have raised rice incomes by around 15% compared with traditional practices.

Meanwhile, provinces including Phu Tho, Hung Yen, Lao Cai, Tuyen Quang, and Ha Noi are developing circular beef and buffalo farming. Agricultural by-products are used for silage feed, cutting costs and raising efficiency by 10–15%. Livestock waste is biologically processed into organic fertiliser, closing the loop and generating economic benefits while protecting the environment.

Building on these successful local models, many enterprises are proactively engaging in circular agriculture, creating large-scale closed value chains.

A notable example is the rice sector circular economy model of ThaiBinh Seed Group Joint Stock Company.

According to CEO Tran Manh Bao, the enterprise not only supplies seeds but also plays a central role in the circular value chain. The company has applied digital technology to manage raw material zones, ensure traceability, and govern production chains—optimising costs, reducing emissions, and enhancing transparency.

As a high-tech agricultural enterprise, Hachi Viet Nam High-Tech Joint Stock Company has introduced scientific and technological solutions to drive circular agriculture by optimising resources such as water, soil, and fertiliser, cutting emissions and pollution, and extending the lifecycle of land and agricultural inputs.

Nguyen Thi Mai Huong, Chief Operating Officer of Hachi Viet Nam, explains that the company’s IoT and AI systems precisely monitor humidity, light, temperature, and nutrients, ensuring crops receive only the necessary water and fertiliser. This minimises waste, reduces costs, conserves resources, and lowers greenhouse gas emissions—paving the way for modern, transparent, and sustainable agriculture.

Hachi’s traceability and produce connection technology has also strengthened agriculture’s integration into the circular economy model.

Through QR codes and transparent data systems, consumers can track products from cultivation to distribution, building trust and encouraging sustainable consumption. Farmers, meanwhile, gain valuable data to refine production processes, reduce waste, and improve quality. According to Huong, this direct farmer–enterprise–consumer connection has forged a closed value chain, delivering economic, environmental, and social benefits.

Coordinated action needed to advance circular models

Despite its great potential, circular agriculture still faces significant challenges. Value chain linkages remain weak, with limited investment and technology adoption in production.

Many farmers persist with linear production, overusing fertilisers and chemicals for short-term yields, which causes environmental pollution. There is also a shortage of skilled human resources for researching and applying waste and by-product treatment technologies, compounded by insufficient policy support.

Ha Van Thang, Chairman of the Viet Nam Council for Agriculture Business (VCAC), notes that there are currently no specific incentives in this field. SMEs struggle to access capital and technology, hindered by limited awareness and management capacity.

Policy frameworks remain incomplete, expert teams for waste treatment technology are lacking, and science–technology applications are constrained by outdated regulations.

He emphasises that the circular economy is an inevitable path to boosting competitiveness and creating sustainable added value for Vietnamese agriculture. To achieve this, a coordinated policy ecosystem is required, with close collaboration between the State, enterprises, farmers, scientists, and investors.

“We recommend that state management agencies promptly develop roadmaps and issue specific, practical mechanisms to support enterprises in boldly transforming models and investing in circular innovation,” Thang stated.

Vo Van Quang Quang, Deputy General Director of Bac A Commercial Joint Stock Bank (Bac A Bank)—a bank offering comprehensive financial-credit services with priority for high-tech agriculture—assesses that Viet Nam has major agricultural advantages, with 80% of natural land devoted to farming, abundant resources, and a favourable climate.

However, current production remains largely small-scale and spontaneous, lacking value chain linkages and technological application. This results in low productivity, inconsistent quality, and resource waste.

To advance circular agriculture, experts call for accelerated research, application, and transfer of science and technology—particularly biotechnology and digitalisation.

Priority should be given to building industry data systems and suitable digital technologies for cropping, livestock, aquaculture, and forestry. At the same time, it is crucial to establish closed production processes to reduce inputs, recycle, and extend product lifecycles.

Further investment is needed to develop key technologies, enhance farmer training and technology transfer, scale up circular models, and establish innovation centres to drive the green economy.