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Smallholder farmers in Vietnam continue to struggle to break out of the cycle of “good harvest, low prices,” industry sources say. They point to fragmented arable land as a key constraint, making it difficult to modernize agriculture and limiting the effectiveness of technology—thereby prolonging the repeated pattern of high output followed by weak prices.
“Tiny-scale farming cannot go far,” said Vo Quan Huy, director of Huy Long An Co., Ltd., speaking at the “Smart Agriculture” conference on April 17 in Ho Chi Minh City. After more than half a century in farming, he argued that the “good harvest, low prices” cycle is closely linked to the small and fragmented scale of production.
When land is subdivided, modernization efforts tend to remain partial. Infrastructure cannot be synchronized, mechanization costs rise, and even where technology is available, it is difficult to apply it at full scale. Companies are more likely to invest systematically—such as in irrigation, automation, and cost optimization—only when land consolidation reaches a sufficient level.
Mr. Huy’s remarks reflect a long-standing bottleneck in Vietnamese agriculture as export market pressures increase and standards tighten. The challenge is no longer only raising output, but producing goods that can command higher and more stable prices.
In this shift, data is described as a foundation for digital agriculture. Associate Professor Do Van Hung said data is the “lifeblood” of digital agriculture, but in Vietnam it remains dispersed, lacks connectivity, and does not follow common standards. As a result, many technology-driven models cannot fully realize their potential despite large untapped opportunities.
Returning to the business challenge, Mr. Huy compared land to the “body” and science and technology to the “spirit.” He cited technologies ranging from tissue culture to IoT sensor networks and artificial intelligence, which can help control production processes in real time. This approach reduces reliance on experience and limits errors.
With data-driven management, farming practices can move from intuition to calculation—aiming to optimize costs, support price stability, and meet stringent export requirements. The goal is to create greater value rather than focusing only on yield.
The trend is spreading beyond crop farming. Deploying AI, robotics, and automated systems can reduce labor needs, standardize processes, lower risk, and improve productivity. In livestock and aquaculture, technology can help ensure consistent quality, which is important for meeting the requirements of demanding markets.
Despite the potential, the transition faces significant obstacles. A representative from the National Institute for Agricultural Extension in the Mekong Delta said adoption of high-tech is uneven due to resource constraints, imperfect institutions, and—especially—small-scale production. This creates a feedback loop that makes it difficult for farmers to access technology and for technology to diffuse widely.
In this context, moving toward a green, data- and technology-driven agricultural economy is described as necessary rather than optional. As large markets tighten requirements for traceability and quality, fragmented production models risk losing competitiveness.
Agriculture remains a pillar of the economy, with export value surpassing $70 billion in 2025. To sustain this position, the sector cannot continue along the old path. As land consolidates, data connects, and technology becomes the operating backbone, the “million-dollar” narrative could shift from being exceptional to becoming more common for Vietnamese agriculture.
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