Circular agriculture a game changer for Vietnam


Rich in carbohydrates: Shops selling rice, nuts and cereal inside the Rong market in Ninh Binh, Vietnam. Rice has been the one staple grain that’s helping to keep the world food crisis from getting worse. — Bloomberg

HANOI: As the world’s fifth-largest rice producer, Vietnam has tremendous potential to generate revenue from by-products such as straw, husk and bran, as well as to adopt ecological and circular farming practices, according to industry insiders.

According to the Agriculture and Rural Development Ministry (MARD), Vietnam’s Mekong Delta region alone produces about 25 million tonnes of rice annually, with tens of millions of tonnes of straw, millions of tonnes of husk and bran.

However, the by-products have been left unused, often resulting in waste of valuable resources.

To make matters worse, the majority of local authorities have not prioritised cutting down carbon emissions, as their focus has often been economic and food security objectives.

According to Le Thanh Tung, deputy head of the crop production department under MARD, the region produces around 24 million tonnes of straw yearly but just a mere 30% are collected.

Farmers, following old practices, often burn the leftover straw on the fields to make fertiliser, adding to higher emissions.

“Circular agricultural practices hold the key to increasing income for farmers while reducing emissions at the same time.

“To develop circular agriculture, local governments must start with building databases, planning and implementing models to collect the by-products,” Tung said.

“Data and technology play important roles in developing and supporting circular agricultural practices and should be made readily accessible to farmers and local governments,” he added.

Economic potential

The practices are said to hold great economic potential. With over 40 million tonnes of straw produced yearly across the country, efficient recycling and reuse can deliver significant benefits to farmers while contributing to Vietnam’s commitments made to the international community to reduce the country’s emissions.

Nguyen Van Hung, an expert at the International Rice Research Institute Vietnam Office, said developing circular agriculture required support policies for farmers, cooperatives, and market monetisation.

Hung said the institute was ready to collaborate, share, and provide databases, system designs, and agricultural circular economy value chains, as well as introduce new technologies and applications to the rice industry.

Phan Van Tam, deputy director-general of the Binh Dien Fertiliser JSC, said it was necessary to strategise and plan comprehensively to start generating income from the by-products.

Other elements, including transportation, processing and supporting infrastructure are all crucial.

In addition, measures must be taken to draw in investment from domestic and foreign investors, incentives for farmers, simplified administrative procedures and greater transparency.

“Binh Dien Fertiliser JSC has been working closely with the institute and scientists to make organic fertiliser.

“We have also been working with local cooperatives to build a stronger network to collect and transport the by-products,” Tam said.

Pham Thi Minh Hieu, director of the crop and plant department in Can Tho Province, one of the largest rice-producing localities in the Mekong Delta, said farmers in the province had started the implementation of the new practices.

“Several farmers reported their income reached 133 million dong per ha using the new practices, nearly double their income from traditional practices,” he said.

Hieu said the provincial government had set several targets in supporting farmers using the new practices to cut production costs, increase profits and protect the environment.

The authorities also aim to expand the new practices across the entire province, as well as the Mekong Delta.

MARD deputy minister Tran Thanh Nam said that in light of the adverse effects caused by climate change, Vietnam’s rice industry must adapt by rapidly adopting circular agricultural practices to optimise resource use, minimise waste and preserve the environment.

“The ministry considers circular agriculture a top priority with one million ha of high-quality rice being cultivated and more making the switch in the future,” he said.

Vietnam is expected to require approximately US$2.7bil to carry out its high-quality rice cultivation project spanning one million ha by 2030, according to an official from MARD.

During a June 29 meeting involving the Planning and Investment Ministry, the MARD and Mekong Delta localities, discussions focused on utilising World Bank loans to support a project developing one million ha of high-quality, low-emission rice cultivation in the region.

Ton That Son Phong, deputy head of the MARD’s agricultural project management board, emphasised the urgency of mobilising international resources due to limited domestic funding.

To this goal, MARD has proactively worked with many international organisations such as the World Bank, the Asian Development Bank, the SNV Netherlands Development Organisation, and the International Rice Research Institute (IRRI).

To date, the World Bank has committed to providing loans and technical assistance, while the IRRI and several other organisations have pledged to provide technical support.

Based on the World Bank’s commitment, representatives from the MARD, 12 provinces and Can Tho City in the Mekong Delta, and other ministries and sectors have directly worked with the World Bank and domestic and international experts to complete a draft project on infrastructure and technical support for high-quality, and low-emission rice farming in the region.

The draft project is expected to be submitted to the Prime Minister for consideration and approval in the third quarter of 2024. Its investment is estimated at US$430mil, of which US$330mil will be financed by loans from the World Bank.

Cao Thang Binh, a senior expert of the World Bank, said that this is the first time Vietnam and the world have a large-scale project on rice production towards sustainable growth and emissions reduction. — Viet Nam News/ANN

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