What are the Benefits of the Agricultural Business Community?

DNHN - Given the challenges of food security and the environment, the value of agricultural businesses is undeniable. Accordingly, the business community in this sector has always played an important role in providing food for the whole of society.

Compared to many other sectors, the scale of businesses in the agricultural sector in Vietnam is currently quite modest. With the potential to connect to tens of millions of farming households in many regions across the country, if utilised and developed, the strength of each agricultural business will be very great and will truly bring multiple values, both bringing high incomes to people and promoting the process of green growth in the agricultural sector.

Vietnam has agricultural advantages, but there are still too few agricultural businesses. The main agricultural producers are still households, so the development of the agricultural sector needs breakthroughs. According to the General Statistics Office, as of 31 December 2022, there were 12,094 agricultural businesses out of a total of 89,5876 businesses operating in the country, accounting for only nearly 1.35% of the total number of businesses nationwide.

The scale of investment by businesses in the agricultural sector is mainly small and micro, accounting for 90%, agricultural businesses of medium scale account for only 4.0% and then large-scale businesses account for less than 6%. This shows that the development of agricultural businesses in the recent period has been quite modest compared to the potential and development advantages.

Currently, businesses in the agricultural sector are responsible for producing and supplying food for the global population. Thanks to modern agricultural technologies, these businesses can increase productivity and production efficiency, thereby ensuring food security and meeting the world’s growing demand.

In addition, the agricultural sector is a major source of employment, especially for rural countries. Agricultural businesses create jobs for many people, from farm workers and agricultural engineers to sales and management staff. The development of the sector also contributes to economic growth, attracts investment and generates income for communities.

In addition, the business community in this sector is currently contributing to environmental protection and sustainable development. By using sustainable farming methods, they effectively reduce water consumption, fertiliser and pesticide use. Smart agricultural technologies also help improve resource management and reduce greenhouse gas emissions.

Therefore, businesses in the agricultural sector play an important role in encouraging innovation and technological development. By investing in research and development, they create new solutions to improve production efficiency, food quality and safety. Technologies such as artificial intelligence, precision agriculture and digital communication are widely applied in the agricultural sector, bringing about significant advances.

In particular, businesses in the agricultural sector often have a positive impact on the community and social development. By creating jobs, they help improve the living standards and incomes of people in rural areas. They also often participate in social activities, such as contributing to charitable funds and supporting education and healthcare in the community.

On the above issue, Dr Dang Kim Son, former Director of the Institute of Policy and Strategy for Rural Development, said that urbanisation, industrialisation and globalisation are changing social values and behaviours. Without the strength of the business community, it will not be possible to maintain the culture or protect the values of life.

He said that it is time to innovate the growth model towards the business community playing an important role. Mobilising the strengths of the community will help stabilise society, in terms of the market it is economic development, and for the State, it is unified management.

“If the community and localities do not get involved, it will not be possible to do it,” said Dr Dang Kim Son.

In summary, the value of businesses in the agricultural sector is not limited to providing food and ensuring food security. Businesses in the sector also contribute to economic and social development, environmental protection, encouraging innovation and technological development, as well as connecting the community. Therefore, businesses in this sector have an important role to play in meeting the needs of people in society, contributing to building a sustainable future for humanity.

Nghe Nhan