Hundreds of billions in revenue generated through the application of technology.
According to Mr. Trung, in the past, when talking about agriculture , people often mentioned the refrain "good harvest, low price" or vice versa. However, at present, thanks to the application of technology, agricultural start-up models have had a clear change.
Participating in the startup support program with young people very early, Mr. Trung witnessed the transformation and clear changes. Many models have proven that the trend of starting an agricultural business, especially smart agriculture, is the right choice.
Like the startup model from plants and flowers of two young people of the 9X generation. They know how to apply the knowledge they learned when studying chemistry, combined with their acumen and curiosity, they have created natural beauty care products, such as shampoo, shower gel, facial cleanser...
What's special is that these products are all organic, made from familiar, easy-to-find ingredients such as ginger, lemongrass, lemon leaves, etc. Currently, the revenue of these two young people is up to hundreds of billions of VND per year, he shared.
According to Mr. Trung, thanks to the application of technology in production, all projects have increased in value, creating businesses valued at hundreds of billions of dong, contributing to changing production mindsets and increasing farmers' incomes.
Mr. Tran Van Tan, Chairman of the Thanh Hoa Province Organic Agriculture Association, said that he himself also started a business with high-tech agriculture and organic agriculture.
"Up to this point, we have chosen and found the right path, which is to build a raw material area for growing Centella asiatica in Thanh Hoa," he said. According to him, from Centella asiatica growing wild in many places, the company has successfully built a raw material area and a processing plant. The company's raw material area for growing Centella asiatica, Perilla, Houttuynia cordata, etc., now covers over 200 hectares.
Specifically, the price of fresh water spinach purchased by his unit is 15,000-20,000 VND/kg. People who grow water spinach earn an average income of 12-15 million VND/month, with the highest-earning households reaching 40-60 million VND/month.
"Processed products made from centella asiatica are exported to Japan, South Korea, Qatar, Australia, and other countries. This September, a partner in Japan invited us to collaborate on importing centella asiatica powder," Mr. Tan said.
To be where he is today, Mr. Tan spent 4-5 years struggling with many difficulties in land accumulation, procedural mechanisms... especially capital for production investment.
Mr. Tan hopes the government will support startups with interest rates and capital so that entrepreneurs like him can reduce product costs. He personally aims to build more processing plants by 2025, reducing production costs by 25-30% so that everyone can afford his centella powder product, while also boosting exports of this item.
You have to know how to catch the trend and step outside your comfort zone.
Mr. Nguyen Van Tien, former Director of the Department of Agriculture, Central Economic Committee, said that there are currently many open policies in agriculture, such as the Land Law encouraging farmers to accumulate land and move towards large-scale production.
To access support policies, he suggested that startups need a team of consultants on production organization to persuade regulatory agencies to provide support. Mr. Tien cited Mr. Tan as an example of how he successfully approached local departments and agencies to receive support in terms of credit and land.
Besides difficulties related to capital, policy obstacles, and lack of traceability, Mr. Nguyen Tien Trung believes that young people need to "step out of their comfort zone." From there, they should change their mindset, adapt to new trends with new conditions and standards, and "start small but think big" to bring their products to all over Vietnam and globally.
Mr. Trung pointed out that using clean and organic agricultural products is still a trend that needs to be pursued, thereby increasing the selling price and reputation of the product. In our country, we can aim for 4-5 star OCOP products, creating a difference in the market.
In addition, he noted that it is necessary to find ways to boost exports. In fact, our country's agricultural exports are a strength, and export figures are a bright spot for the industry. It is necessary to take advantage of and catch these "trends" to export better.
Mr. Trung also shared his thoughts on the trend of choosing refined products that utilize advanced technology.
"The director of a company specializing in producing resistant starch from mung beans and bananas revealed that they have partnered with P&G to exploit banana raw material areas in Quang Nam, and collaborated with confectionery manufacturers to incorporate resistant starch to increase value and align with modern consumer trends. Instead of selling fresh bananas for only a few thousand dong per kilogram, they extract resistant starch and sell it to large corporations, generating hundreds of billions of dong," he said.
Similarly, startups must leverage the rapidly developing logistics network to boost their online distribution channels. Sales for some projects have increased tenfold as a result. For example, the Phu Tho fermented pork project, after building a system of 5,000-6,000 online distributors, saw its revenue increase from 500 million VND/year to 100 billion VND after about a decade.
During the process, it is necessary to understand the product and build a reputable brand. More importantly, honesty in business must be put first, Mr. Trung emphasized.
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