High-tech agriculture in Vietnam: Drivers for farmers’ investment intention

Abstract

Purpose - The advantages of high technology in production are gaining farmers’ attention; however, they face obstacles when transforming from traditional production to high-tech agriculture. This study aims to explore the factors affecting the intention to invest in high-tech agricultural production in Vietnamese rural households. The paper focuses on the impact of benefit perception, risk aversion, land use rights, access to credit, and market access on the investment intentions of farmers in high-tech agriculture. Design - The study uses a face-to-face survey approach. Data were collected from 175 households in the Red River Delta in Vietnam. Findings - Results show that benefit awareness and risk aversion play a key role. In addition, the study points out a positive influence of education, land use rights, access to credit, and access to consumption markets on households’ investment intentions. Practical implications - Our findings raise some policy issues to encourage the transition towards high-tech agriculture. First, information about the benefits of high-tech adoption should be conveyed to farmers through different channels. Second, production cooperation between farmers and enterprises is promoted. Third, people's access to credit sources to invest in agricultural production, especially preferential loan programs, should be supported. Fourth, agricultural workers should be offered training programs to improve farming techniques, as well as skills in operating and maintaining high-tech machinery and equipment. Fifth, appropriate policies should be designed to promote the development of the agricultural land market, thereby increasing access to and accumulation of land. Originality - Although research on the drivers for investment in high-tech agricultural production receives widespread attention in many countries, studies on the same topic in Vietnam are currently limited. The influence of typical factors, including benefit awareness, risk aversion, land use rights, and participation in production linkages, has not been mentioned in studies in Vietnam, which will be comprehensively investigated in the paper. Moreover, the paper provides policy implications for promoting investment in high-tech agricultural production in Vietnam.