Vietnam AI in Agriculture Market Outlook to 2028

Vietnam AI in Agriculture Market Overview

• The Vietnam AI in Agriculture market achieved a positive growth from 2018-2023. This is reflected by global AI in Agriculture market reaching a valuation of USD 1.8 billion in 2023. This growth is driven by the increasing adoption of AI technologies to enhance agricultural productivity and efficiency.
• Major players in the Vietnam AI in Agriculture market include IBM Corporation, Microsoft Corporation, Google LLC, Intel Corporation, and SAP SE. These companies are leading the market by providing AI-powered solutions tailored for agriculture.
• A key growth driver for the Vietnam AI in Agriculture market is the increasing focus on sustainable farming practices. The Vietnamese government has prioritized agricultural sustainability, which aligns with the capabilities of AI to optimize resource usage and reduce environmental impact. AI-driven solutions such as precision agriculture and smart irrigation systems are essential for enhancing farm efficiency and sustainability.
• In 2023, Ho Chi Minh City and Hanoi are the dominant cities in the Vietnam AI in Agriculture market. Ho Chi Minh City, being the economic hub of Vietnam, hosts numerous technology startups and research institutions focusing on agricultural innovation.

Vietnam AI in Agriculture Market Segmentation

• By Product Type: The Vietnam AI in Agriculture market is segmented by product type into crop monitoring, predictive analytics, smart irrigation systems, and autonomous vehicles. In 2023, crop monitoring systems dominate this segmentation due to their ability to provide real-time data on crop health and growth. These systems utilize AI-powered sensors and imaging technologies to monitor crops, enabling farmers to make informed decisions and improve yields. Leading companies like IBM and Microsoft are advancing crop monitoring solutions, contributing to their market leadership in this segment.

• By Application: The Vietnam AI in Agriculture market is segmented by application into precision farming, livestock monitoring, and greenhouse management. Precision farming holds a dominant market share in 2023 due to its significant impact on increasing agricultural productivity and efficiency. AI technologies in precision farming help optimize resource usage, monitor crop health, and predict yields, addressing the need for improved farming practices. Major agricultural technology firms are investing heavily in precision farming solutions, driving the segments growth.

• By Region: The Vietnam AI in Agriculture market is segmented by region into North, South, West and East. In 2023, Eastern region dominated the market due to rapid advancements in AI technology and the increasing adoption of digital solutions in agriculture. The growing focus on agricultural modernization and government support for technology integration in this region significantly contribute to this dominance.

Vietnam AI in Agriculture Market Competitive Landscape

• Google LLC AI Crop Tools: Google released its AI-powered crop health and soil analysis tools in 2023. These tools provide real-time data and actionable insights to Vietnamese farmers, aiming to increase crop yields by 20%. The technology helps in monitoring crop conditions, detecting diseases early, and optimizing soil health for better agricultural outcomes.
• SAP SE Agriculture Cloud Adoption: SAP introduced its Agriculture Cloud in 2023, which offers AI-driven solutions for comprehensive crop and supply chain management. By the end of 2023, the platform had been adopted by 5,000 farms in Vietnam. The cloud-based solutions are expected to improve operational efficiency by 25% through better data management and optimized agricultural processes.

Vietnam AI in Agriculture Market Analysis

Vietnam AI in Agriculture Growth Drivers

• Government Investments in Agricultural Technology: The Vietnamese government is investing significantly in agricultural technology to boost the sectors efficiency. In 2023, the government allocated approximately USD 50 million to develop and implement AI solutions in agriculture. This funding is aimed at supporting research and development projects, which focus on integrating AI for precision farming, crop health monitoring, and pest control.
• Increased Adoption of Precision Farming Techniques: Precision farming, driven by AI technologies, is gaining momentum in Vietnam. According to the Vietnam Agricultural Research Institute (VARI), the adoption of precision farming techniques increased from 2022 to 2024. This growth is attributed to the efficiency improvements and cost savings offered by AI-powered tools, such as GPS-guided equipment and data analytics platforms.
• Rising Demand for Crop Monitoring and Management Solutions: The demand for AI-driven crop monitoring and management solutions is on the rise due to the need for efficient agricultural practices. The Vietnam Ministry of Agriculture and Rural Development (MARD) reported that the use of AI in crop monitoring increased from 2022 to 2024. This surge is driven by the need for real-time data on crop health and soil conditions, which helps farmers make informed decisions and improve productivity. The growing demand for these solutions is a key driver for market growth.

Vietnam AI in Agriculture Market Challenges

• Limited Access to High-Speed Internet in Rural Areas: One significant challenge facing the AI in agriculture market in Vietnam is the limited access to high-speed internet in rural areas. According to the Vietnam Telecommunications Authority, as of 2023, only 35% of rural areas have access to reliable high-speed internet. This limitation hinders the implementation and effectiveness of AI solutions, which rely on robust internet connectivity for data transfer and real-time monitoring.
• High Costs of AI Implementation for Small-Scale Farmers: The cost of implementing AI technologies remains a barrier for many small-scale farmers in Vietnam. A survey by the Vietnam Farmers Union in 2024 found that approximately 60% of small-scale farmers face challenges in affording AI-based tools and technologies. The high initial investment required for AI systems, coupled with the cost of training and maintenance, poses a significant challenge to widespread adoption among smaller agricultural enterprises.

Vietnam AI in Agriculture Market Government Initiatives

• Subsidies for AI Technology Adoption: The Vietnamese government has introduced subsidies to encourage the adoption of AI technologies among farmers. the government has prioritized food security and sustainability, investing VND 2,500 billion in 2024 to support smart agriculture technologies. These technologies include IoT-based irrigation systems and AI-driven crop monitoring, which are critical for optimizing resource use and improving crop yields.
• AI in Rice Farming Integration: In 2023, Vietnams Ministry of Agriculture and Rural Development (MARD) announced a new initiative to integrate AI technologies into rice farming. The project aims to leverage AI for crop management and yield prediction, with an initial funding of USD 20 million. According to MARD, this initiative is expected to increase rice yields by 15% over the next five years, showcasing significant advancements in AIs role in agriculture.

Vietnam AI in Agriculture Future Market

Vietnamese agriculture, driven by advancements in precision farming, enhanced crop management solutions, and government-supported tech innovations for sustainable farming.

Future Market Trends

• Increased AI Integration in Precision Farming: By 2028, AI technologies will be extensively integrated into precision farming in Vietnam. Advanced systems will offer real-time crop monitoring, precise soil management, and accurate yield predictions, optimizing resource use and boosting productivity. Farmers will benefit from more targeted and efficient farming practices.
• Expansion of AI-Powered Agricultural Platforms: The market will see a surge in AI-powered agricultural platforms, offering integrated solutions for farm management. These platforms will provide advanced tools for resource optimization, pest and disease management, and predictive analytics, making cutting-edge technology more accessible and effective for Vietnamese farmers.