Thanks to strong partnerships between enterprises and cooperatives, the low-emission rice production model has successfully reduced production costs by 40–50% while ensuring stable yields and improving farmers’ incomes.
40–50% Reduction in Production Costs
During the 2024–2025 winter–spring crop, the sustainable and low-emission rice value chain model implemented by the PAN Group and its partner Binh Dien II (2 Phong brand) in the Mekong Delta delivered impressive results. The two companies jointly developed and tested a comprehensive cultivation package based on the “One Must, Five Reductions” principle.
Mr. Trần Vũ Chí, a farmer from Tân Công Sính Commune, Tam Nông District, Đồng Tháp Province, shared that his family cultivated 3 hectares of Đài Thơm 8 rice following the high-quality, low-emission rice production process associated with green growth. Seed use was reduced to 6 kg per công (1,300 m²) compared to 10–12 kg previously. The number of pesticide sprays dropped to 5 times per crop from 8–10, and fertilizer use was also significantly reduced.
Farmers participating in the model were guaranteed stable purchase prices through Vinaseed’s processing plants. Summarizing the crop, Mr. Chí reported that production costs fell by 40–50%, yield reached about 9 tons/ha, and profit averaged 34 million VND/ha.
Visiting the field during harvest, farmer Ngô Văn Lành from the same commune observed that rice grown under the model had longer panicles, firmer and more uniform grains, and higher yield by 100–150 kg per công compared with traditional cultivation. Reducing input costs, he said, allowed farmers to achieve better profitability and efficiency.
This three-party partnership — connecting farmers, cooperatives, and enterprises — proved that sustainable development is only possible when farmers earn higher profits, ensuring long-term stability for all parties involved.
According to Ms. Nguyễn Thị Trà My, CEO of PAN Group and Chairwoman of Vinaseed, improving farmers’ incomes requires more than just higher purchase prices. “That approach alone is not sustainable. Instead, farmers and businesses must work together to create integrated, sustainable supply chains — from input supply and services to processing and branding. Only then can we achieve long-term efficiency,” she emphasized.
Reducing 4 Tons of CO₂ Emissions per Hectare
Mr. Trương Công Cứ, General Director of Vietnam Fumigation JSC (VFC) — a member of the PAN Group — said:
“We are excited to develop this model. Although businesses typically aim to sell more products, we encourage farmers to use crop protection chemicals properly and efficiently to reduce costs and emissions.”
The model not only increases farmers’ income but also contributes to the agricultural emission reduction target through integrated solutions involving seed, fertilizer, crop protection, and alternate wetting and drying irrigation methods.
Mr. Lê Quốc Phong, Chairman of Binh Dien II Fertilizer JSC (2 Phong), affirmed that the project achieved a “dual goal” — reducing input use while cutting greenhouse gas emissions:
“Seed use decreased from 100 kg/ha to 60 kg/ha; fertilizer applications were reduced from six times to three; and pest management from ten to five times per crop. Farmers benefit economically, while the environment benefits from reduced emissions.”
Additionally, Rize Vietnam, an agricultural technology firm from Singapore, measured emissions in the pilot fields following Gold Standard protocols and confirmed a reduction of 4 tons of CO₂ per hectare.
Toward 50,000 Hectares of Low-Emission Rice by 2025
According to Mr. Trần Thanh Tâm, Head of the Plant Production and Protection Sub-Department of Đồng Tháp Province, the province aims to reach 50,000 hectares of low-emission rice cultivation by 2025 under the One-Million-Hectare High-Quality, Low-Emission Rice Project.
Localities have already launched several linkage models connecting farmers, cooperatives, and enterprises to produce high-quality, low-emission rice. Among them, the three-party cooperation between VFC, Vinaseed, and Binh Dien II has shown effective control over input materials, reduced costs, and improved farmers’ profits.
Mr. Bùi Bá Bổng, Chairman of the Vietnam Rice Industry Association (VIETRISA), emphasized that to ensure stable rice production and consumption, cooperatives, local governments, and enterprises must play a pivotal role in supporting farmers — helping them produce more sustainably, efficiently, and confidently.
In summary, this collaborative low-emission rice production model demonstrates that sustainability is achievable when farmers, cooperatives, and enterprises share value and responsibility. The result: lower costs, higher productivity, reduced emissions, and a greener, more competitive future for Vietnam’s rice industry.