To help its agricultural products move further up the global supply chain, Dak Lak Province is accelerating the shift from a production-oriented mindset towards an agricultural economy approach, standardizing production-area data, meeting international standards, while developing greener and more sustainable farming models.

Dak Lak coffee being an important agricultural commodity within the global supply chain.

Dak Lak is currently one of Vietnam’s leading agricultural production hubs, with more than 214,000 hectares under coffee and 41,000 hectares of durian, alongside a rapidly expanding area dedicated to other fruit crops. In 2025, the province recorded export turnover of USD 2.8 billion, with both coffee coupled with durian exports exceeding USD 1 billion. To date, 420 growing-area codes covering a total of 21,821 hectares together with 72 export packing facility codes have been approved.

However, limitations in local testing infrastructure, warnings over cadmium and Auramine O residues, combined with compliance requirements under the EU Deforestation Regulation (EUDR) are placing mounting pressure on the provincial agricultural sector to undergo comprehensive transformation.

Against this backdrop, key agricultural sectors are shifting from management based simply on “codes and documentation” to a system centered on “consignments and evidence,” with quality controlled throughout the entire process — from soil, water alongside agricultural inputs to harvesting, testing and packaging. Comrade Do Huu Huy, Alternate Member of the Party Central Committee, Deputy Secretary of the Dak Lak Provincial Party Committee and PPC Chairman, stressed: “We must make a strong shift from a production-oriented agricultural mindset to an agricultural economy mindset; from selling raw products to offering branded products backed by data, compelling stories along with higher added value; and from extensive growth to more intensive, green, transparent as well as sustainable development.”

Within this value chain, establishing a common “language of quality” for the provincial key agricultural products has become essential for accessing demanding markets. Mr. Thai Anh Tuan, General Director of Simexco Daklak, said agricultural growth must be driven by value, built on three pillars: standards, transparency and trust. Dak Lak needs to elevate its agricultural products from being a major source of raw commodities to becoming a supplier of high-value products through deep processing, data digitalization together with the development of strong global brand credibility.

Production linked with green economic development

Alongside quality standards, “green” and low-emission production criteria are increasingly becoming essential prerequisites for Dak Lak’s agricultural products to gain deeper access to global supply chains. With more than 776,000 hectares of forest, a forest coverage exceeding 41%, alongside an EUDR-compliant database currently being developed for 86,339 hectares of coffee-growing areas, Dak Lak has significant potential to advance regenerative agriculture, the circular economy and carbon credit commercialization.

Dak Lak macadamia nuts being highly favored in the Japanese market.

Dr. Tran Ngoc Thanh, Director of the Institute of Agriculture and Rural Development for the Central Highlands under Dong A University, emphasized that protecting the reputation of agricultural exports requires coordinated solutions, ranging from soil baseline assessments through changes in farming practices. He said circular solutions such as the use of organic microbial fertilizers, wood vinegar combined with biochar are becoming increasingly necessary.

At the production level, green economy models have already begun to deliver tangible outcomes. In Cu M’gar Commune, the Xanh Cao Nguyen High-Tech Agricultural Cooperative, which works with 200 farming households, has introduced automated irrigation systems, electronic farm diaries and solar energy. Simultaneously, the cooperative is processing durian peel as well as other agricultural by-products into biochar and wood vinegar. This circular approach not only reduces environmental pollution but also improves soil quality, lowers production costs while helping products meet food safety standards for export markets.

Concurrently, the province is integrating 100% of its growing-area codes and packing facilities into the National Agricultural Product Traceability System, which officially became operational on July 1, 2026, thereby further strengthening a transparent digital data infrastructure.

Highlighting the sector’s strategic direction, Mrs. Dang Thi Thuy, Deputy Director of the Dak Lak Department of Agriculture and Environment, said green economic development is an urgent requirement for sustainable growth. The sector is currently advising the province on five key groups of solutions, focusing on reviewing while improving policies, digitalizing growing areas, promoting the circular economy, strengthening linkages between cooperatives coupled with businesses, and commercializing carbon credits to create novel momentum for the local economy.

Translated by THAO LINH