The startup story of Nguyễn Quốc Phong, a YUP student, and his work bringing internet applications into agriculture to support farmers. Published on CafeBiz.vn.
NGUYỄN QUỐC PHONG, THE MAN BRINGING THE INTERNET OF THINGS TO FARMERS
Leaving Viettel was not easy for Nguyễn Quốc Phong, a hardworking young man from Quảng Nam. Yet he gained more than he had imagined when he decided to start H2O Farm with 30 million dong in capital.
The tireless self-learning journey that produced 50 “urban home vegetable” models and 3 commercial hydroponic vegetable projects covering more than 2,000 square meters using NFT technology (nutrient film technique) was filled with moments of creative freedom, bringing technology and IoT, the Internet of Things, into agriculture.
He is working to perfect a chain of small shops selling clean vegetables and meat, like bread carts throughout every corner and alley of Đà Nẵng, with the simple wish to help address the widespread unsafe food that is destroying people's lives.
For a young man from Central Vietnam, giving up a salary of 25 million to return home and grow vegetables must have been a difficult decision?
In Quảng Nam, that salary provides a comfortable living. Leaving Viettel was a… terrifying decision for me!
After graduating in information technology from Duy Tân University, I worked for Viettel Group in roles including IT engineer, telecommunications, and infrastructure construction management…
After 7 years of work, I realized I did not truly love this job. I wanted to do something different, work for myself, and contribute to society.
When deciding to start the H2O Farm project, the first desire was to help farmers apply new technologies to production to improve quality and yields.
At first, I thought simply: with a little capital, I could grow vegetables to sell. The neighbors thought I was very ‘odd.’ Everyone said, ‘He's crazy! Not satisfied with a well-paid engineering job, he comes back to the countryside to dig soil and grow vegetables—who would respect that?’
I made my own fertilizer by asking for used coffee grounds to mix with sawdust, and composting waste mixed with rice husks. The stench drifted into neighboring homes, upsetting everyone, and they told me to stop.
Growing vegetables in soil is extremely difficult. Even with organic fertilizer, preparing the land is arduous because years of chemical spraying have hardened and depleted it, creating many risks. Soil-based growing requires too much effort and time.
Without knowledge of vegetable growing or technology, how much time and money did you spend building the first model of the NFT nutrient film technique solution?
Responding to the trend of many households wanting clean vegetables but finding home-growing difficult and giving up after one season because of the effort required, I researched recirculating NFT hydroponics, the nutrient film technique. It runs only a thin layer of water over the roots, providing nutrients and oxygen simultaneously without submerging them. This is what helps plants grow.
After reading many materials online from around the world about this method, I discovered that many large farms in Vietnam and Đà Lạt had already adopted it. So I packed my bags and went to Đà Lạt to learn about the cultivation process and equipment import partners. Only in late 2016 did I find the most reputable source for equipment, including NFT hydroponic growing channels and fertilizers from Haifa (Israel) and Yara (United Kingdom), the world’s two largest farms specializing in hydroponics.
Finding seeds was also very difficult. No farm would explain everything, so I had to investigate myself. After half a year of searching, I finally found a Dutch seed company with an office in Đà Lạt. Its seeds are treated, disease-free, primed for germination, and coated with nutrients. They have a 99% germination rate, are developed for hydroponic growing conditions, and deliver consistent quality and yields. Professional high-tech growers all source seeds here. Partners also receive free technical guidance. Only at this point did I complete the solution and find the optimal formula.
From the outset, I chose the best technology and designed the first prototype myself. Only after three revisions did I produce the final model to show customers. Fortunately, my two closest friends agreed to pay for installations. At the time, they only wanted to help me and did not think the system would produce vegetables. But after I received 11 million dong from them, the first harvest amazed them: the vegetables grew beautifully and uniformly, more than they could eat. We held a grand feast of vegetables dipped in soy sauce.
Did you face many challenges in bringing the model, starting from 2m2, into the lives of 50 families?
When I entered agriculture, I received a great deal of help. At first, nobody believed in it, and they regretted that I had left Vietel to endure such hardship. Fortunately, my friends supported me. I borrowed 10 million from a friend and, together with my 30 million in capital, went to Saigon with a younger sibling whom I had called back from Vietel to buy materials and assemble the equipment ourselves.
When I met an ethnic Chinese business owner specializing in virgin plastic pipes coated with protection against OV rays, able to withstand all weather and last 10 years or more, I asked him to give me his lowest price because I did not have much money. I might buy only a small quantity at first, but if the product developed, I would buy more. He trusted me and agreed immediately. He remains my partner today.
The first lettuce crop was planted during the cold season and hit by storms. Our house was near the sea, and the rooftop system left all the plants knocked over. I needed another solution, so I covered the entire growing area with insect netting. After about 20 days, the vegetables grew well, and we had vegetables to eat from then on.
I posted the story of leaving Viettel and the hardships of starting a business on Facebook as a way to share my feelings. Unexpectedly, when I posted the product online, a customer in Đà Nẵng immediately called to have it installed for his family. He also owned a mechanical installation company. I sold the system for VND 7 million/m2. He said money did not matter as long as he had clean vegetables to eat. The product did not disappoint him.
Seeing my determination in agriculture, this first customer helped me find more customers, provided premises support, allowed me to place a sign at his company, and had installations done at his own companies too. Customers were quite surprised, saw reasons for confidence, and the product was heading in the right direction.
But Providing Commercial Hydroponic Solutions for Large Farms Brings You Other Pressures Too?
For large farms, yields must be assured because they need to calculate investment costs carefully and set reasonable prices to generate revenue. Temperatures in the Central region are particularly harsh. I keep thinking about how cold-climate vegetables can survive there and produce high yields.
I boldly worked with a Dutch partner to develop a comprehensive solution that optimizes productivity and supplies high-value cool-climate vegetables to resorts and restaurants, with the shortest possible payback period. Several Dutch lettuce varieties, such as romaine, purple lollo, green lollo, butterhead, and green leaf lettuce… grew well following the technology transfer.
Before planting, water samples from the customer's farm are tested so advisers can determine whether the water is usable and contains heavy metals. They then calculate its mineral specifications and send the results to the Netherlands to determine nutrient inputs and fertilizer formulations.
Another secret to high yields is a water-cooling system that lowers the temperature to 24°C, suitable for the plants. Alongside it, misting cools leaves and air in the hot season, using irrigation controllers from Israel's Netafim. With technology, I can now confidently say that cold-climate vegetables can be grown right in Central Vietnam.
Alongside farm solutions, I also have a seedling nursery for customers in Quảng Nam. The seed-to-plant process uses two nursery systems before transferring to the main line, optimizing space savings and thereby increasing productivity. Moving from system 1 to system 2 saves 15 days compared with conventional methods, and because time is money, capital is recovered faster.
I also incorporated IoT technology into farm management, helping control nutrient levels and integrate weather, temperature, and growing-medium moisture indicators. Growing plants via smartphone allows control of irrigation and cooling mist for the plants.
You also want to help homemakers improve family meals through highly convenient shops selling clean vegetables and meat?
That is another way to build a brand. Besides providing solutions and processes for farmers, I want to partner with supermarkets and minimarts to support market access for farmers and suppliers, creating an agricultural ecosystem that reassures customers when ordering products and encourages greater investment.
Once vegetable production is stable, I want to partner with others to find clean meat sources, or raise livestock myself, to supply clean vegetables and meat to the H2O brand chain. The small shops would be like bánh mì carts, with very low premises and staffing costs.
You named your company H2O. Is money flowing in like water now?
H2O is associated with hydroponics, while financially we are only covering expenses. Last year's commercial product revenue was around 1 billion, with another 400 million from urban-household customers.
However, my greatest gain is being able to do what I enjoy and expand myself every day. Seeking courses in technology and management forces me to become more proactive in finding customers. I see a broader path than in my former specialty, discover so many good things, and see my direction ever more clearly!
Beyond my own passion, even with high technology, people remain at the core and must strive every day. That concern motivates me to research more deeply.
For an entrepreneur, the greatest concern is finding the right model and solution to satisfy customers. I like technology and creativity, and I am a perfectionist. I want both the outward appearance and the internal solution to keep improving until they truly satisfy customers. I continually explore and learn to overcome constraints and environmental conditions and compete with other products on the market.
Alongside commercial activity to earn revenue, I now go to Đà Lạt with a different mindset: to help farmers and bring in technology. IoT is gradually being learned and replicated across other models so even people unfamiliar with agriculture can achieve high yields. Building databases on productivity and cultivation helps forecast each season’s output compared with other years, choose crops appropriately to meet supply and demand, and avoid bumper harvests followed by falling prices.
The collected data gives policymakers a broader view to guide and support farmers in agricultural cultivation. This is the most practical value IoT brings to farmers and policymakers.
Original article link: http://cafebiz.vn/nguyen-quoc-phong-nguoi-mang-internet-van-vat-cho-nong-dan-20171223102314063.chn
