OCOP Products Potentially Capture Domestic Market

The One Commune One Product (OCOP) Program has been launched in most localities across the country to date. By the end of 2020, over 3,843 will have been certified OCOP, including many meeting 4-star and 5-star standards. This is potential for Vietnamese retailers to occupy the domestic market. Vietnam Business Forum has an interview with Mr. Nguyen Minh Tien, Director, Chief of the New Countryside Coordination Office, on this issue. Minh Ngoc reports.

Could you please tell us the biggest goal of the OCOP Program in 2020?

OCOP is a locally or regionally distinctive product development program for rural areas, carried out by collective economic entities and private economic entities. OCOP products meet commercial product standards, with the goal of adding value and linking rural development with urban development. The biggest objective of the program is to accelerate a reasonable shift of rural labor structure; reshuffle the economy, raise incomes and living standards for people and effectively implement economic and production criteria in countryside construction. It is expected that, by 2020, the program will attract 120 economic entities, with over 5,000 employees making and trading OCOP products. Each OCOP worker earns an average income of VND60 - 70 million a year.

In order to develop OCOP products, first of all, producers must proactively change their business mindset and boldly invest in technology. Besides, the government helps with various mechanisms and policies for training, coaching, technical guidance, scientific and technological application, branding, trade promotion, product marketing, and product and service planning. For the time being, the most important task is focusing on thorough and broad communication to improve the understanding of significance, importance and processes of OCOP.

What does it mean to connect OCOP products to the market?

The OCOP Program is regarded by the Government of Vietnam as a specific solution and task to accelerate economic restructuring in rural areas, very suitable for the task of restructuring agricultural production and the New Countryside Construction Program. Moreover, the OCOP method is fitting Vietnam's agricultural production, featuring small-scale production, product diversity, many cottage industry villages, landscapes and local cultures.

Carrying out OCOP will motivate innovations of businesses, cooperatives and the people, and create pride in local specialties. Moreover, this also creates an environment for developing economic forms in rural areas, especially cooperatives, small and medium enterprises, boost tourism development, and local, regional and national images. This is also a good opportunity to bring science and technology into production, and gradually modernize agriculture and rural areas. At the same time, it helps attract investment and strengthen connectivity along value chains, from production, processing, market development to product consumption, make good and quality products, ensure food hygiene and safety, and raise production efficiency and income for people.

Market is the most important thing for each product. This is also the case for OCOP products. Could you tell us what businesses need to do to turn this potential into a strength?

With potential and advantages of agricultural products, plus support mechanisms and policies of the Government, the OCOP Program has been effectively tapping the strengths of each locality.

According to current local reports on OCOP products, after being evaluated and ranked, sales contracts on many products have been signed by distributors, retailers and e-commerce sellers. As a result, sales and revenue of ranked products has increased significantly. Especially, trade promotion for the OCOP Program has been very vigorous across the country, from central to local levels. Many localities have opened OCOP selling centers and showrooms according to criteria stated in Decision 920/QD-BCT dated April 16, 2019 of the Ministry of Industry and Trade, featured by Quang Ninh, Ha Giang, Bac Kan and Thai Nguyen provinces, thus creating positive effects on promoting and consuming OCOP products. In 2020, the program will strive to standardize and recognize at least 1,200 more OCOP products. Strengthening connectivity of OCOP products requires participation of localities to build a qualified consultant team. Enterprises not only need to get OCOP certification but also further promote OCOP production to bring OCOP products to supermarkets to reach more customers.

What are measures for OCOP products to be competitive on the world market?

In order to direct these products to a wider market, especially for export, the first thing is to understand the consumer market for each product group. The program will support producers to make adjustments to packaging, labeling and design appropriate to the consumer market.

Based on the ideas of participating businesses, the OCOP program will support science and technology application in production. Besides, product quality inspection and monitoring will also be implemented regularly to maintain standards and quality to meet market requirements. The OCOP program will also effectively implement trade promotion programs to give OCOP products a chance to be sold in the world market and a good condition to introduce the traditional culture of Vietnam.

Source: Vietnam Business Forum