Collective Economy Promotes New Rural Development

9:16:12 AM | 11/19/2023

In recent years, the collective economy, with cooperatives at its core, has steadily reinforced its significance in the execution of the New Rural Development Program in Vinh Phuc province. Activities undertaken by the collective economic sector and cooperatives have played a pivotal role in augmenting income levels, transforming labor structures, driving economic development, and effecting a tangible transformation of rural areas across the province.

Remarkable achievements of various cooperative models foster local economic growth

For the 2021-2025 period, the collective economy and cooperatives have been once again identified as pivotal components. Additional indicators, such as the implementation of traceability for key products at the commune level, intertwined with the establishment of raw material areas, the preservation and development of traditional craft villages in harmony with environmental protection, and the operation of effective community agricultural extension groups, have been incorporated to bolster these sectors.

Upholding the central role

A testament to the collective economy's positive impact is the Tam Dao Mushroom Cooperative, situated in Hop Chau commune of Tam Dao district, Vinh Phuc province. Specializing in the cultivation of edible and medicinal mushrooms, the cooperative's product range encompasses oyster mushrooms, abalone mushrooms, straw mushrooms, and lingzhi mushrooms. By integrating advanced technology and VietGap standards in production, the cooperative's products have gained the trust and preference of consumers, due to their high quality. The adoption of a high-tech production model has enabled the Tam Dao Mushroom Cooperative to double its productivity, yielding an annual output of 150 tons of fresh mushrooms and a profit of approximately VND700 million. Additionally, the cooperative is dedicated to producing high-value mushrooms, supplying mushroom seeds, and disseminating mushroom cultivation materials to its member households. The cooperative has actively expanded its market reach, making its products available in local supermarkets as well as markets in Hanoi, Phu Tho, and Bac Ninh.

The evident success of numerous cooperative models has greatly contributed to sustainable economic development and the advancement of new rural areas. Presently, Vinh Phuc province hosts over 700 cooperatives, with each cooperative generating an average annual revenue of approximately VND1.6 billion. The collective workforce of these cooperatives comprises over 200,000 regular employees, who enjoy an average annual income of around VND52 million per person.

Several cooperative models have embraced production approaches closely aligned with value chains, thereby assisting members in the distribution of products, fostering product replication, and supporting rural income generation. Some notable examples include the Nhan Ly Agricultural Service Cooperative in Binh Xuyen, the Van Hoi Xanh Safe Vegetable Cooperative in Tam Duong, the Tam Dao Dairy Farming Cooperative in Tam Dao, and the Vinh Phuc Safe Vegetable Cooperative in Tam Duong. Following the conversion in accordance with the Law on Cooperatives 2012, models such as the Tam Phuc Environmental Service Cooperative in Vinh Tuong and the Tuoi Tre Construction Materials Cooperative in Vinh Yen City have operated effectively, extending essential support to their household members and elevating their income levels.

Tam Dao Mushroom Cooperative

Fostering sustainable new rural areas

In alignment with the provincial goals for cooperatives from 2021 to 2025, the Steering Committee for New Rural Development in Vinh Phuc province has been proactively directing localities to enhance the development of advanced new rural areas and model new rural areas. This directive has also urged relevant departments, branches, and localities to collaborate closely and redouble their efforts in fulfilling the new rural criteria. Additionally, the province places emphasis on agricultural economic development, culminating in the creation of a circular economy. This effort seeks to capitalize on each locality's strengths, promote the ongoing restructuring of the agricultural sector, and further the One Commune One Product (OCOP) Program to boost added value, align with the digital transformation process, and adapt to climate change. These objectives include the development of rural industries, an enhancement of cooperative operational efficiency, and the provision of robust support to rural startup businesses. As an essential component of meeting the 13th criterion, communes are required to have efficient cooperatives. Thus, in the New Rural Development Program, the active participation of the collective economy and cooperatives is paramount. Collectives, in general, and agricultural cooperatives, in particular, serve as critical agents in production restructuring, promoting interlinked agricultural production, sourcing agricultural products, job creation, and bolstering rural income. Additionally, they contribute investment resources for rural infrastructure development, ultimately influencing the transformation of rural areas.

Mr. Vu Chi Giang, Vice Chairman of the People's Committee of Vinh Phuc province, asserts that the province has established mechanisms and policies that support and facilitate cooperatives, businesses, and individuals in land accumulation for the development of centralized farms, as well as the promotion of high-tech agricultural production. Of notable significance is the province's consistent attention to the conversion of cooperatives in accordance with the Law on Cooperatives 2012, alongside the development and replication of successful cooperative models.

Vinh Phuc province enhances the use of science and technology in agriculture, focusing on high-tech farming

The Provincial Cooperative Alliance has undertaken various initiatives to bolster cooperatives in accessing markets, establishing connections with businesses, identifying key products, constructing production and distribution chains, and offering cooperative loans for expanding production, brand creation, and product labeling. Consequently, the cooperative economic sector in the province has experienced growth in terms of quantity and quality. Operational efficiency has surged, ushering in a spectrum of services, which have provided members and farming households the opportunity to restructure their crops and livestock, increase productivity, and improve product quality.

In the foreseeable future, cooperatives in the province will persist in reinvigorating their operations, expanding their production scale, propelling the development and replication of cooperative economic models that are anchored in the value chain, ultimately fostering momentum for the new rural area construction process. These efforts will be intertwined with the restructuring of the agricultural sector and the amelioration of living standards for farmers. As part of this agenda, the cooperatives will be actively engaged in the OCOP Program and the development of additional OCOP products. Furthermore, they will focus on investments in high-tech production areas and the promotion of organic agriculture and green agriculture. This multifaceted approach serves to accentuate the role of cooperatives in the construction and enhancement of rural infrastructure, thus actively contributing to the program's objectives of advancing both advanced and model new rural areas.

By Minh Ngoc, Vietnam Business Forum