Rach Gam Cooperative 45-Year: Journey of Trailblazing Growth and Value Consolidation

Founded on April 21, 1979, Rach Gam Cooperative has always adhered to the operational principle, "Enriched members, fortified cooperative prosperity." Guided by the conviction that the strength and prosperity of the cooperative hinge on the affluence of its members, the steadfast commitment has propelled Rach Gam Cooperative to emerge as an exemplary model for collective economic advancement within Tien Giang province and across the nation over nearly four and a half decades.

 The Board of Directors of Rach Gam Cooperative hosts the 9th Member Congress (2020-2025 term)

Outstanding new cooperative model

Mr. Tran Do Liem, Chairman of the Board of Directors of Rach Gam Cooperative, said: Established amidst the intense Southwest border conflict, the cooperative swiftly mobilized hundreds of boats for evacuations, troop transport, and war supply delivery. Simultaneously, it facilitated the transportation of thousands of tons of rice and sugarcane seeds to Cambodia, aiding in the country’s economic restoration post the expulsion of the Pol Pot regime.

In the 1980-1989 period, Rach Gam Cooperative transported millions of tons of rice from Mekong Delta provinces to Ho Chi Minh City for transfer to the North and carried hundreds of thousands of tons of sand, stone and cement from other provinces for construction projects in Tien Giang province.

 From 1987, Rach Gam Cooperative proactively adapted to the elimination of the subsidy regime. It secured fuel and materials to maintain operations and fostered trust for sustainable growth. During the Doi Moi reform era, it embraced market mechanisms, restructured its administration, and expanded its market and customer base. Anticipating future needs, it developed the Cooperative Charter, paving the way for the 1997 Cooperative Law.

Entering the market economy period (1997-2006), Rach Gam Cooperative quickly completed a new model, suitable for the market economy and the national economic development. It achieved outstanding development (doubling its basic targets every five years). Rach Gam Cooperative not only established a robust presence in the marketplace, but also served as compelling evidence of the sustainable growth potential of the new collective economic model within a market economy.

Rach Gam Cooperative is currently a large-scale river and inland waterway transport unit, with its inland waterway business performance ranked among the best in the country, and generating jobs for hundreds of workers. The cooperative has been dominating the river freight transport market with an estimated output of over four million tons a year, mainly transporting rice for export, sand, stone, construction materials, molasses, and animal feeds from the Mekong Delta to Ho Chi Minh City and to Phu Quoc Island, Southeast provinces to Phnom Penh and Koh Kong (Cambodia) and vice versa.

In addition, Dong Tam Shipyard under Rach Gam Cooperative also builds 8-12 new ships and repairs about 60 barges each year. In particular, from 2014 to 2015, the shipyard built many new barges with a load of up to 3,400 metric tons to carry containers to Cambodia, earning revenue of VND20-30 billion a year.

On December 13, 2023, the Rach Gam Cooperative conducted the official inauguration ceremony for a 100-ton ferry. This vessel, costing over VND12 billion, is set to serve Road Management Area IV under the Vietnam Road Administration, replacing the expired A60 ferry. This significant addition marks a new development milestone for the cooperative, underscoring its commitment to enhancing transportation infrastructure.

On December 13, the Rach Gam Cooperative conducted the official inauguration ceremony for a 100-ton ferry, which is set to serve Road Management Area IV, operating under the auspices of the Vietnam Road Administration

Upholding its own values

Reflecting on the cooperative’s growth, Chairman of the Board of Directors, Tran Do Liem, attributed their success to several key factors: steadfast resilience in the face of challenges, adaptability to market fluctuations, sound policies, effective governance, and a rapid response to evolving market needs. Additionally, their strategic utilization of the region’s river transport advantages has been instrumental in driving business growth.

Accordingly, first of all, the cooperative determined that it must operate professionally, have a long-term development vision and transparent, public, and democratic management regulations. Everyone works with a clear sense of responsibility, obligations and rights. A cooperative is a unit where many people invest and contribute capital, so the first thing is to make their money grow.

“In our pursuit of sustainable development, we consistently implement policies aimed at attracting and retaining members. Our focus is on creating an environment so conducive that members are inclined to join and remain with the cooperative,” he emphasized.

In recent years, Rach Gam Cooperative has approached and gradually dominated the logistics market share in the port system on the Tien and Hau rivers. The cooperative has actively contacted foreign businesses seeking to invest in Vietnam to prove its capabilities. After just one or two cooperation contracts, the cooperative builds trust with partners by affirming professionalism and prestige.

“Rach Gam Cooperative must innovate and establish a robust system capable of securing a significant market share in the logistics chain. This approach is essential for our steady growth and to ensure we remain at the forefront of the industry,” he emphasized.

Rach Gam Cooperative actively contributes to the growth of Tien Giang province, the Mekong Delta region, and Vietnam. It annually donates VND100 million or more in philanthropic activities such as building charitable houses, supporting war veterans’ families, aiding social organizations, improving schools, and providing scholarships for underprivileged students. This commitment highlights its dedication to social responsibility and community development.

By Ngoc Tung, Vietnam Business Forum