Effective Development of Industrial and Handicraft Co-operatives in Dong Nai

According to the Dong Nai Union of Co-operatives and Private Enterprises, Dong Nai province has 76 co-operative complexes and co-operatives operating in industrial and handicraft sectors. Of the figure, 60 complexes and co-operatives have more than 500 workers each.

 

Co-operative complexes concentrate mainly on handicrafts in Bien Hoa city, cassava starch processing in Tra Co, brocade making in Dinh Quan district, iron casting in Vinh Cuu district and woodwork manufacturing for export in Xuan Loc district. Over the past few years, complexes have seen a rapid change for the better, meeting the demand of developing the household economy. Accordingly, the development of complexes has benefited member households in terms of labour and material use, scientific and technical application. Co-operatives operating in industry and handicrafts alone gained a high effectiveness.

 

So far, Dong Nai province has 16 industrial and handicraft co-operatives with a total charter capital of VND 21.6 billion. Of the figure, 12 are handicraft co-operatives and three operate in construction. These are the fields in which co-operatives have most charter capital, around VND 1.35 billion each on average. One outstanding example is the Thai Duong pottery co-operative, which earns between VND 10 billion and 16 billion per year. It earned its highest figure, VND 20 billion, in 2002. In the first half of 2005, Thai Duong’s export turnover reached over US$300,000.

 

Another example of a successful co-operative is the Binh Minh handicraft co-operative in Trang Bom district, which was established in 2003 and specialises in processing and producing starch. Even though starch processing is a traditional craft in Tra Co, the trademark of local starch gradually lost its markets due to difficulties in materials and markets for products. However, since a co-operative production developed, most local farmers have supplied materials to the co-operative, which produce not only for the domestic market but also for export. In particular, to ensure jobs and incomes for local workers, the Binh Minh co-operative has concentrated not only on processing starch but also manufacturing other handicraft products of bamboo and rattan. In the first half of 2005, with its wooden boats, the co-operative got access to customers from some countries, including the Republic of Korea, China, Sweden and Germany.

 

The bamboo and rattan article making co-operative of Hiep Luc in Bien Hoa city each year generates jobs for 600 workers and many seasonal workers from local households.

 

The results of these above-mentioned exemplary co-operatives prove the effectiveness and position of a collective production model in a multi-sectorial commodity economy. In its development orientations for the 2005-2010 period, the Dong Nai Union of Co-operatives and Private Enterprises, will continue to develop the achievements and multiply the model in the province by organising training courses to disseminate the experience of co-operative complexes and co-operatives in each field, in particular the development of multi-industrial models of high production and business effectiveness. The union will co-operate with localities to take measures on strengthening and boosting activities of co-operatives and complexes.

 

At the same time, to continue to renew development and improve the effectiveness of the collective economy in the industrial and handicraft sectors, recently the union signed a co-operation agreement with the Department of Industry of Dong Nai. Accordingly, the union and the Dong Nai Department of Industry will issue and implement approaches and policies on developing trademarks and brands, helping co-operatives and complexes find markets for their products, thus helping them promote their production and business activities.