COUNTRY REPORT Agricultural Cooperatives in Vietnam Prepared by: Hoang Thi Hong Van Department of Cooperatives and Rural Development Ministry of Agricultural and Rural Development

UnitQuantity Total cooperatives AC 9085 Average membership Pers729 Participation rate in AC %58 Average capital USD42496 Average turnover USD34778 Number of AC having profits Coop.6302 Profit per cooperative USD3096 Number of AC having losses Coop.666 Loses per cooperative USD600 Table 1. Agricultural Cooperative (AC), 2011 Source: Department of Cooperative and Rural Development

Item Total country Surveyed cooperatives 5552 Irrigation Plant protection Veterinary Seed Materials Extension Land preparation Joint marketing and processing 9.67 Electricity 5.87 Internal credit 8.21 Table 2. Services provided by AC, 2010 (% of AC providing the listed services)

ACHIEVEMENTS  The operating areas of the cooperatives are diversified, including agriculture, forestry, fisheries, salt production. Many new cooperatives are just established.  The AC contributed to generate many employment, well undertake services such as irrigation, material inputs…, thus bringing about real benefits such as decreased input cost – increased income for members.  The AC collaborated with the local government to actively implement agriculture and rural development policies such as land accumulation, re-structure of the cropping / livestock patterns…, contributing to develop rural and agricultural economy.

SOME OUTSTANDIND ISSUES OF AC  Awareness of the AC is not very proper  Many ACs are at small-scale, lack of capital, low-value assets, low competitiveness and simple services  The distribution relation is not renewed, few ACs divided profits in line with the shares or the use of services  The role of AC in consuming agri. products for AC members was very dim  Lack of awareness, difficulty in attracting competent and young people in managing the cooperatives…

PERSPECTIVES IN DEVELOPMENT OF AGRICULTURAL COOPERATIVES  Viet Nam is implementing the “Agriculture, Farmers and Rural Program” (Tam Nong). Its overall objective is develop a comprehensive agriculture towards modern, sustainable and large commercial scale. Hence, the Government will focus investment into the followings: Infrastructure Science and technology in processing and post-harvest Farmers’ training Support of cooperatives development with the objective to establish 01 efficiently-running cooperative in each commune.

PERSPECTIVES IN DEVELOPMENT OF AGRICULTURAL COOPERATIVES  People’s awareness about support to agricultural cooperative development.  Revised cooperative law  Need for production linkage between enterprises and farmers (due to market losses such as fake fertilizers, price squeezing from traders, fluctuating market prices…).  Higher requirements for food safety and traceability etc…by consumers.

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