Promoting multifunctional agricultural cooperatives with Japan

Bình Định cooperative in Kiến Xương district, Thái Bình province is one of the pilot cooperatives in the project themed “Strengthening the functions of cooperatives in Vietnam”, carried out by Japan International Cooperation Agency (JICA). Applying the experience of the Japanese cooperative model, Binh Dinh cooperative plays an active role in several aspects, from supporting production to business operation.

Tran Thanh Son Head, Binh Dinh Cooperative, Kien Xuong District, Thai Binh Province said: We created a link with Thai Binh Seed Joint Stock Corporation. This distribution channel has helped us sell 2,100 tonnes of seeds last year. In addition, we have implemented the strategy of internal credit business, in which we gather unused funds from members to serve operation expanding purposes.  

With the scale of the whole commune, Bình Định cooperative has successfully created connections between service providers, farmers, and enterprises, generating a profit of about 165 mil USD in 2014.

Besides providing input materials, the cooperative also established several professional groups, which meet the specific demand of each household for production purposes. Cooperative officers also built specific plans, directing farmers in the most effective way to conduct the production process.

Tran Van Yen, Plough Group, Binh Dinh Commune, Kien Xuong District, Thai Binh Province said: I do the plough for farmers under the assignment of the cooperative. Besides the payment, which equals the market price for plough service, we also receive an additional bonus. In return, we have to ensure the service’s quality. With the cooperative's plan, we can operate field cultivation in the appropriate period, which helps produce a higher yield.

Mr Son added: From Japan's experience, we have started building a plan for the medium and long term, based on the demand of each member. We conducted a survey on each household’s need, and after that, we discussed and established a plan for the common good of all members.

The Project for Enhancing the Functions of Agricultural Cooperatives in Vietnam by the Japan International Cooperation Agency (JICA) was implemented in two phases during the 2006 - 2015 period. The project provided training courses on mid-term planning, joint marketing and joint purchasing, and internal credit business in five target provinces, including Thai Binh, Hoa Binh, Hai Duong, Binh Dinh, and An Giang.

"We share our experience of developing multifunctional cooperatives, where the cooperative is built based on the specific demand of each household. However, in order to successfully apply the model, farmers and cooperative officers need to be active in renovating technologies and production methods, and strengthening links between each other and enterprises", said Sato Chikara, General Consultant, JICA

The Japanese model is practical for Vietnam's agriculture, as there are some similarities between the agriculture of the two countries. The project has helped change the mindset of cooperative officers, as well as policy makers, in the function of a cooperative. It not only focuses on production, but also on operating businesses. In the future, we will continue to complete the legal framework in order to create more favourable conditions for the development of agricultural cooperatives.

The multifunctional agricultural cooperative model is expected to be disseminated throughout the country as a model for farmers’ organisations that will help improve the livelihoods of their members.