Five cooperatives in Hanoi have been selected for a pilot project that will turn them into new-style cooperative models, helping to boost the development of cooperatives and the collective economy.

Phu Dong Dairy Farming Cooperative (Gia Lam District) is applying technology in its production line. Photo: Lam Nguyen/ The Hanoi Times

Under the government plan “Selection, improvement and replication of effective new-style cooperative models in localities across the country in the 2021-2025 period”, the selected cooperatives will receive financial support from the city’s budget to transform into effective new-style models.  

These are Hoang Long Cooperative (Thanh Oai District), Duong Lieu General Business Service Cooperative (Hoai Duc District), An My Agricultural Cooperative (My Duc District), Hong Ha Safe Vegetable Cooperative (Phu Xuyen District), and Bac Hong Safe Vegetable Production and Consumption Cooperative (Dong Anh District). 

Over the years, the city has taken measures to help the local collective economy develop more efficiently. Last year, the city planned to set up 152 new cooperative groups, cooperatives, and cooperative unions to raise the total number to 3,200, according to Plan No. 35 issued by the Hanoi People’s Committee on developing a cooperative economy in the city.

The annual average revenue of cooperatives is expected to increase to VND2.9 billion (US$126,028) and the monthly average income of workers would reach VND54 million (US$2,346).

To improve the efficiency of the collective economy in the 2021-25 period, Deputy Director of the municipal Department of Agriculture and Rural Development Ta Van Tuong said that the industry should focus on developing specialized cooperatives, and promoting linkages between production and processing, and businesses. 

Expanding distribution channels

Local consumers are attending the opening ceremony of an exhibition center for farm produce. Photo: Trong Tung/ The Hanoi Times

Among the measures, the Hanoi Cooperative Alliance has enhanced trade promotion activities and assisted its members in finding clients for agricultural products in the process of restoring production and business after being affected by the Covid-19 pandemic.

In the latest move of the Hanoi Cooperative Alliance,  an exhibition center for farm produce from cooperatives and businesses in Hanoi and neighboring cities/provinces were opened at the headquarter of the Hanoi Cooperative Alliance at 217 Tran Phu, Ha Dong District, in late August. It is expected to create the opportunity for the participants to introduce high-quality products and to Hanoian customers.

The showroom introduced over 300 farm produce and processed food rated three and four stars under the One Commune One Product (OCOP) program from 50 cooperatives and business members in Hanoi and other cities and provinces of Haiphong, Thai Nguyen, Nghe An, Bac Giang, Ha Giang, and Bac Kan. 

As one of the participants in the event, the Director of the Dong Thai Service Cooperative in the city’s suburban district of Ba Vi Phung Quoc Luong told The Hanoi Times: “During the pandemic period, sales of our cucumbers and sweet potatoes were low. In the past few months, with the support by the city Cooperative Alliance,  the cooperative has participated in a number of trade promotion fairs. Thanks to this, our business results have improved.”

Similarly, Khanh Phong (Me Linh District) Agricultural Service Cooperative Director Nguyen The Lam is very excited about displaying his products at the exhibition center that the Hanoi Cooperative Alliance has put into operation. "With a large display area and located in the center of Ha Dong district, we hope the cooperative's Taiwanese guava will sell better," he hoped.

According to some representatives from cooperatives, to qualify for displaying their produce at the exhibition center, they have to ensure the criteria of safety and clear traceability.

Most of the items on sale are evaluated and graded by the Hanoi People’s Committee with three or four OCOP stars. This is considered an important factor to control the quality of agricultural products before supplying them to consumers, according to local insiders.

Accelerating trade linkages

Cooperatives are participating in a recent trade promotion conference in August. Photo: Trong Tung/ The Hanoi Times

The showroom to introduce and display cooperatives’ products is the first the Hanoi Cooperative Alliance has built, which aims to serve as a focal point in promoting domestic consumption of local farm produce, contributing to the development of cooperatives and expanding cooperation between cooperative alliances from different provinces and cities, Do Huy Chien, Chairman of the Hanoi Cooperative Alliance, told The Hanoi Times.

He also added the alliance has actively supported cooperative members to join a series of trade promotion activities which were organized by ministries, sectors, and localities. 

Notably, in June, the 2022 Cooperative Trade and Investment Promotion Fair (Coop-Expo 2022) in Hanoi attracted the participation of cooperative alliances from 50 provinces and cities, who introduced various farm produce, food, traditional medicines, handicrafts as well as typical products and services. More than 100 cooperatives attending the event had opportunities to connect with large supermarket chains such as AEON, Central Group, Winmart, and Lotte, as well as introduce their products and services to Hanoian customers.

In addition, there were conferences on trade and investment promotion for cooperatives in the northern province of Thai Nguyen as well as events connecting supply and demand organized by the Hoa Binh Provincial Cooperative Alliance.

Through many linking events, a number of contracts have been signed between cooperatives and distribution systems, and supermarket chains. Thanks to the cooperation, the value of agricultural products of cooperatives has been improved, Chien underlined.

From now until late 2022, the Hanoi Cooperative Alliance will continue enhancing business matchmaking activities to support cooperative members in expanding business operations, helping them to recover from the Covid-19 impacts.

In addition to trade promotion programs, the Alliance will promote skills training, especially on online sales methods through social networking platforms such as Zalo, Facebook, and TikTok Shop which will help cooperatives switch to modern business models.

Nguyen Van Chi, Director of the municipal Rural Development Division under the municipal Department of Agriculture and Rural Development, said that in the next period, it is necessary to concentrate on building cooperatives applying high technology, operating in specialized fields and promoting mechanization. 

“In addition, Hanoi needs to enhance investment and draw up policies to create a legal framework for the development of the collective economy and cooperatives,” he said.