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Establishing a connection between co-operatives

(CTT-Đong Nai) – Recently, Dong Nai province has encouraged and supported companies and co-operatives in establishing a supply chain. By integrating with supporting programs from agriculture and trading industries, especially finding demands for the final products, these models have seen some initial successes.

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A display stand from Thanh Binh Banana Cooperative (Trang Bom district) at Dong Nai province's Banana Exporting Ceremony 2023 

Expanding support funds
Since its foundation (in 2008), Dong Nai Co-operative Investment Funds has disbursed 8,1 thousand business projects with the total cumulative disbursement amount up to 363 billion VNĐ.  The debit balance on March 10th was more than 22 billion VNĐ. Following the Provincial People's Council Decision on establishing a Co-operative Development Supporting Fund as instructed by the government's Degree No. 45/NĐ-CP, the Provincial Co-operative Alliance has advised the Provincial People's Committee to issue a Resolution to establish the Dong Nai Co-operative Development Fund (formerly known as Co-operative Development Capital Fund) with 150 billion VNĐ as authorized capital.
According to Mr. Tran Quoc Huy, Vice Director of the Co-operative Development Fund, the connections between farmers and farmers, co-operatives and co-operatives, co-operatives and companies is getting more common. These cooperation has fixed the drawbacks of business households, such as: lack of capital, inexperienced in production; a stable market, shortage of raw materials. Mr. Huy said, currently the Party and province's leaders have offered a range of policies that support and protect collective businesses, for example: low interest rate loans; investment and technology supports during production; finding consumer market for agriculture products.  
Vice President of the Co-operative Alliance, Mr. Nguyen Thanh Hien, said in the future, the alliance is going to increase the number of training programs as to improve understanding, and management skills of the co-operatives' leaders; as well as establish business plans, connecting markets, attracting investments, doing trade promotion, building brand recognitions, …

Local administrations have to take responsibility
However, in reality, the development of supply chains still has some issues. Recently, around 200 representatives, who are farmers, representing co-operatives on the province's area at a seminar with leaders of the provincial People's Committee about “Supporting farmers to establish connections, cooperation, and develop stable agriculture" in 2023 to discuss plans for the upcoming months. At the seminar, many farmers and co-operatives' opinions are about the increasing prices of input materials, and the uncertainty of consumer market for agriculture and livestock products. 
To guarantee a stable co-operative development in general, and agriculture co-operative to be specific, then a strong connection between production and processing plays a vital part. This is the obligation of every direct participant in the supply chains, as the government can only provide guidance. In order to complete this task, local administrations need to encourage, help improving productivity, and establish strong co-operatives enough to become a middle ground between farmers and manufacturers.  
According to Vice Director of the Provincial People's Committee, Mr. Vo Van Phi, this issue needs farmers, co-operatives and companies to work together. Every department and local administration has to work together and offer advice to effectively employ policies that support, and develop co-operatives, and finally establish strong connections between production and trading.​​

Author: Phan Anh

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