Agricultural value chain: Enterprises as driving force, cooperatives as core

At the 2025 Cooperative and Cooperative Economics Forum on November 28, themed "Effective Linkage Between Cooperatives and Enterprises," Deputy Minister of the Ministry of Agriculture and Environment Vo Van Hung, emphasized that Vietnamese agriculture can only achieve a breakthrough by reorganizing production around the value chain, viewing the cooperative as the hub for linkage and the enterprise as the main pulling force. This is considered a mandatory direction as green standards, low emissions, and traceability have become compulsory requirements of the global market.

Cooperative-enterprise linkage nearly doubles in five years

The Deputy Minister stated that no modern agricultural nation relies on a single-farm production model. To compete in demanding markets, Vietnamese agriculture must establish standardized raw material areas, ensure synchronized quality management, and possess full traceability. The cooperative acts as the "regional coordinator," while the enterprise determines the development direction through investment in processing, logistics, quality control, and market access; the farmer remains the direct production entity.

The Deputy Minister argued that the value chain can only achieve efficiency, reduce costs, increase profits, and mitigate both market and technical risks when these three subjects operate in a symbiotic ecosystem.

The quantity and quality of agricultural cooperatives have rapidly increased over the past five years. The country currently boasts over 22,600 agricultural cooperatives, an increase of more than 4,500 units compared to 2020. The percentage of cooperatives linked with enterprises has nearly doubled, now accounting for over 30%.

"Nearly 3,000 linkage projects under Decree 98 have been implemented, mobilizing more than VND 15 trillion (approximately USD 612 million), of which 79% is counterpart capital from enterprises, cooperatives, and the public, demonstrating that every dong of State capital is activating 4-5 dong of social capital," the leader of the Ministry of Agriculture and Environment noted.

Many cooperative models have shifted from a purely service role to one of strict production process management, operating digital area codes, tracing digital data, and signing long-term consumption contracts. Noteworthy examples include the high-quality rice chains in An Giang, Dong Thap, and Kien Giang; export durian and coffee chains in Dak Lak; safe fruit and vegetable chains in Son La and Lam Dong; and high-tech aquaculture chains in Bac Lieu and Ca Mau.

Crucially, the One Million Hectare High-Quality, Low-Emission Rice Project, approved by the Prime Minister, has affirmed the central role of cooperatives in managing digital logbooks, measuring emissions, and sharply reducing input costs.

The Deputy Minister Vo Van Hung asserted that the development of enterprises is closely tied to the maturity of cooperatives, as the latter are the units responsible for stabilizing the raw material areas. Conversely, when cooperatives possess good governance capacity, enterprises are assured in investing in processing, preservation, supply chain expansion, and brand building.

The Deputy Minister stated that training professional farmers and modern cooperative management teams is the most fundamental solution for creating sustainable change. This remains the consistent orientation outlined in Central Resolution 68-NQ/TW.

Institutionalizing risk and benefit sharing among enterprises, cooperatives, and farmers

Based on years of implementation, the Ministry of Agriculture and Environment proposed three major solution groups to the Government:

First, revising Decree 98/2018/ND-CP: The revision should simplify procedures, strongly decentralize authority to localities, supplement policies for developing standardized raw material areas and green-digital value chains, and institutionalize the risk and benefit-sharing mechanism among enterprises, cooperatives, and farmers. The mechanism to encourage intermediate agents, such as traders or agricultural service teams, to participate transparently in the chain was also clearly proposed.

Second, developing a training program: A program for modern farmers and cooperative human resources should focus on digital farmers, cooperative directors, technical staff, and value chain managers. The goal is to form an agricultural workforce that is knowledgeable, masters technology, and possesses a market-oriented mindset.

Thirds, nationwide replication: Scale up standardized raw material area models across the country, building on the experience of the One Million Hectare Rice Project. The Deputy Minister suggested an approach that is synchronized, methodical, and subject to strict monitoring mechanisms.

The Deputy Minister Vo Van Hung affirmed that Vietnamese agriculture stands at a great juncture. By persistently pursuing the path of green, digital, and modern value chain development, promoting the role of cooperatives and enterprises while turning farmers into a professional production force, Vietnamese agriculture can fully achieve a breakthrough, increase citizens' income, and assert its position in the international market.