Chain linkage, crucial lever for 1MH rice project

As one of the key rice-producing and exporting localities in the Mekong Delta, An Giang currently produces more than 8.8 million tons of rice and has taken the lead in building value-chain linkages for rice production and consumption in line with the "One million hectares of high-quality, low-emission rice" project by 2030 (1MH Project).

From the earlier large-scale field model, the province has shifted strongly toward organizing production along value chains, with cooperatives serving as the central hub connecting farmers with enterprises. The development of the collective economy, solidified raw material areas, and the signing of off-take agreements have helped farmers feel more secure in production, reduce costs, and increase profits.

Mr. Tran Van Tam, a farmer participating in a rice production linkage in Co To commune, An Giang Province, said that in the past rice farming was done on a small scale, with each household operating independently, leading to high production costs and unstable market outlets. Since joining a cooperative linked to enterprises, his family has received technical guidance from the local agricultural sector, while partner companies supply seeds and fertilizers on deferred payment terms until the end of the season. As a result, production costs have fallen by about 20-30% per crop, and profits have become more stable thanks to guaranteed purchase contracts.

According to Mr. Tam, practical experience shows that participation in the value chain enables farmers to adopt synchronized mechanization, reduce seeding rates, and cut down on the use of fertilizers and crop protection chemicals. In addition to lowering costs, the model also helps reduce greenhouse gas emissions and environmental pollution, aligning with the goal of producing high-quality rice that is resilient to climate change.

Currently, An Giang Province has 690 agricultural cooperatives with more than 43,000 members and five cooperative unions. The area under rice and sticky rice production and consumption linkages totals hundreds of thousands of hectares, including nearly 7,000 hectares cultivated by cooperatives and enterprises participating in the 1MH Project, organized along value chains that combine technical support with product consumption. Major enterprises involved include Loc Troi Group Joint Stock Company, An Giang Import-Export Joint Stock Company (Angimex), and Tan Long Group Joint Stock Company. These companies not only purchase the rice but also take part in management, technology transfer and brand building for An Giang rice.

At Binh Thanh Agricultural Cooperative in Thoai Son commune, An Giang Province, the “no-footprint field” model linked with enterprises is considered a highlight. The entire process, from land preparation and sowing to harvesting, is fully mechanized and incorporates advanced technologies. Partner enterprises commit to a minimum profit of 1.538 USD/ha/year and guarantee product off-take.

Mr. Tran Van Lo Ba, Director of Phu Thanh Agricultural Cooperative in Cho Vam commune, An Giang Province, shared that cooperation with enterprises enables the cooperative to proactively plan production based on orders, with prices agreed upon at the beginning of the crop season. Members can purchase inputs at preferential prices and sell their rice under contract, thereby reducing market risks. On average, profits have increased by 10-15% compared with individual production.

Alongside market linkages, Phu Thanh Agricultural Cooperative also utilizes rice straw after harvest to produce organic fertilizer supplied back to its members. This approach not only creates an additional source of income but also reduces straw burning, contributing to lower emissions and improved environmental conditions.

To implement these initiatives, An Giang’s agricultural sector has signed several inter-sectoral cooperation programs and rolled out support policies under Government Decree No. 98/2018/ND-CP. Authorities have also proposed and issued resolutions and decisions to support production and consumption linkages for agricultural products. At the same time, communication and training activities have been strengthened to help farmers shift from fragmented production toward more market-oriented production practices.

Mr. Tran Thanh Hiep, Deputy Director of the An Giang Department of Agriculture and Environment, said that building value-chain linkages with cooperatives as the key catalyst has created a favorable foundation for implementing the 1MH Project. However, the province still faces several challenges, including fragmented production scales and some enterprises not yet maintaining long-term commitments to raw materials.

Looking toward 2030, An Giang will continue to strengthen communication on the Law on Cooperatives, improve support policies, and encourage enterprises to contribute capital and participate in the management of cooperatives, while selecting and scaling up effective linkage models. The goal is not only to increase production but, more importantly, to enhance the value of Vietnamese rice, ensure sustainable livelihoods for farmers, and contribute to the successful implementation of the 1MH Project, thereby better supporting rice exports.