Cooperatives drive HCMC's rural economic growth

As agricultural production faces growing challenges related to limited land availability, rising input costs, and increasingly stringent market requirements, Ho Chi Minh City has identified the development of the collective economy, particularly new-generation agricultural cooperatives, as a key strategy for enhancing the competitiveness of its rural economy during the 2026-2030 period.

Accordingly, the city aims to further reform and improve the performance of agricultural cooperatives by making them more modern, professional, and closely integrated into agricultural value chains. Rather than serving solely as providers of production inputs, as they traditionally have, cooperatives are expected to become central hubs that coordinate production, processing, marketing, and market access, while strengthening linkages between farmers and the broader agricultural economy.

This strategic direction reflects the ongoing transformation of agriculture in Ho Chi Minh City toward an urban, high-tech production model capable of generating greater value per unit of land. However, most farming households continue to operate on a small scale, making it difficult to meet the volume, traceability, and quality requirements of modern distribution networks. Against this backdrop, agricultural cooperatives are regarded as a critical mechanism for organizing farmers, restructuring production, and improving the sector's overall competitiveness.

According to Mr. Vu Ngoc Dang, Director of the Ho Chi Minh City Sub-Department of Rural Development, the city will prioritize support for high-performing cooperatives that are capable of building partnerships with businesses, financial institutions, and science and technology organizations.

"Cooperatives are encouraged to play a more active role throughout the value chains of key agricultural commodities, from production, preliminary processing, and storage to processing and product marketing," Mr. Dang said.

In line with this vision, cooperative development will be closely integrated with digital transformation. The city plans to support the adoption of digital technologies for management and administration, product traceability, production area management, and market connectivity.

"The digitalization of production data is expected to improve transparency, enabling cooperatives to better satisfy the requirements of purchasing companies and export markets. At the same time, the city will encourage the development of cooperative models based on green growth, the circular economy, and low-carbon production," Mr. Dang added.

In the crop and livestock sectors, Ho Chi Minh City will promote the reuse of agricultural by-products, environmentally friendly production practices, and the gradual development of green farming models tailored to the unique conditions of a major metropolitan area.

To improve the quality and performance of the collective economy, the city will also place greater emphasis on human resource development for cooperatives. Training programmes will extend beyond cooperative governance to include digital transformation, brand development, e-commerce, supply chain management, and market access.

The leadership capacity of cooperative managers is regarded as a decisive factor in organizational performance. Accordingly, strengthening management skills, business acumen, and the ability to adapt to emerging trends will be among the city's highest priorities during the coming years.

At the same time, Ho Chi Minh City will encourage cooperatives to participate in the One Commune One Product (OCOP) Programme, develop distinctive local products linked to rural tourism, and build regional brands. This approach is expected to increase product value, expand market opportunities, and generate additional employment for residents in the city's suburban and rural areas.

The collective economy will also be expanded beyond agriculture into rural industries, service sectors, community-based tourism, and other business models suited to the specific conditions of each locality. The city expects this broader approach to become an important driver of rural economic restructuring, creating multiple sources of value and generating additional income for rural households.

Farmers will remain at the center of agricultural development, while cooperatives will serve as the vital link connecting producers with businesses, scientists, and markets. By bringing smallholder farmers together within strong economic organizations, cooperatives can significantly improve access to technology, finance, information, and market opportunities.

As quality standards become increasingly stringent, market competition intensifies, and green production emerges as the new benchmark, the new-generation cooperative model is expected to do more than raise farmers' incomes. It will also provide the institutional foundation for building a modern, resilient, and sustainable agricultural sector.

Through a comprehensive package of policies supporting digital transformation, human resource development, value chain integration, and the green economy, Ho Chi Minh City aims to establish the collective economy as one of the principal engines of rural economic growth. In doing so, the city seeks to advance its vision of modern rural development while improving the livelihoods and well-being of rural communities during the 2026-2030 period.