Cooperatives shift toward a green development model

Multiple models leave a green imprint

The green transition is a comprehensive transformation of the economy toward environmental friendliness, low carbon emissions, efficient resource use, and the promotion of social equity. For Lao Cai province, this orientation has been clearly defined in the Resolution of the 1st Provincial Party Congress for the 2025 - 2030 term, with the goal of building Lao Cai into a growth pole and an international trade hub that develops in a green, harmonious, distinctive, and prosperous direction.

In the collective economic sector, the green transition is reflected in the way cooperatives integrate sustainable development principles throughout their entire value chain, from production to consumption. This is an essential requirement for cooperatives seeking to improve economic efficiency, enhance competitiveness, and participate in global value chains that increasingly prioritize sustainability.

As of October 2025, Lao Cai province has 1,439 cooperatives, 3 cooperative unions, and more than 8,400 cooperative groups with over 73,500 members. Among them, the agricultural sector with 820 cooperatives is undergoing the most dynamic transformation. Many cooperatives have made their mark by applying high technology, biotechnology, and digital transformation, creating products with clear quality and branding.

Some notable models include: the Doan Luong General Processing and Trading Cooperative, which applies biotechnology to process hawthorn fruit into 3-star OCOP products; the Suoi Giang and Phinh Ho Shan Tuyet Tea Cooperatives, whose products have been exported to the U.S. and Europe, demonstrating “green” and sustainable quality; and the Thang Loi Cooperative, which applies pyrolysis technology to convert used tires into FO-R oil. 

In addition, many cooperatives have taken the lead in organic and sustainable agricultural production, such as Hung Thanh Cooperative with exported Bat Do bamboo shoots; Vietnam Cinnamon - Star Anise Cooperative with organic cinnamon products; as well as Dong Khe Green Agricultural Products Cooperative and Tuy Loc Safe Vegetable Cooperative. Closed value chains are also gradually forming in livestock production, mulberry cultivation and silkworm raising, and environmentally friendly handicraft production, contributing to the preservation of local identity and ecology.

Many barriers remain

The green transition not only helps cooperatives increase their revenue but also build an environmentally responsible image that meets international market standards. However, this journey still faces many difficulties, especially for a mountainous province like Lao Cai.

The first challenge relates to capital and technology. Investing in greenhouses, automatic irrigation systems, and waste treatment technologies requires significant financial resources, while capital accumulation among cooperatives remains limited. In addition, the management and technical capacity of many cooperatives is still weak and does not yet meet the requirements for operating modern technologies. The shortage of skilled labor is also a major barrier to digital transformation and the adoption of green production methods.

In terms of markets, green products often have higher production costs and require a stable market willing to pay a premium. Many cooperatives have not yet built strong links with large enterprises, resulting in unstable outputs. Issues related to land and small-scale production also affect the ability to implement high-tech and organic agriculture.

According to Mr. Nguyen Duc Lam, Vice Chairman in charge of the Lao Cai Cooperative Alliance, promoting the green transition in the collective economic sector requires a synchronized set of solutions. First, it is essential to raise awareness among officials and citizens about the benefits of green production, thereby encouraging shifts away from traditional farming practices. At the same time, cooperatives need support in applying technology to production, along with training courses on organic farming techniques, the use of renewable energy, and waste management.

Market linkages and the promotion of OCOP products associated with ecological values and local identity should also be prioritized. In addition, there must be concrete policy support in areas such as taxation, credit, and technical workforce training, as well as assistance for cooperatives in building brands and obtaining green quality certifications such as VietGAP, GlobalGAP, and Organic. Mechanisms that facilitate cooperatives’ access to land through leasing or contributing land-use rights as capital are also needed to establish concentrated raw-material zones for organic and high-tech agriculture.

It is clear that the green transition is not only an urgent requirement but also an opportunity for cooperatives to assert their position, move toward sustainable development, and contribute to realizing the goal of transforming Lao Cai into a province that develops in a green and harmonious direction.