As the Law on Cooperatives 2023 comes into effect, the collective economy sector, with cooperatives at its core, is entering a period of profound transformation.

Shifting from “quantity” to “quality”

According to the Provincial Cooperative Alliance, the province currently has around 1,250 cooperatives, of which more than 1,000 are operating effectively. Average revenue reaches 2.7 billion VND per cooperative per year, with average profit of approximately 320 million VND per year; income of members and employees averages about 68 million VND annually. The role of cooperatives in this phase is gradually moving beyond subsidy-based mindset to become dynamic economic entities.

In addition to cooperatives, a network of 550 cooperative groups with more than 10,000 members plays a satellite role, helping reorganise production from the ground up. This forms a foundation for high-value production - consumption linkage chains. Simultaneously, cooperatives have created jobs for around 29,000 workers, while attracting 137,000 members.

Ea Tu Fairtrade Agricultural Service Cooperative applying smart technology in coffee cultivation.

At present, agricultural cooperatives account for nearly 70% of total number of cooperatives in the province and continue to play a leading role. Many units have pioneered application of VietGAP standards, development of OCOP products alongside traceability systems, thereby building credibility for Dak Lak agricultural products.

Meanwhile, cooperatives in industry and handicrafts continue technological innovation as well as diversifying sectors. Transport and trade - service cooperatives have expanded in both scale and service quality, meeting growing demand for goods transportation and circulation. Construction cooperatives also contribute significantly to rural infrastructure development. The system of people’s credit funds, with total capital nearing 2,941 billion VND, has actively helped to providing capital for members alongside supporting production development.

Opportunities for development

With achievements and improvement of the legal framework, the collective economy along with cooperatives are facing significant opportunities for growth and breakthrough.

Agricultural Cooperative 714 is a notable example of leveraging internal strengths while gradually modernising production. From traditional farming methods, the cooperative has boldly applied drones for spraying, fertilising alongside seeding, increasing rice yields to 9 - 10 tonnes per hectare per crop. Mr. Vu Xuan Thu, Director of Agricultural Cooperative 714, stated that the transition from experience-based production to smart production, associated with high-quality rice varieties such as ST24 and ST25, is the key to enhancing product value.

Cooperatives increasing the use of drones for spraying, fertilising and seeding rice.

Similarly, Hoa Phong Service Business Cooperative (Tay Hoa commune) demonstrates proactiveness in applying the 2023 Cooperative Law to remove institutional constraints, promote digital transformation along with invest in science and technology in agricultural production. These models show that cooperatives must not only provide services but also participate deeply in value chains, from production to processing as well as consumption.

However, the collective economy sector still faces numerous persistent bottlenecks. The rate of inactive cooperatives remains high; many units are small-scale and fragmented. In particular, the management staff capacity remains a major barrier, with around 1,500 officials yet to receive professional training.

Mr. Huynh Bai, Chairman of the Provincial Cooperative Alliance, stated that the implementation of the 2023 Cooperative Law, together with resolutions and action programmes of central as well as local authorities, has created a synchronised and transparent legal framework. The province has also issued a range of practical support policies, including human resource training, trade promotion, support for young workers joining cooperatives, OCOP product development along with technological application support, thereby enhancing cooperative competitiveness. Notably, national target programmes and raw material area development projects have created favourable conditions for cooperatives to participate more deeply in value chains alongside expand both domestic and export markets.

Translated by KHUONG THAO