Expansion of regional linkages, deeper participation in value chains, stronger technology application and multi-value economic model development are creating a foundation for the collective economy (CE) together with cooperatives (co-ops) to become sustainable growth drivers for the province.

From collective production to greater value creation

In recent years, Dak Lak’s CE has recorded notable progress. While numerous co-ops previously focused mainly on providing input services for members, they have gradually shifted toward market-oriented operations, proactively organising production along value chains, strengthening links with enterprises, expanding markets and increasing product value. Many co-ops are now participating more deeply in processing activities, brand development, product traceability combined with market connectivity.

In the eastern region, many cooperatives proactively leveraging marine resources, traditional craft villages and local cultural identity to develop distinctive tourism products.

Across specialised farming areas for coffee, durian, rice along with vegetables, etc. a growing number of co-ops have adopted advanced production standards including VietGAP, organic farming, Fairtrade and OCOP. This transition has helped transform fragmented small-scale farming into larger-scale commodity production geared toward market demand.

Typical examples include Ea Kiet Fair Agricultural Service Co-op alongside Ea Tu Fair Agricultural Service Co-op, etc. both of which have successfully developed sustainable coffee production chains meeting international Fairtrade standards. Beyond supplying raw materials for export markets, these co-ops have also invested in processing activities and developed roasted coupled with specialty coffee product lines aimed at increasing added value.

According to Mr. Nguyen Van Phuc, Chairman of Board of Directors and Director of Ea Kiet Fair Agricultural Co-op, co-op linkages help reorganise production under standardised processes, improve product quality as well as reduce input costs. Thanks to consumption linkages and application of international standards, co-op coffee products consistently achieve higher selling prices compared with general market levels.

This model demonstrates that co-op are gradually becoming core organisations for production management, enhancing value combined with competitiveness of local agricultural products.

New space, new opportunities

While the CE previously developed mainly ithin agriculture, expansion of the provincial development space is now creating broader opportunities for co-ops to diversify operations and build multi-value economic models. Numerous co-ops have combined production activities with community tourism, experiential tourism, cultural preservation alongside green economy initiatives.

A typical example is An Cu Mat-Weaving Tourism Service Co-op in O Loan Commune, which develops traditional handicraft products made from sedge grass while integrating community tourism activities. Simultaneously, Phu Yen Green Agriculture Co-op has combined tourism development with preservation of traditional craft villages, generating additional jobs and improving local incomes.

According to Mr. Dam Dai Huu, Director of Phu Yen Green Agriculture Co-op, following the merger Dak Lak now possesses a more diverse development space encompassing marine resources, forests, agriculture together with indigenous cultural heritage. This creates favourable conditions for co-ops to develop integrated economic models linking production with tourism, services and preservation of traditional cultural values.

Beyond tourism, many fisheries co-ops are also gradually building production, processing along with consumption chains serving both domestic coupled with export markets. New development space is fostering stronger connectivity between raw-material areas in Central Highlands and coastal regions, while linking production, processing, logistics and exports.

Translated by HAI LOAN