In 2022, 518 products from Hanoi were evaluated, classified and met OCOP products criteria - Photo: VGP

1. Party guidelines and state policies on the role of cooperatives in OCOP product development

According to Documents of the 13th National Party Congress of the Communist Party of Vietnam, the collective economy, cooperative economy, cooperatives, and collaborative groups have a broad operational range. Their roles encompass providing services to members, facilitating linkages and coordination in production and business, safeguarding the interests of their members, and creating conditions for members to enhance productivity, production, and business efficiency, as well as sustainable development. The strengthening of cooperative ties and the establishment of associations and unions of cooperatives are also emphasized(1). Simultaneously, the documents outline objectives for revitalizing and enhancing the performance of collective and cooperative economic organizations, with a particular focus on cooperatives(2). In line with this spirit, Resolution No. 20-NQ/TW, dated June 16, 2022, issued during the Fifth Plenum of the 13th Party Central Committee and titled “Continuing to renovate, develop, and enhance collective economic efficiency in the new period”, has stated that: Developing a collective economy is one of the methods to mitigate the shortcomings of the market economy. It stands as a pivotal cornerstone in realizing the goal of “a wealthy people, a strong nation, and a democratic, just, and civilized society” and in nurturing a culture of ‘cooperation’ that becomes a defining feature of our nation’s socialist-oriented market economy, thereby fueling the spirit of self-reliance, independence, the potency of great national unity, and the ambition to foster a prosperous and happy country. Moreover, it serves as a vital conduit for implementing policies on cultural and social development, as well as ensuring political stability, social order, and safety within communities. The resolution outlines goals for 2030, aiming to achieve the following: ensure that over 60% of collective economic organizations are rated ‘very good’ and ‘good,’ with a minimum of 50% participating in value chain linkages. Additionally, the target is to establish more than 5,000 cooperatives applying advanced technology to the production and consumption of agricultural products(3).

To implement the Party’s directives on collective and cooperative economic development, the Prime Minister issued Decision No. 340/QD-TTg on March 12, 2020, outlining the strategy for collective and cooperative economic development during the period 2021-2030. Furthermore, Decision No. 1804/QD-TTg, dated November 13, 2022, was issued to approve the program supporting the development of collective and cooperative economies for the period 2021-2025. The program’s orientations encompass the following aspects: The development of agricultural cooperatives, handicraft cooperatives, and other similar subjects, in conjunction with agricultural restructuring and the One Commune - One Product program; encouraging cooperatives to foster close partnerships with other economic sectors; expanding their presence across numerous industries and fields... This approach serves to enhance and promote the role of cooperatives in value chain linkages, particularly in connection with key products at local, provincial, and national levels(4).

To contribute to the realization of this objective, the Prime Minister issued Decision No. 919/QD-TTg on August 1, 2022, which outlines the One Commune - One Product Program for the 2021-2025 period. This program underscores the aim of addressing pressing issues of new rural development, including the environment, food safety, access to clean rural water, rural economic advancement, enhancing the operational effectiveness of cooperatives, providing support for enterprises and cooperatives in start-ups, innovation, OCOP Program execution, digital transformation within new rural development, and the promotion of rural tourism, among others(5). Promoting the role of cooperatives in the development of OCOP products, in particular, is among the driving forces to expedite the OCOP Program and increase the effectiveness of participants’ involvement and program implementation.

The One Village - One Product movement, initiated in Oita Province, Japan, in 1979, has achieved significant success as a typical case of Local economic development. Many developing countries have adopted and implemented OCOP methods and typical models with diverse adaptations and variations.

The OCOP approach was first officially applied in Vietnam after the Government issued Decree No. 66/2006/ND-CP, dated July 7, 2006, on developing rural industries and occupations. Building on this foundation, along with studying the OCOP movement and assessing the morphological transformation of this model in Vietnam, the Ministry of Agriculture and Rural Development issued the Project “Development of a Profession per Village in the period 2006-2015”.

In May 2018, the One Commune - One Product program was officially implemented nationwide under Prime Minister’s Decision No. 490/QD-TTg, with the following objectives: By 2025, aim to have at least 10,000 OCOP products recognized as 3 stars or more, of which about 400-500 OCOP products are to achieve 5 stars. Consolidate and upgrade at least 50% of OCOP products that have been evaluated and classified; prioritize the development of OCOP products associated with product brands and the development of rural tourism services. Prioritize the development of cooperatives as well as small and medium enterprises and strive to make at least 40% of OCOP subjects become cooperatives and 30% of subjects become small and medium enterprises. Strengthen the capability of OCOP enterprises in terms of community capacity and cooperative spirit; innovating the form of production organization and management skills; product innovation and creativity; food quality and safety management; skills in packaging design, labeling, and product design; managing intellectual property and traceability according to the value chain; and increasing the use and exploitation of community brands of products from rural areas(6).

Thus, in order to achieve the goals of developing OCOP products in the period 2021-2025, it is vital to promote the role of the cooperatives. At the same time, in order to promote the development of cooperative models in economic development and social security stability, localities need to promote the role of cooperatives in the development of the OCOP Program. This is due to the fact that the model of cooperatives participating in the development of OCOP products has initially demonstrated sustainable and harmonious socio-economic development in the “three-rural” sector of our country.

2. The role of cooperatives in the development of OCOP products

As of mid-2021, the country had recognized 4,733 OCOP products with a rating of 3 stars or above, with the Red River Delta accounting for 37.2%, the Northern Midlands and Mountains accounting for 20.6%, and the Mekong Delta accounting for 15%. These regions had the highest number of recognized products in the country. Meanwhile, the Southeast region has only 88 recognized items, while the North Central region has 416, accounting for 8.8% of all products in the country. As for OCOP-recognized subjects, there were 2.596 subjects with OCOP-recognized products. Among these, 37.8% were cooperatives, 27.7% were enterprises, 2.7% were cooperative groups, and 31.7% were factories(7).

With cooperatives’ active engagement, the OCOP program has led to the creation of 393 effective OCOP value chains. In many regions, cooperative subjects account for a significant proportion, specifically: The Northern Mountainous Region accounts for 43.8% of the country’s OCOP cooperatives (but only 25% of the total number of agricultural cooperatives in the country), whereas the Central Highlands region makes up 7.6% of the country’s OCOP cooperatives, compared to 6% of the total number of national agricultural cooperatives.

Particularly, the OCOP Program has ignited a robust start-up movement, giving rise to numerous models and areas producing “clean” products, as well as agricultural models and areas embracing advanced technology integrated with product value chains. This, in turn, contributes to the economic restructuring of rural areas and serves as a crucial solution in fulfilling the crucial need for production, income, and reduction in impoverished households in new rural construction(8).

According to the New Rural Construction Coordination Office, there are 823 cooperatives that function as producers and collectively own about 30% of the country’s nearly 5,000 OCOP products. Additionally, 4,028 cooperatives engage in linking the production and consumption of agricultural products, accounting for 23% of the total number of agricultural cooperatives nationwide - a 10% increase over data recorded before 2015. Through the program, numerous value chains for OCOP products have been established, with a particular emphasis on enhancing the role of cooperatives, especially in mountainous and disadvantaged areas like the Northern Mountainous Region(9), and so on.

The cooperative economy has made a significant contribution to the number of OCOP products recognized in Vietnam today. This demonstrates the significance of cooperatives as a fundamental entity in the development of OCOP products. The establishment and support of cooperative development plays a crucial role in the OCOP Program in particular and in socio-economic development in general, specifically in the context of rural economic development. By following the proposed OCOP process, which encompasses product ideation, cooperative establishment, and the formulation of business and production plans, the OCOP Program has evolved progressively. It has led to the establishment of cooperatives, projects, and the ongoing production of goods, ultimately developing the OCOP Program into the centerpiece of new rural construction in Vietnam.

Through preliminary studies, cooperatives have emerged as pivotal contributors to the advancement of the national OCOP program, notably evidenced through the following aspects:

Firstly, cooperatives have effectively embodied the essence of OCOP, which is harnessing local resources, including raw materials, knowledge, mindset, skills, and so on, in which the production processes of local products are harmoniously integrated with quality standards and criteria, resulting in added value for products, especially those of communal origin. As the demand for integration has emerged, the necessity for elevated levels of production management, human resource management, and similar aspects has surfaced, ultimately extending to overarching process management. The connectivity and communal values of cooperatives within value chains are obvious indicators of their role in producing community-based products in line with OCOP’s objectives.

Secondly, cooperatives serve as organizations established to attract investment capital to the agricultural sector and rural areas through the relationships of their members, unrestricted by location or legal entity. Individuals and household members in rural areas can readily invite partners such as relatives, friends, and legal entities from outside their communes, districts, and provinces to contribute capital for production and business cooperation, thereby facilitating product distribution and circulation beyond rural areas.

Thirdly, cooperatives contribute to the growth of concentrated agricultural production in line with zoning plans based on harnessing the available land resources of households and individual members situated in areas designated for concentrated production or within rural areas.

Fourthly, rural cooperatives will attract the local labor force and address relevant challenges by engaging in the production of specific OCOP products and services designated by the Program, collaborating closely with individual members, particularly cooperative households.

Fifthly, cooperatives gain ownership of technology and trademarks, and they organize the manufacturing of OCOP products in alignment with their corresponding value chains.

Sixthly, while developing cooperatives involved in the production of OCOP products and services, leveraging the State’s support to establish the collective assets of cooperatives becomes mutually advantageous for both the State and the cooperatives. Gradually reducing direct support for farmer households, which leads to their dependence, will assist cooperatives in uniting the members of production organizations because their interests are fostered through cooperatives.

Despite showcasing positive outcomes, the role of cooperatives remains constrained in the development of OCOP products, specifically in the following aspects:

Firstly, there exists an incomplete understanding among certain Party committees, governmental authorities, state management officials, and the public regarding the essence and significance of the OCOP Program, as well as the role of the cooperative economy in enhancing internal strength, elevating value addition, establishing product competitiveness in the market, and contributing to the OCOP Program. Consequently, the guidance and direction of cooperative development, as well as the establishment and advancement of OCOP products in certain localities, particularly at the commune level, have not garnered adequate attention. This has resulted in compromised operational efficiency and a limited role for certain cooperatives in establishing and advancing OCOP products.

Secondly, the scale of cooperatives remains modest, and their capacity, resources, market access, and so on are still confined, despite the significant requirements and demands for cooperatives to develop and refine their production of OCOP products. The majority of members within agricultural cooperatives are small-scale farmers with limited resources and capabilities primarily producing using traditional methods and technologies. Cooperatives encounter numerous challenges in identifying adept and committed leaders and managers for cooperative endeavors. The subjects of cooperatives involved in OCOP product development are predominantly located in remote, mountainous, and ethnic minority regions, characterized by limited production capacity and constrained market entry.

Thirdly, due to their limited involvement in value chains and inadequate utilization of science and technology, the proportion of cooperatives generating added value through their operations remains low. Meanwhile, the OCOP program necessitates production expansion, value chain integration, technological enhancements in production, resource allocation for participating in value chains and applying science and technology, etc. These activities are crucial for cooperatives to attract members, enhance added value for both members and cooperatives, and ensure the sustainable development of cooperatives in OCOP product initiatives.

Fourthly, the OCOP program is relatively new, and many officials and cooperative members involved in its implementation still harbor a subsidy-period mindset, resulting in an overreliance on the government. The percentage of cooperative officials and members who have undergone proper training and fostering remains low. Both state management officials of cooperatives and cooperative members have not received regular training and retraining. A shortage of consultative and capacity-building staff for local agricultural cooperatives is evident (this applies to the creation of production, business plans and projects, the provision of market information, science and technology, production linkages, and product promotion). Education and training efforts have not yet sufficiently met the needs of cooperatives, and the organization and implementation overlap in terms of content, leading to the scattering and wastage of already limited funds.

Fifthly, while the products offered by cooperatives in Vietnam today showcase considerable diversity in types, quantities, and quality, those participating in the OCOP Program mostly produce small-scale, diverse, and specialized items. This specificity often results in limitations on their ability to scale up, making it challenging to fulfill large and continuous orders, as well as hindering the adoption of advanced technology and machinery in production and processing. The orientation of developing OCOP products is closely tied to the regions that supply raw materials. However, the conservation and advancement of typical and traditional raw material areas in many localities have not yet received adequate attention or appropriate policies and solutions.

Sixthly, due to the current operation of cooperatives under the 2012 Cooperative Law, there are limitations in the management, mobilization, and propaganda to promote the role of cooperatives in the development of OCOP products. The 2012 Cooperative Law has not effectively encouraged localities and cooperative subjects to concentrate on building and advancing OCOP products.

Seventhly, the policy framework for assisting cooperative subjects in OCOP product development lacks alignment in terms of how support activities and resources are distributed, leading to confusion and challenges in the implementation of these policies. Processing procedures and technologies remain rudimentary and, in some cases, outdated, falling short of meeting regulations and requirements for food safety and environmental protection. Ineffective collaboration between cooperative subjects, managers, and scientists in the establishment of value chains and resource exploitation results in inefficient utilization of local resources (raw materials, labor, culture, indigenous knowledge, etc.).

Support for cooperatives to advertise OCOP products lacks professionalism and consistency. Promotional efforts are disjointed without methodical and long-term plans, resulting in overlapping and ineffective teamwork during implementation.

Eighthly, activities related to OCOP products after evaluation and classification are still limited, particularly concerning trade promotion and product management after receiving recognized star ratings. This is because localities tend to concentrate solely on product evaluation and classification, regarding these activities as an end in themselves. Trade promotion efforts remain fragmented and inconsistent, failing to form a cohesive and intensive system for promoting OCOP products. Moreover, they have not yet evolved into an active supportive solution that motivates cooperatives to engage in the Program. The quality of the OCOP program’s consultancy network varies, with some consultancy agencies displaying weaker capacities, primarily concentrating on dossier development, product evaluation, and product classification. Their ability to provide on-site support, especially for product development, chain linkage, and trade promotion, remains limited.

3. Solutions to promote the role of cooperatives in developing OCOP products

Firstly, continue to study, revise, supplement, and refine guidelines, legal frameworks, and policies for cooperatives to enhance their roles and adapt to diverse models of production and organization associated with agricultural sector restructuring and new rural construction in accordance with the current situation of each area, region, industry, and product, with an emphasis on improving the role of cooperatives in the establishment and growth of OCOP products.

Secondly, establish mechanisms and policies to provide direct support to cooperatives participating in the OCOP Program. Focus on mobilizing resources to implement the program for building and developing OCOP products, with a special focus on resources for cooperative subjects. Focus on innovating models of production and organization in the direction of fostering linkages between enterprises and cooperatives, cooperative groups, and individuals involved in the production, processing, and consumption of OCOP products. Enterprises and cooperatives, in particular, play a pivotal role in steering production, applying science and technology, building, and managing brands, and facilitating the consumption of OCOP products.

Review, research, and recommend to relevant competent authorities the enactment of a range of policies to aid cooperatives in OCOP product development, especially those situated in highly impoverished regions. Prioritize the allocation of resources from the central budget and government budgets at all levels, notably the funds from the National Target Program for New Rural Development, to support cooperatives in OCOP product development.

Thirdly, enhance resources to support the establishment and replication of organizational models where cooperatives serve as focal points and represent their members and the people in the community, enterprise models within cooperatives, multi-disciplinary and multi-field cooperatives, and so on, concurrently integrating modern scientific and technological advancements into the construction and advancement of OCOP products. Scale up production, generating goods and products of sufficient competitiveness to satisfy both domestic and international market demands. Thoroughly review and examine the capacity and ability of each cooperative to increase productivity and potential in OCOP product development. In this context, product development goes beyond mere expansion of production scale, scope, and output. More importantly, it primarily entails elevating product caliber and adding higher value to each product unit (this encompasses quality enhancement, brand positioning, market positioning, and efficient promotion, etc.), and elevating community brand value, etc. Based on accurately identifying the capacity of each cooperative, it is necessary to clearly identify and establish closely-knit linkages connecting input materials sourced from raw production by cooperative members and local communities, as well as the underwriting ability to create reliable raw material supply areas. Empower cooperatives to genuinely represent their communities in the socio-economic development process. At the same time, this serves as a foundation for future collaboration and expanding efforts in production, advanced processing, and market promotion.

Fourthly, continue to effectively promote the Party’s guidelines, state policies, and laws on developing the collective economy and cooperatives in conjunction with the construction and advancement of OCOP products among cadres, party members, and the general public. Utilize diverse formats suitable for specific contexts, target audiences, and local characteristics, such as: building informative bulletins across various media platforms ranging from central to provincial and grassroots levels; regularly updating government portals and reputable websites; creating theatrical presentations of the propagative content; organizing competitions to enhance understanding of mechanisms and policies for the collective economy, cooperatives, and OCOP products; hosting contests for product packaging design and manufacturing, etc.

Simultaneously, conduct in-depth research to integrate the aspects of cooperative development, coupled with OCOP product production, into the annual and periodic socio-economic development plans of various industries and regions. Building upon this foundation, foster a shared mindset, awareness, and concerted effort towards advancing the collective economy and cooperatives within the framework of the OCOP Program development.

Fifthly, Party committees and authorities at all levels, particularly at the district and commune levels, shall diligently oversee the organization and reinforcement of collective economic and cooperative development. They should encourage the establishment of new cooperatives in areas where key products lack representation or are underrepresented. Efforts must be made to enlarge the membership base of cooperatives, ensuring active farmer participation in cooperative ventures within crucial OCOP production zones.

Sixthly, progressively enhance the quality of the Steering Committee’s and supporting groups’ activities in the implementation of National Target programs and promote the roles of socio-political organizations in the establishment and advancement of cooperatives. Strengthen the role of the Steering Committee for the implementation of the National Target Program and the involvement of supporting groups at all levels, ensuring their leanness and efficiency; mobilize effective coordination and participation of departments, agencies, branches, provincial units, and People’s Committees at district and commune levels in guidance, assistance, direction, and supervision of OCOP Program implementation by participants.

Seventhly, conduct strategic planning and cultivation of areas specializing in pivotal agricultural raw materials that are associated with OCOP products. This should go hand in hand with robust support for the utilization of scientific and technological advancements and the enhancement of preliminary processing and processing techniques for OCOP products of the program’s subjects, particularly cooperative subjects. Actively develop OCOP products aligned with their value chains, tailored to the strengths and conditions of their respective localities and the capabilities of cooperative subjects. Encourage investment in scientific and technological applications, technological innovations and advancements, and processes of production, preliminary processing, preservation, and processing of OCOP products, with the goal of increasing the productivity of the program’s subjects and the quality of OCOP products.

Eighthly, enhance the capacity of the system supporting the OCOP Program’s implementation, which encompasses cooperative entities. Continue to establish OCOP Product Development and Innovation Design Centers, integrated with supporting OCOP start-ups, OCOP product designing, as well as the nationwide promotion and introduction of OCOP product. Pilot the OCOP Startup Support Fund model. Construct a comprehensive national database dedicated to the OCOP Program while bolstering digital transformation in data management in order to create a robust management and monitoring framework for implementation outcomes. Develop specific criteria and organizational structures to improve participants’ capabilities and administer the consulting network, aiming to create a professional, experienced, versatile, united, and cohesive OCOP Program consulting network that spans the entire country. Reinforce vocational training aligned with the OCOP industry and augment regulations pertaining to vocational training (which encompass the vocational training framework and apprenticeship age, etc.) to suit the evolution of OCOP product development.

Ninthly, promote trade promotion endeavors and foster connections between supply and demand for OCOP products, including those provided by cooperative subjects. Synchronously and effectively develop and manage the OCOP Vietnam brands (certified brands) to elevate the image and value of OCOP products, making the OCOP logo a recognizable marker for consumers. Institute policies to support the promotion and trade of OCOP products, particularly at the national level; and promote the interlinking of regional, national, and international OCOP product networks.

Tenthly, establish a robust management and monitoring system for OCOP products produced and developed by the program’s participants, including cooperative subjects. Enhance the system of standards and criteria for OCOP products, aiming to elevate the quality of these products by harnessing the strengths and potentials of local goods. Establish product standards categorized by star ratings to aid localities and OCOP participants in devising directions and strategies for product development.

Eleventhly, foster the training of human resources, with a special emphasis on attracting and nurturing young, skilled individuals to join the cooperative workforce. Cooperatives should prioritize enhancing their management capabilities, particularly among key positions such as Directors and members of the Board of Management; as well as providing their members with regular training and specialization updates. Implement favorable policies to attract capable and enthusiastic human resources to work within cooperatives, especially in midland, mountainous, remote, and isolated areas. Local authorities should concentrate on developing a well-trained contingent of consultants for the OCOP Program. Furthermore, efforts must be directed towards strengthening and enhancing the quality of training and retraining institutions, as well as refining the skills of staff and instructors engaged in teaching about the collective economy, cooperatives, and the OCOP Program.

_________________

Received: May 10, 2023; Revised: June 23, 2023; Approved for publication: June 26, 2023.

Endnotes:

(1), (2) CPV: Documents of the 13th National Party Congress, Vol.I, National Political Publishing House, Hanoi, 2021, p.129-130, 45-46.

(3) Central Executive Committee of Vietnam: Resolution No. 20-NQ/TW, dated June 16, 2022, on Continuing to Renovate, Develop, and Enhance Collective Economic Efficiency in the New Period.

(4) Prime Minister: Decision No. 340/QD-TTg, dated March 12, 2021, on approving the Strategy for Developing Collective Economy and Cooperatives in the 2021-2030 Period.

(5) Prime Minister: Decision No. 263/QD-TTg, dated February 22, 2022, on the National Target Program for New Rural Construction in the 2021-2025 Period.

(6) Prime Minister: Decision No. 919/QD-TTg, dated August 1, 2022, on the One Commune-One Product Program in the 2021-2025 Period.

(7), (8) Huynh Ngoc Thu: Assessing the Current Situation and Proposing Solutions to Convey Human Values into OCOP Products in Constructing New-Style Rural Areas in Southern Ethnic Minority Areas, Science and Technology Program for Building New-Style Rural Areas in the 2016-2020 Period.

(9) Central New Rural Coordination Office: Report on the OCOP Program’s results and orientation for the period 2021-2025.