Numerous challenges once merging cooperatives
Updated : 3/26/2020 9:22:30 AM (GMT+0700)

Collective economy in Phu Yen, with the focal role being played by the cooperatives, is in the process of shifting to keep up with the advocacies of renovation on the growth model in connection with economy restructure, particularly restructuring the agriculture, constructing the new rural areas and reducing poverty in the sustainable manner.

The product of Hoa Phong silkworm liquor by Hoa Phong cooperative of agriculture and service (Tay Hoa district) constructing the brand name

In the talk with Phu Yen Newspaper as related to the above issue, Mr. Le Thanh Lam, Chairman of the provincial Alliance of cooperatives, let known:

- Market mechanism has opened up many opportunities to all economic sectors, including collective economy. The largest opportunity is higher technology, modernization in producing chain, placing agricultural products on the market as commodities, gradually eradicating the case of producing merely for becoming cheap raw materials.

However, the challenges facing the cooperatives are not little whereas the inner weaknesses have not overcome yet. These are uneven level staff; limited capital sources; small and unscientific models…there are also choking points in mechanism, policies against the cooperative.

If one wants to master the opportunities, there is no other way than the truth the cooperatives have to make use of their strengths and self-made changes to overcome the difficulties.

* Can you point out some optimistic signals to prove that the Cooperatives in Phu Yen is well mastering the opportunities?

- Previous, the cooperatives only produced raw products making materials to be supplied to the factories, companies, that is also the reason leading to not stable prices and low economic profit. Now that lots of cooperatives have constructed their own complete procedures from producing, processing to packaging and consuming, so, the economic profit is higher. These exclusive products have born the brand names of the cooperatives and displayed at supermarkets, restaurants, and this is most obvious proof of the efforts made by the cooperatives during the journey of overcoming difficulties, striving to integrate into the market mechinism.

In 2016, the entire province had 3 to 4 producing chains by 5-6 cooperatives with two exclusive products. Four years later, 20 Cooperatives have constructed 15 chains of agricultural products, creating 10 agricultural products with exclusive brand names. Furthermore, and better than ever before, despite being in the market for a modestly short time, the products of those cooperatives are highly appreciated in terms of quality and price.

Another joyful fact is that the model of cooperatives is compatible with the current trend of integration, so lots of private enterprises and producing foundations have chosen this model, from which more help is given to collective economy and more young and active members taking part in, which creates the new breeze to change the viewpoint on the incompatible and outdated collective economy.

* What challenges are facing the cooperatives and which plans are taken by the provincial alliance of cooperatives to be the cooperatives’ companion?

- Integration also means challenges and opportunities in parallel, the more the opportunities are, the bigger the challenges the challenges get. The cooperatives in Phu Yen have just begun the process of integration, therefore, everything remains new and inexperienced, the possibilities of being “exempted from epidemic” against risks are low. The challenges facing the cooperatives are enhancing the competitiveness for being survivors, gradually asserting the sustainable matters of the brand name of cooperatives in the market.

It is the duty of the provincial alliance of collective to link the cooperatives and create the interaction among them for the sake of mobilizing investment capital, attracting the enterprises and cooperatives, particularly those operating in agriculture, forestry, fisheries. The drastic involvement into the programs of restructuring the agriculture, constructing new rural areas, eradicating hunger and reducing poverty so that they can support the members to develop households’ economy and utilize the preferential policies and schemes of the government simultaneously…

Source: Phu Yen Newspaper

Translated by HAI LOAN

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