In the context that Vietnam is facing many challenges, from climate change to competition in the international market, finding solutions to develop the agricultural product value chain has become an urgent task.

This requires cooperatives and businesses to apply new standards and adjust their operations to promote the green transition to ensure compliance with market needs.

Packaging high-quality herbal products at Yen Tri Cooperative in Yen Tri commune (Yen Thuy, Hoa Binh). Photo: Trong Dat/VNA

According to statistics from the Vietnam Cooperative Alliance, there are currently over 4,000 cooperatives nationwide participating in value chain linkages (accounting for nearly 13% of the total number of cooperatives). Ms. Bui Thi Hai Yen, Director of Ban Viet Trading and Service Cooperative (Thai Nguyen) said that linking with farmers brings many advantages in stabilizing raw material sources. However, product consumption is still a problem not only for large enterprises but also a challenge for the current small and fragmented scale.

According to Ms. Nguyen Thi Thanh Thuc, General Director of Bagico Investment Joint Stock Company, the application of information technology is a fundamental factor in developing the value chain of goods. Technology not only helps reduce costs and improve productivity and quality of goods, but also connects farmers and cooperatives more quickly and intuitively, while narrowing the gap in the production process. Although the State has support policies, if farmers do not participate in the value chain, they will have difficulty in grasping and applying technology effectively.

Citing the application of information technology in developing the durian value chain, Ms. Nguyen Thi Thanh Thuc said that people currently produce durian mostly on a household scale, small-scale production, manual recording or no recording. People also mainly work based on experience, often the head of the household will pass on to their children and grandchildren the accumulated experience by word of mouth. In particular, there is not much software for households in general and cooperatives in particular.

Therefore, Bagico has promoted research and supported people in applying information technology to durian production management. The company has provided accounting software, traceability, websites, and social networks to promote and affirm the quality of durian, and connect customers. In addition, Bagico also supports cooperatives in asset management and the use of electronic diaries, making chain linkage easier, just through a smartphone.

"The application of technology to production management and chain linkage is a prerequisite to increase the value of the durian industry in particular and other agricultural products in Vietnam," said Ms. Nguyen Thi Thanh Thuc.

Huong Van Tra is one of the tea cooperatives in Thai Nguyen that has promoted linkages with farmers to increase the value of tea products.

Ms. Nguyen Thi Huong Van, Chairwoman of the Board of Directors and Director of Huong Van Tra Cooperative, said that the first thing for the cooperative to bring the best quality products to the market is to strengthen links with farmers to produce quality products. Currently, Huong Van Tra Cooperative has more than 20 hectares of tea growing area according to VietGAP process. Recently, the cooperative has cooperated with a unit to fertilize according to the completely organic fertilizer process on an area of ​​more than 10 hectares. In 2022, the cooperative will expand by more than 10 hectares in Phuc Triu commune, Thai Nguyen city. This is one of the lands that produces famous Tan Cuong tea varieties.

According to Ms. Nguyen Thi Huong Van, production linkage and trade promotion focusing on key products of the region is a trend that will be implemented in the coming time. With the commercial playground, it is very necessary to have facilities to spread products. For example, when having a good source of products, businesses really need commercial centers and large-scale sales points to bring products of Thai Nguyen province as well as other provinces to link together. Thereby, it is possible to choose all products of regions and provinces while being absolutely assured of their origin and quality. This is what businesses always want the state to support so that they can confidently produce and bring quality products to the market.

Ms. Vu Thi Le Thuy, Director of 3T Farm Cooperative (Cao Phong, Hoa Binh) affirmed: 3T Farm Cooperative is making efforts to build and deploy a model of linking production and sustainable consumption of agricultural products. Furthermore, the cooperative pays special attention to building sustainable links with consumers through educational programs, practical experience sessions communicating the benefits of sustainable products. In addition, the cooperative has developed innovative business models such as clean agricultural stores, visiting and learning farms to raise community awareness and promote green consumption.

However, the cooperative still faces many difficulties and challenges such as limited scale, lack of deep processing technology to create added value for products, formally trained human resources, warehouse infrastructure, machinery or product display points. Therefore, the cooperative hopes to continue to receive support and companionship from authorities at all levels, organizations, and the entire community to work together to build a green, clean, safe agriculture and develop according to a sustainable value chain.

Ms. Cao Xuan Thu Van, President of the Vietnam Cooperative Alliance, said that the linkage between cooperative groups and cooperatives in some product lines has only stopped at the level of seasonal linkage, not sharing risks and benefits, so it has not yet achieved high sustainability.In general, the linkages in production and consumption are still not really solid. Not only that, the number of cooperatives that have built product brands is not much, the competitive value in the market is not high.

Moreover, there are not many cooperatives with the capacity to organize linkages, promote the role of a truly effective bridge, and the ability to spread in developing production according to the value chain. Therefore, for the value chain to develop sustainably and effectively, it is necessary to overcome the limitations, especially the need for close linkages in production, processing and consumption. At the same time, it is necessary to consolidate and develop collective production organizations and vertical linkages between agents in the chain.

Source: Tin Tuc Newspaper