Asia

Vietnam


At present, there are more than 20,000 registered cooperatives in Vietnam, but a great number among them does not operate efficiently. This is caused by the history of the country.

About the project


Joining the cooperative used to be compulsory for all farmers in order to do farming. Accordingly, cooperatives in the past (the so-called old-type cooperatives) were organized by the State, based on the form of centrally-planned economy. In addition, the policies of forcible equal distribution also caused the members not to play an active role in the business activities of the cooperative where they belonged to.

The Cooperative Law enacted in 2012 marked a milestone of the cooperative system as all old-type cooperatives were required to reorganize into so-called new-type cooperatives.. However, due to problems in the liquidation or merging of the less efficient cooperatives and the declining confidence of many social classes in the cooperative system, the above process is rather slow.

DGRV has been operating in Vietnam since the end of 1990s by providing support at all levels, from macro to meso and  micro scale. At macro level, DGRV has consulted the Vietnamese partners on developing and revising the cooperative law and various by-laws related to the model. Currently, the DGRV project, funded by the BMEL – German Federal Ministry for Economic Cooperation and Development, is working with the MPI – Ministry of Planning and Investment on a strategic plan for the sector in the phase of 2021-2030 with the vision until 2050.  It provides consultancy on a legal framework for the other partners such as the VCA – Vietnam Cooperative Alliance  and the MFA – Ministry of Finance to build up a cooperative audit system. Another topic is the collaboration with the VCA and the Ministry of Agriculture and Rural Development to build up a suitable curricular training system for agricultural cooperatives.

Together with VCA and some provincial cooperative alliances – PCAs (DGRV is currently active in Thai Nguyen, Phu Tho, An Giang and Tra Vinh in the year of 2019-2020), DGRV will assist to increase the institution´s capacity bya wide range of training classes . DGRV and its partners strongly believe that only with professional and skilled staff, VCA and PCAs can become a reliable partner and supporter for cooperatives, representatives of the low-income class and rural areas in Vietnam. After all, the long-term overall goal of the project is to strengthen the corresponding social system that is able to support the sector in the future, especially when Vietnam implements plenty of Free-Trade agreements that have been signed recently.

Social Development Goals


Activities


Some selected activities in the phase 2018-2020 are:

  • Consulting on a strategy paper for the cooperative sector
  • Consulting on proper legal framework to establish a VCA-run cooperative audit centre
  • Training of trainers on Cooperative principles and business models as well as cooperative Good Governance
  • Training of consultant on financial management, internal audit, business plan and value chain approach
  • Consulting on an accounting manual for advisors and cooperative accountants
  • Consulting on various decrees for the sector
  • Consulting to build up a curricular training system for the sector
  • Providing specialized courses for people credit funds
  • Providing IT-solutions for cooperatives and the association

Partner


Vietnam Cooperative Alliance (VCA)

http://vca.org.vn/en

Agency for Cooperative Development – Ministry of Planning and Invesment (MPI)

http://www.mpi.gov.vn/en

Thai Nguyen Cooperative Alliance, Phu Tho Cooperative Alliance, Tra Vinh Cooperative Alliance, An Giang Cooperative Alliance

Office


P042B, 4th Floor, Coco Building
14 Thuy Khue, Tay Ho District
Hanoi, Vietnam

F. +84 02438470945
hanoi@dgrv.coop

 

Employees


Project Director

Nguyen Thi Tuyet Minh (4th from left, 1. line)

Regional Project Advisor

Peter Kuhlmann-Warning (not in the picture)

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