Boosting digital transformation in agricultural cooperatives

According to the Department of Cooperative Economy and Rural Development (Ministry of Agriculture and Environment), only around 2,600 out of more than 22,500 agricultural cooperatives nationwide currently use software and digital technologies. This figure remains relatively low compared to the sector’s potential and strategic importance.

Prioritising digital transformation

Experts suggest that digital transformation in agricultural cooperatives can reduce operational costs by up to 30%, and input costs for fertilizers and materials by 15–20%, while increasing productivity by 15–28%. In short, digital transformation is a key driver for sustainable agricultural development.

Ba Ria–Vung Tau Province has identified high-tech agriculture as a pillar of the local economy. As such, it has introduced several policies to encourage cooperatives to adopt high technology and undergo digital transformation to enhance product quality and value.

As of 2024, the province has 41 cooperatives applying high-tech solutions in production, processing, and distribution; 35 cooperatives integrating technology into their operations; and 10 cooperatives engaged in export markets.

A standout example is the Ba Ria–Vung Tau high-tech agricultural cooperative in Binh Ba Commune, Chau Duc District, which partners with 32 households cultivating and selling dragon fruit across a 30-hectare area. Digital transformation has been implemented in integrated crop management and integrated pest management, yielding significant results.

According to the cooperative's director, it has invested 605 million VND (23,300 USD) in vacuum concentration and sterilisation equipment. These investments have helped the cooperative reach annual revenues of approximately 4.1 billion VND (158,200 USD), with profits nearing 270 million VND (10,400 USD), and provided stable jobs with average monthly incomes of around 8.5 million VND (328 USD) per worker.

Tien Giang Province is also advancing high-tech applications and digital transformation in agriculture. The province has 23 cooperatives engaged in export activities, and 34 cooperatives applying scientific and technological advancements in production and business operations aligned with value chain models.

Notable models include high-tech rice farming linked to enterprises for product consumption, melon farming in greenhouses with drip irrigation systems, smart devices for agricultural process management (e.g., smartphones, tablets), and the use of drones for agricultural services.

One successful initiative is the Phu Quoi agricultural, commercial, and service cooperative in Yen Luong Commune, Go Cong Tay District, Tien Giang Province. It has implemented a “Low-emission smart rice farming model aligned with green growth” across 1.5 hectares, generating higher profits compared to traditional rice farming.

The cooperative has supported members in using smart slow-release fertilisers, pesticides, and applying alternate wetting and drying irrigation techniques as part of the low-emission green rice farming model. As a result, yields reach 7–7.5 tonnes per hectare, and production costs are reduced by over 5.3 million VND (204 USD) per hectare compared to conventional methods.

Promoting digital transformation in cooperatives

Among the more than 10% of cooperatives using high-tech and digital methods, most are still focused only on irrigation systems, greenhouses, and origin-tracing labels. Applications in processing, management, and product marketing remain limited.

To address this, the Ba Ria–Vung Tau provincial cooperative alliance has launched programmes to enhance inter-provincial product linkages between cooperatives and businesses through trade fairs and marketing events.

Nguyen Thi Loan, Vice Chairwoman of the provincial cooperative alliance, said the organisation has promoted awareness among key officials and cooperative members about digital transformation’s role in cooperative development. It has organised themed seminars, study tours, and showcased digital transformation models from within and outside the province.

The alliance has also encouraged the use of digital technology in cooperative management and operations, enabling cooperatives to truly act as a bridge guiding members in production, marketing, and product consumption.

For the 2021–2025 period, Ba Ria–Vung Tau aims to have high-tech agriculture account for over 50% of the province’s total agricultural output. It also targets at least 10 high-tech agricultural zones and five high-tech agricultural enterprises. All land designated for high-tech agriculture development will be used for production projects.

By 2030, the province aims for each cooperative to generate an average annual revenue of around 3.2 billion VND (123,400 USD) and annual profits of 230 million VND (8,800 USD). Average worker income is expected to reach 80 million VND (3,000 USD) per year in agriculture, and 100 million VND (3,800 USD) per year in non-agricultural cooperatives.

In Tien Giang, the province targets developing at least 50 new-generation cooperative models annually, aligned with the value chains of key commodities. These models will be supported with human resource development, infrastructure, and the application of science, technology, and innovation.

The province also seeks to expand new-generation agricultural cooperatives in connection with its high-tech agriculture development programme and the national target programme on new rural development. Businesses are encouraged to participate in and partner with cooperatives in value chains.

Particular focus is placed on enhancing management capacity and digital technology application in all stages of production and product distribution to maximise cooperative advantages and increase the competitiveness of agricultural products in both domestic and international markets.

According to Le Duc Thinh, Director of the Department of Cooperative Economy and Rural Development (Ministry of Agriculture and Environment), while it was previously difficult to get cooperative members to attend digital transformation training, they now actively participate and even propose such programmes to local authorities and relevant agencies. These training sessions are crucial for building databases and product traceability systems.

The Viet Nam Cooperative Alliance states that to better support local cooperative alliances, it will assess their challenges and needs in digital transformation and report them to relevant departments and provincial People's Committees for timely policy support.

The alliance is also enhancing communication efforts and promoting the application of digital technology in automating production and business processes, quality control, and managing the origin and supply chains of OCOP and other agricultural products. This ensures speed, transparency, accuracy, and food safety. Pilot cooperative models applying digital technology will be implemented to gather experience and replicate them both locally and nationally.

With the agricultural sector’s internal efforts and the vigorous implementation of Resolution No. 57-NQ/TW dated December 22, 2024 by the Politburo on breakthrough development in science, technology, innovation, and digital transformation—as well as General Secretary To Lam’s directive on lifelong learning and the “Digital Literacy for All” campaign—digital transformation is emerging as the key to unlocking growth potential and elevating Vietnamese agricultural products to a global level.

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