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With its cooperative, humane and mutually beneficial nature, the collective economy is increasingly affirming its position as an economic sector well suited to Viet Nam’s development conditions in the new era.
This spirit is further reinforced in Resolution No. 20-NQ/TW of the 13th Party Central Committee on continuing to innovate, develop and improve the effectiveness of the collective economy in the new period. The resolution identifies the collective economy as an important economic sector which, together with the state sector, forms a solid foundation of the national economy. It also emphasises the need to develop cooperatives in a modern, efficient and sustainable manner, closely linked with digital transformation, innovation and the green economy.
Viet Nam currently has nearly 60% of its population living in rural areas, while more than half of its workforce is employed in agriculture. However, agricultural production remains largely based on household farming, characterised by small-scale, fragmented operations and weak linkages. This has become a major bottleneck hindering the development of commercial agriculture and efforts to improve rural incomes.
In a market economy marked by increasingly intense competition, household producers face numerous challenges, including limited access to capital, constraints in science and technology, difficulties in reaching markets, low competitiveness and vulnerability to price fluctuations, natural disasters and disease outbreaks. Strengthening production linkages through the collective economy and cooperatives is therefore an inevitable trend to improve productivity and ensure sustainable development.
One of the core advantages of the collective economy lies in its ability to bring together small-scale producers into organisations with greater scale and competitiveness. In the context of fragmented agricultural production, cooperatives play a vital role in uniting farmers, reorganising production, standardising processes, reducing input costs and enhancing product value.
Through cooperatives, farmers receive support in terms of seeds, agricultural inputs and technical expertise, while also gaining opportunities to participate in value chains from production to consumption. This is particularly important at a time when markets are placing increasing demands on product quality, traceability and standardisation. As a result, many agricultural products have gradually built strong brands, gained access to modern distribution networks and expanded into export markets.
Beyond improving economic efficiency, the collective economy also helps reduce risks for producers. By joining cooperatives, farmers are better able to secure stable market outlets, minimise the recurring problem of bumper harvests accompanied by falling prices, increase their incomes and improve their quality of life.
Unlike individual production models, cooperatives do not pursue profit alone. Instead, they focus on the shared interests of their members and communities. This characteristic contributes significantly to social stability and provides a foundation for sustainable development.
Against a backdrop of both domestic and global economic uncertainty, the collective economy is increasingly demonstrating its role as an important “buffer” for the economy. While the private sector is primarily driven by competition and efficiency, the collective economy possesses advantages in connectivity, community spirit and support for vulnerable groups. This helps balance economic growth with social progress and equity.
Particularly in the context of the Fourth Industrial Revolution, collective economic organisations and cooperatives cannot remain outside the process of digital transformation and technological adoption if they wish to develop sustainably. The application of mechanisation, biotechnology, smart irrigation systems, electronic traceability, e-commerce and digital management is opening up significant opportunities for cooperatives to improve productivity, reduce costs and increase product value.
At the same time, the growing trend towards the green economy, circular economy and organic agriculture is creating new requirements for cooperatives. These approaches not only enhance product quality but also serve as important solutions for environmental protection, climate change adaptation and sustainable agricultural development. Cooperatives that boldly embrace innovation, apply advanced technologies and pursue green transformation will have greater opportunities to integrate more deeply into global value chains.
In recent years, the collective economy and cooperatives have made important contributions to production development, new-style rural development and the stabilisation of rural livelihoods. Nevertheless, it must be acknowledged that the sector still faces numerous limitations, including small operational scale, weak management capacity, insufficient capital and a lack of sustainable linkages. Many cooperatives continue to operate in a largely formalistic manner and have yet to fully perform their role as a reliable support system for household economies.
For the collective economy and cooperatives to truly become a pillar of support for farmers in the years ahead, it is essential to further raise public awareness of the new-generation cooperative model, which differs fundamentally from the cooperatives of the subsidy era in terms of ownership, governance mechanisms and operational methods. This would encourage people to take a more proactive role in establishing production groups, cooperatives or cooperative s that meet practical needs.
At the same time, it is necessary to continue implementing policies that promote land consolidation and concentration, thereby facilitating large-scale production planning, expanding mechanisation, increasing the application of science and technology, reducing costs and improving product quality.
Particular emphasis should be placed on strengthening linkages among farming households, cooperatives and enterprises. This is an inevitable trend in modern agriculture. Under this model, farmers remain the direct producers; cooperatives act as intermediaries by organising production, providing technical support, ensuring quality control, building brands and connecting products with markets; while enterprises undertake processing activities, expand market access and enhance the value of agricultural commodities.
It can be affirmed that, alongside the state sector and the private sector, the collective economy will continue to serve as an important pillar of the national economy, helping farmers increase their incomes, improve livelihoods and achieve sustainable development. In the context of accelerating digital transformation, green growth and deeper international integration, developing a modern, efficient and sustainable collective economy is not merely an economic requirement but also a strategic imperative for the country’s long-term development.
