JICA supports development of Multi-Function agricultural co-operative model

ME - Japan and Vietnam will continue their cooperation to implement the Project for Enhancing Functions of Agricultural Cooperatives in Vietnam Đ phase 2. The Project document (Record of Discussions) was signed on October 25 th 2011 in Hanoi by representatives of Japan International Cooperation Agency (JICA) and Department of Cooperatives and Rural Development under Ministry of Agriculture and Rural Development.

The First Phase of the Project had been carried out since March 2006 aiming to assist the Government of Vietnam develops new cooperative models in accordance with 1996 Cooperative Law. The government is promoting the transformation of traditional style cooperatives which focus mainly on agriculture production, to establishing new cooperatives whose activities includes marketing, product processing, joint purchasing of production materials, credit. Despite the high demand from the cooperative members, little progress has been made despite due to the lack of experience of the cooperative officers.

During the implementation process, JICA experts have brought in Japanese experiences that are applicable in Vietnamese conditions. Mr. TSUNO Motonori, Chief Representative of JICA Vietnam shares Japan’s experiences .The single function cooperative model was popular in Japan in 1961 backward. After 1961, the Japanese government encourages the merge of small-scale agricultural cooperatives into larger scale and then forming up multi-fuctional cooperatives. The multi-fuction agricultural cooperatives take responsibility for all service areas such as provision of farming tools, credit; helping farmer to process and consume products and to cover insurance for farmers activities. I think these types of experiences are fit to the current development of Vietnam agriculture at present.

The First Phase was completed in September 2010 and according to Vice Minister of Agriculture and Rural development, Mr. Ho Xuan Hung, the project has gained remarkable achievement in enhancing fuctions of agricultural cooperatives in Thai Binh and Hoa Binh provinces. He said “The projects experiences have been documented as guidebook to apply on national scale such as guideline for formulating mid-term plan in agricultural cooperatives, guideline for organizing regular meeting of cooperative members” With desire to bring into full play the achievement of project phase 1 and expand the project nationwide, the Ministry of Agriculture and Rural Development has proposed to carry out the second phase and JICA has agreed to continue its support.

By popularizing lessons and achievements of the First Phase (2006-2010) to other regions and cooperatives, the Second Phase focus on building the supporting system for enhancing functions of cooperatives and building human resource training systems at central and local level.

The project will be carried out for 3 years from 2011 to 2014 in provinces representing 3 regions of North, Central and South, including Hoa Binh, Thai Binh, Hai Duong, An Giang and Binh Dinh.