VN co-ops go digital to boost profits and cut costs

VN co-ops go digital to boost profits and cut costs

A 2024 survey of 20 cooperatives in five provinces showed 68.2 per cent face financial constraints; 63.6 per cent lack technology infrastructure; 50 per cent lack strategies; and 47.5 per cent struggle to access support policies.

QR codes to find out more about products offered by cooperatives at a trade fair in Sóc Trăng Province. VNA/VNS Photo

As of June 30, Việt Nam had nearly 35,000 active cooperatives and 141 cooperative unions. Agricultural cooperatives make up 66.5 per cent, with more than 23,182 units, while non-agricultural cooperatives total over 10,486, providing jobs for 1.65 million workers. The application of high-tech methods ranges between 60 and 65 per cent, reducing production costs by 15–20 per cent and boosting profits by 15–28 per cent.

Vietnamese cooperatives have been increasingly adopting technology in trade promotion, supply-demand connection and member support, according to Deputy Head of the Communications Department of the Việt Nam Cooperative Alliance Nguyễn Bảo Sơn, speaking at a seminar in Hà Nội on Wednesday.

However, challenges persist. A 2024 survey of 20 cooperatives across five provinces revealed that 68.2 per cent faced financial difficulties, 63.6 per cent lacked adequate technology infrastructure, 50 per cent had no clear strategies, and 47.5 per cent struggled to access support policies. Additionally, 86.5 per cent were using inappropriate software and lacked internal management systems, particularly in ethnic minority and mountainous areas.

Human resources remain a significant barrier. Many cooperatives are only moderately or poorly prepared for digital transformation, hindered by an ageing workforce, a shortage of young talent and high costs of technology operation. Consequently, 79.5 per cent of cooperatives seek financial support for technology infrastructure, 75 per cent require new equipment and 75 per cent want training in technology skills.

At the macro level, Director of the Institute of Educational Science and Environment Nguyễn Văn Khương noted that Việt Nam aims to have two million enterprises by 2030 but has yet to reach one million.

Drawing lessons from Japan’s Local Trade Promotion Centres and South Korea’s SME agencies, he proposed the concept of e-cooperatives — a digital cooperative platform enabling multiple cooperatives to share technology, support smaller units lacking resources and incorporate household businesses. Such a platform could function as a legal entity, facilitate transactions and connect with banks for credit scoring and lending.

Operating on a super-app integrating technology and financial services, e-cooperatives could foster a transparent, secure and efficient environment. If implemented effectively, this model could address current weaknesses and enhance competitiveness.

Deputy Chairman of the National Assembly’s Committee on Science, Technology and Environment Tạ Đình Thi urged a thorough assessment with clear resource mapping and a detailed plan. He suggested using the sandbox mechanism under the Law on Science, Technology and Innovation to pilot the model in a specific locality, allowing real-time evaluation before wider rollout.

Economist Nguyễn Minh Phong recommended formalising and supporting e-cooperatives through training members in digital literacy, providing equipment, ensuring data security and electronic payments, designing suitable software and improving data governance. He also proposed developing internal e-commerce infrastructure linked to major platforms with multiple payment gateways, an innovation fund, stronger cybersecurity and a digital member ranking system.

Standing Member of the National Assembly’s Committee on Economic and Financial Affairs Phan Đức Hiếu stressed the importance of clarifying whether the model aims to 'digitalise operations' or become a 'fully digital cooperative' and reviewing laws to remove policy barriers.

He suggested launching the project alongside a real-life pilot to demonstrate effectiveness, with collaboration from all stakeholders, including the Việt Nam Cooperative Alliance, to finalise the proposal. 

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