Cooperatives urged to focus on data for more efficient digital transformation

Cooperatives urged to focus on data for more efficient digital transformation

Digital transformation should not start with the question of what technology to buy, but with the problems cooperatives need to solve.

Fish source produced at Phú Khương Seafood Processing Cooperative in Hà Tĩnh Province. Data can help cooperatives control operations, reduce costs and make decisions based on market demand. — VNA/VNS Photo Hữu Quyết

Cooperatives should focus on standardising data, identifying priority needs and choosing appropriate solutions rather than rushing to invest in technology for more efficient digital transformation, given their limited financial and human resources, heard a forum on October 7.

Cao Xuân Thu Vân, chairwoman of the Vietnam Cooperative Alliance, cited a survey by the Institute of Cooperative Economics Science showing that the digital transformation maturity index of the collective economy stood at about 29.5 per cent, indicating an initial stage of development.

Despite the growing availability of digital devices, their application in governance, production, business and market development remains limited, she said.

Digital transformation should not start with the question of what technology to buy, but with the problems cooperatives need to solve, Van said, identifying data, governance and markets as the three main pillars.

Data on members, raw material areas, production seasons, production processes, quality, costs and customers can help cooperatives control operations, reduce costs and make decisions based on market demand, Vân said.

According to Hoàng Hữu Hạnh, deputy director of the National Authority of Digital Transformation under the Ministry of Science and Technology, many cooperatives were focusing on applications such as sales and traceability while lacking sufficient internal management data.

Given limited resources, cooperatives do not necessarily need to develop their own software or invest in dedicated systems. Instead, they can use shared platforms, lease digital services and make customised investments only when necessary, he said.

The state of product traceability also highlights a gap between registration and the availability of complete data.

Fish source produced at Phú Khương Seafood Processing Cooperative in Hà Tĩnh Province. Data can help cooperatives control operations, reduce costs and make decisions based on market demand. — VNA/VNS Photo Hữu Quyết

Đào Ngọc Tuất, deputy director of the Department of Digital Transformation and Environmental Resources Data Information, said that as of August 31, 2026, about 800,000 products had been registered on the ministry's agricultural traceability system, but only around 158,000, or 20 per cent, had complete traceability information.

A QR code is merely a means of accessing information, while the core value lies in the data behind it, Tuất said.

Information must be recorded at the right time, checked and verified, and maintained throughout the chain from production to market. The requirement is becoming increasingly important as international markets tighten controls over supply-chain data.

A pilot durian traceability programme in the first half of 2026, for example, showed that when data was synchronised from growing areas and farmers through businesses to consignments, the time from harvest to customs clearance fell to 6 to 11 days from 15 to 20 days.

Experts also pointed out that cost is one of the biggest barriers to digital transformation.

Chu Tiến Đạt from of VTC Corporation said there are about 35,041 cooperatives with about 7.1 million members in Việt Nam at the end of 2025. Average revenue per cooperative was about VNĐ7.4 billion (US$280,000), while average pre-tax profit was only around VNĐ250.8 million, equivalent to 3.4 per cent of revenue.

Annual digital transformation costs can amount up to VNĐ200-300 million, even exceeding average profits, he said.

Nguyễn Thanh Mộng, director of SORIMACHI Japan in Vietnam, said a with a first-year budget of about VNĐ50-100 million, cooperatives should prioritise finance and accounting, member management, electronic invoicing and payments before expanding into sales, inventory management and traceability.

To borrow for digital transformation, cooperatives need complete legal documentation, projects aligned with their production and business plans, and evidence of sufficient cash flow to repay loans, according to Nguyễn Hùng Tiến, chairman of the Vietnam Cooperative Development Support Fund.

Digital transformation should be measured through improvements in governance, costs, productivity, quality and market access, experts at the forum said, calling for a coordinated ecosystem between the government, cooperative alliance and technology companies to suport the digital transformation of cooperatives. 

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