Nguyen Duy Phuong (born in 1968) in Chau village, Bao Dai commune, Luc Nam district has gained many production experiences from his farm work. Phuong and 6 other households in the district founded Luc Nam Safe Agricultural Products Cooperative in January 2018.

The papaya cultivation linkage model in Binh Son commune, Luc Nam district.

The cooperative members cultivate the same types of agricultural products on 5 hectares of net house, mainly melon and cucumber, to help each other in techniques and produce great volumes of goods. In order to ensure consumption of the products, the cooperative signed contracts with firms in Hanoi at stable prices.

The cooperative supplies from 150 to 180 tonnes of melon of different varieties each year, earning an annual profit of nearly 1 billion VND (39,540 USD) per hectare. Thanks to the linkages, the products of the cooperative members are of equal quality and highly evaluated by customers.

Luc Nam district is home to 92 agricultural and forestry cooperatives with the total charter capital of some 298 billion VND (11.8 million USD). The cooperatives were reported to be in effective operation because they were established based on the potentials and advantages of the locality and people’s demand.

Particularly, Luu Chanh Truong Son Medicinal Plant Cooperative in Luc Nam district has continuously developed after 6 years of establishment. Its yellow-flower tea growing area has been expanded to 30 hectares from the initial 10 hectares of the 9 members.

Especially, the cooperative built a processing factory and a product display area on about 1,000 square metre. It also has a showroom in Hanoi. The cooperative earns an annual revenue of 2.4 billion VND (95,000 USD) at a profit of about 20 to 30 percent.

As a home to many signature agricultural products such as custard apple, yellow-flower tea, longan, pineapple and melons, Luc Nam district boast many advantages for agricultural commodity development.

Acknowledging the roles of cooperatives for socio-economic development, the district people’s committee has provided numerous policies to support cooperative development.

Particularly, 16 cooperatives benefited the support policies for trade promotion to expand market at the total fund of more than 1.2 billion VND (47,447 USD) and 4 cooperatives were supported to build linkages in 2024.

Thanks to the support fund, cooperatives have paid attention to package design, origin traceability stamp and completing documentations for evaluating and rating OCOP products.

As a result, the average revenue of the cooperatives has increased, reaching 1.1 billion VND per year (43,493 USD), earning an annual profit of 540 million VND (21,352 USD) while the average income of workers reaches 64.3 million VND (2,542 USD) per year, up nearly 10 million VND (395 USD) for each compared to 2023.

According to the statistics, all of the communes and towns in the district have cooperatives whose production has been attached to the value chains of the local key products.

“With their production and business activities, the cooperatives have contributed to well fulfilling the criteria for building new-style rural areas. In the value chains, the cooperatives play roles as both the bridges and instructors for members and households to link production under proper procedures while promoting the products and connecting to the consumption market”, said Nguyen Huu Luan, Deputy Head of the district Division of Agriculture and Rural Development.

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