Regional connectivity key to development of local cooperatives

As Vietnam pushes for greater implementation of an economic model that emphasises innovation, restructuring and enhancing national competitiveness, bolstering regional connectivity has become a key target for the development of local cooperatives, said participants at a conference in Hanoi on August 3.
Regional connectivity key to development of local cooperatives ảnh 1Farmers at a cooperative in the southern province of Ninh Thuan during a local meeting to discuss new production methods. (Photo: VNA)
Hanoi (VNS/VNA) - As Vietnam pushes for greaterimplementation of an economic model that emphasises innovation, restructuringand enhancing national competitiveness, bolstering regional connectivity hasbecome a key target for the development of local cooperatives, saidparticipants at a conference in Hanoi on August 3.

According to Nguyen Van Thinh, Vice Chairman of the VietnamCooperative Alliance, as of the end of June 2023, there were a total of 30,425cooperatives and 120,983 collaborative groups registered in the country,including 76,456 agricultural CGs.

He said improving regional connectivity is to play a crucial rolein helping these cooperatives and collaborative groups operate more efficientlyand gain advantages through economies of scale.

In order to realise such an objective, Thinh said it's high timecooperatives and collaborative groups broke away from the old and startedembracing the ways of a knowledge-based economy, green economy, andenvironmental protection.

Top priorities for future development involves developingindustries with high technological level, creating additional added value, andpromoting the dynamism of industrial zones in line with the new growthstrategy.

Ideally, he added, the country should establish industry clusters,which are to replace individual factories, enterprises and cooperatives thatoperate separately from one another.

The vice chairman said local governments must be at the forefrontof making changes and providing support to businesses. It is essential toestablish communication channels to promote coordination among localauthorities, to enhance regional competitiveness, utilise resources to supportregional linkage activities and projects, and to ensure sustainablesocio-economic development of the region.

"Local leaders should regularly exchange and engage indialogues with businesses, cooperatives and collaborative groups to understandtheir needs and difficulties," he said.

In addition, there is a need to establish a shared database on keyproducts of different provinces, including requirements for scale, processes,quality standards, pricing, and product standards, which will facilitate supplychain coordination.

Tran Thi Hong Minh, Director of the Central Institute for EconomicManagement (CIEM), said Vietnam is facing both many opportunities andchallenges in promoting regional linkages.

She said the global economy is forecast to continue on a recoverypath, but there are still uncertainties and unpredictable developments. As thecountry actively pushes for greater international integration and continues toengage in regional and international collaboration efforts, economiccooperation, including with foreign partners, will likely see a new height inthe near future. This will provide many opportunities for cooperatives andcollaborative groups to participate in the global supply chain network.

"It is vital that in the coming years, localities across thecountry start building an interconnected supply chain and leveraging theadvantages brought by economies of scale," she said.

She urged local governments and enterprises to start investing inmeasures to offset the adverse effects of climate change, as Vietnam has beensaid to be among some of the most affected. Climate change will likely posenumerous challenges for many regions across the country, and solutions willrequire collaborative efforts and coordination among local authorities.

"Climate change is a shared challenge, but it also produces apressure to drive stronger regional linkages," she said.

Minh advised regions to start organising production models basedon circular economy principles, which allow resource cycling and closed-loopprocesses, greater efficiency and are more environmentally friendly.

According to Hoang Anh Tuan, Deputy Director of the DomesticMarket Department under the Ministry of Industry and Trade, economicdevelopment during the last few decades has raised numerous issues that cannotbe solved by individual localities alone.

For example, he said major problems such as climate change andpollution can only be addressed when localities start putting resources,infrastructure, and scientific and technological knowledge together. He urgedkey economic regions to fully play their role as leaders and called for greaterefforts to close the gap between developed and underdeveloped regions acrossthe country.

Tuan stressed the importance of creating an effective network ofregional production based on careful planning and development to help increaseVietnamese products’ competitiveness in the global market. He also advisedlocal governments to start campaigns aiming at raising awareness of variousbenefits to be realised with an improved network of regional production such asincreased trade of products, reduced oversupply and shortage, lower risks forfarmers and faster adjustment to new market changes./.
VNA

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