National Export Development Strategy for the Vietnamese Cooperatives Sector

The Project at A Glance

Over the past three decades, Vietnam has witnessed incredible growth. Through sustained economic reform efforts, Viet Nam has risen from one of the poorest nations in the world to Lower Middle-Income Country status, lifting tens of millions out of poverty, cut infant mortality in half, and increased life expectancy by almost 7 years.

International Economics assisted the Viet Nam Cooperative Alliance (VCA) in developing a cooperative sector export strategy based on an assessment of the export potential of the sector. The strategy addressed both the national and grass-roots level challenges of export development.

The project was part of the Expert Deployment Mechanism for Trade and Development (EDM) program, funded by GAC and implemented by Cowater International.

What We Found

With 4% of the country’s GDP coming from cooperative activities, they played a pivotal role for rural economic development and inclusive growth. However, the cooperatives have benefited less than other sectors of the economy from increased trade and export market opening through trade agreements.

Our Team developed a cooperative sector export strategic plan, based on an evaluation of the sector’s export potential, which assisted in gradually addressing the difficulties the cooperative economic sector in Viet Nam was facing. This strategy helped address the issues that were holding back the capability of cooperatives that could maintain and develop production which were in competition with other economic sectors in the country and gradually but firmly participate in the global market.

Our Strategy and Impact

Many cooperatives’ agricultural products have been produced according to the national standards of VietGAP and have been granted collective trademark certificates. Production has also been modernised through the application of technology and organic production methods. However, many of these achievements are at the domestic level, while the gains for cooperatives at the global level have been relatively modest compared to other sectors of the economy.

To enhance the position and value of the cooperative’s products, besides the domestic market, Vietnamese cooperatives needed to increasingly expand their reach to export markets. The cooperative sector export strategy addressed both the national and grass-roots level challenges of export development by providing: a national roadmap for export development, including recommended policies, programmes and services that should be established by the VCA and the Government of Viet Nam. Our Team also developed a business guide on the development of an export strategy for individual member cooperatives.

Our Core Solutions

As businesses seek to expand operations into new markets, the need to explore global supply chains and understand the international regulatory framework becomes crucial. At International Economics, we build tailor-made strategies for both import and export-oriented business solutions.