The Thanh Đông Fruit and Vegetable Cooperative, based in Mường Thanh ward, was once expected to become a standout model in agricultural production. Established in 2015, the cooperative developed a five-hectare production area, applying cultivation techniques aligned with VietGAP standards. In its initial years, it created jobs for local workers and supplied clean produce to both provincial and inter-provincial markets. Despite this promising start, the cooperative ceased operations after six years.

According to Nguyễn Hữu Tân, the cooperative’s director, the primary reason behind its premature closure was the lack of investment capital needed to sustain and expand production. On top of that, consumption markets were unstable. Even though the produce met VietGAP standards, it still had to compete with cheaper vegetables of uncertain origin, resulting in sale prices that could not offset production costs. The cooperative also struggled with leadership succession, which led to prolonged stagnation and the eventual breakdown of its role in coordinating production, consumption, and technical support.

Another example is the Mường Luân General Agricultural Services Cooperative, founded in 2022 with the goal of promoting sustainable agricultural production and improving local livelihoods. The cooperative focused on fruit cultivation, crop service provision, and post-harvest services such as preservation, packaging, and product distribution. In its early phase, the cooperative received strong support from local authorities and rural development programs, helping to create jobs and boost the income of its members.

By 2025, however, the cooperative was officially dissolved. According to Lò Văn Đức, former director of the cooperative, the main reasons were the inefficiency of production and product consumption, along with an unstable output market. Agricultural sales were mostly on a small scale, reliant on individual traders, with fluctuating prices and no long-term purchasing contracts. Additionally, the cooperative lacked investment for preservation and processing, which led to significant product loss and reduced quality, making it difficult to compete. Internal unity was also weak, as some members lacked commitment to long-term development, resulting in poor coordination in production planning.

As of June 2025, there are 353 cooperatives in the province, of which 98% are micro-scale. Only 266 cooperatives remain active, while 87 have ceased operations. From 2024 to June 2025, 13 cooperatives were officially dissolved. Among the active ones, only 30% are operating effectively. The rest are functioning at minimal capacity, with low revenues and no profit. In the first half of this year, the average revenue per cooperative reached only VND 1.04 billion, with an estimated average profit of VND 98.5 million. The average income for cooperative members and regular workers was around VND 31 million per person.

According to Phí Văn Dương, Chairman of the provincial Cooperative Alliance, the main issue lies in fragmented production, limited application of science and technology, and increasingly fierce competition. Many cooperatives have yet to establish stable product consumption chains with businesses or large distribution networks, resulting in volatile output and low competitiveness. While state support policies do exist, they remain scattered, and access to preferential credit or agricultural and industrial promotion programs is still obstructed, particularly for cooperatives in remote areas. These are the persistent bottlenecks that prevent cooperatives from achieving sustainable development.

Support in terms of machinery and capital for cooperatives is still limited, despite the high demand for loans. As of June 30, 2025, the province is implementing several funding sources to promote production, business, and service activities among cooperatives. However, access remains low. For instance, the Provincial Cooperative Development Support Fund has only VND 3 billion in charter capital, and since the beginning of the year, it has only been able to fund 13 cooperatives. Meanwhile, the National Employment Fund, with a total budget of VND 1.15 billion, has provided loans to just two cooperatives.

In order for cooperatives to operate effectively, there is a need for comprehensive support from the State in the form of capital, technology, favorable policies, and especially human resource training to ensure sustainability. In addition to this, weak cooperatives must be identified and restructured based on realistic production and business strategies, in order to avoid superficial operations. It is also essential to train a capable management team and strengthen linkages between cooperatives, enterprises, and markets. Local authorities must be more proactive in guiding the development of key products and encouraging the creation of modern cooperatives aligned with value chain models.

According to Phí Văn Dương, the province aims to facilitate access to central-level funds, supporting 3 to 5 cooperatives with loans ranging from VND 4 to 5 billion. It is also helping cooperatives register brand names, implement traceability systems, and access 2 to 3 projects under the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas. The province is also advising five pilot cooperatives following the new model. At least one value chain-based modern cooperative model will be developed, prioritizing flagship products, new-style rural development programs, and OCOP standards.