Implementing Decision No. 167/QD-TTg issued by the Prime Minister approving the Project on selecting, improving, and replicating effective new- style cooperative models in localities for the 2021-2025 period, the province has introduced various measures to strengthen and develop the collective economy in a practical and sustainable direction. As a result, the collective economic sector has witnessed positive changes. Through these policies and initiatives, many cooperatives have gradually affirmed their role as a bridge connecting production and product consumption, particularly in the agricultural sector.

Hà Ân Agricultural Production and Service Cooperative in Nậm Kè commune is a successful example of a new-style cooperative. Following its transformation, the cooperative shifted from small-scale production to organizing production along value chains and proactively cooperating with farmers to establish raw material production areas linked to consumer markets. Currently, the cooperative cultivates more than 10 hectares of wax gourd and pumpkin while collaborating with households in Nậm Kè commune to develop a production area of approximately 25 hectares.

Thanks to standardized production processes, yields have reached 70-100 tons per hectare, with annual output exceeding 3,000 tons. This has contributed to increasing the average income of cooperative members to between VND 15 million and VND 17 million per person per month.

According to Nguyễn Tiến Nghĩa, Director of the cooperative, the distinguishing feature of the new-style cooperative model is that it places members’economic efficiency at its center while strengthening linkages from production to product consumption. Beyond organizing production, the cooperative actively expands markets and develops deep processing activities to increase agricultural product value. To date, several products have been recognized under the One Commune One Product (OCOP) Program, including Cực Tây Hà Nhì Tea, which has achieved a three-star OCOP rating. This recognition has helped strengthen the brand of local agricultural products and enhance their competitiveness in the marketplace.

Not only in agriculture, but cooperatives in industry and handicrafts are also making effective use of local potential. The province currently has 26 cooperatives operating in these sectors. These cooperatives have utilized local materials, developed traditional crafts, invested in machinery, adopted new technologies, and improved product designs. As a result, they have enhanced product value, created jobs for rural workers, preserved traditional occupations, and produced goods that reflect local cultural identity.

Pa Thơm Brocade Weaving Cooperative was established in 2020 and converted to the new-style cooperative model in 2024. Previously, brocade weaving was largely spontaneous, small scale, and focused mainly on family needs, with limited product diversity. After the transformation, the cooperative reorganized production in a more professional manner, combining the preservation of traditional weaving with economic development. Members were assigned specific tasks, jointly developed new product designs, improved quality standards, and actively connected with markets.

Thanks to these operational changes, the cooperative’s products have become increasingly diverse, including handbags, scarves, skirts, shirts, and souvenirs that showcase the unique cultural identity of the Thai ethnic group. Products are sold at prices ranging from VND 200,000 to VND 2 million each. According to Lò Thị Vân, Director of Pa Thơm Brocade Weaving Cooperative, the new-style cooperative model has not only provided members with more stable employment and income but has also created favorable conditions for preserving, developing, and gradually establishing a market presence for traditional brocade weaving.

Beyond agriculture and handicrafts, many cooperatives operating in other sectors have also improved their effectiveness following transformation. The province currently has 482 cooperative groups and 372 cooperatives, of which 247 are actively operating. The total charter capital of cooperatives exceeds VND 1 trillion. Established and operating under the 2023 Cooperative Law, these cooperatives have created new jobs for more than 9,800 members while maintaining employment for 7,620 workers.

A notable characteristic of the new-style cooperative model is the significant shift in management and operational thinking. Cooperatives are making more effective use of local advantages and resources while focusing on developing highly competitive key products.

According to Phí Văn Dương, Chairman of the provincial Cooperative Alliance, the transition to the new-style cooperative model has generated clear improvements in the collective economic sector. Whereas many cooperatives previously operated in a formalistic and small-scale manner with limited management capacity, they are now gradually operating according to principles of autonomy and accountability, aligning production with market demand and strengthening value-chain linkages.

Operational efficiency has improved significantly, with average annual revenue reaching approximately VND 2.08 billion per cooperative and average annual profit reaching VND 197 million per cooperative. The average annual income of members and regular workers has reached approximately VND 62 million per person.

To improve the quality of cooperative operations, the provincial Cooperative Alliance has organized six training workshops on digital skills for nearly 300 members and workers since the beginning of the year. It has also supported cooperatives in participating in investment promotion conferences, trade fairs, OCOP product exhibitions, and market connection activities.

In addition, two cooperatives have accessed financing from the Cooperative Development Support Fund, receiving a total of VND 595 million. This funding has provided additional resources to expand production and business activities.

From now until the end of the year, the province aims to establish at least 70 new cooperatives and 10 cooperative groups, prioritizing high-tech agricultural cooperatives, tourism cooperatives, and industries with strong local advantages. In particular, digital transformation has been identified as a key driving force for the new-style cooperative model, with the goal of ensuring that 100 percent of cooperatives gain access to information technology, improve management and operational capacity, and enhance market competitiveness.

Practical experience shows that the new-style cooperative model is gradually affirming its role as an important driver of rural economic development. In addition to bringing farmers together for production cooperation, creating jobs, and increasing incomes, cooperatives also contribute to building product brands, expanding consumer markets, and promoting digital transformation in rural areas.

These achievements demonstrate the sound direction of collective economic reform and provide a solid foundation for cooperatives to develop sustainably while making positive contributions to the province’s socio-economic growth.