Business Activities of “Transformed” Agricultural Cooperatives and their Role in Supporting Local Agriculture in Northern Vietnam

Abstract

This study investigates the potential of “transformed” agricultural cooperatives in northern Vietnam to support local agriculture as the market-oriented economy develops. This case study approach examines four agricultural cooperatives introduced by the local government. This study finds that, first, cooperatives try to provide agricultural support to members, but the private sector mainly leads this business. Second, the range of agricultural cooperative business activities is expanding from production to livelihood support. Third, quite a few cooperatives provide marketing support and began to direct production instead of selling their members’ products in order to secure the quantities required to fulfill their contracts. The results empirically indicate that cooperatives’ business activities has limited impact on local agriculture or their members.