Transforming Cooperative Support: Building Capacity for Sustainable Cooperatives in Vinh Long

Changing the Cooperative Mindset: A Decade of Capacity Building in Vinh Long

For many years, Vietnam’s cooperative sector was rather assessed by the number of newly established cooperatives than by their quality and sustainability. Staff of the Provincial Cooperative Alliance (PCA), who were meant to advise and support cooperatives in their long-term development, were often perceived mainly as administrative officers responsible only for processing documents. As a result, many cooperatives lacked strategic direction, sound governance, and the capacity to operate as sustainable member-based enterprises. 

Since 2016, a strategic partnership between the Vinh Long Provincial Cooperative Alliance and DGRV has been working to change this mindset and strengthen the quality and effectiveness of cooperative support. 

A Turning Point in Capacity

DGRV’s long-term support made a difference. It worked as a catalyst for change. Training programmes strengthened governance, internal control, and financial management. PCA staff were equipped with practical tools for business planning and guided through updated regulatory frameworks. This enabled them to shift from an administrative role to becoming proactive advisors, capable of supporting cooperatives in their organisational and economic development. 

Mr Nguyen Trung Ven, Vice Chairman of Vinh Long PCA, who has closely accompanied the project since its beginning, explains: 

“The training courses from DGRV have helped me improve my skills and knowledge and develop a more innovative approach to advising cooperatives. This enables me to provide practical recommendations and support cooperatives in developing in line with the needs and interests of their members and the cooperative itself.” 

Institutional Change in Practice

Today, success is no longer measured by numbers only, but increasingly by performance and operational sustainability. 

The Rach Lop cooperative in the province of Vinh Long in the South of Vietnam is one example of this transformation. When it was first established, the Chairman of the Board of Directors also acted as Director and managed all business activities alone. Based on the advice of the trained PCA staff, the cooperative reorganised its structure by separating governance and management functions, improving accountability and decision-making processes. 

The cooperative also became a pioneer in piloting internal auditing. Identified weaknesses were systematically addressed, and preventive measures were introduced. All this strengthened transparency, accountability, and long-term resilience. Consequently, the cooperative is now better positioned to respond to market opportunities and to serve its members effectively. 

The Road Ahead

As Mr Thai Phuoc Loc, Chairman of Vinh Long PCA, emphasises: 

“Establishing a cooperative is no longer the final goal; it is only the beginning of a sustainable business journey.” 

With strengthened institutional capacity, the Vinh Long PCA is now better equipped to guide cooperatives in this next phase, ensuring that they are not only compliant, but also competitive and sustainable in an evolving market environment. This transformation contributes to building trust among cooperative members and demonstrates how capacity development can create lasting institutional change, benefiting rural communities and local economies alike.