In 2022, Da Nang- based cooperatives made great efforts to overcome challenges to restore production in a bid to ensure employment and incomes for their employees and members, contributing to ensuring the effective implementation of the city’s social welfare policy, as well as promoting humanity of this collective economic model.

Many cooperatives in Da Nang have restored their production activities, and showed positive signs of recovery from the COVID-19 crisis. Picture is taken at the An Khe Bamboo and Rattan Cooperative. Photo: HOANG HIEP

Faced with difficulties in land fund in the city center, the Kim Thanh General Trading Cooperative has moved its mushroom cultivation to Hoa Phong, Hoa Phu and Hoa Ninh communes, Hoa Vang District, where the Cooperative’s members used their homes and rural lands for mushroom production. This mushroom production model has proved effective for more than 2 years when the city has been impacted by the COVID-19 pandemic. Till date, the cooperative’s mushroom production has been maintained at a relatively stable level although its production has been scattered across the three communes of Hoa Vang District. Therefore, the cooperative has set up QR Codes and barcodes for its members’ mushroom production facilities in order to help buyers trace the origin of products in an attempt to ensure the quality of mushrooms produced by its members.

Mr Huynh Van Muoi, the Cooperative’s Director said that the main mushroom production facilities owned by the Cooperative’s members that are located in Hoa Phong, Hoa Phu and Hoa Ninh communes, have been equipped with a sample mushroom farming model to produce mushrooms and mushroom embryos in order to provide them for farmer households and other members of the Cooperative.

The Cooperative’s members produce mushrooms in line with their cooperative's production standards and use its barcodes and QR codes on product packaging. Their mushroom products are sold to supermarkets, shops and other retail channels. Barcodes and QR codes help producers and distributors move products through production quickly, track products along the supply chain in the event of damaged products or a problem with a product. As a result, the Cooperative’s mushroom production and consumption activities are maintained at a relatively stable level. However, the roofs of mushroom farms were blown off during typhoon Noru while severe flooding due to torrential rains on October 14 and 15 caused a lot of damage to mushroom farms, causing a significant decrease in the Cooperative's total revenue over the past time. This year, the Cooperatives posted revenue of only VND 2.8 billion dong, down by VND 200 million from 2021, and raked over VND 60 million in profits, a decrease of VND 20 million compared to last year. The cooperative and its members have quickly restored production to supply their mushroom products to the market after natural disasters.

The Hoa Cuong General Trading and Production Cooperative that is the developer and operator of the Hoa Cuong Traditional Market, located at 27 Le Thanh Nghi Street, Hai Chau District, has created a stable trading area for nearly 300 stallholders, thereby bringing great benefits to the cooperative and its members. Including are setting up an internal credit fund of more than VND 600 million to offer loans to members to invest in production and business activities. In addition, VND 185.4 million rent reduction has been granted for stallholder premises for 2 months.

Director of the Cooperative Nguyen Duc stated that the efficiency of the Cooperative's operation was mainly attributed to successful adoption of the online operation management practice with the use of surveillance cameras.

In 2022, total revenue of the Cooperative reached more than VND 2.4 billion, up 24.8% compared to 2021. The Cooperative contributed VND 418 million to the State budget, up 163%, and made profits of VND 308 million after tax, up 122%. The average monthly salary per the Cooperative’s employee stood at VND 6 million, an increase of 20% from last year.

In 2022, transport cooperatives across the city quickly overcame difficulties to  resume their operations after the city had moved towards ‘living with COVID-19’ and faced the so-called “new normal . The Da Nang Tourist Transport Service Cooperative has provided practical support for its members to drive their economic recovery from the COVID-19 crisis.

Mr Tran Doan, the Director of The Da Nang Tourist Transport Service Cooperative said: “In 2022, the average monthly salary per the Cooperative’s employee rose 136% year on year to VND 8.5 million”.

According to the Da Nang Cooperative Alliance, all cooperatives in Da Nang have generated profits and fulfilled their tax-paying obligations, as well as ensured jobs and incomes for their employees and members. In addition, the municipal Cooperative Alliance has supported 41 cooperatives to participate in trade fairs and trade promotion programmes inside and outside the city, as well as assisted local cooperatives to promote and sell their products. Heed has been paid to facilitating 4 cooperatives to access preferential loans totaling VND 2.6 billion.

In 2023, the Alliance will continue its efforts to provide maximum support for local cooperatives to drive their post-COVID-19 recovery in order to boost jobs and incomes for their employees, thereby contributing to ensuring social welfare and promoting humanity of this collective economic model. Importance will be attached to supporting local cooperatives to expand their consumer markets, build their brands, and create barcodes and QR codes for their products. Special attention will be paid to removing difficulties and obstacles from local cooperatives, helping them connect with customers, as well as facilitating their access to preferential loans from the Da Nang Cooperative Development Support Fund.

Reporting by HOANG HIEP – translating by H.L