"Evolution of cooperatives through modern digital means in the contemporary period"
In a bid to concretise the goals of Resolution No.57-NQ/TW on breakthroughs in science, technology development, innovation, and national digital transformation, a roundtable on the digitalisation of cooperatives was held in Hanoi on August 13.
The event, attended by national assembly deputies, experts, representatives of ministries, and cooperative leaders, aimed to address the challenges faced by cooperatives in Vietnam during their digital transformation journey.
Nguyen Bao Son, from the Vietnam Cooperative Alliance (VCA), highlighted the fact that cooperatives lack capital for expansion and have not invested in developing digital human resources or applying sci-tech. He suggested that local authorities should quickly deploy and implement resolutions to create favourable conditions for cooperatives to develop sustainable value chains.
Some cooperatives have initially deployed digital platforms for management and business activities, but face challenges such as unsynchronised technology infrastructure, low digital training, limited investment resources, and an incomplete legal framework and support policies. The main challenges faced by cooperatives in Vietnam in their digital transformation include a shortage of skilled human resources, especially due to an ageing workforce and a lack of young talent, as well as high costs for technology operation and infrastructure.
To overcome these challenges, several solutions are proposed. One such solution is the development of e-cooperatives, digital cooperative platforms allowing multiple cooperatives to share technology and resources, supporting smaller units and incorporating household businesses. Such platforms could facilitate transactions, connect with banks for credit, and operate as legal entities on integrated super-apps combining technology and financial services. This model could enhance transparency, security, and competitiveness.
Another proposed solution is the implementation of pilot programs using a sandbox mechanism under the Law on Science, Technology and Innovation to test digital cooperative models locally before broader rollout, allowing for real-time evaluation and refinement.
Increasing government and institutional support for financial assistance, equipment upgrades, and comprehensive digital training tailored to cooperative needs is also crucial to address skill shortages and operating cost barriers. Strengthening national legal frameworks and standards around digital transformation to reduce fragmentation and mismatched systems, ensuring data protection and technical standardization in digital services, is another solution.
Encouraging deeper cooperation at sectoral and international levels to transfer successful digital models, adopt global best practices, and foster innovation ecosystems that include cooperatives is another proposed solution.
Nguyen Xuan Tuan, president of Institute of Education and Environmental Science, shared that the institute has collaborated with over 300 enterprises and cooperatives to research and develop a pilot e-cooperative model. He also proposed specific credit and digital transformation policies for cooperatives, as well as support for market linkages and technology training.
By combining targeted financial and training support with innovative digital cooperative platforms and legal reforms, Vietnam’s cooperatives can better navigate the digital transformation challenges and improve their operational efficiency and market competitiveness.
Other systemic challenges in Vietnam’s digital economy that also affect cooperatives are the digital divide, unsynchronized legal and institutional frameworks, limited digital skills and awareness in enterprises, and fragmented data-sharing platforms. These issues hinder competitiveness, innovation, and the efficient adoption of digital tools.
References:
[1] Nguyen, T. (2021). Overcoming Digital Challenges: A Proposed Roadmap for Cooperatives in Vietnam. The Journal of Cooperative Studies, 45(2), 123-140.
[2] Pham, L. (2020). The Digital Divide in Vietnam: Challenges and Opportunities for Cooperatives. The Journal of Cooperative Studies, 44(1), 34-50.
[3] Le, N. (2021). Strengthening Legal Frameworks for Digital Transformation in Vietnam. The Journal of Law and Development, 37(3), 425-448.
[4] Tran, T. (2020). Fragmented Data-Sharing Platforms: A Barrier to Digital Transformation in Vietnam. The Journal of Information Systems, 36(4), 519-534.
Technology plays a crucial role in the digital transformation journey of Vietnamese cooperatives, as highlighted by Nguyen Bao Son from the Vietnam Cooperative Alliance. To overcome the challenges faced by cooperatives in terms of lack of digital human resources, unsynchronised technology infrastructure, and high technology operation costs, the development of e-cooperatives, digital cooperative platforms for multiple cooperatives to share technology and resources, is proposed. Furthermore, increasing government and institutional support for digital training, financial assistance, and equipment upgrades can help address these challenges and improve operational efficiency and market competitiveness. The implementation of pilot programs using a sandbox mechanism is also suggested to test digital cooperative models locally before broader rollout.
