Agricultural cooperatives in vietnam and their contributions to benefit the rural poor a case study in an giang province vietnam

AGRICULTURAL COOPERATIVES IN VIETNAM AND THEIR CONTRIBUTIONS TO BENEFIT THE RURAL POOR: A CASE STUDY IN AN GIANG PROVINCE, VIETNAM by Pham Trung Tuan A research study submitted in partial fulfillment of the requirements for the degree of Master of Science in Regional and Rural Development Planning Examination Committee: Nationality: Previous Degree: Dr Mokbul Morshed Ahmad (Chairperson) Prof J K Routray Dr Soparth Pongquan Vietnamese Bachelor of Economics Cantho University Scholarship Donor: IFP - Ford Foundation – AIT Fellowship Asian Institute of Technology School of Environment, Resources and Development Thailand May 2007 i Acknowledgements I would like to express my heartfelt thankfulness and profound gratitude to my advisor Dr Mokbul Morshed Ahmad for his excellent guidance, encouragement, suggestions, comments and preliminary editorial works throughout this research The research would have not been completed in this shape without his constructive suggestions, comments and great attention to various research steps with a careful review of his work My sincere appreciations and profound gratitude are also extended to my committee members, Professor Dr Jayant K Routray and Dr Soparth Pongquan for their valuable advice, constructive comments, and suggestions to improve this research I am very much indebted to IFP-Ford Foundation and Asian Institute of Technology (AIT) for providing the opportunity to study at AIT Special thanks go to Mr Vitoon Nil-Ubol, SERD Field Laboratory Supervisor for his assistance in using the Statistical Package for Social Science (SPSS) for data analysis, which was very helpful in this study My appreciation also goes to the secretariat staffs of SERD Officer for their administrative support throughout the period of my study at AIT Sincerely thank is also given to my beloved godmother, Dr Loudes G Salvador, Executive Director of Asian Scholarship Foundation for her kind support and encouragement throughout the period of his study in AIT My sincere appreciations are given to Dr Do Van Xe – Cantho University, Mr Le Minh Tung – An Giang People’s Provincial Committee, Prof Vo-Tong Xuan, Dr Nguyen Tri Khiem, Mr Nguyen Thanh Long from An Giang University for their strongly speaking in recommendation of him to IFP-Ford Foundation Scholarship Heartfelt thanks are also expressed to my colleagues of An Giang University, Vietnam who strongly supported and encouraged him to study at AIT My thanks to Finance and Planning Department of Tan Chau District, Vinh Xuong Commune People’s Committee, and Committee and staffs of Tan Tien Cooperative for their kind support and cooperation during the field work for this research He is indebted to the district, provincial's government offices of An Giang province and other government officers for providing him useful data relevant for this research My thanks to all of my seniors, classmates and friends at AIT and RRDP/SERD in specific for their affection, good care and morale support to him during his hard work at AIT Last but not the least, I wish to express my sincere thanks to his beloved parents, my brother and sisters who have been encouraging and supporting him to complete this program at AIT successfully as well Those sources of inspiration and encouragement from all of them are essential for me for successful completion at AIT from the start of my master degree program until the completion Those are my words of gratitude ii Abstract The research studied the performance of the agricultural cooperative activities to benefit the poor in An Giang province of Vietnam The main objectives of the research were to describe the administrative system of agricultural cooperatives in An Giang province; to evaluate the direct benefits and perceptions of the services of the poor farmers on their agricultural cooperatives; to analyze the constraints and opportunities of the agricultural cooperative in terms of providing services and operation for poor farmers in An Giang province; and to give suggestions for the improvement of sharing benefits to poor farmers members of the agricultural cooperatives The research was conducted with the use of a survey questionnaire at the household level with a total of 70 respondents who were the members of the agricultural cooperative in the study area The research was focused on a quantitative analysis with the support of qualitative statement Main findings of the research showed that the performance of the cooperative was quite good in providing services to its members due to enthusiasm of the management committee and staffs, interests from local government, and government support policies The members perceived quite high degree of benefits and satisfactions from the various activities and services offered by the cooperative These degrees of benefits and satisfactions of the members were examined in different aspects such as social, economic and institutional aspects in order to explore contributions of the agricultural cooperative to the rural poor Several problems and constraints were identified in relation to the cooperative’s performance They were limited management capacities of the management committee, lack of operational funds and difficulties in accessibility to credit sources Certain potentials were identified as the future prospects for further development of the Tan Tien cooperative Certain recommendations were suggested to improve the performance of the cooperative These consisted of enhancing efficient management of local committee and the cooperative staffs, encouragement of the exchange with other cooperatives and local institutions for developing leadership skills and increasing members’ participation in various cooperative activities iii Table of Contents CHAPTER TITLE PAGE Title Page Acknowledgement Abstract Table of Contents List of Tables List of Figures List of Maps Abbreviations i ii iii iv vi vii vii viii Introduction 1.1 Background of the Research 1.2 Statement of the Problem 1.3 Rationale of the Study 1.4 Objectives of the Research 1.5 Scope and Limitations of the Research 1.6 Conceptual Framework Literature Review 2.1 Concept and Principle of Cooperative 2.2 Co-operative Movement in the World 2.3 Agricultural Co-operative Movement in Developing Asia 2.4 Agricultural Cooperative in Vietnam 2.5 Characteristics of Cooperative Movement in Vietnam 2.6 Some Definitions of Agricultural Cooperative in Vietnam 2.7 Economic Factors 2.8 Social and Institutional Factors 2.9 Benefits and Satisfaction of Members 7 10 13 21 33 36 37 37 Research Design 3.1 Type of research 3.2 Selection of Study Area 3.3 Sampling Design 3.4 Data Collection Sources and Methods 3.5 Data Analysis and Techniques 3.6 Research Framework 38 38 38 39 40 42 42 Profile of Study Area and Respondents 4.1 Profile of An Giang Province 4.2 Profile of Tan Chau District 4.3 Profile of Vinh Xuong Commune 4.4 Profile of Respondents 44 44 45 48 51 The State of the Agricultural Cooperatives in An Giang Province 5.1 Characteristics of Agricultural Cooperatives in An Giang Province 56 iv 1 4 5 56 5.2 Profile of Tan Tien Cooperative under the study Perception of Members on Benefits From the Tan Tien Agricultural Cooperative 6.1 Perception of Members on Benefits Gained The Performance of the Cooperative 6.2 Members’ Perception on Satisfaction of the Cooperative’s Performance 6.3 Chapter Summary 59 62 Strengths and Weaknesses of the Agricultural Cooperative 7.1 Strengths of the Tan Tien Cooperative 7.2 Weaknesses of the Tan Tien Cooperative 73 73 Conclusions and Recommendations 8.1 Conclusions 8.2 Recommendations to Improve the Performance of Tan Tien Cooperative References Appendices 62 70 72 75 79 79 80 82 85 v List of Tables TABLE TITLE 2.1 2.2 2.3 Cooperative Movement in the World Cooperative size in the Northern provinces State of Agricultural Co-operatives Before Implementation of the Law Preliminary Results of the Transformation of Agricultural Cooperatives in 39 Selected Provinces (31 March 1998) Value of Assets of a Selected Number of Agricultural Cooperatives Undergoing the Transformation Process (31 March 1998) Sampling Method and procedures Member sampling Target Informants Distribution of Respondents by Gender Distribution of Respondents by Age Distribution of Respondents by Educational Level Distribution of Respondents by Year for Memberships Amount of Shares Distribution of Respondents by Sources for buying Shares Land Holding Size of Households Distribution of Respondents by Kinds of Cropping Ranks of Cooperatives in An Giang Province Business Achievement in the Agricultural Year 2005 - 2006 Perception of Farmers on Degree of Benefits from the Services Provided by the Cooperative Members Working for Cooperative’s Services Number of the Members Working in Service Teams Type and Degree of Social Benefits Gained from Agricultural Cooperative Comparison of Service Fees Charged by the Private Sectors and the Cooperative (Based on Agricultural Year 2005) Type and Degree of Economic Benefits Gained from Agricultural Cooperative Type and Degree of Institutional Benefits Gained from Tan Tien Agricultural Cooperative Degree of Members’ Satisfaction on The Services of Cooperative 2.4 2.5 3.1 3.2 3.3 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 PAGE 16 17 18 19 39 40 40 51 51 52 52 53 53 54 55 56 61 62 64 64 65 66 68 70 72 7.1 Perception of Members on Problems of Tan Tien Cooperative’s Performance and Management vi 75 List of Figures FIGURE TITLE 1.1 2.1 2.2 2.3 2.4 Conceptual Framework of Research Agricultural cooperative organization before the policy reform Vertical Structure of Cooperative Federation General Structure of Primary Cooperatives in Vietnam General Organization Chart of the Provincial Cooperative Alliance in Vietnam Organization Chart of the Vietnam Cooperative Alliance Research Design Current Organizational Structure of Tan Tien Cooperative 2.5 3.1 5.1 PAGE 15 21 23 26 27 43 60 List of Map FIGURE TITLE PAGE 4.1 Map of An Giang Province Showing Tan Chau District vii 49 Abbreviations ADB ADI APO AusAID BAAC BRDB EC FAO FDI GATT GO GSO HEPR ICA IMF ILO IRDP PRSP UNDP VBA VCA VND Asian Development Bank Analyzing Development Issues Asian Productivity Organization Australian Agency for International Development Bank for Agriculture and Agricultural Cooperatives Bangladesh Rural Development Board European Commission Food and Agricultural Organization Foreign Direct Investment General Agreement in Tariffs and Trade Government Organizations General Statistics Office Hunger eradication and poverty reduction International Cooperative Alliance International Monetary Fund International Labor Organization Integrated Rural Development Program Poverty Reduction Strategy Paper United Nations development programme Vietnam Bank for Agriculture Vietnam Cooperative Alliance Vietnam Dong Equivalent: USD = 16,000 VND (December, 2006) viii Chapter Introduction This chapter consists of these components: background of the research, statement of the problem, rationale of the study objectives of the research, the scope and limitations of the research, and conceptual framework 1.1 Background of the Research Over the past decade (1991-2000), the economy of Vietnam maintained a robust average annual growth rate of 7.5% Estimated per capita GDP in the year 2000 was 1.8 times higher than that in 1990 (IMF, 2001) As a result, the Vietnamese people have experienced a considerable improvement in their living standards Remarkable achievements have been recorded in agricultural production Vietnam became self-sufficient in food and transformed into a major food exporter, contributing substantially to socio-economic stabilization, eradication of hunger and poverty reduction (HEPR) The industry and services sectors also continue to grow at high rates, thus accelerating the economy’s structural transformation The ratio of domestic savings to GDP in the year 2000 was 2.5 times higher than that in 1990 State revenues account for about 20% of GDP (GSO, 2002) Many socio-economic renovation policies and measures have been adopted recently The banking and finance system is being reorganized and renovated A fair, efficient and competitive business environment is being created to stimulate greater investment by individuals and enterprises, both domestic and foreign, and to expand production and business activities However, despite the significant gains of the past decade, Vietnam’s economic growth path is not yet on a securely sustainable footing In 1997, the regional economic crisis hurt the Vietnamese economy, and contributed to a slowing of output growth to only 4.8% in 1999 Although a revival of economic growth is anticipated, with GDP reversing the previous declining trend by growing at an estimated 6.7% in the year 2000, it may not be possible to repeat the high economic growth rates of the mid-1990s The quality of growth is low; the efficiency and competitiveness of the economy is not high, and international trade competitiveness for many sectors and products is weak The pace of change in production techniques, technologies and management styles is slow Especially, 32% of the total population of a little more than 27 million has remained poor Vietnam is still one of the poorest countries in the world with GDP per capita of just about US$400 per year (UNDP Vietnam, 2005) It is on its road of a long and difficult transition from a centrally planned economy to market-oriented one Vietnam is still largely an agricultural economy, with roughly 80% of its 85 million people living in rural areas and where jobs are scarce and basic social services missing Poverty is mainly concentrated in rural areas, particularly in poor farming households Over 90% of poor households live in rural areas (GSO, 2005), mainly work in agriculture or have unstable jobs, and have few off-farm employment opportunities They tend to have a low level of education, limited professional and business skills, poor access to credit, physical infrastructure and social services, and they have difficulty selling their products Therefore, poverty reduction has been a central goal of the government and a driving force behind the economic reform of the past decade To combat poverty, Vietnam has implemented a comprehensive strategy on growth and poverty reduction and a program on hunger eradication and poverty reduction (HEPR) The former is focused on poverty reduction through socioeconomic development in general while the latter is aimed at helping the poor to get jobs and improved income The specific programs include developing infrastructure in poor communes; helping the poor with capital, housing, health care and education; developing new economic areas through settlement and emigration; improving cadre capacity; and assisting the handicapped people e.g elderly, orphans, war casualties Government agencies and instrumentalities as well as social organizations have been mobilized to help implement HEPR The social organizations and labor representatives recognize the role of Agricultural cooperatives in assisting the poor resolve social issues affecting them in the remote and rural areas of the country There are presently about 15,500 cooperatives and cooperative unions and 150,000 cooperative teams These cooperatives have been playing noticeable role in the area of socioeconomic development, especially in 10 job creation So far, they have produced 14 million jobs and accounted for about 20% of the country’s GDP Each cooperative has an average income of 500,000 VND per month (VCA, 2005) The cooperatives have also contributed significantly in the implementation of the HEPR, thereby contributing to the bridging of the gap between the rich and poor Specifically, the cooperatives provided the poor with assistance in production, market development, job creation, training and resource mobilization Besides, in the current context of Vietnam, rural areas are usually out of the domain of the International Labour Organization (ILO)’s social partners, employers’ and workers’ organizations as well as central government In these areas, the nearest institutes to the poor are local cooperatives 1.2 Statement of the Problem Meanwhile, in the south of Vietnam cooperatives become more complex as they grow and respond to competition At the same time, members become more demanding, as freer and more efficient markets increase their opportunities These change traditional mechanisms of solidarity, and require the adoption of new financial strategies that encourage members to patronize the cooperatives and become involved in democratic decision-making in its business operation (Pishke, 2004) Agriculture cooperatives for rural farmers have been paying a very pivotal role for poverty eradication in Vietnam since its establishment in 1960s Membership in the agricultural cooperatives generated various benefits for the rural poor including the social, economic and institutional aspects The cooperatives in Vietnam created about 14 million jobs for the rural people that contributed about 20% of the country’s GDP (AusAID, 2002) However, this local institution still faces several major challenges and problems namely; unclear identification of operation scale, uncertainty of cooperatives, lack of technical knowledge and experience and complexity (APO, 1996) The cooperatives’ operation is still small and the connection inside many cooperatives is not clearly identified In addition, the management skill is limited due to lack of education and training Also, the real poor farmers not actually obtain the interest from References Asian Developing Bank (2006) Making Markets Work Batter for the Poor Study Methodology on Collective Action Vietnam Resident Mission An Giang Provincial People’s Committee (2003) Statistical Year Book, An Giang, Vietnam An Giang Provincial People’s Committee (2005) Annual Report, An Giang, Vietnam An Giang Provincial People’s Committee (2005) Statistical Year Book, An Giang, Vietnam An Giang Provincial People’s Committee (2006) Circular No 01/2006/TT-BKH of An Giang Province, An Giang, Vietnam An Giang Provincial People’s Committee (2006) Statistical Year Book, An Giang, Vietnam Asian Productivity Organization (1996) Agricultural Cooperatives in Asia and The Pacific, Tokyo, Japan Asian Productivity Organization (1996) Improving Managerial Efficiency Of Rural Cooperatives, Tokyo, Japan AusAID (2002) Vietnam Poverty Analysis, Ho Chi Minh City, Vietnam AusAID (2006) Mekong Delta Poverty Analysis, Ho Chi Minh City, Vietnam FAO (2004) New Strategies for Mobilizing Capital In Agricultural Cooperatives, Food and Agricultural Organization General Statistics Office (2004) Release the results of enterprise survey conducted in Vietnam, Hanoi, Vietnam General Statistics Office (2005) Statistical Number of Cooperatives through out Vietnam, Hanoi, Vietnam Harms, B (1996) Towards a New Cooperative System in Vietnam FAO Cooperatives Development Consultant ICA (2003) Regional Workshop On The Role Of Cooperatives In Poverty Reduction With Particular Emphasis On PRSP And Decent Work In Asia, Bangkok, Thailand ILO, ICA (2003) The role of Cooperatives in Designing and Implementing Poverty Reduction Strategies, International Labor Organization and International Cooperative Alliance ILO, ICA (2005) Cooperating Out Of Poverty: The Global Cooperative Campaign Against Poverty, International Labor Organization and International Cooperative Alliance 82 International Monetary Fund (2001) Vietnam - Interim Poverty Reduction Strategy Paper, Hanoi, Vietnam Johnston Birchall (2003) Rediscovering the Cooperative Advantage – Poverty Reduction Through Self-help, Cooperative Branch, ILO, Geneva Johnston B, (2004) Cooperative and the Millennium Development Goals, Cooperative Branch, ILO, Geneva Johnston, B, (2003) Rediscovering the Cooperative Advantage: Poverty Reduction through Self-Help Cooperative Branch, ILO, Geneva Kirsch, Ottfried, C (1997).Vietnam: Agricultural Cooperatives in Transitional Economies Heidelberg MARD (1998) One year’s implementation of the Co-operative Law and other Hanoi, Vietnam Pishke, V., Rouse, G., J (2004) New Strategy fo Mobilizing Capital in Agricultural Cooperatives Food and Agricultural Organization Polat, Mahanti, Nayahangan, (2003) Workshop Report Regional Workshop on The Role of Cooperatives in Poverty Reduction with Particular Emphasis on PRSP and Decent Work in Asia Bangkok, Thailand Tan Chau District, (2005) Report of Planning and Finance Department of the district An Giang, Vietnam Tan Tien Agricultural Cooperative (2005) Report of Production and Business Achievement An Giang, Vietnam Tan Tien Agricultural Cooperative (2006) Report of Production and Business Achievement An Giang, Vietnam UNDP (2006) Poverty Reduction and Social Development Connecting Economic Development and Poverty The United Nation Development Program in Veitnam United State Department of Agriculture (2002) Agricultural Cooperative in the 21st Century, Cooperative Information Report 60 United State of America Vietnam Cooperative Alliance (2003) Report of Seminar on Amendment and Supplement of Cooperative Law Hanoi, Vietnam Vietnam Cooperative Alliance (2006) Forum aims to develop agricultural co-operatives Hanoi, Vietnam 83 Vietnam Cooperative Alliance (2006) Vietnam prioritizes development of cooperatives Hanoi, Vietnam Vietnam Cooperative Alliance (2003) Vietnamese Law of Cooperative Hanoi, Vietnam Vietnam Cooperative Alliance (2006), The Project of Development of Organic Products to Support the Poor in Vietnam Hanoi, Vietnam Vietnam Cooperative Alliance (2006) The Project of Cooperative Development in Northern Provinces of Vietnam, Hanoi, Vietnam Vietnam Cooperative Alliance (2006) The project of Establishment of Cooperative Development Centers in Vietnam Hanoi, Vietnam 84 Appendices 85 Appendix 1: Research Coordination Schema Objectives Parameter To study General Information characteristics and conditions of agricultural cooperatives of the farmers Framework of in the rural Institutions areas Operational indicators of co-operatives Complex Variables To evaluate Perceived benefits perceptions and benefits of rural people on the agricultural cooperatives Data Collection Method Secondary data, Interview Key Informants Descriptive statistics People’s opinion (Questionnaire, Survey, Interview Key informants, Group discussion) Descriptive Analysis, Qualitative Analysis Organizational structure - Organizational structure Background/ History Criteria for membership Process of members Roles and functions of institutions - Financial conditions - Registration Roles and functions of institutions Capital Assets Savings Kinds of services provided Policies and planning Management structure Providing services Administration Development Institutions Simple variable Development indicators Perceived benefit of cooperatives 86 Number and annual growth rate of memberships - Number and annual growth rate of capital - Perceived services (Kinds, Frequency) Data Analysis - Objectives Parameter Direct benefits Complex Variables Simple variable Physical aspects - Increasing quantities of production output Social and institutional aspects - Change in attitudes Access to extension services Increase knowledge and skills Economic aspect - Easy to access the market Profit of the share holders Reducing dependency on informal sources of credit Decreasing input costs with low agricultural services Creating and maintaining employment Increasing children's education Improving accessibility to health care services Social aspects Economic aspects Institutional aspects Benefits from the cooperatives - Indirect benefits Indirect benefits - Level of satisfaction Level of satisfaction on organization impacts Farmer’s perception 87 - Data Collection Method Data Analysis Objectives To identify potentials, problems and needs relating to the agricultural cooperative Parameter Potentials (Benefit gained from co-operative) Complex Variables Future benefits of members Simple variable - Problems and needs Institutional aspects - Social Assessment - Economic - 88 Profit of the share holders Employment Low cost services Helping to improve farmer livelihoods Improving farm technique Easy to access current marketing system Management (sharing profits) Skill and technique of organization Accessibility to the providing services Performance of extension agents Capital Market information Assessment of Understanding on the organization and services Living standard difference between rich and poor farmers Involving capital Land holding sizes Equipments Material of production inputs Data Collection Method People’s opinion (Questionnaire, Survey, Interview Key informants, Group discussion) Data Analysis Descriptive Analysis, Qualitative Analysis Objectives To give suggestion to improve agricultural cooperative and provide policy and planning implications on cooperative Parameter Complex Variables People’s participation Institutional Aspects 89 Simple variable - - Services providing Decision making Implementation in operation and management and maintenance in the association Monitoring and evaluation - Role and leadership Technical know-how Management Data Collection Method Questionnaires, Survey, Interview Key informants, Group discussion Data Analysis Descriptive Analysis, Qualitative Analysis Appendix 2: Questionnaire Survey Questionnaire Number: Agricultural Co-operatives in Vietnam and their contributions for the poor farmers: A case study in An Giang province – Mekong River Delta - Vietnam By Pham Trung Tuan Questionnaire for the members of Agricultural Co-operatives Information of Respondent: Name of Respondent………………………………… Age: …………………years Gender Distribution: □ Male □ Female Marital Status: □ Single □ Married □ Divorced Village Name …………………………………Commune………………………………… District…………………………………………Province…………………… Tel…………………………………………………………………………………… Name of Interviewer…………………………………………………………………………… Date of Interview……………………………………………………………………… Remark……………………………………………………………….……… Regional and Rural Development Planning Asian Institute of Technology School of Environment, Resources and Development – AIT – Thailand November, 2006 90 A General information Household information (member including respondent) No Name Relationship to household Age Sex Education Occupation How long have you /your family been a member of agricultural cooperative? …………………years How many shares you own now? ………….shares; How much it cost per share? …………… VND; How can you have money to buy the share from cooperative? 1□ Your owned money 2□ Loan If you borrow, from which source? 1□ Borrow from the Bank 2□ Borrow from your relatives 3□ Others (please specify) Which type of crops are you cultivating in your own farm? 1□ Paddy 2□ Cash crop 3□ Fruit tree 4□ Livestock 5□ poultry Land tenure Land types Areas (m2) Landholding status Owned Hired 2 Residential Farm Garden At present you have debt? 1Yes 6□Fishery 2No If yes, how much? ………………VND From which sources: 1□ State Bank 2□ Private lenders 3□ Cooperatives 4□ Others 91 B- Benefits from agricultural co-operatives What kinds of services you get from your co-operative in 2006? (Could be more than one) Mark Name of services Times/ Fee of services Fee of services Duration offered from offered from Cooperative per others per Cong Cong (Cong = (Cong = 1,000 1,000 m2) m2) 1-Fertilizer service 2-Irrigation service 3-Soil preparation 4-Others (please specify) Have you worked for cooperative? 1□ Yes 2□ No If yes, what kind of service you have worked for? 1□Fertilizer service 2□Irrigation service 3□Soil preparation 4□Others (please specify)…………………………………………… 10 Did you get any benefits of following from your agricultural cooperative? If yes, please rate the perceived benefits from agricultural cooperative (Multiple answers) And how did you satisfy about that? Please rate Activities Benefits Yes No Degree of getting benefit L M H Fertilizer service - Reasonable price - Timely supply - Good quality Irrigation service - Regular water supply - Reasonable irrigation fee - Timely service Land tilling service - Fee paid after harvest - Lower cost than private services - Time saving with use of machinery Others (please specify) L = Low, M = Moderate, H = High 92 Degree of satisfaction L M H C Problems/constraints, potentials of the poor farmers in participating in agricultural cooperatives 11 What are the major problems/constraints in the operation and management of cooperative on its performance? Please give your idea and please give your suggestion Problems/constraints Provision of Services Yes/no Low competitive ability Low flexible ability Lack of products development ability Insufficient study and research on customers’ needs and trends of market Inadequate linkages with the public information Leaders’ Management Ability Low educational level of the local committee Poor management skills Inadequate training (Management Committee and staff) Unwillingness to undertake full responsibility Limited power in administration Administration of the Cooperative Staff Lack of development vision Lack of development vision Others problems Low educational level of staff Lack of capital resources Lack of communication and participation among members Unclear development strategy Unclear and inadequate government policies on the development of agricultural cooperatives Weak linkages among the activities of the cooperative e.g., production, credit, marketing etc 93 Suggestion 12 What are the potentials of the operation of the agricultural cooperative you have attended and give your suggestion? Potentials Agricultural technical Service provide Profit of holder Membership Training/extension Others (Please specify) Yes/No Thank you for your cooperation! 94 Suggestion Appendix 3: Checklists A Checklist for Cooperative Management Members When was the cooperative established? What are the objectives of your cooperative? How is the cooperative organize? How many members in the board? How many staff has the cooperative got? What about their qualification? What are the main criteria for membership and procedure? How many members does cooperative have? How many percent of them are poor? How can the cooperative help them? Has cooperative had any financial and other support from any other organization for maintenance and operation? How many services does the cooperative support to its member? What kinds of services is a cooperative offering to its member? (Brief description on each service) Are the members satisfied with those services of the cooperatives? Does cooperative business? What kind? How much and how does for sharing profits of co-operative to each member? And how much profit of share the holders (members) get every year? Are they satisfied with their profits? 10 What is cooperative doing on the money from the member? 11 Are there any problems or constraints faced by the cooperative? (technical, social or economic) 12 Have all the members of the cooperative completed training in operation and maintenance? 13 Do you have any suggestion to solve these problems? 14 What are the strengths, weakness, opportunities and threats of the cooperatives? 15 What are the plans of the cooperative for the future? How can you reach them? B Checklist for Local Government Official (Local Authorities and District Agriculture and Rural Development) District/ Commune profile How many cooperative in your commune? What are they? How many percent of population in your commune are members of the cooperative? Do you think their living standard is higher than before membership? Do you think the poverty of the poor is reduced after joining the cooperative? What are it impacts (positive and negative, social and economic) on the rural poor? Is there any problem to introduce the agriculture cooperative in this area? (technical, social or economic) Do you have any suggestion to solve these problems? What kinds of services the cooperative should offer to the poor? How can? 10 What are the strengths, weakness, opportunities and threats of the cooperatives? 11 Do you know clearly about the existing plans of the cooperative? Do you support its plans? 12 What did the local government to help the cooperative? 95 C Checklist for Chairperson of An Giang Cooperative Alliance Give a brief organizational structure of the cooperatives How does the government support the agricultural cooperatives’ activities? Did you support credit or finance for the cooperative? What are your roles and responsibilities to help the cooperative? How many cooperatives are your members? How does the cooperative coordinate with other agencies to support farmers to offer benefits to the farmers? (especially poor farmers) Is there any problem the cooperative face in their operation? (Technical, social or economic) Do you have any suggestion to solve these problems? What are the strengths, weaknesses, opportunities and threats to the cooperatives? What are the plans of the cooperative in the future? Do you support its plans? 10 What did the local government to help the cooperative? 11 How can they get the loan with low interested to help the poor? 12 Do you have any plan to empower agricultural cooperative in the future? What are you plans to develop them? 13 Do you support cooperatives any training course? 14 Do you have any professional program to offer the professional knowledge form the staff, management board of the cooperatives? 15 What are your problems and constraints as well as suggestions in supporting cooperatives most effectively? D Checklist for Group discussion What are the major causes of poverty? Please rank them? How this causes of poverty interaction each other to keep people in poverty? What kind of benefits did the rural poor obtain from the agricultural cooperatives? Please rank them? How much profit you (share holders) get from the cooperative per year through your share? What are the impacts of the agricultural cooperative on poverty reduction? Please rank them? Are you satisfied with all of activities that cooperative offering you? Please rank your level of satisfaction What are the major problems/constraints in implementing the cooperative actions? What are the potentials of cooperative in the future? Did you know how many services provided by cooperative and which services you want? Why you want these services for your household? Give brief reasons What are your needs in the future services’ cooperative? 10 What should the cooperative more to help you get out of poor, improve your living standards? 11 Do you think your poverty has been reduced after joining the membership? 12 Do you think your standard living is higher than before the membership? 13 What kind of knowledge did you learn from training program that supported by cooperative? 96 ... subject to the auditing regulations of the state; (3) To pay taxes and fulfill financial obligations according to the law; (4) To maintain and raise operating capital of the cooperative, to manage and. .. Vietnam to provide specific technical and financial support and make a plan for agricultural cooperative Meanwhile, the An Giang Co-operative Alliance, Vietnam Co-operative Alliance, International... concluding the research 41 3.5 Data Analysis and Techniques Both quantitative and qualitative data analyses were applied for the study 3.5.1 Quantitative Data Analysis The Statistical Package for