Renewal in Phu Trung driven by the collective economy

Located in the transitional zone between the Central Highlands and the Southeastern region, Phu Trung Commune in Dong Nai Province benefits from a unique combination of highland climate, fertile basalt soil, and abundant lowland plains. By leveraging these natural advantages, along with the diligence and creativity of local farmers, Phu Trung has emerged as a standout example of collective economic development in recent years. Cooperatives and cooperative groups in the commune have adopted new mindsets, established agricultural brands, and integrated digital transformation into their farming practices.

All fertilizer processes and pesticide spraying in the orchards managed by the Nong Thinh Phat Fruit Cooperative are carried out using drones, helping reduce costs while improving efficiency. Photo: Quoc Phong

At this time of year, durian orchards in Phu Trung are developing strong, healthy leaves, acting as a crucial stage in preparing for the upcoming flowering season. Across the hillsides, farmers are busy tending to the leaves, applying organic fertilizers, and monitoring each new bud as it emerges. The bustling production atmosphere reflects their confidence in a new, more sustainable direction.

Farmers embrace innovation

Established in 2019, the Nong Thinh Phat Fruit Cooperative marked a turning point for the collective economy in Phu Trung. Nguyen Xuan Hoa, Director of the cooperative, shared: “Since our founding, I have seen many positive results. The collective model gives farmers a unified voice, enhances product value, and ensures more stable output.”

With support from the Sub-Department of Irrigation and agricultural extension programs, the cooperative has invested in water-saving irrigation systems, registered planting area codes, and adopted VietGAP and OCOP (One Commune, One Product) standards. As a result, local farmers have gradually changed their production habits and joined efforts to collaborate for development.

Nguyen Quy Ha, Vice Chairman of the Phu Trung Commune People’s Committee, emphasized: “Our clear objective is for Phu Trung durian to meet VietGAP standards, obtain geographical indication status, and achieve OCOP certification. This endeavor will form the foundation for targeting sustainable export markets.”

However, running a cooperative does not come without challenges. Market fluctuations, especially when traders offer higher prices, can cause members to waver. “If traders offer 53,000 VND per kilogram while the cooperative sells at only 50,000, some members may leave, breaking the linkages. Without support from the central to local levels, cooperatives cannot survive,” shared Nguyen Xuan Hoa, Director of Nong Thinh Phat Fruit Cooperative.

Even so, many members remain committed. Veteran member Tran Xam of Nong Thinh Phat Fruit Cooperative affirmed: “Others may leave, but as long as I’m in good health, I’ll continue. Establishing a cooperative was difficult. Now that we have planting area codes and OCOP certification, we cannot abandon it.”

In addition to the cooperative model focused on durian, Phu Trung is also home to the Nong Van Canh Cooperative Group, which cultivates both durian and avocado. Although still operating as a cooperative group, it stands out as a dynamic and bold model, venturing into deep processing to enhance the value of agricultural products in Phu Trung and across Dong Nai Province.

Group leader Nong Van Canh shared: “We’ve developed avocado essential oil, but we lack the capital to complete GMP-standard production. To meet food safety standards, we need proper workshops, facilities, processing rooms, and sufficient investment.”

According to Canh, during the 2024 season, the group cultivated 11.3 hectares of avocado, yielding around 130 tons, 80% of which was exported. The remaining 20% was processed into essential oil, serving as a product even more valuable than the raw exports. On 29.9 hectares of durian, output reached 350 to 500 tons, making a significant contribution to the local economy. “If durian supply backs up, we can build cold storage to preserve the fruit, prevent price drops, and protect farmers’ profits. Deep processing allows us to maximize the value of agricultural products and avoid waste,” Canh said.

Still, what worries Canh most are difficulties related to capital and lending mechanisms. “The group has no collateral. Our planting area codes and OCOP brand are valuable assets we’ve worked hard to build, but banks don’t recognize them. The government needs to establish a dedicated mechanism allowing cooperatives and cooperative groups to access unsecured loans with guarantees from support funds. Only then can development be possible,” Canh recommended.

Local government walking side by side

Following the commune merger and the implementation of the two-tier local government model, the leadership of the Phu Trung Commune Party Committee and People’s Committee has introduced several innovations in governance and administration. Pham Kim Trong, Secretary of the Phu Trung Commune Party Committee, together with the commune leadership team, conducted field visits to individual orchards, cooperatives, and cooperative groups to listen to farmers and understand the real situation on the ground. “You have to go directly to the orchards and local sites to lead effectively. The collective economy is the foundation of advanced new rural development, so we are committed to accompanying farmers through every stage of production,” Trong shared.

In addition to processing, digital transformation is considered a key driver for cooperatives to stay competitive in the market. To this end, Phu Trung Commune has been working with Viettel and technology enterprises to implement electronic logs, QR codes for traceability, and online management of cultivation areas. Although still in the early stages, this direction is considered essential for ensuring transparency in production and integration with modern consumption systems.

Based on these field observations, the commune authorities have proposed several solutions to higher-level agencies: facilitating access to credit, investing in infrastructure, establishing processing facilities, and implementing comprehensive digital transformation. “Phu Trung will continue improving its planning, attracting investment, and creating new growth poles. Our goal is green, modern, and civilized development, contributing to Dong Nai’s ambition of becoming a centrally governed city by 2030,” affirmed Pham Kim Trong, Secretary of the Phu Trung Commune Party Committee.

Today, Phu Trung is a region undergoing significant transformation in the agricultural sector. Orchards of durian, avocado, rambutan, and other high-value fruits and industrial crops are sprouting and thriving, mirroring the spirit of the local farmers: resilient, persistent, and constantly innovating. “Maintaining cultivation area codes means preserving trust, protecting the brand, and securing the future,” said Nong Van Canh.

With engaged local leadership and unity among cooperatives and cooperative groups, farmers in Phu Trung are not merely planting trees, as they are cultivating trust in the collective economic model of the 4.0 era. Here, every inch of land and every hardworking hand contributes to advancing the ongoing story of agricultural innovation, and more broadly, to driving the development of their homeland and the nation.

By Quoc Phong – Translated by Thu Hien, Minho