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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

However, the percentage of people participating in these linkage forms with other
actors is not high. Only in the Preah Vihear region of Cambodia, farmers participating
in cooperatives can produce rice under contracts with other actors in rice value chain.

Figure 7: Proportion of farmers joining agricultural cooperatives and contract
farming in some areas in Cambodia

Source: Report of Cambodia CDRI research team.

In Lao PDR, rice is the most essential food crop planted in the Lao PDR and rice
production accounted for over 63 % of the total area under cultivation throughout the
country. Average rice farms are small, averaging only around 1-2 hectares. According
to NAFRI’s survey in 2021, most surveyed households (84%) are participating in
Farmers’ organizations such as cooperatives. 83.7% of households received regular
technical trainings, with an average of 3.2 classes/year (NAFRI report, 2022). Rice is
an important income source generating up to 70 percent of total households’ income
from crop farming in Lao PDR.

Currently, Viet Nam has 7.98 million rice-farming households with an average
area of about 0.34 ha/household. However, the number of rice-producing households
tends to decrease due to switching to other crops and livestock/aquaculture with
higher incomes. In order to improve the efficiency of rice production, reduce input
costs and improve market access, farmers have actively participated in the forms
of horizontal linkages (cooperatives) or vertical linkages (under contract with
enterprises). According to the Department of Cooperatives and Rural Development
(Ministry of Agriculture and Rural Development), in 2020, Viet Nam has 6,046
cooperatives, of which the majority of these cooperatives are involved in the rice
field. The role of cooperatives is highly appreciated in supporting technical training,
connecting product consumption, and providing inputs to rice farmers. In addition,
participating in cooperatives also assists farmers to access credit sources more easily.
However, the current system of agricultural cooperatives in the Mekong Delta and
many provinces in Viet Nam play a limited role when mainly provide some basic
services such as irrigation services, land preparation and input supply services while
their capacity connecting consumption markets is still weak.

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