The Transformation of Agricultural Producer Cooperatives: The Case of Vietnam
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During the mid-1980s Vietnam experienced widespread hunger and
malnutrition. This led to an economic reform process already before the
transition in Central and Eastern Europe (CEE) and the former Soviet Union
(CIS). Vietnam embarked on a unique way of decollectivization which
followed neither the Chinese model nor the direction of agricultural
transition among CEE and CIS countries. The collective farms had to be
either transformed into service cooperatives based on share capital and
voluntary membership or liquidated. Vietnamese farmers had to meet two
challenges. They again had to manage their private farms as entrepreneurs.
In addition, they had to create new supporting organizations. After a slow
start many farmers were successful in transforming or establishing
agricultural cooperatives for their support during the last decade. Three
phases of institutional development can be distinguished. The main features
of agricultural cooperatives are analyzed.