UNIVERSITY OF AGRICULTURE AND FORESTRY HA MINH HIEU ECONOMIC EFFICIENCY FROM THAI NGUYEN PROVINCE'S YOUTH START-UP MODEL: A CASE STUDY AT ATK DINH HOA SAFE AGRICULTURAL PRODUCTION COOPE
INTRODUCTION
REASON FOR RESEARCH
In recent years, youth unions and young startup initiatives have significantly enhanced their effectiveness and practicality The Youth Union has implemented various efforts, including awareness campaigns, training programs for committee members, and communication strategies focused on entrepreneurship, providing valuable information that inspires and motivates young individuals This has fostered collaboration and connections between union members and the broader youth community, leading to increased involvement in the exploration, development, and support of innovative startup ideas Additionally, numerous corporations and enterprises are actively participating to further develop and apply these youthful concepts.
Each model possesses distinct characteristics in terms of scope, productivity, quality, efficiency, and competitiveness beyond provincial borders, inspiring individuals to act swiftly and creatively Models that emphasize initiative, creativity, and the application of scientific and technological advancements, along with proactive digital transformation in production and business, lead to cost savings, reduced labor time, and enhanced product quality These efforts align with the growing market demands in the province and surrounding areas, making significant contributions to new rural construction and sustainable agricultural development in Thai Nguyen province and across the country.
A case study was conducted to explore the application of science and technology models, highlighting the economic effectiveness of youth start-up initiatives in Thai Nguyen province This research aimed to establish a reliable connection between the production and consumption of fruits and vegetables in Dinh Hoa district, facilitating a comprehensive understanding of the operational effectiveness of specific modeling approaches By identifying the benefits and drawbacks of these models, the study seeks to propose solutions that enhance productivity in model research and provide valuable insights for other start-up initiatives across the province Consequently, the researcher focused on the topic "Economic efficiency from a youth start-up model in Thai Nguyen province: A typical study at Dinh Hoa ATK safe agricultural production cooperative."
RESEARCH OBJECTIVES
Systematize theoretical and practical issues related to economic efficiency of youth entrepreneurship models
Evaluating the effectiveness of cooperative economic activities in ensuring the safety of agricultural output at Dinh Hoa ATK
Proposing initiatives to improve the economic efficiency of cooperatives in safe agricultural production ATK Dinh Hoa.
RESEARCH METHODS
The researcher gathered secondary data from the annual financial report of Dinh Hoa ATK Cooperative to analyze and compare income, capital, and loans associated with the cooperative's operations This data was compiled and assessed to provide insights into the cooperative's financial performance.
Primary data collection: 20 cooperative members were questioned to learn more about the organization's improvements and challenges; In-depth interview with one member of the cooperative's board of directors
To evaluate the production of safe agricultural products in Dinh Hoa ATK, it is essential to synthesize the collected information and utilize specific analytical techniques.
Descriptive statistics: calculate the average value of the rating score according to the Likert- 5 point scale
The analysis of financial statement indicators for the cooperative involves utilizing time series data analysis to understand and assess production changes This method allows for a comprehensive evaluation of the annual data collected on the progression of events.
Descriptive statistical method: To study the overall evaluation of Dinh Hoa
ATK Cooperative, combine facts and employ an interpretation method
Comparative method: it is used to compare business performance between years.
RESEARCH QUESTIONS AND HYPOTHESIS RESEARCH
Research topic: Business and service activities of ATK Dinh Hoa agricultural cooperative
What is the general situation of the safe agricultural production model at Dinh Hoa ATK?
What are the achievements and limitations when implementing this model?
What solutions and recommendations can overcome the above disadvantages?
Any recommended solutions to improve the economic efficiency of the model?
Spatial scope: ATK Dinh Hoa Agricultural Cooperative, Thai Nguyen Province
Time period: collect secondary data for at least 3 years (2018-2020); primary data is collected in 2022
Scope of research content: operational expenses for cooperatives, achievements, and cooperative production effectiveness in agriculture products.
RATIONALE
LITERATURE REVIEW OF RESEARCH
1.1.1 Definition of safe agricultural production cooperative, cooperative
A cooperative is a legally recognized collective economic organization, as defined by Article 3 of the Cooperatives Law of 2012 Founded voluntarily by a minimum of seven members, it operates on principles of independence, equality, and democratic management Members collaborate to support one another in business, production, and job creation, aiming to meet shared needs.
Article 4 of the 2012 Cooperatives Law highlights that members and associated cooperatives share common demands for consistently produced goods and services through cooperative business activities Additionally, for cooperatives focused on job creation, the primary need of members is the employment opportunities generated by the cooperative.
Cooperative for producing safe agricultural products:
The ATK Thai Nguyen Safe Agricultural Production Cooperative was established to promote clean and safe agricultural practices that cater to the growing demand for high-quality food To achieve this, the cooperative emphasizes a production process that utilizes rotting manure along with microbiological and organic fertilizers for crop care, while significantly reducing the reliance on chemical fertilizers and pesticides.
1.1.2 Basic characteristics, principles of organization and operation of cooperatives
A cooperative is a collective economic organization formed by individuals with shared interests and goals, who collaborate to support one another in addressing common challenges and achieving the objectives of their business entity.
Secondly, a cooperative is a socio-economic organization, which is expressed through the following characteristics:
The profit-sharing principle is as follows, as stipulated in Clause 3 of Article 46: A portion of cooperative profits should be used to set aside capital
The cooperative is designed to meet the educational, training, and informational needs of its members while also addressing the sociocultural demands of the community One key benefit of membership is the potential for increased profits, which are distributed based on the frequency of service usage rather than the amount of capital contributed Consequently, members with lower financial contributions can still achieve greater profits than those who have invested more.
Cooperatives were founded to conduct production, commercial, and service operations in order to provide members with jobs, promote development, and help to reduce unemployment in society
Thirdly, according to Article 3 of the 2012 Cooperative Law, the cooperative has a minimum number of 7 members And when establishing cooperatives, they cannot switch to other economic models,
Fourth, from a legal perspective, cooperatives have limited responsibility in their capital and legal basis
Cooperative members are required to make financial contributions and actively utilize the goods and services provided by the cooperative or its employees Membership will be revoked if a member ceases to use these goods or services for a period exceeding three years, or if they stop working for the cooperative for more than two years.
1.1.2.2 Principles of organization and operation of cooperatives
According to the provisions in Article 7 of the Law on Cooperatives 2012 in principle of organization and operation, including:
Cooperatives and unions of cooperatives have the freedom to operate independently and are accountable for their actions in court
+ A cooperative may be voluntarily established, joined, or left by individuals, households, or legal companies Cooperatives are available to creating, joining, and dissolving cooperative unions
+ Cooperatives, cooperative unions are widely admitted members or cooperative members
Members and affiliated cooperatives in cooperatives and unions are granted equal voting rights, irrespective of their capital contributions They are also entitled to receive comprehensive and accurate information regarding business operations, production activities, financial matters, income distribution, and other relevant topics as specified in the regulations.
Cooperatives and unions of cooperatives fulfill the requirements of service contracts and charters The income generated by these entities must be allocated based on the volume of goods and services utilized by their members and member cooperatives, or, in instances where cooperatives offer employment, according to the labor contributions made by the members.
Cooperatives and unions of cooperatives aim to educate the public about the benefits and characteristics of cooperative communes They focus on training and developing their members, managers, and employees to enhance the overall effectiveness and impact of cooperative organizations.
Cooperatives and unions of cooperatives play a crucial role in fostering the sustainable growth of their members and affiliated cooperatives They also engage in collaboration at local, regional, national, and global levels to enhance their collective impact.
1.1.3 Organization of service management in safe agricultural production cooperatives
1.1.3.1 Characteristics of safe agricultural production activities
Ensuring the safe production of agricultural products is essential for establishing a clear origin for these goods Following the harvest, these products undergo inspection by specialized agencies, which then issue traceability labels to guarantee their safety and authenticity.
To get safe agricultural products, farming units must strictly follow the safe production process according to Viet Gap standards
1.1.3.2 Orientation of safe agricultural production activities of cooperatives
The demand for food, especially agricultural products, is on the rise, with consumers increasingly prioritizing both quantity and quality There is a growing trend towards agricultural products that meet cleanliness and safety standards In response to these trends, the cooperative is focusing on clean production and green consumption to enhance the marketability of agricultural products in Thai Nguyen province and across the country.
Despite ongoing efforts, the production, processing, and distribution of clean and safe agricultural products in Vietnam face significant challenges, including limited production capacity, remote facilities, slow information transactions, delivery inconveniences, and unstable supply due to seasonal and weather factors The lack of widespread awareness and consumption of safe products prevents consumers from accessing clean agricultural channels, while businesses and farmers struggle to reach the market However, Vietnam has the potential to produce clean agricultural products in large quantities for both domestic and export markets The crucial task is to raise awareness among citizens about the benefits of clean production and green consumption, fostering a connection between production and consumption to ensure stable output for agricultural products.
1.1.2.3 Necessary conditions for safe agricultural production
Switching from inorganic farming to organic farming
Inorganic farming involves the excessive application of chemical fertilizers, pesticides, and herbicides, leading to soil hardening and disrupting the microbial ecosystem This practice not only raises pesticide levels in agricultural products but also poses significant health risks to consumers.
Organic farming is a method of using organic substances in agricultural production: organic fertilizers, applying organic plant protection methods and preserving organic
Organic farming requires essential clean elements, including disease-free seeds, pathogen-free soil, safe water for plants and animals, organic fertilizers, and non-chemical plant protection methods Transitioning from inorganic to organic agriculture involves establishing these clean components Additionally, the integration of high technology in organic farming enhances efficiency and sustainability.
In agricultural production, farmers will control the status of crops and livestock when applying high and advanced technology These high technologies are applied at all stages of production
The first is for land Before planting, the soil must be determined in detail to its original state to ensure the safety of the crop
EXPECTED RESULTS
AGRICULTURAL PRODUCTION COOPERATIVE ATK DINH HOA 2.1.1 Natural conditions of ATK Dinh Hoa
Figure 2.1 Geographic map of Dinh Hoa district
Dinh Hoa is a mountainous district in Thai Nguyen province, situated between the coordinates of 105°29” to 105°43” east longitude and 21°45” to 22°30” north latitude It shares its western and northwestern borders with Tuyen Quang province, while the northern and northeastern boundaries are adjacent to Bac Can province To the south and southeast, Dinh Hoa borders Dai Tu.
Phu Luong districts; The district capital is Cho Chu town, 50 km northwest of Thai Nguyen city [18]
Dinh Hoa district is known for the special national monument Dinh Hoa Safe Area
Dinh Hoa district is located in the northwest of Thai Nguyen province, geographically located:
⁃ The East borders Phu Luong district and Cho Moi district, Bac Kan province
⁃ The West borders Yen Son district and Son Duong district in Tuyen Quang province
⁃ To the south, it borders Dai Tu district
⁃ The North borders on Cho Don district, Bac Kan province
Huyện Định Hóa bao gồm thị trấn Chợ Chu và 22 xã: Bảo Cường, Bảo Linh, Bình Thành, Bình Yên, Bộc Nhĩu, Diệm Mac, Định Biên, Đông Thịnh, Kim Phượng, Lâm Vỹ, Linh Thông, Phú Đình, Phú Tiến, Phúc Chu, Phương Tiến, Quy Kỳ, Sơn Phú, Tân Dương, Tân Thịnh, Thanh Đình, Trung Hội, và Trung Lương.
Figure 2.2 Topography of Dinh Hoa district
Dinh Hoa district features a complex topography characterized by low mountains and high hills, with narrow fields interspersed among limestone formations The terrain slopes downward from the northwest to the southeast, dividing the area into two distinct regions The mountainous region in the northern part of the district boasts mountain ranges that rise between 200 to 400 meters above sea level, part of the Gam River arc limestone mountain range This range extends from the north through the district center to Trung Hoi commune, creating a natural barrier to the east of Cho Chu town and forming narrow valleys Additionally, the rocky mountains are home to numerous caves adorned with fascinating and beautiful stalactites.
The low mountain region encompasses Cho Chu town and surrounding communes, characterized by an altitude ranging from 50 to 200 meters and steep slopes This area is rich in old forests and boasts fertile fields Dinh Hoa covers a total natural land area of 520.75 km², which includes 99.29 km² of agricultural land, 221.7 km² of forestry land, 8.46 km² of specialized land, 7.33 km² of residential land, and 183.98 km² of other land The soil in this region is classified into five main categories.
Soil belongs to the type of soil with sour rain, mainly Grnid, with an area of 19.97km2, medium thick layer dominates, mainly concentrated in the communes of region 3 [19]
Red-brown zera lid soil, found on gabvo rock, covers an area of approximately 2.8 km² This soil type features an average thickness and exhibits a chemical composition that varies from 52% to 73% of the total soil grain grade, with a scattered distribution throughout the district.
The land is sloping, with a total area of about 27.68km2, widely distributed in the district, with complex topography [19]
Alluvial soil, about 17.73km2, is distributed on both sides of rivers and streams in the district, forming small and medium fields [18]
CaCo3-affected sloping soil, with an area of about 1.82km2, is concentrated around the area with limestone mountains The soil is neutral or slightly alkaline [19]
Based on the slope can be divided: land with slope above 250 has 116.18km2, land with slope below 2 o has 145.96km2, mountain land is 152.67km2 [19]
Dinh Hoa boasts a diverse and rich vegetation, offering significant economic potential through its valuable forest products, including crushed wood, ironwood, various bamboo types, cork, and filling materials Notably, the southern commune is abundant in palm trees, which provide roofing leaves, blinds coils, sturdy trunks for trusses, and highly durable rafters.
Since the mid-twentieth century, the Dinh Hoa forest has been home to a rich and diverse array of wildlife However, rapid deforestation has led to a significant decline in forest resources, with precious forest products becoming increasingly scarce As a result, many rare and valuable species, such as leopards and bears, are now nearly extinct.
On Dinh Hoa land, there are 3 main flow systems:
The Cho Chu River, the largest river in the region, is formed by numerous small streams originating from the mountains in the western and northern communes of the district It features three main branches: Chao stream, Muc stream, and Tao stream, with the section flowing through Tan Duong commune being the most significant The river continues its journey through Yen Ninh commune in Phu Luong district before merging with the Cau River in Cho Moi Covering a basin of 437 km², the Cho Chu River has an average annual water volume of 3.06 m³/s.
Cong River (the upper part of Dinh Hoa is upstream) has two branches The first branch originates from Thanh Dinh commune, flows through Binh
The Yen and Son Phu communes are served by a river system that begins in the Khuon Tat mountain range in Phu Dinh commune This second branch flows through Phu Dinh commune, eventually merging with the first branch in Binh Thanh commune before continuing to Minh Tien commune in Dai Tu district The total area of the river basin in the district covers 128 km², with an average flow rate of 3.06 m³/s.
The Du River begins in Yen Trach commune of Phu Luong district and flows approximately 3.5 km through Phu Tien commune in Dinh Hoa It continues along the western side of Phu Luong district before merging with the Cau River in Son Cam commune.
Du River has a total basin area of 70 km2, average water flow of 1.68m3/s [19]
Dinh Hoa experiences a tropical climate characterized by two distinct seasons The hot season lasts from April to October, with August being the hottest month, averaging 28°C Conversely, the cold season spans from November to March, with January recording the lowest average temperature of 15°C During the hot season, temperatures can exceed 41°C, while in the cold season, they can drop to as low as 10°C.
The district experiences high humidity levels throughout the year, with the exception of January Humidity consistently exceeds 80% in all months except January, peaking in March, April, and August, when it often reaches 85% or higher due to frequent drizzle and heavy rainfall.
Dinh Hoa experiences two primary seasonal winds: the northeast monsoon during the cold season, which leads to sudden temperature drops and can result in hoarfrost, negatively impacting human health and plant growth, and the southeast monsoon in the hot season, bringing heavy rainfall due to moisture from the East Sea From 1995 to 1999, Dinh Hoa recorded an average annual rainfall of approximately 1,655mm, with the rainy season coinciding with the hot season contributing 85% to 90% of this total Conversely, the dry season aligns with the cold season, resulting in low rainfall that accounts for only 10% to 15% of the annual total, often leading to drought conditions in the early months.
2.1.2 Socio-economic conditions of safe agricultural production cooperatives ATK Dinh Hoa and ATK Dinh Hoa
The province boasts a total agricultural land area of 9,929 hectares and forestry land covering 22,169 hectares, highlighting its significant strengths in agricultural and forestry production, as well as its forest hill and camp economies.
Dinh Hoa's forest hill land is ideal for cultivating tea trees, which are widely grown in the region due to their high productivity and output Selecting a suitable tea variety with significant economic value can lead to a highly effective agricultural strategy.
ORIENTATIONS AND SOLUTIONS TO IMPROVE BUSINESS
There is a strong need for increased awareness regarding the vital role of agricultural cooperatives in advancing agriculture, rural development, and supporting farmers, particularly in Dinh Hoa, where this model effectively consolidates agricultural production Emphasizing the importance of establishing and refining agricultural cooperative models that align with their core values and principles is essential By showcasing successful models, we can promote the sharing and replication of best practices among agricultural cooperatives to foster further growth and development.
A timely implementation of policies supporting agricultural cooperatives, as outlined in Central Resolution 5 (session IX) and the Law on Cooperatives 2012, is essential This includes enhancing policies related to land, tax, and credit to empower agricultural cooperatives during challenging times Additionally, strategies for socio-economic development should integrate measures that promote collective economic growth and ensure balanced resource allocation for effective implementation.
Party committees must establish clear responsibilities for governments to prioritize collective economic development as a central task It is essential to foster consensus and raise awareness among both the Party and the public regarding the significance of the collective economy, particularly in the context of agricultural, rural, and peasant development.
Agricultural cooperatives in ATK Dinh Hoa share similarities with those in other regions, but their development is influenced by unique natural and socio-economic characteristics With the agricultural sector's contribution currently at only 1-1.5% and a goal to reduce it to less than 1% by 2025, the development orientation of these cooperatives is distinctly tailored to address these specific challenges.
To enhance agricultural productivity, it is essential to advance agricultural cooperatives through a multidisciplinary service business model while integrating scientific and technical innovations This approach aims to improve land use efficiency and foster sustainable development within the sector.
From 2022 to 2030, it is essential to develop service types tailored to the planning characteristics of each region, focusing on both stable agricultural areas and urbanized zones Additionally, enhancing the performance of services within each agricultural cooperative is crucial for overall improvement.
The advancement of the collective economy in agriculture relies on practical needs and the consistent guidance of party committees and authorities at all levels.
3.2.1 Solutions to improve the quality of agricultural products
To enhance market competitiveness, cooperatives must foster connections with businesses, develop extensive fields utilizing 4.0 technology, and produce clean, eco-friendly products that deliver sustainable benefits to both members and consumers.
Cooperatives must implement smart worm monitoring networks and utilize electronic books for traceability, enabling members to understand the growth and development of plants while promptly addressing pest and disease prevention This approach enhances productivity and product quality Additionally, the adoption of modern farming methods allows cooperatives to lower production costs and labor requirements, resulting in improved yields, with rice harvests exceeding 5.3 tons per hectare—1 ton per hectare more than traditional farming techniques.
To comply with VietGAP and GlobalGAP standards, Dinh Hoa Cooperative must focus on adopting new technologies, eliminating chemicals, and utilizing probiotics to produce organic and eco-friendly products that are both attractive and safe The integration of technology will also enhance labor efficiency and simplify farming practices.
Solutions for organizing operations and expanding production
The effective and quality organization of cooperative activities will help the comprehensive development of cooperatives in the future
Building principles in cooperatives emphasize the importance of collective construction and cooperation among members, both within the cooperative and in the broader community These principles establish responsibilities for members to actively engage in fostering a spirit of collaboration and mutual support Additionally, cooperatives are encouraged to work together in production and business endeavors, thereby strengthening the cooperative movement For a cooperative to fulfill its role and reflect its core values, it is essential for members to contribute and collaborate in building a thriving organization.
The organization of the apparatus within the cooperative is clearly defined, outlining the roles of each member and organizational part Every individual and group is expected to lead by example, fostering innovation and creativity By embracing advanced scientific methods in agricultural development, the cooperative aims to enhance productivity and drive progress.
Effective research, investment, and expansion of agricultural production areas are essential to maximize the use of arable land and prevent resource loss Additionally, large-scale production that is well-researched and strictly managed can significantly enhance the economic efficiency of cooperatives.
3.2.3 Solutions to enhance information and market search
In self-sufficient agriculture, the necessity for cooperation among farmers is minimal; however, the increasing demand for agricultural products presents challenges that exceed the capabilities of individual farmers and farms Consequently, high-level cooperation becomes essential Global experiences demonstrate that the advancement of commodity agriculture serves as a crucial foundation for establishing cooperative organizations, particularly in the processing and preservation of agricultural products Ultimately, the effective development of cooperatives fosters the growth of commodity agriculture.
To enhance the organization of state management for agricultural cooperatives under the Ministry of Agriculture and Rural Development, it is essential for district departments to establish specialized units focused on cooperatives These units should provide guidance and oversee state management activities Annual training programs for state management personnel should be implemented, alongside the allocation of central government budgets to support the management system for agricultural cooperatives Continued development of cooperative models, particularly those excelling in essential services and integrated business operations, is crucial Party committees must prioritize the dissemination of the Law on Cooperatives among members, fostering community engagement in cooperative development Close collaboration among farmers' associations, women's groups, and veterans is vital to encourage member participation in building cooperatives, with the Ministry of Agriculture and Rural Development working closely with the Vietnam Cooperative Alliance to guide model development and share best practices in agricultural cooperative growth.