Linkages in Production and Marketing of Medicinal Plants by Cooperatives in Tuyen Quang Province, Vietnam

Determining the development of medicinal plants is one of the new directions contributing to the transformation of crop structure, creating momentum in economic development, and increasing income for people. Tuyen Quang province has had orientations and plans to develop forms of production organisation, improve capacity for enterprises and subjects participating in the program, develop agricultural products according to linkage and chain models, in order to promote creativity and potential internal strength of localities. The study aimed to assess the level of linkages between cooperatives and actors in the value chain, such as farmers, traders, material suppliers, state agencies and other cooperatives. This paper presents the results of a survey and analysis of the current status of linkages in the production and trading of medicinal plants of 18 cooperatives in Tuyen Quang province. OLS linear regression analysis was conducted to identify factors affecting the linkage index in the production and business of cooperatives. Moreover, SWOT analysis was done to determine the advantages, difficulties, opportunities and challenges in the process of strengthening linkages of cooperatives. The research results show that 100% of cooperatives have linkages with farming households, traders and state agencies, but the main form is still informal (verbal). On average, each cooperative has linkages with 55 farming households and 4 traders, but the rate of signing written contracts is still low (~30%). Over 22% of cooperatives have had disputes, mainly over price, quality and payment methods. Internal factors such as management capacity, capital, technology, etc., are major barriers to building sustainable linkages. Only 27.8% of cooperatives surveyed have direct connections with experts and scientists to receive advice on planting, processing or product development techniques. Up to 61.1% of cooperatives surveyed said that they do not have a clear mechanism or have never been connected with scientists, research institutes or universities to support in improving product quality and value. OLS regression results show that variables that have a positive impact on the linkage index include: the qualifications of management staff, the rate of written contracts, support from state agencies and the level of linkage with enterprises. The study also identified the advantages, disadvantages, opportunities and challenges of cooperatives through the SWOT model and proposed a system of specific solutions, including: raising awareness, signing clear contracts, enhancing technical support and digital technology, connecting long-term sellers and accessing policies. This document is an important basis for policy planning and designing support programs for developing local medicinal value chains.