Phu Yen establishes high-tech forestry co-operative

High-tech forestry co-operatives aim to improve production values and forest management

The format of Phu Yen High-tech Forestry Co-operative has just been launched at the recent conference reviewing the opportunities and challenges of co-operative economic development and co-operatives in the new context, organised by the Vietnam Co-operative Union in collaboration with Phu Yen People's Committee.

This is an important co-operative economic model that promotes sustainable forestry in line with the government's orientations.

Phu Yen High-tech Forestry Co-operative will consist of 24 members, including 18 households and six members with legal status (four co-operatives and two businesses).

The households participating in the co-operative are determined to hold 10,000 hectares of planted forest area by 2020 and by 2025 this figure will increase to 25,000ha. The initial capital required to implement forest protection is VND200 billion ($8.7 million).

According to Vice Chairman of the People's Committee of Phu Yen province, Tran Huu The, high-tech forestry co-operatives aim to increase connection and improve production values and forest management in accordance with the current economic integration. This is a breakthrough in the province's agricultural restructuring.

“The establishment of Phu Yen High-tech Forestry Co-operative not only promotes local forestry but it is also the first provincial-level sector-based forestry co-operative model in Vietnam,” The noted.

According to Nguyen Bao Ngoc, chairman of the Vietnam Co-operative Union, the establishment of this co-operative model has great socio-economic significance for Phu Yen province in particular as well as the whole country.

Once co-operatives are available, all plantation timber will be supported to acquire FSC certification with geographical indications and traceability of forest products, significantly bolstering the forestry economic value chain.

Phu Yen currently has over 218,000ha of forests, including more than 100ha of plant, production, and business forests. The forest area, however, is mainly owned by small fragmented households with low competitiveness and unstable prices. The establishment of Phu Yen High-tech Forestry Co-operative therefore seeks to promote sustainable and highly effective forestry economic development.