How Do Cooperatives Support Their Members in Managing Aquaculture Risks? The Case Study of the Northern Coastal Provinces of Vietnam

Millions of Vietnamese farmers seek their livelihoods in aquaculture; however, they face multiple risks in their daily farming practices. Notably, some of these risks cannot be effectively managed by individual farmers because they are beyond their individual capabilities. This is why cooperatives can play a crucial role in effectively addressing these risks. Over the past five years, many aquacultural cooperatives have been established in Vietnam to strengthen the collective power of farmers in managing risks. This study was precisely conducted to assess the role of cooperatives in risk management in aquaculture. The Propensity Score Matching method was applied to analyse field data collected from 158 aquaculture farmers along the northern coastline of Vietnam. The results reveal that cooperative members have better market risk management than non-cooperative members. By contrast, the role of cooperatives in supporting members in managing production and financial risks is still unclear. In addition, collaboration among cooperative members – which generates cooperative power – is not yet well developed. The study also reveals that governments should provide more support – including technical training regarding aquaculture production, marketing and cooperative financial management – in an effective and transparent manner so as to achieve common principles of cooperative work. Members should be well informed about these principles, which should be agreed upon among members themselves, so as to better leverage the collective power of cooperatives in managing farmers’ risk.