08. One Commune - One Product (OCOP) program in Vietnam: Theory, policy and practice

Abstract

The "One Commune - One Product" (OCOP) program, widely applied in Vietnam since 2018, is a vital approach for rural economic development in the direction of promoting internal resources and adding value. Based on the experience of Japan and Thailand, the center of this program is to develop 6 sets of products/services that have advantages in each locality along the value chain, led by private economic sectors (enterprises, production households) and collective economy. The State plays a constructive role. This will achieve the national goal of "no one is left behind". The implementation organization system has been devolved from central to local after three years of implementation. In 2018-2020, the total capital to conduct the OCOP program was 22,845 billion VND (about 1 billion USD). The program has created jobs and increased income through producing and selling advantageous products and services. The program also contributes to form, restructure and improve the capacity of cooperatives and enterprises in rural areas, allowing people those have capital to cooperatives and enterprises become owners of the development process. Despite positive outcomes, the implementation of the program still have limitations in terms of (i) the organization; (ii) implementation of the Vietnam's 6-step OCOP cycle; (iii) the capacity of the OCOP parties; (iv) access to credit; and (v) product quality.