How good governance has transformed an agroforestry cooperative in Vietnam into a thriving business

This case study from Vietnam is the sixth of six case studies on tactics that improve internal governance prepared by forest and farm producer organisations (FFPOs) for the Forest and Farm Facility (FFF).

It describes the actions of the Binh Minh Agroforestry Cooperative (BMAC), formerly the Lem Village Acacia Growers’ Group, that was established in 2017 in Yen Bai province, Vietnam. Over six years, BMAC has grown from seven to 18 members, collaborating with 2,000 households across 24 communes. With a revenue of VND 6 billion over five years, it maintains an average annual net profit of VND 1.2 billion. BMAC strategically engages with market actors, government bodies and international development agencies, partnering with companies such as Nam Dinh Forest Products Joint Stock Company and Hoa Phat Forestry Joint Stock Company. In addition, BMAC is involved in the Forest Stewardship Council’s Certificate of Custody (FSC-CoC) certification programme, elevating BMAC’s stature in the local market.

BMAC’s success is attributed to its innovative internal governance. This case study describes some of its tactics in governance structures, processes and practices. Notable examples include transparent financial management, a robust risk-management strategy, and a culture of continuous learning. By showcasing excellence in governance, BMAC serves as a model for sustainable business operations, contributing to Vietnam’s forestry sector growth.