OCOP – promoting the value of local products and expanding opportunities for Vietnamese enterprises

Product development in accordance with the OCOP standard (one commune one product) is an important task of Viet Nam aimed at promoting the potential of local products, contributing to improved community livelihoods and economic development. Through OCOP, enterprises and local communities have opportunities to maximize the value of region-specific products, moving toward sustainable brand development and enhancing their position in domestic and international markets.

What is OCOP? what is the purpose of OCOP?

OCOP, also known as one commune one product (OCOP), is a national programme initiated by the Government through Decision No. 919/QĐ-TTg in 2018, with the objective of promoting the intrinsic values of local products, building brands, and increasing added value. The programme not only focuses on improving product quality to meet OCOP technical criteria, but also aims to leverage the cultural and traditional characteristics of each region to create distinct features and clearly identify local specialties. The primary purpose of OCOP is to promote the development of local products with potential, improve people’s livelihoods, and foster sustainable economic development.

OCOP requires each commune to develop at least one product that reflects its distinctive local characteristics, thereby establishing value chains and enhancing competitiveness in both domestic and export markets. When a product achieves OCOP status, it demonstrates strict control over quality standards and alignment with increasingly stringent consumer requirements, thereby contributing to the enhancement of national agriculture and traditional handicrafts.

The importance of OCOP for enterprises

In the context of increasingly intense market competition, OCOP plays an essential role in enhancing production capacity and brand development for local products. OCOP marks a shift in rural development policy from infrastructure investment support to the promotion of endogenous economic development. The OCOP programme for the period 2021–2025 was approved by the Prime Minister under Decision No. 919/QĐ-TTg dated 01 August 2022. This decision further refines the overall orientation, positioning OCOP as an important pillar in rural economic restructuring and new rural development. To meet programme standards, enterprises are required not only to comply with strict regulations on quality, design, and packaging, but also to invest in technology, marketing, and human resource development. These factors are important for maintaining credibility, enhancing competitiveness, and expanding markets domestically and internationally. Accordingly, OCOP-certified products can more easily access high-end markets, enhance the competitive position of participating entities, and contribute to increasing community value.

OCOP also serves as an important platform for disseminating Vietnamese regional cultural values and identities. Beyond agricultural products, OCOP promotes handicraft products and tourism services. The target by 2025 is for at least 50% of traditional craft villages to have OCOP products, contributing to the sustainable preservation and development of these villages.

Scope of OCOP application

The OCOP programme is designed to maximize the capacity for professional production organization and product commercialization. Therefore, eligible participating entities are clearly defined and focus on organizations with legal status or business registration, with the capacity to manage and scale production, including:

  • Cooperatives.
  • Cooperative groups.
  • Local small and medium-sized enterprises (SMEs).
  • Farms and production households with business registration.
  • Tourism service enterprises.

According to the set of criteria and the product evaluation and classification process issued under Decision No. 148/QĐ-TTg dated 24 February 2023, products participating in the programme are classified into six main product groups:

  • Food: including processed and fresh products.
  • Beverages: including beverages derived from agricultural products and medicinal materials.
  • Medicinal materials and products derived from medicinal materials: a diverse group including functional foods, traditional and modern medicinal preparations, cosmetics derived from medicinal materials, medical equipment and instruments, and other herbal products.
  • Handicrafts: refined products with cultural value, often associated with traditional craft villages.
  • Ornamental organisms: including ornamental plants and animals with high economic value and distinctive local characteristics.
  • Community-based tourism services, ecotourism, and tourist destinations: focusing on economic development through the utilization of landscapes, culture, and rural accommodation services.

Benefits of participation in and compliance with OCOP

OCOP (one commune one product) provides comprehensive benefits for enterprises, communities, and national economic development, specifically:

For enterprises:

  • Improvement of product quality and value: OCOP encourages producers to invest in and improve technology and processes to meet stringent criteria, from raw materials and production to packaging. In particular, OCOP-certified products are often required to obtain important certifications such as VietGAP, ISO, and HACCP, ensuring quality and food safety.
  • Brand development: OCOP represents official state recognition of product quality and value, facilitating consumer trust and acceptance.
  • Market expansion: products receive support for promotion and introduction through provincial and national OCOP fairs and events, as well as modern sales channels (supermarkets and e-commerce platforms), thereby creating opportunities to access international markets and demanding market segments.
  • Enhancement of management capacity: OCOP entities participate in training and capacity-building programmes related to production techniques, business management, marketing, and supply chain development.
  • Encouragement of innovation: OCOP serves as a driver for more effective production and business organization, supporting a shift from outdated agricultural production practices toward a market-oriented economy.

For communities and local economies:

  • Sustainable economic development: OCOP promotes the restructuring of rural economies toward higher value addition, linking agriculture with services and tourism, and leveraging local advantages in raw materials and traditional culture.
  • Job creation and income improvement: OCOP creates stable local employment opportunities for rural residents, contributing to reduced migration and improved living standards and incomes in rural areas.
  • Preservation and recognition of culture: OCOP products serve as “ambassadors” conveying the cultural narratives and distinctive characteristics of regions, thereby contributing to the preservation and promotion of traditional crafts, occupations, and local cultural values.

Conclusion

OCOP is not only a standard but also a mechanism for creating added value for products, increasing incomes for local communities, and making an important contribution to the development of sustainable and modern rural areas. Enhancing awareness and strengthening coordination among government authorities at all levels, enterprises, and communities are key factors in ensuring that the OCOP programme achieves significant outcomes, contributing to the development of a strong domestic industry with extended reach in international markets.