As part of the Vietnamese government’s Socio-Economic Development Strategy (2021–2030), the country aims to enhance the scale, modernisation, and added value of its agricultural production. However, impediments like low productivity, inadequate market connections, limited access to credit, and the effects of climate change impede the sector’s growth (ADB).
Vietnam’s agricultural exports were valued at USD 53.2 billion in 2022 (VN Express), TechCoop strongly believes that with the same resources, the value of agricultural exports can double by 2030 given a more efficient and digitally-integrated agricultural supply chain. As a technology company, TechCoop aims to enhance Vietnam’s agricultural supply chain productivity by driving digital transformation. This involves increasing access to agricultural financing and streamlining transactions among farmer-owned cooperatives (suppliers) and agribusinesses (buyers) through improved data availability.
TechCoop addresses the primary concerns of Vietnamese farmers — secure livelihoods with increased product sales, by facilitating trading through providing access to financing for farmers and buyers (small to medium-sized agribusinesses). The company also charges a modest trading commission on the spread to increase transaction volumes and profit generation amongst stakeholders. With a farmer centric approach, TechCoop becomes the end-to-end ecosystem player for all needs of the farmers: input access, working capital access, crop productivity and sale enablement. TechCoop also supports farmers and agribusinesses with traceability software, the increased transparency and collection of timely and accurate data is used for credit scoring and providing accurate product information, empowering farmers to access more financing and customers. Unlike traditional wholesalers, TechCoop’s ability to directly connect agribusinesses with farmers, enables collaborative planning for crop cultivation and enhances export value.
“We naturally integrate ESG practices and scaling up allows us to improve our measurement capabilities and showcase the impact of our initiatives. Customer feedback highlights their appreciation for our fair, value-driven approach, and the positive changes we bring to them.” – Hao Diep, co-founder
From day one, TechCoop has prioritised environmental, social, and governance (ESG) risk management, integrating ESG considerations into the credit scoring process for customers. While financial aspects contribute 40% to the credit score, the company also evaluates the sustainability of farming operations, considering factors such as crop type and environmental certifications. The demographics of farmers and the quality of the customer’s network of buyers and sellers are also scored in. For instances, agribusinesses trading directly with smallholder farmers receive a higher credit score. Considering these factors reflects TechCoop’s belief that sustainable practices reduce business risks.
Since being founded in April 2023, TechCoop contributes to SDG target 1.4 and 9.3. The company has helped more than 150 agribusinesses, 1,770 cooperatives and over 100,000 farmers access technology, financial services, affordable credit and increased integration into Vietnam’s agricultural value chain.
As a scout deal, TechCoop has benefited from tapping into the expertise, professionalism, and network of the TNB Aura team. TechCoop has also received valuable guidance on strategic initiatives, fundraising via innovative structures as well as enhancing governance practices and investor relations from TNB Aura. Looking ahead, the company plans to harness TNB Aura’s established ESG experience and strategies to further expand its business.