Lesson 1: The role of "midwife" in rural economic development
With the development of commodity economy in rural areas and the new rural construction movement, implementing the OCOP Program - "One Commune One Product" in Vietnam in general and Nghe An in particular, the development of collective economy and cooperatives plays an increasingly important role.
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According to the International Cooperative Alliance (ICA): “Cooperativesis an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise”.
Compared with the reality of Vietnam's rural economy, we can ask the question: Why do farmers in particular and people with limited economic conditions in general need cooperatives when linking to develop the economy? That is because when they enter commodity production, most of them have to "hold hands and guide them", and the "output", "input", capital, science and technology, etc. really need a close economic organization that understands the specific production characteristics of rural areas to carry out those tasks and the cooperative type becomes the most suitable, because of the nature of gathering a large number of members in the village, the nature of supporting and helping each other in life, both economically and culturally, and in customs and practices.
Therefore, cooperatives have developed more and more as a necessary need, first of all to serve the people's lives, secondly to comply with the law and requirements of the new rural destination, developing "chimneys" in the countryside.
In recent years, our Party and State have paid special attention to the development of cooperatives. Cooperatives in the country in general andNghe AnIn particular, the transition to a new model in accordance with the law has been basically completed. The number of newly established cooperatives and cooperative unions has increased significantly, with more diversity in terms of industry, scale and level; better support for members, job creation and increased regular income for workers.
However, although the number of cooperatives has increased, the average number of members in cooperatives tends to decrease; many members participate in cooperative activities only in formality, not fully exercising their rights and obligations as members.
The guiding viewpoint of our Party and State clearly states: "Collective economyis an important economic component that must be consolidated and developed together with the state economy to become a solid foundation of the national economy. Collective economic development is an inevitable trend in the context of international integration, in line with the socialist-oriented market economy; stemming from practical needs, protecting interests and creating conditions for members to produce and do business effectively, and develop sustainably. Collective economic development must respect the nature, values, and operating principles of the collective economy, in line with the conditions and socio-economic characteristics of each locality, region, and the whole country. The State has a preferential policy for collective economic organizations in the agricultural sector, linking production and business activities with product value chains, applying science and technology, innovation and digital transformation; prioritizing the development of collective economic organizations associated with the development of green economy, circular economy, and knowledge economy"(Resolution 20 of the 13th Party Central Committee).
With great social significance, the cooperative economy has shown its indispensable role over the years, being an important link in production and life in rural areas, an intermediary supporting members and workers in finding jobs, increasing income to ensure public service tasks.
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The cooperative economy is one of the “tripods” that, together with other economic forms, becomes a solid foundation of the national economy. Therefore, many important documents of the Party and the State continue to be issued to care for the development of the collective economy, the core of which is the cooperative.
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According to statistics, by the end of 2023, there were 30,698 cooperatives, 137 cooperative unions and 65,712 cooperative groups nationwide; Nghe An had 899 cooperatives, an increase of 36 cooperatives compared to 2022. The number of members participating in cooperatives was 268,076 members. By the end of 2023, the whole province had 3,035 cooperative groups, a decrease of 20 cooperative groups compared to 2022, with 8,510 members.
Of the total number of cooperatives in Nghe An, 520 are operating effectively, 65 of which are headed by young staff as board chairmen and directors, accounting for 12.5%. These are primarily agricultural cooperatives, an indispensable type in regulating irrigation, planning crop organization, disseminating technical advances and taking care of input and output for agricultural products.
The efforts to innovate and maintain the operation of cooperatives have contributed to the improvement of Nghe An's agriculture and rural areas, developing in a stable direction, achieving many milestones. Nghe An is the third province in the country in terms of the number of OCOP products. Up to now, the whole province has 567 products recognized as meeting OCOP standards of 3 stars or higher. Agriculture has been successful in recent years. The number of 520 effectively operating cooperatives mentioned above has shown the quality and qualitative change of this type of economy in Nghe An today when closely following the 2012 Law on Cooperatives. Nghe An cooperatives operate in almost all fields: agriculture, shipbuilding, technology, garment, mechanics, silkworm, salt industry, transportation... Regardless of the field, cooperatives have been and are making every effort for the existence of the cooperatives themselves and for the interests of their members.
Effectively operating cooperatives in Nghe An, if they are traditional cooperatives, have promoted the brand value and intelligence of the young generation inheriting the experiences of their predecessors and diversifying their professions to survive. If they are young cooperatives, they are all good at technology, good at applying science and technology and sales skills to participate in online trading. Such cooperatives, when operating effectively, not only develop the economy but also support each other in sharing jobs, income, technical and scientific advances...
Currently, in Nghe An, in the agricultural sector, in addition to cooperatives with a tradition of effective operations such as: Minh Thanh, Tho Thanh, Lien Thanh Agricultural and Construction Service Cooperatives (Yen Thanh); 19/5 Cooperative (Nghia Dan); Nghi Lam, Nghi Van Agricultural and Agricultural Service Cooperatives (Nghi Loc)..., many new models of effective production and business have continued to appear, such as: Dai Hue Agricultural Cooperative, Sen Que Bac Cooperative, Thien Nhan Lemon Cooperative (Nam Dan); Dien Quang and Dien Phong Agricultural Service Cooperatives (Dien Chau); Chi Khe Coniferous Plants Cooperative (Con Cuong), Tan Thanh Cooperative, Tinh Sang Duong Cooperative (Quy Hop), Nghia Dan Medicinal Herbs Cooperative (Nghia Dan); Hung Tay Agricultural Service Cooperative (Hung Nguyen)... Many agricultural service cooperatives, in addition to serving the needs of their members well, also bring in profits of hundreds of millions to billions of dong every year.
In the field of industry - handicrafts and trade, services, there are 91 cooperative households with 1,695 members; total revenue is estimated at 600 billion VND/year; average income of regular workers in cooperatives is 4.8 - 5.6 million VND/month. These cooperatives have also actively innovated, formed joint ventures, associated, and found new product consumption markets; gradually organized and arranged the apparatus in accordance with production and business realities, and improved productivity and product quality. Products of cooperatives have been initially accepted by the market such as handicrafts, wood processing, stone processing, household wooden furniture, and aquatic and seafood processing. These are Thang Loi Handicraft Cooperative in Tho Thanh commune (Yen Thanh); Hoa Tien Brocade Weaving Cooperative (Quy Chau); Pu Mat Medicinal Herbs Cooperative (Con Cuong); Phu Quy Medicinal Materials Cooperative (Thai Hoa), Song Lam Production and Service Cooperative, Hai Giang 1 Seafood Processing Village and Service Cooperative (Cua Lo town); Ben Thuy Market Cooperative (Vinh city)... Along with that, in the province, many cooperatives with new and promising investment directions continue to appear, actively participating and coordinating to effectively implement vocational training for workers such as: Thang Loi Handicraft Cooperative (Yen Thanh), Mon Son General Service Cooperative (Con Cuong), Sen Vang Cooperative (Vinh city)...
In the transport sector, the number of cooperatives providing transport services is currently 40. After the Covid-19 pandemic, cooperatives have gradually adapted and innovated investment in facilities, improved management quality, and now many cooperatives are operating effectively. This sector has 7,950 members participating in cooperatives.
In the credit sector, there are 59 People's Credit Funds, operating in 16 districts, cities and towns with a total capital of VND 10,800 billion, of which mobilized capital is VND 9,684 billion. Total outstanding loans of the funds are VND 7,930 billion, bad debt is VND 67 billion, accounting for 0.8% of total outstanding loans.
Currently, according to the assessment of the Nghe An Provincial Department of Rural Development, the support policies for cooperatives are piloted in short periods and the support contents have not comprehensively resolved the difficulties and obstacles in the operations of cooperatives, so they have not really supported the development of agricultural cooperatives in the province to operate more and more effectively in the direction of linkage and application of high technology in production towards increasing the value and quality of products. Besides, the internal strength of cooperatives is still weak, so they still face many difficulties. However, many cooperatives have made breakthroughs and have new directions with high efficiency.
The country's strategy for sustainable agricultural and rural development to 2030, with a vision to 2050, is based on the consistent viewpoint that "Agriculture, farmers, and rural areas have a strategic position in the cause of industrialization and modernization. Agriculture is the advantage and sustainable foundation of the country. Rural areas are an important economic development area, a cultural and social foundation. Farmers are an important labor force and human resource". Accordingly, cooperatives are an extremely important "midwife" in organizing economic production in rural areas. Wherever there is proper attention to the development of collective economy and cooperatives, there cooperatives will develop strongly and vice versa.
Proof of the above is that many people who worked far away from the province decided to return to their hometown to do business after the Covid-19 pandemic, starting businesses from cooperative models, cooperative groups... showing the importance of this type of economy, which is the first step to realize creative ideas, highlight the strengths of the village, of the hamlet, and arouse the potential and great labor force in the countryside.
According to Clause 1, Article 3 of the Law on Cooperatives 2012, a cooperative is a collective economic organization, co-owned, with legal status, voluntarily established by at least 7 members who cooperate and support each other in production, business activities, and job creation to meet the common needs of members, on the basis of autonomy, self-responsibility, equality and democracy in cooperative management.
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(To be continued)
