Economy

Final article: Need proper, sufficient, and responsible support from the government

Economic Reporter Group • June 23, 2024 15:30

In reality, where local authorities and party committees really care and support, cooperatives have a foothold and develop; on the contrary, cooperatives often fall into formality, operate sluggishly, gradually weaken and even dissolve early. Therefore, the development of effective and sustainable collective economic models and cooperatives is not expected much from the "state" - local authorities; also to avoid the situation where cooperatives, despite their "innovation" goals, have to operate in the style of "new bottles, old wine".

In recent years, especially from 2012 to now, whenNghe AnImplementing the National Target Program on New Rural Development, the number of cooperatives has "sprouted" like "mushrooms after rain". Many service cooperatives were established after the policy of encouraging the establishment of cooperatives was introduced and often achieved products with 3 OCOP stars or higher; the establishment of cooperatives that can consume agricultural products of the people is one of the hard criteria.

However, after its establishment, not a fewcooperativesAgricultural services are facing operational bottlenecks, lacking in all aspects, bringing little benefit to members, and gradually the cooperatives have to be dissolved. In many new rural area assessments at all levels, the operations of many cooperatives are still a matter of concern.

Coming to Tan Huong Agricultural Service Cooperative of Tan Huong Commune (Tan Ky), asking the local people, they almost did not know who the cooperative's leader was. When finding Mr. Nguyen Duc Tam - Director of the cooperative, he told me that the unit had not been operating for a long time, some cooperative members had gone to work abroad...

In 2018, at that time the locality implemented the National Target Program on new rural construction, so the commune established an agricultural service cooperative to meet the criteria.new rural construction. The cooperative's activities are trading in plant varieties, fertilizers and agricultural materials. The cooperative's Board of Directors operates without a headquarters and without capital and assets consisting of only 1 desktop computer. The members of the Board of Directors contribute 1.5 million VND/person, all 7 members receive more than 10 million VND and use Mr. Nguyen Duc Tam's family's house as headquarters. However, due to too little business capital, along with the limited capacity of the Board of Directors, the cooperative does not operate effectively, people do not come to the cooperative... According to Mr. Tam, the fact that the cooperative currently only exists in name is partly the responsibility of the People's Committee of Tan Huong commune.

Talking to reporters, Mr. Le Duc Thuyen - Chairman of Tan Huong Commune People's Committee could not help but wonder: "Tan Huong Agricultural Service Cooperative was established more than 5 years ago. After its establishment, the cooperative's activities have been sluggish and gradually weakened. The biggest problem of the cooperative is lack of capital and inability to compete in the market; the commune has not yet found a way to solve it...".

In Tan Ky district, there are still cooperatives operating in a perfunctory or formal manner, or newly established not long ago, without any specific activities, hastily stopped and "fell" into the list of cooperatives waiting to be dissolved, such as Len Voi Agricultural Cooperative in Tan Phu commune, Nghia Hop Dairy Cow Breeding Cooperative, Nghia Hoan High-Quality Cow Breeding Service Cooperative; the remaining 19 cooperatives are operating, but most of them are formal and not very effective.

According to the report of Cua Lo town on cooperatives in 2024, cooperatives in the area still have many weaknesses, the number of effective cooperatives is still small, the scale of operation is still small, there are few advanced models; most production and business cooperatives are still monotonous, fragmented, not proactive in expanding business forms in the direction of multi-industry, multi-profession and do not have the form of joint ventures and associations. Some cooperatives have not been able to start business since their establishment.

In Nam Dan district, the Head of the Department of Agriculture and Rural Development of this district said that the activities of many agricultural cooperatives are still "old bottles, old wine", because although they have been renewed according to the Law on Cooperatives 2012, because the same old people are still managing them, there has been no breakthrough; meanwhile, newly established cooperatives with young people are very dynamic and developing.

In general, in mountainous districts such as Con Cuong, Tuong Duong, Ky Son, Que Phong... the situation of cooperatives, especially cooperatives in the agricultural sector, is more difficult. Mr. Lo Van Ly - Head of the Department of Agriculture and Rural Development of Con Cuong district said: In parallel with the implementation of the National Target Program on New Rural Construction, in recent years the district has focused on developing cooperatives, aiming to attract farmers to cooperatives and contribute to creating jobs for people. Up to now, the whole district has had 13 cooperatives; however, only 3 cooperatives are operating profitably.

Mr. Nguyen Huu Hien - Vice Chairman of Tuong Duong District People's Committee, commented: To avoid the situation of cooperatives "blooming early and fading quickly", the relevant sector needs to have policies to support loans, land, technology as well as support cooperatives to improve their capacity in packaging, processing, design and improve connectivity. Cooperatives need to improve their autonomy, apply scientific and technical advances in production and processing, improve competitiveness, build quality and branded products, associated with promoting the development of the processing industry; ensure food safety, protect the ecological environment. Cooperatives also need to proactively participate in trading activities, connecting supply and demand, fairs and exhibitions to consume goods, contributing to bringing key agricultural products of Tuong Duong to the market.

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From 2019 to 2023, Nghe An has established 189 new agricultural cooperatives. The total budget allocated to support newly established cooperatives is 8.6 billion VND, an average of 45 million VND/cooperative. In the past 3 years, 21 cooperatives have dissolved and more than 40 cooperatives are inactive.

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In recent times, in Nghe An, Party committees and authorities at all levels have provided leadership, direction and issued resolutions and support policies to encourage the development of collective economy and cooperatives. The Standing Committee of Nghe An Provincial Party Committee issued Action Program No. 50-Ctr/TU on implementing Resolution No. 20-NQ/TW of the Central Executive Committee, and the People's Committee of Nghe An province issued Plan No. 363/KH-UBND on implementing Action Program No. 50 of the Standing Committee of the Provincial Party Committee.

The People's Committee of Nghe An province has issued the Project "Innovation and development of cooperatives in Nghe An province" for the period 2015-2020 and the period 2021-2025; built and implemented the Project "Building and developing a chain of clean and safe agricultural product stores associated with supporting the consumption of agricultural products and food for cooperatives and craft villages in the province for the period 2019-2025, with a vision to 2030"; issued the Trade Promotion Plan associated with the cooperation forum, cooperative economy, and cooperatives in Nghe An province for the period 2020-2025...

From 2019 to now, 4 cooperatives have been supported to invest in infrastructure construction according to Decision 2261/QD-TTg dated December 15, 2014 of the Prime Minister. In addition, every year the provincial budget allocates 30% of the infrastructure construction costs for cooperatives in the province; from 2019 to 2023, 9 cooperatives have been supported to build warehouses, drying yards, etc. with a total supported budget of 2,473 million VND...

Mr. Nguyen Van De - Vice Chairman of the Provincial People's Committee said: Nghe An has paid great attention to the activities of cooperatives in recent years. The province regularly listens to and resolves difficulties and problems. Recently, in May 2024, the Provincial People's Committee issued a plan to perfect the cooperative model participating in the Project to select, perfect, and replicate effective new-style cooperative models in the province for the period 2021-2025. According to the Plan, there are 5 new-style cooperative models that, after being selected, are expected to be bright spots in agriculture, to spread and replicate. While waiting for the Law on Cooperatives 2023 to take effect, cooperatives must actively apply science and technology, digital transformation; participate in the green transformation strategy, create large raw material areas to reduce emissions, and protect the environment. For cooperatives to operate effectively and connect well, the most important factors are people, financial resources, land, policy mechanisms, etc.

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For cooperatives to operate effectively and have good connections, the most important factors are people, financial resources, land, policy mechanisms...

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Mr. Nguyen Van De - Vice Chairman of the Provincial People's Committee

According to Mr. Nguyen Ba Chau - Chairman of the Provincial Cooperative Union, in order to continue to innovate and develop agricultural cooperatives associated with production linkages effectively and sustainably, many solutions need to be implemented. Consulting with local opinions, Mr. Chu Anh Tuan - Secretary of the Town Party Committee, Chairman of the People's Committee of Thai Hoa town said that in order to gradually improve the operational efficiency of cooperatives, the Town People's Committee has proposed the following solutions: Focus on directing the review and dissolution of weakly operating cooperatives, establish new ones and create conditions for agricultural cooperatives to operate effectively. Improve the quality of production and business plans. Guide and support cooperatives to access State support capital and credit loans. Train and improve management and production skills, strengthen links with businesses to consume products. Promote the application of high-tech agriculture in agricultural cooperatives. Encourage and guide cooperatives to build e-commerce websites and online booths on e-commerce platforms to help cooperatives facilitate transactions and product promotion.

Through practical research, it is shown that where local authorities closely direct, care for, and accompany cooperatives, especially newly established cooperatives that produce local specialty products, those cooperatives develop. Currently, cooperatives need to participate in the industry, in the union, and in the common community. One direction that effectively operating cooperatives are currently "applying" is to establish a subsidiary company for transactions, more convenient credit, and contract signing; for example, there are Hung Tay Agricultural Service Cooperative, Song Lam Shipbuilding and Seafood Processing Cooperative, Pu Mat Medicinal Materials Cooperative, Tho Thanh Agricultural Service Cooperative, Quynh Minh Salt Industry Cooperative, etc.

Minister of Agriculture and Rural Development Le Minh Hoan, who has been closely associated with and contributed to the development of cooperatives, once shared: “Cooperatives are an important force to create large raw material areas today, fields that reduce carbon emissions... Cooperatives need to move from supply chains to value chains”. From that perspective, associated with the policy of building new rural areas as a career without stopping, cooperatives must think about what to do to both make money and protect forests, protect rice fields, protect food security, support rural public services, change production thinking in rural areas... What businesses have not reached, have not adapted to in rural areas is the market, the opportunity of cooperatives.

With such big goals and important roles, of course, cooperatives - collective economic organizations - no matter how dynamic, how high the spirit of autonomy, still need the most practical support and attention with the most real responsibility from the State - government so that cooperatives can operate effectively, the expectation of "new bottle, new wine" can be realized!