Need a plan to deal with poorly performing cooperatives

The working delegation of the Provincial People's Council Standing Committee supervises the boat repair activities of the cooperative. Photo: Minh Chi

According to Mr. Le Thanh Ty - Chairman of the Board of Directors of Song Lam Production and Service Cooperative, there are currently cooperatives that are operating poorly but there is no plan to dissolve them. This affects the general psychology in society towards the cooperative model, affecting the general movement of cooperatives.

Therefore, every year, it is recommended that all levels and sectors review and evaluate the performance of cooperatives, thereby having timely solutions to deal with weak cooperatives.

Regarding the same issue, Mr. Ty also mentioned the current situation, although interest rates are high, access to loan capital for cooperatives in general is still difficult, so the province needs to implement the project to establish a cooperative development fund, creating opportunities for cooperatives to access capital.

The State also needs to conduct research to make more appropriate adjustments to project capital, bank loans, loan terms, and loan interest rates for cooperatives, because most members of cooperatives are facing economic difficulties; at the same time, there needs to be a priority regime for cooperatives to mortgage leased land and cooperative assets attached to land to borrow capital or mortgage assets formed from loan capital.

Chairman of the Board of Directors of Song Lam Production and Service Cooperative Le Thanh Ty suggested that the province should have a plan to deal with weak cooperatives. Photo: Minh Chi

In addition, according to the Chairman of the Board of Directors of Song Lam Production and Service Cooperative, in the 2012 Law on Cooperatives, there are some provisions that are not equal to the Law on Enterprises; for example, in the cooperative model, the Board of Directors, the Board of Supervisors, and the Chief Accountant are not allowed to have father-child, husband-wife, or sibling relationships; therefore, there are limitations in management, operation, and capital mobilization...

At the meeting, members of the monitoring delegation were interested in learning about the role and impact of the Provincial Cooperative Union on the operation of cooperatives; capital contributions of members, profits and dividend distribution; qualifications of the management team as well as employees of the cooperative; income of employees; policies enjoyed...

Comrade Hoang Viet Duong - Vice Chairman of the Provincial People's Council chaired the meeting. Photo: Minh Chi

Song Lam Production and Service Cooperative operates in many industries, including seafood processing; construction of traffic - irrigation - civil works; petroleum trading; ship repair; restaurant business; and labor export linkage.

The total number of members of this cooperative is 131; of which 21 have university degrees. Annual revenue is increasing, reaching 24.8 billion VND in 2017 alone; budget contribution is 880 million VND; average income of workers is 4.5 million VND/person/month.

Total capital contribution of members, the highest is 800 million VND and the lowest is 100 million VND; current total capital contribution reaches nearly 12.5 billion VND.

After listening and receiving opinions from the grassroots through supervision, Vice Chairman of the Provincial People's Council Hoang Viet Duong highly appreciated the management model and operational efficiency of the cooperative, creating jobs for many local workers.

Besides pointing out some limitations and shortcomings, the Vice Chairman of the Provincial People's Council noted that the cooperative should focus on building plans and strategies for production, business and development in conjunction with the planning of Nghi Hai ward and Cua Lo town; building strategies and production plans in each stage, including building highlights and improving the quality and efficiency of industries, contributing to strengthening the cooperative's brand.

Another issue that cooperatives need to pay attention to is reviewing, amending and supplementing the operating regulations of the Board of Directors and the Supervisory Board, ensuring the raising of awareness and responsibility of each organization and individual in the cooperative; implementing well the grassroots democracy regulations, ensuring publicity and transparency in management and operation; innovating, promoting creativity, bringing the cooperative to sustainable development...