Over 53% of cooperatives in Nghe An are operating at a reduced capacity.

(Baonghean) - According to a report by the Provincial Cooperative Union, in the first six months of 2017, localities in Nghe An province saw the establishment of 32 new cooperatives (28 agricultural cooperatives, 4 non-agricultural cooperatives), bringing the total number of operating cooperatives in the province to 616.

Bamboo toothpick production at Que Son Cooperative (Que Phong). Photo courtesy of Xuan Hoang.

According to the assessment of the Provincial Cooperative Union, 269 out of 616 cooperatives are operating effectively (accounting for 43.66%); 332 out of 616 cooperatives are operating at a moderate level (accounting for 53.89%); and 15 cooperatives are awaiting dissolution (accounting for 2.43%).

The reason most cooperatives are operating at a reduced capacity is that after the transformation under the 2012 Cooperative Law, many cooperatives, especially in the agricultural sector, are small-scale, their products have not yet built a brand, their business operations are not highly efficient, and the application of scientific and technological advancements in production, processing, and product consumption for members and farmers is still very limited…

Furthermore, coordination between cooperatives and relevant departments, agencies, and localities in developing new-style cooperatives has not been as effective as expected. In light of this, the Provincial Cooperative Union is actively coordinating the development of supply chains, establishing cooperative federations, and acting as a bridge to help cooperatives promote trade and expand their markets.

Nghe An: Striving to establish over 50 more cooperatives in 2017

Nguyen Nguyen