Non-agricultural cooperatives: Efficiency from diversified services

(Baonghean) - Investing in hotel business, producing superfine white stone powder, building ships, exporting labor, making construction materials, market services, etc. are effective production and business areas of the non-agricultural cooperative model. These practical activities not only create high income by expanding many industries, creating jobs for members, etc., but also contribute significantly to the diverse development of cooperatives in Nghe An.

The goal of Song Lam Production and Service Cooperative (Cua Lo Town) is to develop in a multi-industry and multi-occupation direction, so since its establishment (in 1991) until now, Song Lam Cooperative has continuously innovated and developed through the expansion of many new industries and occupations to improve collective economic efficiency. Mr. Le Thanh Ty - Chairman of Song Lam Production and Service Cooperative said: "In recent times, the Cooperative has paid great attention to developing many industries and occupations and depending on the actual situation in the area, the Cooperative annually orients investment in developing each new industry and occupation. From only 3 industries (in 2003), up to now, the Cooperative has developed 13 industries and occupations and all of them operate effectively.

Due to the innovation in proper management and administration, tight financial management, transparent and democratic contracting and management, and expansion of appropriate industries, the economic efficiency of the following year is always higher than the previous year. Thanks to the orientation of developing in many industries and occupations, Song Lam Production and Service Cooperative has been very successful in the production field, which is: building and repairing ships, processing seafood, producing ice, mechanical processing, constructing industrial, civil, traffic, irrigation, and civil carpentry works; At the same time, it has performed well the role of trading in petroleum, liquefied petroleum gas, restaurants, motels, construction materials, electricity, vocational training, and linking labor export...

Especially in recent times, the Cooperative has been very successful in creating jobs for workers in Cua Lo town through job introduction and labor export. Every year, the Cooperative has sent 400-500 workers to work abroad for a limited period of time and up to now the unit is managing 680 crew members on Taiwanese and Korean fishing boats. With such diverse development, Song Lam Production and Service Cooperative has achieved many high results in production and business. In 2003, the Cooperative's revenue was only 3.2 billion VND and now the total revenue has increased more than 10 times, at the same time, it has done very well in social security work, community support...

Thong Nhat Embroidery Cooperative – Vinh City.

Because of developing according to the non-agricultural cooperative model, most cooperatives operating in this form are concentrated in towns and cities (in some districts there are cooperatives of rattan and bamboo weaving, brocade weaving, etc.). Vinh City is one of the units with a large number of non-agricultural cooperatives in the province. Out of a total of 49 cooperatives in the area, there are 25 non-agricultural cooperatives (including 12 industrial - handicraft and construction cooperatives, 5 commercial service cooperatives, 3 market service cooperatives, 3 transport cooperatives and 2 credit funds). The diverse and dynamic development of the new type of cooperative has contributed greatly to the state budget, created jobs for workers, and especially affirmed the new and effective direction of the non-agricultural cooperative model in Vinh City.

Mr. Nguyen Van Chinh - Vice Chairman of Vinh City People's Committee said: "Vinh City always creates favorable conditions for cooperatives to operate and directs these models to operate in accordance with the Law on Cooperatives, perfects the management apparatus, builds production and business plans suitable to the needs of members and builds a number of new cooperative models such as Thong Nhat embroidery, Quyet Thanh... To create motivation for cooperatives to develop, Vinh City has established a Cooperative Development Support Fund and has disbursed 5.7 billion VND, supporting 9 cooperatives with 12 projects to borrow capital to invest in production and business. In addition, there are policies on industrial promotion and support for investment in technical infrastructure development". From the timely support mechanisms and policies of relevant levels, sectors and Vinh City, many non-agricultural cooperatives have had the opportunity to develop.

Quyet Thanh Cooperative is a model of the city in investing in multi-industry production and business. The unit has mobilized capital from members, borrowed from banks to invest 34 billion VND to expand the white stone powder grinding line and invested in building a 7-storey Quyet Thanh Hotel and Trade Center in Ben Thuy Ward, creating large revenue and creating jobs for many workers. Or Thong Nhat Embroidery Cooperative in Hong Son Ward invested nearly 15 billion VND to build a Trade and Service Complex, on an area of ​​nearly 700 m2 on Tran Phu Street to maintain the traditional embroidery profession.

Ms. Nguyen Thi Thuy - Head of Thong Nhat Embroidery Cooperative said: "In 2013, the project to build a Trade and Service Complex was in the process of completing the investment, so it only produced nearly 10,480 flags, shirts, pants and 23 embroidered paintings. In 2014, the Cooperative set a revenue target of 1 billion VND including garment products, embroidered paintings and service development"... Also from an agricultural cooperative, but in the production process not suitable for the actual conditions of the locality, Phong Toan Cooperative (Ha Huy Tap ward) boldly switched to a new industry, which is investing in market services. Ms. Tran Thi Huong - Chairman of Phong Toan Cooperative said: "Due to the urbanization process, the agricultural land area of ​​Phong Toan Cooperative members was recovered, the Cooperative boldly converted its activities to market services and mobilized capital from 398 shareholders who were farmers whose land was recovered, together investing 21 billion VND to build a new Phong Toan market with a scale of more than 300 stalls".

With synchronous investment, the new Phong Toan market was built very spaciously, promptly meeting the needs of job creation and business of members and people in neighboring areas. Or at Nghi Lien Cooperative, taking advantage of the land on the outskirts of the city, in recent times, they have boldly invested in expanding management and market exploitation services, and from the market area of ​​the commune with only 22 members and workers doing business, after investing in building the new market, it has solved the problem for 200 people participating in business at the market...

A non-agricultural cooperative model that has also created high efficiency in production and business and contributed significantly to the preservation and promotion of traditional crafts in the highlands is the Hai Van Brocade Textile Cooperative (Con Cuong). Along with attracting many local workers to participate in sewing and weaving brocade products, the Cooperative has also expanded its production activities and purchased brocade products in the districts of Ky Son, Tan Ky, Que Phong, Thanh Chuong with a value of billions of VND. In particular, in Tan Ky, the Cua tile craft village cooperative, along with maintaining traditional production methods, has boldly mobilized capital from members to invest in Tuynel technology production lines, which has created high economic efficiency. During the production process, the Cooperative always invests in purchasing modern machinery and equipment to improve its operational capacity, such as purchasing improved tile stamping machines, tile blank production lines, etc. Thanks to that, the quality and products are always improved. In 2013, the output reached nearly 200 million products and the annual revenue from this craft village reached over 110 billion VND, tax payment was over 1.5 billion VND, creating jobs for hundreds of workers.

The leader of Nghe An Cooperative Union said: “With appropriate mechanisms and policies and timely support and investment from relevant levels and sectors, combined with the efforts of non-agricultural cooperatives, the new cooperative model in our province has developed strongly with many diverse forms of production - business and services. Currently, out of a total of 112 non-agricultural cooperatives, there are 79 cooperatives with effective production - business and the average annual profit reaches 168 million VND/cooperative. Thus, the success of the non-agricultural cooperative model has contributed significantly to the diverse development of cooperative types in Nghe An”.

Hoang Vinh.