Clarifying the advantages of the new type of cooperative

During a working session with the Cooperative Union earlier this week, the Supervisory Delegation of the National Assembly Standing Committee also requested clarification on the advantages of the new type of cooperative in order to truly bring economic benefits to farmers and protect their rights when participating in the agricultural product value chain.

Hung Long Agricultural Cooperative, Hung Nguyen, along with its members, is conducting trials and evaluating rice production processes. (Illustrative image)

In the process of building new rural areas, cooperative economic activities play an important role in improving the lives and incomes of farmers. In many localities, cooperatives have become one of the effective models for preventing re-poverty.

According to Vo Kim Cu, Chairman of the Vietnam Cooperative Alliance, agricultural cooperatives have been innovating their operating methods, applying technological advancements to production, and affirming their role in the cooperative economy for member households.

Notably, some cooperative unions stand out with their large scale, such as the Ho Chi Minh City Commercial Cooperative Union (Saigon Co.op), which has a nationwide reach, with annual revenue exceeding 1 billion USD, contributing trillions of VND to the state budget, and providing employment for over 10,000 workers.

In reality, the role of cooperatives in the collective economy is undeniable. However, cooperatives have not yet developed in proportion to their potential, advantages, and the goals and requirements set forth. The progress of cooperatives in recent years has been slow, both in terms of quantity and quality.

According to Ms. Truong Thi Ngoc Anh, Vice Chairwoman of the Central Committee of the Vietnam Fatherland Front, the main reason is that the mindset regarding the old cooperative model is still deeply ingrained in the people's minds. "We have not yet been able to change our perception of contributing together when participating in cooperatives," Ms. Anh emphasized.

Sharing this view, Deputy Chairman of the Economic Committee Mai Xuan Hung stated that, in reality, farmers still do not see the difference between old-style cooperatives and new-style cooperatives. Many still understand that joining a cooperative means contributing their means of production, and then when the profits are distributed, every household receives the same share. This can be considered the most obvious obstacle that makes farmers unenthusiastic about cooperatives.

According to Mr. Mai Xuan Hung, the old-style cooperative only had the relationship between the cooperative and its members, and did not include household economies; in other words, the old-style cooperative model negated the household economy. Meanwhile, the new-style cooperative is an organization based on the linkage of individuals and households providing input and output services, across all stages of the production process, without eliminating or suppressing the household economy.

Vegetable production at Hung Dong Cooperative, Vinh City. (Illustrative photo)

In other words, when participating in the new type of cooperative, assets, capital, and land still belong to the members, and the cooperative's most important task is to provide inputs and outputs for the members' production activities. On the other hand, the new type of cooperative also plays an important role in connecting farmers with the State, scientists, and businesses in the "Four-Party Linkage" model.

If individual households lack the resources to form a four-party linkage, then the cooperative is the organization that will take the lead. A proper understanding of the organization, operation, and role of the new type of cooperative is essential for developing cooperatives in a voluntary, equal, and mutually supportive manner.

The goal was for 100% of cooperatives to complete the transition to the new organizational and operational model by July 1st. However, as of now, 35% of agricultural cooperatives have yet to complete the transition.

The head of the National Assembly Standing Committee's supervisory delegation, Chairman of the Economic Committee Nguyen Van Giau, stated that with nearly a month remaining, even with urgent and intensive efforts, it would be impossible to achieve the set goals. Based on the lessons learned from the process of transforming cooperatives from the old to the new model, localities with cooperatives that have not yet transformed need to intensify propaganda efforts so that individual farmers, who currently face fierce competition from services to output, understand and correctly perceive the role of cooperatives.

This serves as a leverage to promote sustainable agriculture, truly bringing economic benefits to them and protecting their rights when participating in the agricultural product value chain.

According to daibieunhandan