Nghe An: 30 billion VND to support cooperative development

(Baonghean.vn) – Vice Chairman of Nghe An Province Cooperative Union Tran Van Chuong said that Nghe An will establish a Fund to support and develop Cooperatives with a total capital of 30 billion VND in 3 years (2016-2018).

Bamboo toothpick production at Que Son Cooperative, Que Son Commune, Que Phong. Photo: Nguyen Hai

Accordingly, the budget allocated for the fund in 2016 is 4.5 billion VND, 2017 is 15 billion VND and 2018 is 10.5 billion VND. Cooperatives will be able to borrow at preferential interest rates to create capital, expand production and business, invest in technological innovation...

As of early August 2016, Nghe An had 658 cooperatives with a total charter capital of nearly VND205 billion. Of these, there were 470 agricultural cooperatives, 131 non-agricultural cooperatives and 57 people's credit funds.

Currently, the speed of converting cooperative operation models according to the 2012 Cooperative Law in Nghe An is considered quite good compared to the national average, reaching about 64% for agricultural cooperatives, 90% for non-agricultural cooperatives and 100% for credit funds.

However, according to the assessment of the Provincial Cooperative Union, improving the operational efficiency after conversion for cooperatives, especially agricultural cooperatives, still faces many difficulties, including capital and technology.

Therefore, the establishment of the Cooperative Support and Development Fund will help cooperatives solve this problem. Thereby, promoting the implementation of the Central Resolution V (9th term) and Conclusion No. 56-KL/TW of the Politburo; Conclusion No. 37 of the Provincial Party Committee on continuing to innovate, develop and improve the efficiency of the collective economy.

Thanh Duy