Deputy Prime Minister Vuong Dinh Hue: Each new rural commune must have an effectively operating cooperative.

Deputy Prime Minister Vuong Dinh Hue gave a speech at the Conference. Photo: Hien Hoa

The report at the Conference said that in 2018, the cooperative economy and cooperatives continued to develop nationwide, becoming an important component of the economy. In 2018, the number of cooperatives, cooperative unions and cooperative groups increased from 8.2% to 25.4% compared to 2017. The country has 22,456 cooperatives, including 13,712 agricultural cooperatives (nearly 50% operating effectively), 7,563 non-agricultural cooperatives (more than 60% operating effectively), 1,181 people's credit funds. Along with that, there are 74 cooperative unions in 36 provinces and cities (the operating efficiency rate is nearly 50%); 103,435 cooperative groups registered to operate.

Many cooperatives have been consolidated and innovated in terms of organization and operation, with changes in scale, technology, production and business management capacity, better supporting the household and member economy. The form of organizing production and product consumption through joint venture and association contracts has been implemented in many places and brought about positive results, especially production and business cooperatives associated with product value chains operating effectively.

In 2018, the country had about 15% of the total number of agricultural cooperatives and more than 60% of non-agricultural cooperatives producing value chains. The Vietnam Cooperative Alliance system used resources from the State budget and socialized resources of about 18 billion VND to support and build 77 production and business cooperatives associated with value chains in 51 provinces and cities.

Many localities have models of innovative start-up cooperatives, effectively applying high technology; promoting the establishment of cooperative unions to link cooperatives as "locomotives" to mobilize input resources and consume products. Many typical advanced cooperatives have emerged, with good production and business skills, with rich and diverse forms in different industries and fields, making practical contributions to the socio-economic development of the locality and the rapid and sustainable economic development of the country.

Appreciating the results of activities in 2018 of the Vietnam Cooperative Alliance, Deputy Prime Minister Vuong Dinh Hue acknowledged that, with its dynamic, active, enthusiastic and responsible organization and activities, the Vietnam Cooperative Alliance has made the political system, Party and State leaders increasingly pay more attention to its organization and activities, contributing to making the entire political system pay more attention to the collective economy and cooperatives.

Emphasizing the tasks of 2019, the Deputy Prime Minister requested the Vietnam Cooperative Alliance to closely follow the Charter in its operations. In particular, it is necessary to focus on performing well the function of representing and protecting the legitimate rights and interests of members; coordinating with ministries and branches to develop plans for the development of cooperative economy, cooperatives, cooperative groups, and individual households; building new cooperative models associated with the value chain of key goods in various fields, sectors, and regions and summarizing and widely replicating them; promoting and mobilizing the development of cooperative groups, cooperatives, and cooperative unions.

The Union implements programs, projects, and public services to support the development of cooperatives and cooperative unions assigned to it; participates in the development of policies and laws on cooperatives and cooperative unions; supports and provides necessary services for the formation and development of the collective economy, with cooperatives and members as the core. Represents members in cooperative relations with domestic and foreign organizations in accordance with the provisions of law.

Deputy Prime Minister Vuong Dinh Hue awarded the First Class Labor Medal to the Vietnam Cooperative Alliance. Photo: Hien Hoa

The Deputy Prime Minister also requested the Vietnam Cooperative Alliance to perform well the 12 assigned tasks, coordinate the implementation and development of strategies, plans, programs for collective economic development, with cooperatives as the core, and related legal documents; perform public services, support activities, consulting, and providing services to members in legal, investment, science and technology, information, finance, credit, market, auditing, insurance, product quality inspection, and other fields. In particular, perform the task of organizing economic activities for the purpose of developing the Cooperative Alliance system and supporting members.

“Economic activities are not aimed at profit but at the goal of developing the Cooperative Union system and supporting members,” the Deputy Prime Minister emphasized.

The Deputy Prime Minister emphasized that the Ministry of Planning and Investment is in charge of state management of the cooperative collective economy. The Vietnam Cooperative Alliance is entrusted with a number of tasks regarding state management functions, especially inspection, supervision, and assessment of the actual effectiveness of the cooperative economic sector, to overcome laxity, lack of attention to drastic direction, and coercion, bureaucracy, and formalism.

“According to the criteria for a new rural commune, there must be an effectively operating cooperative. In the near future, we must carefully review whether there is truly an effectively operating cooperative or not. If we create a form to deal with this criterion, we will definitely not recognize it,” the Deputy Prime Minister requested.

The Deputy Prime Minister suggested that the Vietnam Cooperative Alliance summarize and evaluate 15 years of developing cooperative economy and cooperatives in the spirit of Resolution 5 of the 9th Central Committee, associated with 25 years of existence and development of the Alliance; make recommendations to the Party and State to continue orienting solutions to develop this sector to match its mission, as an important subject of the market economy.