Prime Minister Nguyen Xuan Phuc: Promoting people's voluntariness in developing cooperative economy

On the afternoon of October 14, the Central Steering Committee for Innovation and Development of Collective and Cooperative Economy held an online conference to review 15 years of implementing Resolution No. 5 of the 9th Central Committee on the collective economy. Comrade Nguyen Xuan Phuc - Politburo member, Prime Minister chaired the conference.

Nghe An bridge has comrades: Nguyen Dac Vinh - Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation; Vo Thi Minh Sinh - Member of the Provincial Party Standing Committee, Chairwoman of the Provincial Fatherland Front Committee; Le Ngoc Hoa - Vice Chairwoman of the Provincial People's Committee; leaders of departments, branches; leaders of People's Committees of districts, cities and towns.

By 2030, the country will have 35,000 cooperatives.

Panorama of the conference at the Hanoi end. Photo: QĐND

After 15 years of implementing Resolution No. 13/NQ-TW of the 5th Central Committee Conference, 9th tenure on continuing to innovate, develop and improve the efficiency of the collective economy, provinces and cities across the country have paid attention to developing cooperative groups (THT), cooperatives and cooperative unions.

As of December 31, 2018, the country had 101,405 cooperatives in the agricultural and non-agricultural sectors; 22,861 agricultural cooperatives, People's Credit Funds and non-agricultural cooperatives.

The country has 74 Cooperative Unions (39 agricultural cooperative unions and 35 non-agricultural cooperative unions), an increase of 2.8 times compared to 2003. Cooperative Unions were established mainly in the regions: Red River Delta, Southeast and Mekong River Delta.

Panoramic view at Nghe An bridge. Photo: Xuan Hoang

However, according to the assessment of the Central Steering Committee for Innovation in the Development of Collective Economy and Cooperatives, the collective economy in general still has many weaknesses. The reason is that in many places, there has not been due attention from Party committees and local authorities in directing, orienting, building policy mechanisms, focusing on removing difficulties and obstacles, creating conditions for collective economy and cooperatives to develop.

The awareness of some Party committees, authorities, especially leaders, leaders, Party members and people has not yet fully recognized the important role and position of the cooperative economic sector in the economy, especially for agriculture, rural areas and farmers. The state management apparatus for cooperatives is mostly part-time and has not yet mastered the expertise, so the advice on implementing state management of cooperatives is still limited.

The goal by 2030 is that the country will have about 150,000 cooperatives, 35,000 cooperatives, and 120 cooperative unions. The number of effectively operating cooperatives will reach 80%, with about 25,000 cooperatives and cooperative unions operating effectively in agriculture.

Types of cooperatives in Nghe An. Graphics: Lam Tung

In Nghe An, implementing Resolution No. 13-NQ/TW, the Provincial Party Committee and People's Committee of Nghe An province have issued many documents to specify and institutionalize Resolution No. 13-NQ/TW, applying the State's guidelines and policies on developing the market economy in accordance with the actual conditions of the province, creating a legal corridor for the State management of the market economy in the province to become increasingly systematic.

The market economy in the province has many positive changes, the contribution of the market economy to the province's GRDP is increasing (in 2003, the market economy contributed 4.8% of the province's GRDP; in 2018 it is estimated to reach 6.8%).

As of December 31, 2018, the province had 2,974 cooperatives, an increase of 1,341 cooperatives compared to December 31, 2003. Of these, there were 2,036 agricultural - forestry - fishery - salt production cooperatives, 235 industrial - handicraft cooperatives, 208 construction cooperatives, 152 commercial cooperatives, 104 transport cooperatives, and 239 environmental cooperatives. Of the 2,974 cooperatives, 2,800 cooperatives operated effectively (accounting for 94.15%).

The main business lines of cooperatives are cultivation, fishing, processing and consumption of post-harvest agricultural products, supplying fishing materials, producing bamboo and rattan, weaving brocade, processing seafood, and small-scale handicrafts and construction.

Types of cooperatives in Nghe An. Graphics: Lam Tung

Nghe An province has 699 cooperatives and 02 cooperative unions. Of the total 699 cooperatives, there are 537 agricultural cooperatives, 103 non-agricultural cooperatives, 59 people's credit funds; 02 agricultural cooperative unions. Of which, 313 cooperatives (accounting for 49.67%) operate effectively; 266 cooperatives operate averagely (accounting for 38.05%), the rest are weak and have not been evaluated.

Nghe An aims to develop about 03 new Cooperative Unions by 2025. At least 85% of wards, communes and towns in the province have cooperatives; About 84% of cooperatives operate effectively. The contribution of the collective economic sector and cooperatives reaches about 8.5% of the province's GRDP.

By 2030, develop about 04 new Cooperative Unions. Eliminate communes without cooperatives; Have about 90% of cooperatives operating effectively. The contribution ratio of the collective economic sector and cooperatives reaches 9.7% of the province's GRDP.

Collective economic development must be voluntary by the people.

Speaking at the conference, Prime Minister Nguyen Xuan Phuc highly appreciated the Central Steering Committee for Collective Economy for directing localities to effectively implement collective economy over the past years. The conference is a forum for localities to refer to good and creative practices in some localities in developing collective economy and cooperatives. Through that, we can see the position and role of collective economy in socio-economic development in localities, especially when our country has deeply integrated into the world economy.

However, the Prime Minister said that there are still many ineffective cooperatives and groups, with low competitiveness, and a part of the people do not trust the new cooperative model.

Tan Thanh Agricultural Cooperative (Yen Thanh) produces pineapples according to VietGAP process. Photo courtesy of Thai Duong

Some of the difficulties and problems that cooperatives are facing are capital and access to capital; qualifications of cooperative management staff; land mechanisms...

Cooperatives and cooperative groups are important factors to promote agricultural development. Therefore, in the coming time, ministries, branches and localities need to study successful cooperative models internationally and domestically to replicate.

Prime Minister Nguyen Xuan Phuc emphasized: Developing cooperatives and cooperative groups is a task that needs attention and direction, but it must come from the needs of the people, especially promoting the voluntary nature of the people. The important issue is that ministries and branches continue to perfect the cooperative institutions, build a legal corridor for the collective economy of cooperative groups and cooperatives to operate more smoothly...