Finding ways to remove obstacles in accessing credit capital for the collective economic sector

On April 23, in Hanoi, an online workshop on Solutions to remove obstacles in accessing credit capital for the collective economic sector took place. The workshop was chaired by comrades: Cao Xuan Thu Van - President of the Vietnam Cooperative Alliance, Deputy Head of the National Steering Committee on Collective Economy; Dao Minh Tu - Permanent Deputy Governor of the State Bank of Vietnam.

Comrade Nguyen Van De - Vice Chairman of the Provincial People's Committee chaired at Nghe An bridge point.

Perfecting the legal framework to support and enhance the capacity of cooperatives

By the end of 2023, the country had 30,698 cooperatives, 137 cooperative unions and 71,500 cooperative groups. Of these, there were 20,500 agricultural cooperatives and nearly 10,200 non-agricultural cooperatives.

In general, the performance indicators of cooperatives, cooperative unions and cooperative groups have increased compared to 2022, especially in terms of production scale. The cooperation trend has also been expanded and put into practice. To date, 1,718 agricultural cooperatives have applied high technology and digital technology in production and business; over 4,339 agricultural cooperatives undertake to consume agricultural products, accounting for 24.5%...

However, the State's support and incentive policies still have some shortcomings and limitations, and have not been as effective as expected. In order to determine the goals, orientations and development solutions for this economic sector, in recent years, the legal framework for supporting and developing the rural economy has been completed and synchronized.

At the workshop, many solutions were proposed to mobilize resources for collective economic development in the coming time. These are: Quickly develop and promulgate detailed regulations and guidelines for the implementation of the 2023 Law on Cooperatives (effective from July 1, 2024). Ministries and branches, based on their assigned functions, tasks and powers, coordinate and support localities andcooperativesBuilding and improving the qualifications of core cooperative staff in economics, finance, business and cooperative management and administration skills.

Develop a specific mechanism for mobilizing and using the State budget to support cooperatives and ensure resources for policy implementation. Enhance the role of representative organizations, the core of which is the Vietnam Cooperative Alliance at all levels, especially in policy dissemination and criticism; act as a bridge to implement and increase access to policies; advise and support cooperatives. Promote more effectively cooperative development support funds; strengthen public-private partnerships, increase resources from cooperative members themselves; mobilize and effectively use all social resources to promote rapid and sustainable development of this economic sector.

Localities continue to implement the appropriate support policies that have been issued. If they are no longer appropriate, they must promptly amend and replace them; proactively issue policies and allocate resources to support the development of this economic sector, without waiting or relying on them. At the same time, research and refer to the experiences of successful models in localities in the country and around the world to apply and develop.

Recommendations to remove difficulties in accessing credit sources

In Nghe An, in recent years, the collective economic sector and cooperatives have been gradually developing steadily, affirming their advantages and roles, together with the State economy, becoming a solid foundation of the local economy.

As of December 31, 2023, Nghe An province has 895 cooperatives, the number of effectively operating cooperatives accounts for 56.09%; the number of members participating in cooperatives is 268,076 members, the total number of regular employees is 60,898 people, cooperatives are increasingly shifting towards diversifying industries.

With efforts under the direction of the province, as of December 31, 2023, 4 cooperatives have borrowed capital from commercial banks in the province, with accumulated loan turnover reaching 20,272 billion VND, total outstanding debt of 7,200 billion VND; 11 cooperatives have borrowed capital from the Nghe An Cooperative Development Support Fund, with an amount of 4,480 billion VND and 5 cooperatives have borrowed with a capital of 1,650 billion VND at the Nghe An Provincial Social Policy Bank from the National Employment Fund of the Vietnam Cooperative Alliance...

Most cooperatives have used the loan capital for the right purpose, invested in production and business development, contributing to improving production and business efficiency, increasing revenue, profit and income of members. However, the implementation of credit policies for this economic sector still faces many obstacles and difficulties; it has not met the capital access needs of organizations.collective economy; The number of cooperatives with access to capital is still low.

At the workshop, Nghe An proposed a number of issues to remove difficulties in accessing credit sources for the collective economic sector and cooperatives. Specifically: Proposing the Government to direct the removal of resource bottlenecks in cooperatives, including resources from banks; The State Bank of Vietnam advises the Government to complete regulations and legal policies related to access to capital for cooperatives; The Vietnam Cooperative Alliance organizes to improve the professional skills of Cooperative Fund staff...