Collective economy copes with challenges of market economy

Photo: VNA

In the afternoon, PM Nguyen Xuan Phuc will chair a national video-teleconference on 15-year-implementation of Resolution 13-NQ/TW(Resolution 13), dated March 18, 2002 of the fifth Plenum of the Party Central Committee (11th term) on further renewing, developing, and raising the efficiency of collective economy with the participation of about 400-500 delagates.

Deputy Minister of Planning and Investment Vo Thanh Thong said that after 15 years of implementation of Resolution, the number of cooperatives yearly increased. These cooperatives have developed evently in all regions and their quality has been improved. 

So far, hundreds of modals of cooperatives have been created, bringing about practically economic benefits to their  members. 

As of December 31, 2018, Viet Nam housed 22,861 cooperatives, higher than 3,700 ones (after the Laws on Cooperatives took effect since July 31, 2013). The collective economy attracted six million members chiefly in the agricultural sector. Over a half of cooperatives reported effective operation. 

Last year, average revenue of a single cooperative hit VND 4,473 million, up 5.2 times against that in 2003. 

Average interest of a cooperative  increased from VND 74 million in 2003 to VND 240.5 million in 2018. Average income per capita of a labor also jumped from VND 15.7 million to VND 36.6 million. 

Especially, the number of agricultural cooperatives joining value chains also increased. Specifically, in 2018, nearly 1,200 cooperatives participated in value chains; applied high tech; observed hygine food regulations; connected with supermarkets and large-scale enterprises to boost production consumption and broaden domestic and export markets. 

Failling to meet potentials

However, Nguyen Van Doan, Director of the Department of Cooperatives under the MoPI said that the development of co-operatives hadn’t met its full potentials.

Many still face challenges with poor facilities and backward technology. The capacity and skills of the management staff in the co-operatives are limited, making it difficult to meet the demand of production in the market economy, he said. 

Hence, the Ministry of Planning and Investment and the Viet Nam Cooperative Alliance would organise two events including 2019 Co-operative Forum to collect opinions of cooperatives and members on the current production, obstacles as well as experience in developing new models.

A conference would be also held to review 15 years of implementation of the Party Central Committee’s resolution on continuing to reform, develop and improve the effectiveness of the collective economy. It would focus on pinpointing obstacles to be removed and setting forth solutions to be adopted in the coming time./. 

By Kim Anh