Global experience necessary for boosting new-style cooperatives

He made the remark at the fifth national congress of the Vietnam Cooperative Alliance (VCA) in Hanoi on July 19, noting that almost all cooperatives nationwide are small-sized with poor capacity. 

While their operations have yet to meet members’ demand, some local authorities haven’t fully understood the role of the cooperatives in economic development and social stability. 

Domestic and global experience showed that connecting separate smallholders to form cooperatives and cooperative unions is the best way to improve the livelihoods of the millions of farming households, he said. 

The PM stressed that a new cooperative model must be created by cooperatives’ members, not imposed by authorities. 

He asked the VCA to closely work with authorised agencies to create optimal conditions to spur cooperatives’ operations and their members’ creativity. 

Meanwhile, ministries and local administrations should have thorough understanding of cooperatives’ role so as to provide support policies and conditions they need. 

The VCA’s fifth national congress for the 2016 – 2020 tenure was attended by 546 official delegates representing about 30 million labourers across the country. 

At the event, VCA Vice Chairman Nguyen Dac Thang reported that 5,000 cooperatives and 150,000 cooperative groups were set up over the last five years, contributing about 5 percent to the national GDP. The sector recorded an average 3 percent growth between 2012 and 2014.

Some new-style cooperative models, which have a connection to goods value chains have been taking shape in the period; while many cooperatives have expanded production and business, promoted technological application and enhanced links with other economic sectors.

However, he also pointed out limitations in enforcing the 2012 Law on Cooperatives 2012, saying that the issuance of documents guiding the enforcement of the law and the State’s support policies for cooperatives remained slow and unsystematic.

The state management for the cooperative economy from central to local levels was not consistent, he noted, adding that the role and position played by the VCA has yet to meet requirements, in the context of fostering integration.

VCA Chairman Vo Kim Cu stated that the alliance will focus on developing new-style cooperatives in connection with building value chains of goods and prioritising the development of public service cooperatives and those specialising in producing materials, preserving, processing and selling products for their members.

It is set to increase the number of cooperative groups to 250,000 by 2020, with 5 percent of the total being developed into full cooperatives. The average income of cooperative members and labourers is expected to double the 2015 figure, he said.

The congress elected a 142-strong executive board for the 2016-2020 tenure, led by Vo Kim Cu.