Transcript 1/. A brief overview of status of cooperative movement in Vietnam

1/. A brief overview of status of
cooperative movement in Vietnam
- In early 90s, the cooperatives get out of the
centrally planned and subsidized economy.
- The Law on Cooperative in 1997, the old typed
coops transferred to the new typed cooperatives
and re-registered under the law.
- Newly established coops appear and diversified
operations. 5,700 new coops set up since 1997.
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There are 14,207 coops in which:
+ 8,349 agricultural coops
+ 570 consumer coops
+ 927 credit coops
+ 2,069 industrial coops
+ 1,072 transportation coops
+ 481 construction coops
+ 583 fisheries coops
+ 156 other coops (school coops, water supply
coops etc.)
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- 7,5 million members
- 1 million staff and officers working in this
sector.
- Average growth rate in the coop sector is
11% since 2000, particularly 13,5% in 2003.
Business and production income of 50,000
billion VND accounting for 8,6 % GDP.
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2/. Policy mechanism to coops
- Revised the Law on cooperative in November
2003 and approved by the National Assembly of
the S.R.V.
- The main features of the revised law:
+ Define clearly the concepts of the coop.
+ Extend the scope of the participation such as the
State officers and civil servants, legal entities
can join to coops.
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+ Simplify the business registration
procedures
+ Coops allow to set up the companies or
enterprises. Chairman can be voted among
the members or hired from outside.
+ Define clearly the functions of Vietnam
Cooperative Alliance (VCA).
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- The Government formulated many encouragement
policies to the coop sector:
+ Training policy to the coop staff: support partly or
wholly training fee and assist to compile the
training materials.
+ Land policy: allocate land free of charge and grant
the land use right certificate to the agricultural
coops. Non agricultural coops can lease the land
for long term and reduce 50% of leasing fee for
the first two years.
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+ Financial – credit policy: Clear the old debts,
exempt corporation income tax for the newly
established coops or the restructured coops in the
first two years. Coops can borrow capital from
credit institutions, banks and national projects
etc.
+ Scientific – technology assistance policy:
Encourage the scientific – technology research
agencies cooperate with the coops and transfer
the new advanced techniques to coops. The State
support the collective economy to adopt the new
scientific technology techniques.
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+ Policy on marketing support and market
expansion: promote trade and provide
information, seek the markets for members
and coops in domestic and oversea,
introduce and display the products in the
exhibitions and trade-fairs.
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3/. Objective Appraisal and assessment
of effectiveness of coop. Policy and
Coop. law
- Revision of the Law on coop and formulation
of encouragement policies to the coop sector
create the favourable conditions for the
development of this sector. Thousands of new
cooperatives set up. The share capital of
coops increase 2 times higher compared to the
previous years.
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4/. Status of implementation of
Recommnedations of 6th Asia-Pacific Coop.
Ministers’ Conference held in April 2002 in
Kathmandu
- Revised the Law on Cooperatives
- The government of Vietnam formulated many
open and encouraged policies to support the
effectiveness of coops.
- Enhance the State managerial role to the
cooperatives through the related Ministries.
- Facilitate the cooperatives to participate in the
social – economic programs of the Government.
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Thank
you for your kind attention
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