Cooperatives struggle to access incentives

17-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Since the 2012 Law on Cooperatives came out, multiple preferential policies have been offered to cooperatives, but they have been struggling to benefit from these policies.

At a forum to review the 15-year deployment of a resolution on renewing, developing and improving the efficiency of the collective economy, held on October 14, minister of Planning and Investment Nguyen Chi Dung said that despite the volatility of the local and global economy and the tight budget, the cooperative sector has operated steadily.

The number of cooperatives and their operation quality has increased annually.

As of late last year, the country had nearly 22,900 cooperatives with some six million members. Roughly 1.2 million labourers work in cooperatives.

Cooperatives play an important role in their members’ economic development by creating jobs for members, contributing to improving their incomes, alleviating poverty and ensuring social welfare.

Many large cooperatives have been established and expanded their operations, such as Lam Dong Province-based Anh Dao general agricultural service cooperative, Evergrowth in Soc Trang Province, Tan Thong Hoi in HCM City and the Saigon Union of Trading Cooperatives, also in HCM City.

According to minister Dung, despite their achievements, the development of cooperatives has yet to match their potential as their growth remains slow. Moreover, some cooperatives have failed to comply with the law, while some others have limited internal capacity, making it difficult for them to access bank loans.

Further, the cooperation among cooperatives is loose.

To remove these shortcomings and help cooperatives achieve a high growth rate and account for a larger proportion of the country’s gross domestic product, the issuance of incentives is crucial.

Under the 2012 Law on Cooperatives, the State has issued many preferential policies for cooperatives and cooperative unions. These policies have been outlined in the cooperative development support programme for the 2015-2020 period, approved by the prime minister in late 2014.

In addition, many localities have worked out their own policies to encourage the development of cooperatives.

However, the number of cooperatives that can access these policies is modest.

Moreover, the application of these policies remains ineffective, as even those on infrastructure have yet to be applied.


Category: Economy, Vietnam

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