Bau Bang district realize many solutions for collective economy development

Bau Bang district has defined the collective economy plays a very important role in the economy, in which cooperatives and cooperative groups are the core. Therefore, the district has strengthened the Steering Committee for renewal and development of collective economy at all levels and encouraged the development of key economic sectors by applying modern technologies, linking production with processing and marketing of products.

To generate stable revenue

Up to now, in Bau Bang district, there are 9 cooperatives with 67 members, including 2 agricultural cooperatives, 1 construction cooperative, 6 transport cooperatives and 10 cooperatives with 106 members, including 6 animal husbandry cooperative groups, 3 cultivation cooperative groups, and 1 production cooperative groups. The district also has 48 groups cooperating with 611 members and 429 farms (including 114 cultivation and 315 animal husbandry). The initial investment capital of the cooperatives in the district is VND34.7 billion, of cooperative groups is VND8.084 billion.

Co-operatives operating in the field of transportation contributed importantly to the overall development of the collective economy development of Bau Bang district. In picture: Transportation activities at Bau Bang Bus Station.  

Tran Thanh Liem, Deputy Secretary of the District Party Committee, Head of the Steering Committee of Bau Bang district, said that due to the information and propaganda activities, people in the district were aware of the role and benefits of participating in the collective economy, especially cooperatives under Law on Cooperatives 2012. As a result, only in the first 6 months of 2017, the district set up 4 new cooperatives with 30 members, total initial investment of VND13 billion, operating fields are transportation - services and waste collection. Besides, Steering Committees at all levels in the district regularly disseminate and implement supportive policies so that cooperatives, cooperative groups could expand their production scale. Since then, it has contributed to solving employment problems for local workers and creating a stable source of income for people.

Mr. Hoang Van Quyet, head of mushroom growing cooperative group in Tan Hung commune, said that the cooperative group now had 7 members planting abalone mushroom and gray mushrooms with a total area of ​​2,000 m2, harvesting over 400,000 bags. With the current stable market price, profit after all deductions of mushroom growers is from VND25-30 million / harvest.

Well dealing with loan issues

The current difficulty of Bau Bang district in collective economy development is the size of co-operatives, cooperative groups is still small, can not expand production, business lines are not diversified, ineffective business strategies, lack of properties for mortgage ...

Mr. Quyet added that the mushroom growing cooperative group in Tan Hung commune had a small scale, most of them were farmers, so it was very difficult to set up an effective business plan. In addition, the cooperative group’s assets are not enough to apply for mortgage. Specifically, to set up a mushroom cultivation area of ​​60m2, about 10,000 bags of embryos, the cooperative group needs to invest VND60-70 million, but their collateral cannot afford bank loans.

To address this issue, regarding the support policy, Bau Bang district will implement state policies, such as the cooperative support program 2015-2020 by the Government; funds from Social Policy Bank, trust funds from organizations ... According to Le Thanh Tam, Vice Chairman of the district People's Committee, Deputy Head of the district Steering Committee, besides policies of the Central and the province on the collective economy development, the district has a plan to establish a people's credit fund to support cooperatives, cooperative groups.

However, the establishment of the fund is difficult, due to the low number of members (at least 30 people), unfeasible business plan in the first three years of operation. ... In order to create conditions for cooperatives, cooperative groups to access funds, the district have proposed to adjust some regulations for all members have conditions to invest, expand production and business.

Bau Bang district also encourage effective cooperatives, cooperative groups to form joint venture to have new cooperatives, building their own cooperative brand. In terms of new establishment, the district encourage and mobilize the establishment of new types of collective economy with diversified industries such as services, finance, environment ... to meet the development needs of the district.

Since the beginning of the year, Bau Bang district has set up 4 new cooperatives, including Tan Hop Phat cooperative (operating in the field of transport - services) with 7 members, initial capital of VND5 billion; Lai Hung Transport - Production - Trade - Tourism cooperative (transport sector) has 9 members, initial capital VND1.5 billion; Minh Anh Transport cooperative (transport sector) has 7 members with initial capital of VND5 billion and Dai Loi Cooperative (waste collection and transportation) with 7 members, initial capital VND1.5 billion.

Reported by Hoang Pham – Translated by Ngoc Huynh