Collective economic development in Phu Giao: People need to be stimulated

That was the directive of Mr. Tran Thanh Liem, Deputy Chairman of Binh Duong People's Committee, at a recent meeting with Collective economic innovation and development Steering Committee of Phu Giao district on collective economic activities in the district.

To develop collective economy, Phu Giao district needs policies stimulating people to enrich themselves. Photo: Speckled choke fish rearing model of Tam Lap freshwater fish club

In the first 6 months of 2016, Phu Giao district established one new cooperative. This was a remarkable and encouraging result. However, in general, Phu Giao district has only 7 cooperatives, but 3 cooperatives are currently in suspension, which is a concern requiring district Party, People's Committee, Steering Committee of Collective economic innovation and development to review and re-evaluate for a proper collective economic development strategy.

According to Mr. Tran Thanh Liem, collective economy has a vital role to boost the difficult economy of Phu Giao. Collective economy is an indispensable part of Vietnamese economy today. Therefore, Phu Giao district Steering Committee of Collective economic innovation and development must constantly innovate and develop this economic model in accordance with local situation. Phu Giao district Party Committee also has to pay more attention to consolidating the Steering Committee and local cooperatives, cooperative groups; enhance the dissemination of collective economy among the people.

In addition, the district needs to expand good collective models, stimulate people to enrich themselves; devise a specific strategy in each area to facilitate appropriate collective economic development; mobilize funds for the development of collective economic models to ensure product output. The district also needs to focus on solving the people’s difficulties in the development process to meet current requirements.

According to the Steering Committee, by Jun 2016, there were 7 established cooperatives, including 4 active cooperatives with 33 members. Total initial investment capital was VND14 billion. Three cooperative are currently suspended. However, only 2 out of 7 cooperatives was established after 2012 in line with the 2012 Law on Cooperative, namely, Thanh Binh cooperative and Binh Duong agricultural cooperative. The remaining 5 cooperatives are currently recommended to make conversion in the future. Also, the district now has 19 cooperative groups with over 220 members mainly specializing in agricultural service sectors, livestock and cropping and basically being consistent with the Government's Decree 151.

During the first 6 months of 2016, 3 cooperatives are currently in suspension, but not have not been dissolved yet; 4 active cooperatives, such as Phuoc Hoa People's Credit Fund is operating stably and efficiently with a total membership over 7,130 people, an increase of 220 people, created jobs for 25 permanent employees, obtained a total profit of VND744 million, contributed nearly VND270 million to state budget, average income of a member reaches VND7 million/month; Minh Tri agricultural cooperative in Tam Lap specializes in livestock with 7 members; six-month’s revenue reached more than VND1.2 billion; average income of a member reaches VND10 million/month. Hoang Anh wooden handicraft cooperative (Tan Long commune) has 8 members and 15 employees, produces of wooden furniture, six-month’s revenue reached VND4 billion, average income reaches VND9 million/month.

In the first 6 months, Phu Giao District established one new cooperative, Binh Duong agricultural cooperative (Phuoc Sang commune) trades organic fertilizer, agricultural and forestry products, live animals, cattle poultry; cultivates agricultural seedling, transports passengers and goods; has 7 members and 16 employees; charter capital of VND1.5 billion; average income is from VND3.5 to 4 million/person/month.

To facilitate growth and improve the efficiency of collective economic model, in the near future, the Steering Committee will actively promote their role to link and coordinate with relevant units to improve the efficiency of cooperatives; support cooperatives to overcome weaknesses; promulgate policies to support cooperatives in terms of finance, land, credit, taxation, science and technology, provide market information of consumer prices, create conditions for cooperatives to be equal to other economic sectors. In addition, the district will enhance the management of collective economy, develop cooperatives combined with with local socio-economic development, economic restructuring and projects.

Reported by Hai Sam – Translated by Ngoc Huynh