Collective economic transforms in the right direction and efficiency

In recent years, Binh Duong Provincial Party Committee and Provincial People's Committee have facilitated the development of the collective economy. Positive effects from mechanisms and policies are quite a big help, contributing to ensuring social security, stabilizing grassroots politics, contributing to socio-economic development in the province.

Chu Thi Vinh, Deputy Director of Department of Economic Cooperation under Ministry of Planning and Investment, speaks at an inspection of the Law on Cooperatives 2012’s implementation in Binh Duong.

Good results

The Central Committee's delegation led by Chu Thi Vinh, Deputy Director of Department of Economic Cooperation, Ministry of Planning and Investment, paid a visit to inspect the implementation of Law on Cooperatives 2012 and survey the development of collective economy in Binh Duong. Namely, the delegation conducted a survey at Dat Thu Trade - Service - Transport Cooperative (Dinh Hoa ward, Thu Dau Mot city).

Cao Van Loi, Director of Dat Thu Trade - Service - Transport Cooperative, reported that the cooperative was established in 2017, with a charter capital of 4 billion VND, is in business of road freight transport, passenger transport inside and outside the province, and provides services related to transportation... In 2022 and the first six months of 2023, the cooperative fully participated in training sessions organized by the province under the annual economic development program. The cooperative has received effective support through relevant policies of the province, provincial departments and branches.

According to Provincial Department of Planning and Investment, since the Law on Cooperatives 2012 took effect, the cooperative development in the province has had positive changes. Over the first 6 months of 2023, the province developed 33 new cooperative groups and 5 cooperatives. Up to now, the whole province has 222 cooperative groups, an increase of 10.45% year-on-year, with 2,062 members, operating capital of VND47.9 billion; 231 cooperatives operating under Law on Cooperatives 2012, an increase of 6.45% year-on-year, with 47,628 members, charter capital of more than VND865 billion, an increase of 9.72% year-on-year.

Cooperatives are in a variety of businesses, such as: transport, agriculture, handicrafts, construction, commerce - services, environment, and people's credit fund (PCF). In the first 6 months of 2023, total revenue of cooperative economy was estimated at VND 777 billion, reaching 66.9% of the 2023 plan, up 5.22% year-on-year. Average income is from 6.5 million to 7 million VND/laborer/month for cooperatives and 15 million VND/laborer/month for PCFs. The average revenue of the cooperatives is estimated at VND5.6 billion/year; the average profit of a cooperative is estimated at VND1,125 billion/year; the average income of a regular employee in the cooperative is VND90 million/year.

Speaking at the survey, Ms. Chu Thi Vinh acknowledged the attention of Binh Duong provincial levels and branches to implementing support policies for cooperatives; proposals and recommendations of Dat Thu Trade - Service - Transport Cooperative on accessing support policies will soon be transferred to the competent authorities for consideration and settlement.

Continue to stimulate development

The Provincial Party Committee and Provincial People's Committee directed relevant departments, branches and units to be proactive in mobilizing, consulting and guiding the founders to develop production and business plans, strengthen and reorganize cooperatives according to Law on Cooperatives 2012; develop a plan to coordinate inspection, survey, assessment and classification of cooperatives...

Besides, every year, the Provincial People's Committee has directed the Standing Committee of the Provincial Cooperative Union to implement the plan of fostering and training for officers and members of the cooperative; at the same time, propagandize about the Law on Cooperatives in 2012 and sub-law documents, support policies and incentives related to the market economy in the province. As a result, in 2022 and the first 6 months of 2023, 11 propagation sessions were held with 1,112 participants who were members of the Steering Committee for economic innovation and development at district and commune levels; leaders of district-level departments; officers of communes, wards, townships, political organizations, farm owners, cooperatives, people's funds...

According to Ha Van Phuc, Vice Chairman of Provincial Cooperative Alliance, in general, activities of cooperatives after transformation and implementation under Law on Cooperatives 2012 have well changed, creating stable jobs for many workers, make an important contribution to the provincial socio-economic development. However, the organization, dissemination and implementation of the law in the province still has limitations. Some party committees and commune authorities have not paid due attention to the growth of cooperatives; the number of newly established cooperatives is still small compared to the potential and advantages of the locality; operation scale and internal capacity of cooperatives are weak; lack of orientation for activities to expand production and search for consumption markets; joint ventures, cooperation within cooperatives, between cooperatives and other economic units is not effective...

In order to further develop the collective economic in the coming time, Binh Duong province made some recommendations to the delegation. The Law on Cooperatives 2023 (amended and supplemented) was approved by the National Assembly and takes effect on July 1, 2024; needs to soon have resolutions and circulars guiding the implementation. Ministry of Agriculture and Rural Development and Ministry of Planning and Investment need to agree on guidelines for classification and assessment of cooperatives. In addition to the five contents of policies supporting the development of the collective economy in the 2021-2025 period, Binh Duong proposed to add 2 additional issues: human resource development policy and social insurance policy.

In 2022, excellently and good rated cooperatives of the province accounted for 63.37%, cooperatives with the average rating accounted for 36.63%. The average revenue of the cooperative is about VND5.6 billion/year; the average profit of a cooperative is about VND1,125 billion/year; the average income of a regular employee in a cooperative is VND90 million/year. Particularly in the first 6 months of 2023, total revenue is estimated at VND777 billion, reaching 66.9% of the 2023 plan, up 5.22% year-on-year.

Reported by Thoai Phuong - Translated by Ngoc Huynh