Le Binh Hung, Head of the Southern Agency of Vietnam Cooperative Alliance (VCA) said that Binh Duong’s collective economy in the first half of 2014 mobilized many resources, diversified business scopes and overcome difficulties to reach good results. But, mobilization task  to set up new cooperatives did not changed a lot…

Efforts to overcome difficulties            

According to statistics by provincial Cooperative Alliance, the whole province, as of late July, 2014, had a total of 123 cooperatives and 254 cooperative groups with 57,184 members and laborers. The province’s collective economic sector ensured laborers’income with the average level of between VND2.5mln and VND.5mln per capita per month in the fields of agriculture, trade-services, small scale industry. For non-agriculture field, laborers enjoyed the average income of between VND4.5mln and VND5.5mln per capita per month.  

The field of people’s credit fund in the model of collective economy is operating very effectively. In picture: Members of Phu Hoa People’s Credit Fund in Phu Giao district are being offered advice about loan borrowing procedures

Many cooperatives on transportation, namely Tan Dong Hiep, Binh Duong…, have worked very effectively. They have maintained stable business results and ensured a basic supply of transportation services for members and people. Some cooperatives on construction, namely Thanh Long, Cong Minh…, have also taken initiative in linking with great construction enterprises to create regular jobs for members and people.

One of collective economic fields with considerable results in Binh Duong is the people’s credit fund. As of late June, 2014, all 10 people’s credit funds in the province continued stably working. They have so far absorbed nearly 52,000 members with a total capital of VND1.433trillion; provided loans with the low interest rate for 4,094 small and medium-sized enterprises, individual business households…

Strengthening consultancy, support

In the first half of the year, the whole province only set up additional five cooperatives or 33% of the yearly plan. The number of cooperative groups in the province reduced to 254 with 3,903 members.

Tran Van Thay, Chairman of provincial Cooperative Alliance said that the province’s collective economy during the period faced difficulties, due to the impacts of the global economic downturn, bad weather, output price on reduction…The sector was also greatly affected by the slow promulgation of documents guiding the implementation of the Law on Cooperatives 2012. In addition, some policies relating to cooperatives are not in line with the real situation.

At a conference to partially sum up activities of provincial Cooperative Alliance in the first half of the year, leaders of the steering boards for collective economy in some localities mentioned obstacles in developing the local collective economy. Nguyen Tan Luc, Head of Dau Tieng district’s Division of Economics said: “Support policies on capital, consultancy and training are needed to promote the local collective economy. The local functional agencies also need to soon research and open training courses for managerial officials to be able to operate cooperatives effectively…”.

According to Mr.Hung, provincial Cooperative Alliance needs to boost consultancy and support activities for cooperatives’ better development in the coming time. Provincial Cooperative Alliance also needs to make efforts in removing its queries and shortcomings to further promote the local collective economy.

Reported by Thanh Hong-Translated by K.T