Part 2: To continually promote roles within the stage of reforms

In 5 years of 2016-2020, the central collectives of collective economic sector have strongly developed to gain noticeable achievements, contributing to socio-economic development of the province.

People’s credit fund is the most stable and effective model of collective economic model. In this photo: Customers are making transaction at An Thanh People’s Credit Fund at An Thanh ward in Thuan An city

The gained results

In the past tenure, operations of Binh Duong provincial Association of Collectives have been effective to meet and exceed the targets. Particularly, the association has consulted with Binh Duong provincial Party Committee and People’s Committee to plan decisions and policies for collective economic development. Concurrently, Binh Duong provincial Association of Collectives has well implemented information dissemination and encourage collective economic development through suitable forms. Servicing subjects of collective economy have been comprehensively expanded among groups, clubs, farm owners, excellent producers and people’s sectors, and some small and medium enterprises.

Concurrently, Binh Duong provincial Association of Collectives has gathered, mobilized, called, and assisted collectives effectively by implementing production connection with products’ value chains. The tasks assigned by Binh Duong provincial Directive Board for Collective Economic Development and National Pivotal New Rural Development Program in the province to build up professional connection of districts and cities while upholding the role of Binh Duong provincial Association of Collectives in the political system. Emulation movements have been widely and strongly developed to contribute to socio-economic development. Collective organizations have been developed in stronger manner to achieve major results and brilliantly fulfill targets proposed in the tenure of 2016-2020.

In 2016-2020, newly developed collectives stood at over 10%. The collectives have continually been refined in terms of organizations and operations to bring about socio-economic results, contributing to poverty eradication, job creation, and new rural construction. Collectives have been developed in terms of quantity and quality to well assist household businesses and construction of joint-venture and combined collectives in multi-professions and general services. The collectives expand and admit new members to mobilize member equity with regular membership meetings for reforming management and operations. Annually, 66-79% of collectives are evaluated as effective collectives of business operations to earn annual revenue growth of 12-15% per annum.

Currently, 187 collectives are residential in the province, increasing by 102 collectives or 120.1% of the projection by the resoution of the 2016-2020 tenure with 30,380 members and charter capital of over VND 801 billion (24.9% higher than the figures at the beginning of the term). Of the collectives, those working in the fields of transportation, industrial handicraft, construction, trade-services, environment and people’s credit funds have been effective with average profits at VND 726 million per collective per year. Average income of employees range from VND 6 to 6.5 million per month which is VND 14.5 million a month for collectives of people’s credit funds (meeting and exceeding targets proposed by resolution of 2016-2020 tenure).

Continual development and reforms

The recent results are evidence of brighter collective economic picture of Binh Duong province while affirming their roles in the process of integration and new rural construction. Operations of the collectives are attached to social needs and for the resolution of employment, poverty eradication, and community development, promoting sustainable economic development of Binh Duong province.

Nguyen Tien Dung, Chairman of Binh Duong provincial Association of Collectives asserted that concentration on major measures should be follow to improve awareness of the public and the political system of collective economic development, to improve investment environment, to increase quantity of collectives, to help enterprises mobilize all resources for development. On the other hand, management capacity, scale, productivity, quality, and operations of collectives should be improved. Collectives, associations of collectives and cooperations groups should be promoted in terms of investments, production, and joint business operation in the chains of values.

In 2020-2025 tenure, Binh Duong provincial Association of collectives continues to mobilize for new development of collectives at 10-12% per annum by the end of 2020. Efforts are being made so that by the end of 2025, about 230 to 250 collectives will be available with establishment of another effective association of collectives abided by Law on Collectives 2012. Economic growth rate in collectives should be at 16% and more per annum, significantly contributing to Binh Duong provincial GRDP. Average income is projected to be by the end of 2025 at 65% without any weakly operating collectives. Agricultural collectives shall be constructed and developed to be at least 20% of model collectives in the field with distinctive local products in the value chains.

Reported by Thoai Phuong – Translated by Vi Bao