The Ministry of Agriculture and Rural Development, the region has 1,272 agriculture cooperatives, accounting for 22.8 percent of the country’s total number. Averagely, each province has 98 cooperatives.
After four-year implementation of Cooperative Law, newly established cooperatives meet requirements of agricultural restructure and the government’s new rural plan.
As many as cooperatives have their major products and link with other by chains including linkage between cooperatives and big supermarkets to expand consumption of agricultural produces.
In the meeting, participants said that the Cooperative Law 2012 is not appropriate because it stipulated that the maximum of capital contribution of each cooperative member must not exceed 20 percent of the registered capital.
Additionally, the regulation that those who are not cooperative member are supplied products and services less than 32 percent is controversial because it impedes cooperatives’ activities.
Moreover, red tape to set up cooperatives barriers establishment of new cooperatives. It also hinder access to fund to expand production scale and weak link amongst cooperative members.
Speaking at the meeting, Deputy Prime Minister Vuong Dinh Hue said though cooperatives have made positive changes, the development does not match its full potential; accordingly cooperatives have contributed nearly 5 percent to the country’s total Gross Domestic Product.
The south central coastal area and the highlands region plant key trees such as coffee, rubber, pepper, veggies. Orchids growing in Lam Dong Province achieve VND24 billion ($1 million) per hectare a year and farmers enjoy profit of VND7.2 billion.
In the next time, relevant agencies need to increase information of cooperative role in agricultural restructuring to farmers and local administrators. It is needful to show farmers the necessity of link in agricultural production in the market economy.
Last but not least, the government will adjust the Decree No.55 to allow farmers to give their manufacturing equipment as security for a loan.