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Vietnamese gov’t to finance cooperatives

Cooperatives have so far grown contributing 5.6 percent to the country’s Gross Domestic Product, said participants at a conference in Hanoi yesterday; accordingly, Deputy Prime Minister Vuong Dinh Hue proposed financing them.

Deputy PM Hue visits a flower cooperative in Lam Dong (Photo: SGGP)

Deputy PM Hue visits a flower cooperative in Lam Dong (Photo: SGGP)

The conference presided by Deputy Prime Minister Vuong Dinh Hue was about implementation of the government’s Decree No. 98/2018 on policies of production and consumption alliance and the Prime Minister’ Decision No. 461 on developing 15,000 cooperatives.
Participants said cooperatives have grown more and with the present growth, it is totally possible that Vietnam can have 15,000 cooperatives by 2020.
According to the Ministry of Agriculture and Rural Development, by June, 2018, the country has 39 agricultural cooperative alliances and 12,596 cooperatives. Through a study conducted in 2017 , just 12 percent of cooperatives ( or 1, 115 cooperatives) are operating well while 34.3 percent of them have fairly operated.
Speaking at the conference, Deputy Prime Minister Vuong Dinh Hue said that thanks to competent agencies’ efforts, cooperative started to develop contributing 5.6 percent to the country’s GDP; accordingly, Vietnam can have 15,000 cooperatives in 2020.
Notwithstanding, Mr. Hue stressed that the government and the PM take heed to cooperatives quality rather than quantity. It is a long difficult time to have efficient cooperatives like present.
The next step is to strengthen quality of 4,400 good cooperatives and 1,500 of them have to adopt high technologies whereas weak cooperatives must work efficiently by 2020.
As per Mr. Hue, household business used to gain achievement before yet household business owners must unite to grow. Accordingly, setting up cooperatives with the participation of scientists is the best way to help agriculture sector growing more and implement the Party, the National Assembly and the government’s decision.
Mr. Hue proposed the state bank of Vietnam to soon change the decree No.55 to provide more funding in the field of agriculture, rural plan while the Ministry of Agriculture and Rural Development, local administrations to re-assess land and property to facilitate cooperatives loan borrowing.

By PHUC HAU - Translated by UYEN PHUONG

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