Data presented at the research announcing conference “Some Economic Issues to Consider in the Draft Cooperative Law” recently organized by the Vietnam Center for Economic and Strategic Studies (VESS) showed that by the end of December 31 In 2020 there were about 25,777 cooperatives across the country.

In this country only about 15,306 cooperatives operate and have production and business results, which accounts for about 60% of the total number of established cooperatives.

Less valuable links

Mr Le Duc Thinh, director of the Department of Economic Cooperation and Rural Development (Ministry of Agriculture and Rural Development), said cooperatives were set up to overcome the limitations of the market economy and uphold the interests of the community. for members to attend.

However, in recent years we still lack institutions that promote broader development of the market economy. Every household cannot meet the great demand for goods on the market. Not participating in cooperatives creates self-competition, which leads to lack of control in agriculture and limits development.

“Vietnam still lacks valuable connections, which are horizontal connections between people and people or vertical connections between people and investors. This resulted in numerous cooperatives being set up but with no implementers and the link between investors and farmers was broken. “An agriculture that is not focused on quality, therefore, lacks the ability of linkage,” Thinh pointed out, saying that in 2016-2020, there have been nearly 60 factories to process agricultural products, but no physical area linking the longitudinal linkage caused would have been broken.

In addition, the cost of agricultural production is too high. Common buy-together, sell-together practices, especially quality management, have not yet ensured that the value chain meets market demands, while consumption and trade trends are constantly changing towards cleaner eating and more culture.

In rural areas, the benefits of building and developing infrastructure for people are quite large. But one of the problems that cannot be solved is how to organize production and increase farmers’ incomes in order to reduce poverty. Therefore, in order to further develop the production economy, especially agriculture, in the coming period, it is necessary to reorganize farmers to create good agricultural practices, because without cooperatives there is no agriculture.

Mr Thinh stressed that like many other laws, it is revised once every ten years. The cooperative law is only “tailored” and not “uniform” in the development process, so it needs many factors where the social factor makes the difference, so there are many conflicts. argue.

That is why we need to change the Co-operative Law so that co-operatives can participate more effectively in the market, better protect the interests of rural community members and really act as a bridge between farmers and the market. School.

ARE cooperatives a company?

Previously, a cooperative had 7-8 people, a small capital, but a cumbersome administrative apparatus, including the board of directors, board of directors and supervisory board. Therefore, this amendment to the law aims to create an abbreviated administration and make progress. If it is a service cooperative, it should be clear what the goal is, how to improve this cooperative so that the community benefits better…

According to GS. dr Tran Duc Vien, Chairman of the Science and Education Council of the National Agricultural Academy of Vietnam (VNUA), states: The principle is to follow the market mechanism, what farmers pay for farmers.

Therefore, this representative stressed, a cooperative is an autonomous economic organization that brings small farmers together to befriend big corporations and compete with big corporations for a better life. As such, the law is more of a guide than strict regulations to be followed.

According to Mr. Vien, one problem that has arisen today is that many cooperatives create companies within the cooperative, right? There are also many cooperatives that emerge from the company. Is there competition between cooperatives and cooperatives? If it’s peaceful, can it be developed? All of these things need more attention in the draft legislation.

Assoc.Prof.Dr. Chu Tien Quang, former head of the Department of Rural Development Policy at the Central Institute of Economic Management (CIEM), said that cooperatives are autonomous organizations of people who join together voluntarily to help each other in economy, society and culture through a common enterprise. There are many conflicting opinions that cooperatives are cooperatives and not corporations. However, there is an opinion that the cooperative is a form of business that can only operate on the market. This is an empty subject in the current legislation.

The content of the article was published in Vietnam Economic Review No. 23-2023 on June 5, 2023. Welcome readers to read below The:

https://postenp.phaha.vn/chi-tiet-toa-soan/tap-chi-king-te-viet-nam