Synchronous solutions to support newly established cooperatives

– Not only promoting propaganda and encouraging the establishment of new cooperatives, in recent years, all levels and sectors have implemented many synchronous solutions to support newly established cooperatives in order to help them to quickly stabilize production, overcome difficulties to develop.

In recent years, the number of newly established cooperatives in the province has increased sharply. Specifically, in 2020, 94 new cooperatives were established in the province, 64 cooperatives of them exceeded the plan, up 55 cooperatives compared to 2019. From the beginning of 2021 to December 15, 2021, 63 new cooperatives has been established in the province, 33 of them exceeding the plan of the year.

The number of newly established cooperatives in the last two years has increased sharply compared to previous years and far exceeded the plan. However, the common characteristics of many newly established cooperatives are small scale, lack of capital, limited application of science and technology to production, small and narrow consumption market, etc. There are even cooperatives established their name only, they have develop no appropriate business and production plan.

Lecturer of the School of Staff Training – Vietnam Cooperative Alliance presents some contents related to the collective economy to newly established cooperatives in the province.

Clearly identifying those limitations, the Provincial Cooperative Alliance and relevant levels and branches have implemented many solutions to support and remove difficulties for cooperatives. Mr. Vy Kim Truyen, Chairman of the Provincial Cooperative Alliance said: “Every year, the Cooperative Alliance cooperates with relevant agencies and members in the districts and city to inform the founders, members of cooperatives the Law on Cooperatives 2012 as well as policies to support cooperatives.”

Specifically, each year, the Provincial Cooperative Alliance coordinates to organize 30-35 propaganda classes with about 3,500 participants; 8-10 training courses with about 700 participations of cooperative managers (of which 50% are cooperatives that have been established for 1-2 years). The content of propaganda and training involves the Law on Cooperatives in 2012; the formulation of production and business plans; branding, market development; production links; steps to approach preferential policies, support cooperative development… Thereby, it helps many newly established cooperatives to actively approach support policies, creating more motivation to help cooperatives develop. De Tham Agricultural Cooperative, Trang Dinh district is an example.

Mr. Hoang Trung Tinh, Director of the Cooperative said: “At the end of 2020, the cooperative came into operation with the main business of producing and trading vegetables and fruits. Through the propaganda and training of the Provincial Cooperative Alliance, the cooperative has known about the policy of supporting newly established cooperative (with 20 million VND) and recruit young labors to work at the cooperative. Right after that, the cooperative was guided by a professional agency on the process and procedures and by September 2021, the cooperative received a young labor with a master’s degree in plant science. Being supported with young human resources to work helps the cooperative have more highly qualified staff and is currently organizing training and guiding techniques on planting, caring, and improving the value of crops on the same area. Thereby, it helpsthe cooperative feel more secure in the production stage and gradually overcome the initial difficult period.

Similar to De Tham Agricultural Cooperative, with the attention of all levels and sectors, and their initiative to explore, many newly established cooperatives have access to support policies such as financial support for new establishment, capital with the State’s interest rate support, young high-qualified labors to work at cooperatives, promotion, product introduction, market expansion…

Specifically, from 2020 up to now, in the province, there have been 21 cooperatives that have received financial support for new establishment (according to Resolution 08/2019/NQ-HDND dated December 10, 2019 of the Provincial People’s Council on specific policies to promote investment, develop cooperation, link production and consumption of agricultural and rural products in the province in the period of 2020 – 2025 and Resolution 15/2021/NQ-HDND dated July 17, 2021 of the People’s Council province on amending and supplementing a number of articles of resolution 08) with a total amount of 420 million VND; support to recruit four young intellectuals to work at the newly established cooperative;  support 20 newly established cooperatives to develop brands, expand markets, provide credit interest rates, apply high technology to production…

From the support of the State and their own initiative and efforts, many newly established cooperatives have gradually stabilized their operation. Thereby, they contribute to improving the efficiency of collective economic development in the province. Currently, there are 402 cooperatives in the province. Although many cooperatives have been affected by the pandemic, the average revenue of a cooperative is 950 million VND/year, employee income is 45 million VND/person/year, equal to the period of 2019-2020.