Co-operative sector contributes 5% of GDP

The co-operative economy has helped people not only escape from poverty but also get rich, said Deputy PM Vuong Dinh Hue.

Mr. Hue made the point on July 7 in Da Lat City while chairing a conference reviewing five-year implementation of the 2012 Co-operative Law on agriculture in the South Central Coast and Central Highlands Regions.

The event was hosted by the Ministry of Agriculture and Rural Development, targeting to prepare for an upcoming video-teleconference of the PM, scheduled in September.

So far, the South Central Coast houses one association and 155 new-style co-operatives. Around seven co-operatives are founded on average since the Co-operative Law took effect in 2012.

Deputy PM Hue said that new style co-operatives play an important role in re-arranging goods production especially in agriculture. However, they only make up 5% of national economic growth.

In the two regions with favorable natural conditions, the number of co-operatives remains modest and allocate inequitably.

According to Deputy PM Hue, the co-operative economy is the indispensable production method in the dissymmetrical market economy in Viet Nam.

Mr. Hue asked relevant ministries and localities to extricate difficulties for co-operatives including conversion registration, settlement of dissolving and bankruptcy procedures; amend the legal system to create favorable ways in capital, land (head office, production land), and credit for co-operatives.

Localities were urged to allocate budget to build funds on co-operative development as the rate of NPLs in agriculture and poverty reduction was low. Thus, investment in the co-operative economy is profitable./.

Source: Online Newspaper of the Government of the Socialist Republic of Vietnam