Building new-style cooperatives

15:32 | 01/05/2015 Society

(VEN) - Addressing a seminar on how to build new-style cooperatives in the 2015-2016 and 2017-2020 periods organized by the Vietnam Cooperative Alliance (VCA), Politburo member and Prof. Dr. Nguyen Thien Nhan said that new-style cooperatives will create breakthrough for agricultural development.

Building new-style  cooperatives

Statistics show that Vietnam currently has 10,339 agricultural, accounting for 52 percent of all cooperatives. This includes 9,221 agricultural service cooperatives with around 6.7 million members. The number of newly-established agricultural cooperatives has annually increased by 200 on average in recent years. Many agricultural cooperatives have linked trade and production with occupational development and have effectively implemented socioeconomic development programs, contributing to further promoting the poverty alleviation movement and building new rural areas.

VCA Deputy Chairman Nguyen Dac Thang said that new-style agricultural cooperatives have been established and developed in several provinces throughout the country. They are organized and managed in accordance with the principles of cooperatives with voluntary members who make a capital contribution and participate in economic activities. In addition, these cooperatives have applied suitable trade and production strategies, meeting requirements of the market and demand for the benefit of members.

Some agricultural cooperatives have achieved success in recent times. For example, Lao Cai Province’s Quy Hien Cooperative was established in 2010, initially consisting of 24 households in Bao Thang District’s 10 communes with chartered capital of VND4.76 billion. Each member contributes VND15 million in cash, while the remainder comes from other assets such as land and trucks. The Quy Hien Cooperative’s products include varieties of chickens, pigs and poultry eggs. Each cooperative member is responsible for their production and observes financial obligations such as paying for supplies that are provided by the cooperative. Thanks to this form of activity, farmers are able to purchase animal feed from prestigious companies at lower prices. In addition, due to purchasing a large number of animal feed and veterinary drugs, providers must guide cooperative members with the application of scientific and technological progress at least two times each year. Therefore, members timely get updates on scientific and technological progress without training costs. In particular, selling products via cooperatives has achieved higher economic efficiency. The Quy Hien Cooperative’s successful model has helped its members reduce costs, improve product quality and sell products at increased prices.

Another example is the Thuy Huong Cooperative in Chuong My District, Hanoi. The cooperative was established in late 2010 with 32 members and invested in the construction of 7,000cu.m greenhouse with automatic ventilation and water spraying systems to produce all kinds of flowers such as orchids and lilies. Annual income from flower planting reached more than VND1.5 billion and the cooperative will pide in corresponding with 30 percent of contributed capital, while the remainder will be reinvested.

New-style agricultural cooperatives can make loans or loan guarantees for cooperative members in order to reduce risks for banks. In addition, businesses can reduce costs and risks when signing a sales and purchase contract with farmers.

Dien grapefruit growing in the Xuan Mai Cooperative’s farm in Chuong My District, Hanoi is also a successful model.

Reviewing the Vietnamese agriculture after 30-year innovation, Prof. Dr. Nguyen Thien Nhan said that the agricultural sector has seen spectacular development. Many crops and livestock have achieved higher productivity such as Tra fish, coffee, pepper, cashew nuts, rubber, tea, rice and coconut.

Regarding new-style agricultural cooperatives, he added that this model will create agricultural breakthroughs as it will not only bring huge benefits to farmers but also contribute to improving operational efficiency in state management, reducing costs and risks for businesses and banks and benefiting Vietnam’s importers. 

By Phuong Tam