Collective economy out of prolonged weakness: Deputy PM

14:15 | 17/10/2019 Economy- Society

Deputy Prime Minister Vuong Dinh Hue highlighted that the collective economic sector has escaped from the prolonged weakness while addressing a forum in Hanoi on October 14.

Deputy Prime Minister Vuong Dinh Hue speaks at the forum on the collective economy and cooperatives in Hanoi on October 14 - Photo: VNA

Citing evidence for his statement, Hue, who is also head of the steering committee for the reform and development of the collective economy and cooperatives, said up to 57 percent of the agricultural cooperatives have operated effectively, and the rate of the non-agricultural ones is between 50 – 80 percent.

He noted at the sixth National Party Congress in 1986, the Party Central Committee stated that the collective economy and cooperatives always play a key role in the national economy.

However, the target that the collective economic sector will make up a larger part in the gross domestic product (GDP) has yet to be achieved, the official said, adding that its proportion in the GDP has dropped from 7.49 percent in 2003 to 4 percent at present.

According to the Vietnam Cooperative Alliance, the GDP growth effectiveness of the cooperative sector is equivalent to only 50 percent of others’, which has been dragging down the collective economy’s contribution to the total GDP.

Deputy PM Hue said ministries and sectors haven’t paid due attention to this sector. Besides, when it comes to the cooperative economy, people only think about agricultural cooperatives while neglecting non-agricultural ones, as well as cooperative groups. Additionally, although many policies have been issued, they haven’t matched the reality.

At the forum, Minister of Planning and Investment Nguyen Chi Dung said aside from certain achievements, the collective economy has yet to have its potential fully tapped into.

To further help this sector get rid of weaknesses and have a bigger share in the economy, the State needs to accord it with more preferential treatment, the minister added.

Theo VNA