Underdeveloped cooperative models

14:24 | 30/03/2016 Society

(VEN) - The Law on Cooperatives took effect three years ago but is viewed as lacking in provisions in relation to agricultural cooperatives, especially in terms of policies.

Underdeveloped cooperative models

Only just over 10 percent of agricultural cooperatives across the country have achieved high operational efficiency

At a Hanoi conference to review the three-year implementation of the law, Le Duc Thinh, Deputy Director of the Economic Cooperation and Rural Development Department under the Ministry of Agriculture and Rural Development, said that just 29.38 percent of agricultural cooperatives across the country have so far operated under the law which took effect from July 1, 2013, with more than 10 percent achieving high operational efficiency, about 80 percent achieving low or medium efficiency and 9.75 percent not achieving efficiency or ceasing operations. Farmers are reluctant to join cooperatives due to their poor returns.

One of the major causes for the underdevelopment of agricultural cooperatives is that the Law on Cooperatives has failed to resolve key issues related to agriculture. Several incentives for agricultural cooperative development have proved unsuitable; moreover, only a small number of agricultural cooperatives have met the requirements to benefit from these incentives.

Agricultural cooperatives have found it difficult to benefit from incentives related to infrastructure development, production and processing technical and technology upgrades, product development and agricultural credit.

According to Minister of Agriculture and Rural Development Cao Duc Phat, the Law on Cooperatives has benefited only some 10 percent of all cooperatives across the country at maximum. Some policies or mechanisms have proved a failure in implementation.

Chairman of the Vietnam Cooperative Alliance Vo Kim Cu claimed that economic development policies regarding cooperatives are entangled due to incomplete and sometimes contradictory legal documents. He suggested the government continue to perfect the legal framework for cooperative development, especially incentives for pilot cooperative development models.

Some of the key cooperative development tasks for the next period include piloting sectoral cooperative models and replicating these models effectively, building cooperatives based on potential agricultural production, distribution and added value links, said Le Duc Thinh.

The government has issued pro-cooperative policies with a focus on agricultural cooperatives. However, some of these policies have proved vague or unsuitable for the development of cooperatives, especially agricultural cooperatives.

 

Nguyen Hanh

Theo ven.vn