Innovating and developing the collective economy and cooperatives.

Báo Ninh Thuận•03/07/2023

Over the years, the collective economy and cooperatives in our province have developed significantly, transforming their operating models by applying science and technology to production, improving operational efficiency, and creating collective strength in production and business.

According to the Department of Planning and Investment, from 2021 to June 2023, the province saw the establishment of 26 new cooperatives, bringing the total number of active cooperatives to 112, an increase of 28.7% compared to 2020. These cooperatives operate in the following sectors: agriculture (84 cooperatives, accounting for 75%); small-scale handicraft production (10 cooperatives, accounting for 8.9%); general service businesses (8 cooperatives, accounting for 7.1%); transportation (7 cooperatives, accounting for 6.3%); and 3 active People's Credit Funds. To improve operational efficiency, cooperatives have applied technology in agricultural production and enhanced the skills of their management staff. Currently, the percentage of cooperative management staff with college or university degrees has increased from 11.5% in 2016 to 17% in 2022. The percentage of individuals with primary and secondary education increased from 24.9% in 2016 to 34% in 2022. Thanks to this, cooperatives have been able to develop their capabilities, improve operational efficiency, create collective strength in production and business, contributing to increased revenue and profits, and bringing practical benefits to their members. By the end of 2022, the total operating capital of cooperatives reached VND 173.37 billion, an increase of 22.8% compared to 2016; the total value of cooperative assets reached VND 44.7 billion, an increase of 38% compared to 2016. The average revenue of cooperatives in 2022 reached VND 2.3 billion/cooperative, an increase of 27.8% compared to 2016; of which revenue for members reached VND 1.75 billion/year, an increase of 45.8%. Average profit is estimated at 225 million VND/cooperative, an increase of 40.6%; average income of regular workers in cooperatives reached 58 million VND/person, double that of 2016.

Booths displaying products from cooperatives at the Supply and Demand Promotion Conference for the "One Commune, One Product" (OCOP) Program. Photo: Van Ny

Over the years, support for the development of the cooperative economy has received attention. In the five years from 2016 to 2022, over 44 billion VND was mobilized and integrated to support cooperatives, including over 26 billion VND from the state budget and over 18 billion VND from donors, creating conditions for cooperatives to operate more stably and efficiently. Many joint venture and linkage models have been established, forming value chains between businesses, cooperatives, and farmers in the production and consumption of agricultural products. By the end of 2022, 37 agricultural cooperatives had implemented production linkages associated with the consumption of agricultural products and aimed to build a closed value chain from input services to processing and consumption of output products to increase product value and meet the economic and living needs of members. There are 29 products from 13 cooperatives that have been recognized as OCOP products (including 6 products ranked 4 stars and 23 products ranked 3 stars at the provincial level).

For example, the Tuan Tu General Service Cooperative in An Hai commune (Ninh Phuoc district), established in 2016, initially had only 13 members, but has now grown to 84 members and cultivates over 55 hectares. Mr. Hung Ky, Director of the Tuan Tu General Service Cooperative, stated: "With the support and assistance from various levels of government and local authorities, the Tuan Tu Cooperative has partnered with companies to provide long-term production support for its members. This has included organizing technical training conferences on pesticides for cooperative members; maintaining and developing green asparagus production effectively; and establishing a production area. With support from various programs, cooperative members have been able to access loans to implement large-scale model fields; receive support for young cooperative staff; and receive training and VietGAP certification. Over the past three years, the cooperative has harvested 150 tons of asparagus, generating a profit of 750 million VND." In 2023, the estimated output of asparagus reached 60 tons, generating a profit of over 300 million VND.

The model of grape cultivation in accordance with VietGAP standards by members of Thai An Agricultural General Services Cooperative, Vinh Hai commune (Ninh Hai).

Despite the achievements, the collective economy and cooperatives still face limitations, including small scale, uneven development across sectors, low and declining contribution to GRDP; some cooperatives undergoing transformation and reorganization are merely formalistic, with loose and unsuitable organizational models; linkages and cooperation between collective economic organizations and cooperatives themselves and with other economic entities remain weak; and state management and the qualifications of cooperative management staff are still limited...

Comrade Truong Van Tien, Deputy Director of the Department of Planning and Investment, stated: To maintain and improve the quality of cooperative activities, contributing to the effective implementation of the National Target Program for New Rural Development, in the coming period, the unit will continue to advise the Provincial People's Committee to direct relevant departments, agencies, and localities to coordinate and promote the dissemination of policies and guidelines on continuing to innovate, develop, and improve the efficiency of the cooperative economy in the new phase; disseminate effective new cooperative models, models of large-scale field development, and value chain production models, etc., to create a shift in the awareness of officials and people regarding the role, organization, and operation of new-style cooperatives according to the Cooperative Law. Along with that, guide cooperatives to link production and consumption of products along the value chain and the OCOP program with the goal of protecting the environment and enhancing the value of the province's unique agricultural products. Continue to effectively integrate various capital sources to support the development of the cooperative economy. Supporting cooperative economic organizations and cooperatives engaged in the production and business of specialized products in building, managing, and developing collective trademarks; ensuring product traceability; accelerating digital transformation and applying scientific and technological research results to improve productivity, quality, and competitiveness of production and business activities. Providing training and professional development to enhance management capacity for cooperative staff to improve operational efficiency under the new cooperative model.

Mr. Tuan

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