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The driving force behind the collective economy

Implementing Resolution No. 20 of the 13th Party Central Committee on continuing to innovate, develop and improve the efficiency of the collective economy in the new period, Lao Cai province has deployed mechanisms and policies to support the development of collective economy and cooperatives. In particular, after the merger of administrative units, Lao Cai has entered a new development stage with many driving forces aroused from the internal strength of cooperatives.

Báo Lào CaiBáo Lào Cai08/08/2025

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The 2023 Law on Cooperatives, which will take effect from July 1, 2024, is an important step in institutionalizing Resolution No. 20 of the 13th Party Central Committee. The law specifically stipulates 8 groups of policies to support the development of the collective economy, from land, credit, human resources to social insurance, infrastructure, and technology.

Mr. Do Nhan Dao - Chairman of Lao Cai Province Cooperative Union commented: "The 2023 Law on Cooperatives helps cooperatives operate professionally and flexibly, protect members' rights and promote value chain linkages."

In Lao Cai, the new law has been quickly implemented through support policies and effective models. The province currently has 1,419 cooperatives with nearly 42,000 members and a total charter capital of more than VND2,700 billion. Of which, agricultural cooperatives account for more than 50% with 809 units. The cooperatives are creating regular jobs for nearly 19,000 workers, with an average income of nearly VND5 million/person/month. Production efficiency not only helps develop the local economy but also contributes to sustainable poverty reduction.

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Many cooperatives in Lao Cai are clearly promoting their role in supporting livelihoods and creating jobs, especially in ethnic minority areas. Many models have built a chain linking production - processing - consumption of products, increasing value and stabilizing income for members.

A typical example is Hoang Kim Aquatic Products Cooperative (Thac Ba commune), which utilizes the lake surface area to raise more than 300 fish cages, mainly catfish, red tilapia, and sturgeon. In particular, the Cooperative cooperates with processing enterprises to produce catfish patties, spring rolls, and sausages that all meet 3-star OCOP standards. Ms. Vu Thi Thu Phuong - Cooperative manager shared: "Thanks to the trade promotion policy, the Cooperative has many distribution channels, optimizing product value and developing sustainably."

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In another direction, Van An Agricultural and Forestry Cooperative (Khanh Yen Commune) focuses on the production and processing of highland medicinal herbs. With the goal of linking production with local culture, the Cooperative has built a unique herbal tea brand, which is not only a consumer product but also a crystallization of the knowledge of highland people about medicinal plants. Van An Agricultural and Forestry Cooperative has built a closed value chain, connecting from cultivation - processing - consumption. In addition to expanding raw material areas, the Cooperative has also invested in semi-automatic machinery, expanded distribution through e-commerce platforms and exported. Currently, about 100,000 tea packages are exported to the United States each year.

The cooperative currently has more than 20 official employees, mostly Mong and Dao ethnic women, earning from 6.5 - 7.5 million VND/month, contributing to improving people's lives.

Ms. Ngan Thi Trang - Director of Van An Agricultural and Forestry Cooperative

The successes of cooperatives are a testament to the effectiveness of the State’s synchronous policies and the support of the Provincial Cooperative Union. Through the coordination program, cooperatives have access to preferential loans from the Cooperative Development Fund, vocational training, technical support, trade promotion, trademark registration and OCOP product completion.

Mr. Do Nhan Dao - Chairman of Lao Cai Province Cooperative Union said: “We have been accompanying cooperatives from the establishment, operation, market expansion to trade promotion. In addition, the connection between cooperatives with enterprises, research institutes and banks is also promoted to improve operational efficiency”.

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The provincial Cooperative Union has promoted the connection between cooperatives with enterprises, research institutes, and banks to promote the effectiveness of value chain linkages. Many other outstanding models such as Nam Du Xuan Quang Cooperative producing honey, Thang Loi Vegetable and Fruit Cooperative growing strawberries in greenhouses, Lung Phinh Cooperative growing high-tech vegetables, etc. are opening up new directions.

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Despite many bright spots, the collective economic sector still faces many challenges such as: small scale, lack of capital, low competitiveness, limited human resources. The difference in level and development speed between cooperatives in different regions is still a problem. Economic linkages between cooperatives or between cooperatives and enterprises, although existing, are not really deep and sustainable.

Entering 2025 - the first year of synchronous implementation of legal regulations and organizational structure after merger, the expectation of a breakthrough development period for KTTT is very high. However, to realize this, stronger participation of the entire political system is needed.

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First of all, it is necessary to strengthen propaganda and raise awareness of the role of collective economy and cooperatives in socio-economic development. At the same time, continue to review and supplement legal policies, creating a favorable environment for cooperatives to operate effectively. In particular, it is necessary to perfect directly related policies such as land, finance, credit, infrastructure development, science and technology.

Through support programs, cooperatives continue to have access to vocational and technical training, preferential loans, and brand building and product development activities. This is the "support" for cooperatives to continuously expand their scale, improve quality, and contribute to promoting green economic growth and circular economy in the locality.

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In addition, it is necessary to promote the implementation of Resolution 20 of the 13th Party Central Committee on innovation and improving the efficiency of collective economy and cooperatives in the new period. The consolidation of the organization, strengthening the role of steering committees at all levels, ensuring smooth leadership and direction are also key factors. It is necessary to further promote the role of the Fatherland Front, socio-political organizations and the Provincial Cooperative Union in supporting the development of collective economy.

With a clear strategic orientation, a complete legal framework and the support of the government, the cooperative economic sector in Lao Cai is affirming its pivotal role in rural economic development. From the initial small cooperatives, many units have gradually transformed themselves into effective production models, connecting the community, contributing to the construction of new rural areas, sustainable poverty reduction and comprehensive local economic development.

Source: https://baolaocai.vn/dong-luc-thuc-day-kinh-te-tap-the-post879045.html


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