Support cooperatives to invest and expand production and business

The provincial cooperative development support fund is an important credit channel, helping cooperatives access loans to expand production, contributing to improving production and business efficiency.

Members of Muong Tac Agricultural Service Cooperative, Phu Yen district, share experiences in caring for Hoang Kim melons.

The province has 871 cooperatives and 6 cooperative unions operating, mainly in the fields of agriculture, forestry, fisheries, small-scale industry, and construction, all of which need to borrow capital to develop production. However, because the loan term does not exceed 3 years, cooperatives have difficulty in rotating investment capital, especially for fruit-growing and livestock-raising cooperatives, because these projects usually take at least 5 years to have stable revenue and operations. In addition, many cooperatives operate inefficiently and have not yet developed feasible production and business plans to access capital.

To overcome difficulties for cooperatives in accessing support capital, the Provincial Cooperative Development Support Fund has developed a plan to use and develop capital under the direction of the Provincial People's Committee. Every year, the Provincial Cooperative Union has compiled loan needs according to the list of priority industries of the province. At the same time, it has assigned staff to accompany and guide project owners in preparing loan applications in accordance with regulations and in accordance with the needs of cooperatives and members.

Muong Tac Agricultural Service Cooperative, Phu Yen district grows Hoang Kim melon.

From 2023 to present, the Fund has guided the completion of procedures, documents and disbursed loans of VND 900 million to 2 cooperatives. To date, the province has 57 cooperatives that have received loans of nearly VND 17 billion. Cooperatives and cooperative members have expanded their production scale, invested in equipment, applied science and technology, invested in new varieties with high economic value, produced goods according to the value chain, and linked regions to increase competitiveness.

The Provincial Cooperative Union has strengthened inspection and supervision of the use of loans; extended the repayment period or had plans to support some cooperatives that are borrowing but facing difficulties due to natural disasters and epidemics. At the same time, it proposed that the Provincial People's Committee supplement capital to create conditions for cooperatives in need of loans; guided and advised cooperatives that are eligible to access the Central Cooperative Development Support Fund. Through assessment, most of the projects that the fund has disbursed have operated well, paid interest and principal on time, and promoted the effectiveness of the loan capital.

Members of Ngoc Xanh Agricultural Cooperative, Pung Banh Commune, Sop Cop District, share experiences in caring for fruit trees.

Muong Tac Agricultural Service Cooperative, Huy Ha Commune, Phu Yen District, was established in 2016 and now has 16 members, with a production area of over 10 hectares. Mr. Pham Van Ba, Director of the Cooperative, said: In 2023, the Provincial Cooperative Union guided the cooperative to borrow 450 million VND from the Provincial Cooperative Development Support Fund, with a low interest rate. The cooperative has invested in expanding and upgrading the product showroom and increasing the area of the greenhouse, growing 2,000 m2 of Hoang Kim melon. In the 2023 crop, more than 4.5 tons of fruit were harvested, with a selling price of 70-75 thousand VND/kg. The cooperative also cooperated with nearly 50 farming households in Huy Tan, Suoi Bau, Kim Bon and Muong Thai communes to grow 40 hectares of vegetables, with an output of over 200 tons/year.

Ngoc Xanh Agricultural Cooperative, Pung Banh Commune, Sop Cop District, was supported with a loan of VND300 million from the Fund to expand the area of Bo Chinh ginseng and plant fruit trees. Mr. Tong Van Doi, Director of the Cooperative, said: After receiving a loan with an interest rate of 0.66%/year, the Cooperative expanded the area of Bo Chinh ginseng to 2 hectares and 1.5 hectares of mango, with revenue reaching over VND1 billion/year in 2023.

Members of Ngoc Xanh Agricultural Cooperative, Pung Banh Commune, Sop Cop District, take care of fruit trees.

Preferential loans from the Cooperative Development Support Fund have been helping cooperatives increase investment resources, expand production and business, link product consumption, enhance the prestige of collective economic models, and create stable income for members and workers. At the same time, realizing the Party and State's credit support policies for the collective economic sector and cooperatives, contributing to poverty reduction in the locality.

Manh Hung

Source