A crucial foundation of the economy

To promote the role of the collective economy as one of the important foundations of the entire economy, in addition to raising awareness about the collective economy, with a focus on cooperatives, it is necessary to pay attention to building and perfecting policies and laws on the collective economy to suit each stage of development.

Cassava vermicelli production at Ngoc Tan Agricultural Service Cooperative (Ngoc Lac). Photo: Le Hoa

It has been argued that the cooperative economy not only aims for economic benefits but also prioritizes social benefits, especially poverty alleviation, promoting wealth creation for its members, and community development. Therefore, the cooperative economy is a type of economy with profound social and humanitarian significance. Stemming from this special meaning and importance, the Resolution of the 9th National Congress of the Party stated: "The cooperative economy develops with many diverse forms of cooperation, in which cooperatives are the core"; and simultaneously, "the state economy together with the cooperative economy is increasingly becoming a solid foundation of the national economy."

Based on that, the Central Resolution No. 5 of the 9th Party Congress on continuing to innovate, develop, and improve the efficiency of the cooperative economy was issued. After more than 20 years of implementation, the cooperative economic sector in our country has basically overcome its long-standing weaknesses. In particular, cooperatives have basically completed the transformation to the new model as stipulated by law. The number of newly established cooperatives and cooperative unions has increased significantly, developing more diversely in terms of industries, scale, and level, providing better support for members, creating jobs, and increasing regular income for workers... Nevertheless, the innovation and improvement of the efficiency of the cooperative economy still face many difficulties.

In order to further enhance the effectiveness of the market economy and affirm its important position and role in the national economy, Resolution No. 20-NQ/TW, dated June 16, 2022, of the 13th Central Committee of the Communist Party of Vietnam on continuing to innovate, develop, and improve the effectiveness of the market economy in the new period, emphasized: “Developing a dynamic, efficient, and sustainable market economy, together with the state economy, will become a solid foundation of the national economy with many models of cooperation and linkage based on respecting the nature, values, and principles of the market economy, attracting more and more farmers, households, individuals, and organizations to participate; contributing to improving the income and quality of life of members and households, achieving social progress and equity, promoting rapid and sustainable national development, ensuring national defense and security, and firmly protecting the socialist Fatherland of Vietnam.”

In Thanh Hoa province, alongside socio-economic development, the cooperative economy continues to receive attention and guidance from the Provincial Party Committee and Party committees at all levels in the province, ensuring its development is in line with established directions. This includes focusing on developing the cooperative economy in both quantity and quality, especially prioritizing quality and ensuring harmony across all sectors, fields, and localities. Simultaneously, preferential policies are in place for cooperative economic organizations in the agricultural sector, linking production and business activities with product value chains, applying science and technology , innovation, and digital transformation.

Over the past year of implementing Resolution No. 20-NQ/TW, Thanh Hoa province has focused on innovating and improving mechanisms and policies to encourage and support the development of the cooperative economy. Typical examples include policies on establishing new cooperatives; policies on training and developing human resources; policies on building cooperative models operating under the Cooperative Law; policies on building high-tech agricultural cooperative models with products linked to value chains (10 models have been supported with a total of 7.5 billion VND); credit policies (62.762 billion VND has been disbursed to 188 projects to help cooperatives invest in infrastructure, machinery and equipment, and expand production and business); trade promotion and market expansion policies; and land policies (creating conditions for cooperatives to lease land, be allocated land for building offices, consolidate land plots, and lease land long-term for building workshops, warehouses, drying yards, and production facilities...). Social insurance policy (425 cooperatives participated in paying social insurance for 2,609 workers, with a total cost of 39.7 billion VND)...

High-tech industrial shrimp farm in Hoang Ngoc commune (Hoang Hoa district).

Identified as the core model of the cooperative economy, cooperatives are receiving much attention to develop more effectively. Accordingly, along with the implementation of mechanisms and policies, all levels, sectors, and localities in the province have focused on strengthening the organizational structure and operations of cooperative economic organizations in accordance with the Law on Cooperatives. In particular, they have effectively implemented the Project on Innovation, Development, and Improvement of the Efficiency of Cooperatives in the province for the period 2021-2025. As a result, many cooperatives have proactively innovated their production and business plans; improved the quality and scale of goods production; Applying technology to develop production, business, and brand building... Typical examples include cooperatives such as Phu Loc Agricultural Cooperative, Thieu Hung Agricultural Service Cooperative, Dong Tien Agricultural Mechanization Cooperative, Chung Nghia Commercial Cooperative, Pu Luong Medicinal Herb Cooperative, Hoang Thanh Electricity Cooperative, Quang Chinh Aquaculture Cooperative... In addition, many cooperatives such as Pu Luong Medicinal Herb Cooperative, Hoang Dao Clean Production and Trade Cooperative, Truc Phuong Organic Agricultural Products Cooperative, Vi Thanh Seafood Processing Cooperative, Binh Son Agriculture and Forestry Cooperative, Cam Ngoc Honey Cooperative... have built product brands and proactively expanded their markets to provinces and cities nationwide.

It can be said that, thanks to proactive innovation in production technology, joint ventures and partnerships, and improved management efficiency, many cooperatives have operated effectively, contributing to promoting production and product consumption, creating jobs, implementing social welfare, eradicating hunger and poverty, and increasing income for workers and cooperative members. Currently, the province has 660 cooperatives operating effectively, achieving a good or excellent rating (accounting for 56% of the total number of active cooperatives). Not only have the number of cooperatives increased, but they have also diversified in terms of industries, fields, capital scale, and membership, with improved operational quality.

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Our Party has identified the development of the market economy as one of the methods to overcome the negative aspects of the market economy. At the same time, it is an important foundation for achieving the goal of "a prosperous people, a strong nation, democracy, fairness, and civilization"; and the basis for "cooperation" to become a culture and identity in our socialist-oriented market economy... Therefore, in addition to mechanisms and policies that serve as a "support," the issue facing all levels, sectors, and localities now is to focus on raising awareness among cadres, Party members, especially the heads of agencies and organizations, and the people about the development of the market economy as a necessary requirement and inevitable trend. Only then will the market economy truly become an important economic component, along with the state economy, forming a solid foundation of the national economy.

Text and photos: Khoi Nguyen

Source: https://baothanhhoa.vn/kinh-te/mot-nen-tang-quan-trong-nbsp-cua-nen-kinh-te/205625.htm