Effective use of capital, increasing prestige for collective economy

The cooperative development support program was approved with a capital of nearly 33 billion VND. This is the first time that medium-term public investment capital has been disbursed to the collective economic sector. Therefore, the effective use of this capital source is very important in creating prestige and attracting investment for cooperatives in the coming time.

 

This capital was supposed to be disbursed from 2021, at the latest 2022, but for some reasons it was only allocated this year. According to the roadmap, this program will end by the end of 2025. Thus, localities and cooperatives have just over 1 year to implement. Currently, the capital has been transferred to localities. Districts, towns and cities are still looking for ways to allocate according to regulations and the list of public investment capital uses.

 

When allocating capital, Mr. Dang Kim Ba, Deputy Director of the Department of Planning and Investment affirmed: "To continue to disburse medium-term public investment capital for the period 2026-2030, localities need to use it effectively."

 

Not now, but for decades now, attracting capital for cooperatives has always been a difficult problem. Looking back at the period 2012-2020, although the State had preferential policies, in reality, cooperatives had difficulty accessing bank loans. In order for many cooperatives to have capital for business investment, board members had to mortgage their personal and family assets. Because the cooperative's assets, including houses and land, are common assets that the State grants the right to use, they have no mortgage value.

 

Mr. Le Thanh Lam, Chairman of the Provincial Cooperative Union, recalled: At that time, the Steering Committee for Innovation and Development of the Provincial Collective Economy, with the Cooperative Union as the standing agency, had to coordinate with the State Bank of Vietnam, Phu Yen branch, to work with localities and commercial banks in the area. After the bottleneck was removed, a number of cooperatives were able to sign loan contracts with banks. But the greater benefit was that the cooperatives understood their weaknesses in developing business plans.

 

In addition to credit capital, cooperatives have many channels to attract capital such as the Vietnam Cooperative Alliance, support capital from non- governmental organizations, public investment capital or from programs such as new rural areas, industrial promotion... In the coming time, if the Phu Yen Province Cooperative Development Support Fund is established, this will be a close capital support channel for cooperatives. All of this shows that the capital for the collective economy and cooperatives is not small. But how much can be utilized depends on the capacity of each cooperative.

 

HAI PHONG

Source: https://baophuyen.vn/82/318772/su-dung-hieu-qua-nguon-von-tang-uy-tin-cho-kinh-te-tap-the.html