Promoting the establishment and reorganization of cooperative development support funds.

Monday, December 25, 2023 | 17:18:12

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On the morning of December 25th, Ms. Cao Xuan Thu Van, Secretary of the Party Committee and President of the Vietnam Cooperative Alliance, chaired a joint in-person and online conference between the Vietnam Cooperative Alliance and provinces and cities to discuss solutions to promote the implementation of Government Decree 45/2021/ND-CP dated March 31, 2021, on the establishment, organization, and operation of the Cooperative Development Support Fund (Decree 45). At the Thai Binh branch, leaders of the Provincial Cooperative Alliance and representatives from several relevant departments and units attended the conference.

Delegates attending the conference at the Thai Binh venue.

Decree 45, effective from May 15, 2021, stipulates in Clause 5, Article 58: “For cooperative funds established and operating before the effective date of this Decree: within a maximum of 3 years from the effective date of this Decree, these cooperative funds must review and reorganize…”. However, to date, the reorganization of the operational structure of established funds and newly established funds in provinces and cities without such funds is progressing very slowly. Specifically: before the issuance of Decree 45, in addition to the Vietnam Cooperative Development Support Fund, 50 provinces and cities nationwide had established cooperative development support funds. However, the operational structure of these local funds varies greatly due to the lack of a unified legal framework. Besides the central fund, which currently has a total operating capital of 1,000 billion VND; As of September 30, 2023, the total operating capital of the 50 local funds was VND 2,596 billion, of which 27 out of 50 funds had operating capital below the level stipulated in Decree 45 (VND 20 billion). In implementing Decree 45, to date, 11 out of 50 established funds have had their operations adjusted or dissolved to establish funds under Decree 45; 39 provinces and cities have not yet reorganized their fund operations as stipulated in the decree. Of the 13 provinces and cities that had not established funds before Decree 45 came into effect, only one province has established a fund to date.

At the conference, delegates focused on clarifying the difficulties and obstacles in the process of organizing and restructuring fund operations according to Decree 45; the current situation in localities that have not yet established funds; and sharing experiences from funds that have reorganized their operations.

Concluding the conference, Comrade Cao Xuan Thu Van, Secretary of the Party Committee and President of the Vietnam Cooperative Alliance, affirmed that the Cooperative Development Support Fund is a state financial tool to support the development of the collective economy and cooperatives; it is an important resource for the Vietnam Cooperative Alliance and provincial-level cooperative alliances to use in supporting the construction of production cooperative models linked to value chains and promoting the development of the collective economy and cooperatives in the area.

The comrade suggested that the cooperative alliances of provinces and cities review and adjust the detailed plan for implementing Decree No. 45. For provinces and cities that have already issued decisions on the establishment or reorganization of cooperatives, they should urgently develop and finalize the charters, regulations, procedures, and rules on organization and management of operations, submitting them to competent authorities for consideration and promulgation, and promptly putting the fund into operation under the new mechanism. The remaining provinces and cities should proactively and urgently advise and propose to the provincial People's Committees to promptly issue decisions on the establishment of new cooperatives or the reorganization of operations, supplementing charter capital to ensure a minimum of 20 billion VND/fund. The Vietnam Cooperative Alliance also proposed and recommended that ministries, sectors, and central agencies research, amend, and supplement some regulations to ensure that the cooperative development support fund operates smoothly and effectively.

Ngan Huyen

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