15th NA's fifth plenum: Lawmakers approve Law on Cooperatives (revised). (Photo: VNA)

The law, comprising 12 chapters and 115 articles, will take effect from July 1, 2024.

It includes regulations on the establishment, management, reorganisation, dissolution, bankruptcy and related activities of cooperative groups, cooperatives and cooperative unions, as well as State policies on the development of cooperative groups, cooperatives and cooperative unions.

Particularly, the law clarifies the minimum and maximum capital contributions by official members to the cooperatives. Accordingly, a member can contribute 30% at maximum to the charter capital of a cooperative and not more than 40% to the charter capital for a cooperative union.

The total capital contribution of all members being foreign-invested economic organisations and foreign individual investors must not exceed 30% of the charter capital of a cooperative or a cooperative union, it said.

Also on June 20, NA deputies approved a resolution on the investment policy for a project to construct a road connecting National Highway 27C and Provincial Road 656 in the south-central province of Khanh Hoa, linking with neighbouring provinces of Lam Dong and Ninh Thuan, with 471 yes votes.

15th NA's fifth plenum: NA deputies vote to approve the Law on Cooperatives (revised). (Photo: VNA)

The project, which has a total investment of about 1.93 trillion VND (82.05 million USD), including 1 trillion VND from the central budget, will be implemented from 2023 to 2027.

It aims to complete the transport system connecting with two mountainous districts of Khanh Son and Khanh Vinh following Khanh Hoa’s transport planning, creating favourable conditions for the localities to boost their socio-economic development, improving the system of inter-regional transportation of goods with Ninh Thuan and Lam Dong, and strengthening defence-security in the region.