Prime Minister Nguyen Xuan Phuc stated collective economy has grown slowly compared to other economic sectors, leading to modest contributions to the national gross domestic product. 

Prime Minister Nguyen Xuan Phuc addresses the national conference reviewing
15-year implementation of the Party's resolution on collective economy,
held in Ha Noi on October 14, 2019. Photo: VGP

 The Government chief underlined the point while addressing the National Conference reviewing 15-year implementation of the Party's resolution on collective economy, held in Ha Noi on Monday.

Phuc also frankly said the number of successful cooperatives and size of each cooperative is modest while internal and external partnership remains limited.

By the end of 2018, Viet Nam had 22,861 cooperatives, including nearly 14,000 agricultural cooperatives, but only 57% of them operated effectively.

The above weaknesses were attributed to various reasons, including unclear regulations on rights to assets, especially land.

Prime Minister Nguyen Xuan Phuc visits a booth showcasing products of
a cooperative in Quang Nam on the sidelines of the national conference.
Photo: VGP

Regarding the Government’s future orientations, Phuc called on greater involvement of rural residents in collective economy as this is the model that could help strengthen competitiveness through mobilizing small amount of resources and partnership from different households.

A cooperative could also be more resilient to market fluctuations and diseases than an individual household, Phuc added.

Noticeablly, collective economy goes beyond short-term economic benefits as it will bring about cultural, spiritual, social security and community development gains, according to PM Phuc.

Phuc said that the Government could only provide assistance at initial stages through preferential policies and create favorable environment for the development of the model.

He ruled out the return of subsidies for cooperatives as they could only lead to failure./.