The development of the collective economy must originate from people’s demand and be in line with the actual conditions and market economy rules, Prime Minister Nguyen Xuan Phuc said on December 22.

Prime Minister Nguyen Xuan Phuc (fourth, right) presents the second-class
Independence Order to the Vietnam Cooperatives Alliance on December 22.

In his remarks at the opening ceremony of the 6th congress of the Vietnam Cooperatives Alliance (VCA), the PM stressed that the alliance should promote the important role of the collective economy and cooperatives in maintaining socio-political stability and ensuring social equality, as identified by the Party.

Vietnam will have to fully carry out regional and international commitments under free trade deals in the years to come, he said, adding that local firms, particularly household enterprises, will face fierce competition.

He ordered the VCA to work closely with relevant ministries, sectors, organisations, and localities to capitalise on the advantages of the cooperative model and promote the development of the cooperative economy through effectively carrying out programmes, projects, and missions entrusted by the Government.

The alliance was urged to remove bottlenecks for cooperatives and support the replication of effective cooperative models, while working to complete relevant legal frameworks and policies with a view to facilitating the development of the cooperative economy. 

Ministries, sectors, party committees, and local authorities must see the development of the collective economy and cooperatives as an inexorable trend and a mission of the entire political system, he said, highlighting that Party committees and authorities at all levels should create the conditions necessary to expand the collective economy, especially the development of agricultural cooperatives, to push sector restructuring and build new style rural areas.

On the occasion, the PM presented the second-class Independence Order to the VCA.

According to a political report delivered at the congress, Vietnam is home to more than 26,000 cooperatives, 100 cooperative alliances, and 119,000 cooperative groups, with some 8.1 million members as of the end of 2020.

A wide range of cooperatives have operated effectively and brought benefits to members, such as the high-tech forestry cooperative in the central province of Phu Yen, the Phuoc Tin agricultural cooperative in central Quang Ngai province, and the Tan Thong Hoi milch cow cooperative in HCM City.

The VCA targets increasing the income of cooperative members by at least an average of 6% per year, and eyes at least 60% of rural household enterprises becoming members of cooperatives and cooperative groups in the 2020-2025 period.

It also envisages building 300-500 high-tech cooperative models each year.

On December 21, a 27-member standing board of the VCA was elected at the first conference of the 6th VCA’s executive committee. Nguyen Ngoc Bao, secretary of the Party delegation to the alliance, was re-elected President of the VCA for the 2020-2025 tenure.