Proposing solutions to promote the Cooperative Development Support Fund

On the morning of December 25, the Vietnam Cooperative Alliance (VCA) held an online conference on "Solutions to promote the implementation of Decree No. 45/2021/ND-CP dated March 31, 2021 of the Government on the establishment, organization and operation of the Cooperative Development Support Fund". Ms. Cao Xuan Thu Van - Secretary of the Party Committee, President of the VCA chaired the conference. At the Binh Thuan bridge, Vice Chairman of the Provincial People's Committee Nguyen Hong Hai attended the meeting with representatives of leaders of relevant departments and branches.

The report at the conference stated that before Decree 45 took effect, in addition to the Vietnam Cooperative Development Support Fund established by the Prime Minister, 50 provinces and cities nationwide had established Cooperative Development Support Funds. As of September 30, 2023, the Central Fund had VND 1,000 billion; the total operating capital of 50 local funds was VND 2,596 billion, of which the capital allocated from the budget was VND 1,055 billion, additional capital from operating results and other capital was VND 1,541 billion. Among the local funds, there were 7 funds with operating capital of over VND 50 billion, 16 funds from VND 20 billion to under VND 50 billion; 21 funds from VND 5 billion to under VND 20 billion; 3 funds under VND 5 billion; 3 funds have not been granted charter capital to operate. It is estimated that by the end of 2023, local funds have lent a total of VND 22,300 billion, including 11,500 cooperatives. The estimated outstanding debt by the end of 2023 is VND 2,050 billion.

Vice Chairman of the Provincial People's Committee Nguyen Hong Hai attended the meeting at Binh Thuan bridge point

Decree No. 45/2021/ND-CP of the Government takes effect from May 15, 2021, which stipulates: "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, Cooperative Funds must review and reorganize". However, up to now, the reorganization of the operations of established and newly established funds in provinces and cities without funds is very slow due to many obstacles and difficulties. Of the 50 established funds, only 11 provinces and cities have decided to adjust the establishment decision of the provincial People's Committee or dissolve them to establish a fund according to Decree 45. Of the 13 provinces and cities that had not established a fund before the effective date of Decree 45, only 1 province has established a fund so far.

Cooperatives in the province participate in trade promotion fair.

Binh Thuan is on the list of 13 provinces and cities that have not yet established a fund. It is known that the Binh Thuan Provincial Cooperative Union has coordinated with the Department of Finance, the Department of Justice, the Department of Home Affairs, and the Department of Planning and Investment to review and report to the Provincial People's Committee the specific procedures and steps according to current legal regulations on the process of establishing a new Cooperative Development Support Fund under the model of a single-member LLC with 100% state-owned charter capital. Although the Provincial Cooperative Union has carried out the steps to draft the Project, the Cooperative Development Support Fund has not yet been established due to many problems.

Localities need to be proactive and determined in all stages of establishing and organizing the activities of the Cooperative Development Support Fund.

Concluding the conference, President of the Vietnam Cooperative Alliance Cao Xuan Thu Van acknowledged and accepted the recommendations and proposals of the localities. At the same time, she affirmed that Decree 45/2021/ND-CP is very important for the development, growth and effectiveness of the Cooperative Development Support Fund. Therefore, she suggested that localities need to be proactive and determined in all stages of establishing and organizing the operation of the Cooperative Development Support Fund; advising the Party Committee and the government to supplement sufficient charter capital for the fund's operations.

The President of the Vietnam Cooperative Alliance also hopes that ministries, branches, Party committees, and local authorities will pay attention to the conditions of resources, human resources, and facilities for the local Cooperative Alliance to operate effectively...

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