(Chinhphu.vn) – According to comrade Le Minh Khai, in the development of collective economy and cooperatives, linking according to value chains is an economic model that has been confirmed to bring many benefits to participating entities. To successfully link according to value chains, "the most important thing is to be open, transparent, voluntary, unified, and maintain credibility between the parties. Without maintaining credibility, it is impossible to link successfully!".
Comrade Le Minh Khai: The Party and State always pay attention to developing the collective economy and cooperatives. Photo: VGP
The Party and State always pay attention to developing collective economy and cooperatives.
On April 11, Comrade Le Minh Khai, Secretary of the Party Central Committee, Deputy Prime Minister, Head of the Steering Committee for Innovation and Development of Collective and Cooperative Economy (HTX) attended and spoke at the 2024 National Cooperative Forum with the theme: "Sustainable development of product value chains".
Speaking at the forum, comrade Le Minh Khai stated: Over the years, the Party and State have always paid attention to, issued and implemented many policies, mechanisms, and laws to develop the collective economy and cooperatives.
Up to now, the political and legal basis for the development of collective economy and cooperatives has been relatively complete and has clearly defined the role, position and importance of the collective economic sector and cooperatives in the socio-economic development of the country in general and in the economic structure of the country.
The collective economic sector and cooperatives continue to grow, cooperatives have basically transformed into a new model, autonomous, self-responsible, and diversified in terms of industries and fields. By the end of 2023, the country had over 31,000 cooperatives with more than 5.8 million members and 137 cooperative unions; about 63% of cooperatives were assessed to be operating effectively.
The products of cooperatives are increasingly diverse and abundant, many of which are of high value, meeting the market's needs better and better. In the One Commune One Product (OCOP) Program, the country has over 5,300 entities, of which 38.1% are from cooperatives.
The collective economic sector and cooperatives have partly overcome the prolonged weakness, gradually innovated in association with the market mechanism, increasingly demonstrated their role in developing the household economy, ensuring social security, political stability at the grassroots level and directly contributing to the country's economic growth.
Comrade Le Minh Khai: Linking along the value chain brings many benefits to the subjects. Photo: VGP
Value chain linkage brings many benefits to the subjects
Comrade Le Minh Khai stated: In the development of collective economy and cooperatives, linking according to value chain is an economic model that has been confirmed to bring many benefits to participating entities.
In recent times, the Government and the Prime Minister have issued policies and given many instructions on linking production development and product consumption according to the value chain, especially in the agricultural sector.
Specifically, the Prime Minister issued Decision No. 62/2013/QD-TTg dated October 25, 2013 on policies to encourage the development of cooperation and production linkage associated with agricultural product consumption and the construction of large fields; Decision No. 1804/QD-TTg dated November 13, 2020 on the Program to support the development of collective economy and cooperatives for the period 2021 - 2025.
The Government issued Decree No. 98/2018/ND-CP dated July 5, 2018 on policies to encourage the development of cooperation and association in the production and consumption of agricultural products.
Decrees on mechanisms and policies to encourage businesses to invest in agriculture and rural areas, credit policies for agricultural and rural development, and agricultural insurance also stipulate policies to support the development of value chain linkages.
Ministries, sectors and localities have also actively coordinated and focused on directing the synchronous implementation of many tasks and solutions to promote linkages and sustainable development of product value chains, serving domestic consumption as well as export.
New, typical and advanced cooperative models have appeared.
As a result, the linkages between members of collective economic organizations, cooperatives, and between cooperatives and enterprises and other economic organizations have initially developed. According to statistics from the Vietnam Cooperative Alliance and the Ministry of Agriculture and Rural Development, the country has over 4,000 cooperatives participating in value chain linkages (accounting for nearly 13% of the total number of cooperatives).
In the agricultural sector alone, 1,449 linkage chains have been built and developed for key products according to Decree No. 98/2018/ND-CP, with the participation of 2,204 cooperatives, 1,091 enterprises, 517 cooperative groups and more than 186,000 farming households.
The total budget of approved projects and joint plans is: 11,440 billion VND, of which the state budget support is: 2,532 billion VND (accounting for 22.1%).
The forms of value chain linkage are diversified according to the stages in the chain from supplying materials, input services, organizing production, harvesting, preliminary processing or processing associated with product consumption and are formed based on the specific needs of each region, each industry, each group of subjects.
In some localities such as Thai Nguyen, Ha Nam, Nghe An, Lam Dong, Dak Lak, Ho Chi Minh City, Tien Giang, etc., new, typical and advanced cooperative models have appeared, operating effectively, bringing stable income to members and playing an important role in the chain of linking the development of large-scale agricultural commodity production areas for processing and export.
The development of appropriate linkage chains has contributed to the formation of many concentrated production areas and large raw material areas, which is an important basis for applying scientific and technological advances to production, improving the quality and output of goods, meeting market requirements, overcoming the disadvantages of small-scale economic models, and bringing high socio-economic efficiency to many partners participating in the linkage.
National Cooperative Forum 2024: "Sustainable development of product value chains". Photo: VGP
The collective economic sector and cooperatives still have many problems.
In addition to the achieved results, the collective economic sector and cooperatives still have many existing problems that have been mentioned many times in the past, such as: The production and business capacity of cooperatives is still weak and fragmented (the average revenue of cooperatives in 2023 only reached 3.5 billion VND/cooperative/year. The average profit of a cooperative in 2023 reached 324 million VND).
The level of science and technology is still limited, the application of digital transformation in management, production and business organization is still difficult. The number of cooperatives that have built product brands is not much, and the competitive value in the market is not high.
In addition, the internal linkages within cooperatives are still weak, joint ventures and linkages between cooperatives and between cooperatives and other economic organizations are not popular. There are not many cooperatives with the capacity to organize linkages, promote the role of a truly effective bridge, and have the ability to spread in developing production according to the value chain.
According to comrade Le Minh Khai, the above-mentioned shortcomings stem from a number of causes, such as: The quality of management human resources of cooperatives in general is still limited (by 2023, the number of cooperative management staff with elementary and intermediate qualifications will only account for nearly 36%, while those with college and university qualifications will only account for 23%).
In addition, preferential and support policies for the collective economic sector and cooperatives have been available; however, the organization and implementation are not yet synchronous and lack resources to ensure implementation.
Cooperatives still have difficulty accessing loans from credit institutions due to lack of collateral, ineffective production and business activities, lack of sustainability, and insufficient transparency in financial and accounting activities to meet the requirements of credit institutions.
In implementing policies on value chain linkage, Decree No. 98/2018/ND-CP of the Government has stipulated decentralization for provinces in promulgating mechanisms and policies to specify mechanisms and policies to encourage linkages in the locality, in accordance with the resources and actual situation of the locality. However, there are still localities that are slow to promulgate, waiting, and making recommendations back to the Government and ministries and branches on policy concretization.
Conditions for benefiting from the linkage policy are still difficult, the process and procedures are still unclear and complicated, so it has not attracted many cooperatives and businesses to participate.
The organization of propaganda and dissemination of policies on developing linkages between production and consumption of agricultural products to the grassroots (communes, wards, and residential communities) is still limited, leading to inadequate awareness among stakeholders and lack of trust in participating in the linkage chain.
Some raw material areas have been formed but have not been organized and managed effectively and sustainably. The infrastructure serving production and business is weak, there is a lack of production data information to trace the origin of products, build growing area codes, and there are difficulties in synchronously implementing support policies on credit, agricultural insurance, application of scientific and technical advances, quality management of raw material areas associated with value chain linkage, and product branding.
Policies to support value chain linkages with collective economic organizations as the main actors are mainly focused on the agricultural sector. There is a lack of research and evaluation of value chain linkages with collective economic organizations in the non-agricultural sector.
In some places, Party committees and authorities have not paid due attention to the leadership and direction of the development of collective economy and cooperatives.
Comrade Cao Xuan Thu Van, Party Secretary and President of the Vietnam Cooperative Alliance, spoke at the forum. Photo: VGP
Synchronously implement tasks and solutions to develop and improve the efficiency of the collective economic sector and cooperatives.
Regarding the direction, tasks and solutions in the coming time, comrade Le Minh Khai stated: Resolution No. 20-NQ/TW dated June 16, 2022 of the 13th Party Central Committee on continuing to innovate, develop and improve the efficiency of the collective economy in the new period has determined the goal that "by 2030, the whole country will have about 140,000 cooperatives, 45,000 cooperatives, 340 cooperative unions, at least 50% of collective economic organizations participating in value chain linkage; developing commodity agricultural value chains associated with production linkage, providing processing services and consuming agricultural products; promoting participation in supply chains to directly export agricultural products abroad; by 2045, at least 75% of collective economic organizations will participate in value chain linkage" .
The Law on Cooperatives 2023, which takes effect from July 1, 2024, has fully institutionalized eight policy groups according to Resolution No. 20-NQ/TW of the 13th Party Central Committee, including policies to support value chain development.
Resolution No. 09/NQ-CP dated February 2, 2023 of the Government promulgating the Action Program to implement Resolution No. 20-NQ/TW of the 13th tenure with 48 main projects and tasks clearly identified the presiding agency, completed products and implementation roadmap to develop and improve the efficiency of the collective economy, including many tasks to develop sustainable linkages in production and product consumption according to the value chain.
At the Cooperative Economic Forum held in February 2024, the Prime Minister also directed many key tasks and solutions to be implemented in the coming time to develop the collective economy and cooperatives.
Deputy Prime Minister Le Minh Khai requested ministries, branches, agencies, localities, cooperative economic organizations, and partners participating in the association to thoroughly grasp and closely follow the Party's guidelines and policies, especially the viewpoints, goals, tasks, and solutions set forth in Resolution No. 20-NQ/TW dated June 16, 2022 of the 13th Party Central Committee, the provisions of the 2013 Law on Cooperatives and related policies and laws, and synchronously organize the implementation of tasks and solutions directed by the Government and the Prime Minister to continue developing and improving the efficiency of the collective economic sector and cooperatives in the coming time.
Comrade Le Minh Khai: Without keeping our word, we cannot have a successful alliance! Photo: VGP
Without keeping your word, you cannot have a successful partnership!
Regarding the sustainable development of product value chains, the Deputy Prime Minister proposed focusing on implementing the following tasks:
Firstly, review and perfect mechanisms and policies to remove difficulties and obstacles, promote linkages and sustainable development of product value chains.
Ministries, sectors and localities, according to their assigned functions and tasks, "must clarify which mechanisms and regulations are stuck, and whose responsibilities are involved, in order to have specific proposals," Deputy Prime Minister Le Minh Khai emphasized.
Second, improve the quality of human resources to serve the development of collective economy and cooperatives.
Third, organize the consolidation and construction of concentrated raw material areas. The Ministry of Agriculture and Rural Development and the People's Committees of relevant provinces and cities coordinate to direct and effectively implement the Project "Sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030" approved by the Prime Minister; projects to build standard agricultural and forestry raw material areas for domestic consumption and export approved by the Ministry of Agriculture and Rural Development; invest in developing and completing infrastructure for production; create a foundation and basis to attract businesses to cooperate, invest, transfer scientific and technical advances, apply technology, digital transformation, and sustainably develop raw material areas and product value chains.
Fourth, promote communication and policy dissemination.
Fifth, the Ministry of Planning and Investment and the Ministry of Finance synthesize and balance capital sources from the state budget to implement policies to support the collective economic sector, cooperatives, and value chain linkages, ensuring the requirements of concentration, focus, and key points, suitable to the implementation situation of each stage.
Sixth, the People's Committees of provinces and cities focus on directing and implementing policy mechanisms, focusing on removing difficulties and obstacles to create conditions for the development of collective economy and cooperatives in the locality. Proactively arrange and integrate capital sources from related programs and projects to promote value chain linkages to achieve high efficiency.
"Doing this well will not only contribute to local economic development but also improve people's lives, create jobs, and ensure social security," the Deputy Prime Minister stated.
Seventh, cooperatives and enterprises, as the bridge and leading entity of the linkage chain, must proactively enhance their management and operation capacity, adapt to new contexts and development trends, organize production and business activities, and link in a public and transparent manner, clearly understand and properly and fully implement the rights and obligations of the parties when participating in the linkage chain; exchange, negotiate and agree to resolve and share difficulties and unavoidable risks in the process of implementing the linkage contract.
"The most important thing is to be open, transparent, voluntary, unified, and maintain credibility between the parties. Without credibility, the association cannot be successful!", the Deputy Prime Minister stated.
Eighth, the Deputy Prime Minister requested socio-political organizations and industry associations to increase information, propaganda, consultation, mobilization and support for members, businesses, organizations and individuals to participate and properly implement linkage contracts; develop markets, build and promote product brands; build, develop and protect the reputation of the linkage chain.
Ninth, the cooperative alliance system continues to play a good role as a bridge between the Party and the State with the collective economic sector. Closely following the situation, understanding the difficulties and needs of cooperatives, organizing consultations and guidance for cooperatives to increase their ability to access state support policies, and effectively participate in the production - consumption chain.
Tenth, proactively refer to and learn from the experiences of developing collective economy and cooperation of advanced countries and apply them appropriately to the reality of the country and locality.
Deputy Prime Minister Le Minh Khai emphasized: The Government always encourages and creates all favorable conditions according to the law for the collective economic sector and cooperatives to develop rapidly and sustainably, contributing increasingly positively to the overall socio-economic development achievements of the country.
Regarding the recommendations at the forum, Deputy Prime Minister Le Minh Khai requested the Cooperative Alliance to synthesize and report to the Prime Minister to direct ministries and branches to handle them according to their authority./.
Tran Manh - Government Portal
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