The role of collective economy and cooperatives in economic development

Minh Anh Cooperative (Bac Kan City) produces mushrooms, bringing economic efficiency to its members.

Agricultural cooperatives are an important factor in the picture of rural agricultural economic development. Bac Kan province has nearly 340 cooperatives operating in the agricultural sector, accounting for over 75% of the total number of existing cooperatives. Agricultural cooperatives have a role in mobilizing and gathering to change the way of thinking and working, helping farmers improve their production skills, apply standards, and create high-quality and consistent products to meet the needs of the domestic and export markets.

Yen Duong Cooperative (Ba Be) and its partners aim to create high quality products that meet export criteria.

Promoting the role of cooperatives in economic development, especially agricultural and rural economy, has always been a key task that all levels, sectors and localities have determined to carry out and brought about positive results in recent times.

Over the past 5 years, Bac Kan province has achieved and exceeded its economic development targets. To date, the province has 670 cooperatives and 460 cooperatives. Cooperatives have developed in a variety of fields and industries such as agriculture, forestry and fisheries, food processing, and small-scale handicraft development. As a result, the number of cooperatives operating effectively is increasing. By the end of 2024, the total charter capital of cooperatives will be nearly 740 billion VND, the total operating capital will be nearly 3,500 billion VND, and the total revenue will be estimated at over 400 billion VND. Currently, the number of cooperative members is over 5,500, with nearly 2,300 employees working regularly in cooperatives. The average revenue is over 2 billion VND/cooperative/year, and the average profit is 800 million VND/cooperative/year.

In recent years, cooperative economic models and cooperatives in Bac Kan province have begun to have clear changes in both quantity and quality. Each year, on average, 50 or more new cooperatives and cooperative groups are established.

Cooperative economic models, cooperatives, are increasing in quantity, quality and value of contribution to the economy. Through assessment and classification, the whole province currently has 290 cooperatives operating well and fairly; more than 100 cooperatives operating averagely. Stable development cooperatives have created jobs for local workers. The average income of cooperative members reaches 59 million VND/person/year.

From July 1, 2024, the Law on Cooperatives 2023 officially takes effect. Many support policies in the spirit of promoting the good nature of the collective economic model have affirmed that cooperatives are one of the effective models in improving social security and developing the economy towards promoting value chain linkages.

Currently, the whole province has 30 cooperatives accessing capital from the Cooperative Development Support Fund, nearly 30 cooperatives enjoy policies under Decree No. 42 regulating support policies on health insurance, social insurance, unemployment insurance for workers with support funds of more than 1.2 billion VND, nearly 85 cooperatives are supported with high-quality human resources...

Mr. Tran Van Cuong, Chairman of the Provincial Cooperative Union: “Cooperatives are gradually becoming a popular and inevitable method of organizing production, not only in the agricultural sector but also expanding to many non-agricultural sectors such as: Industry, handicrafts, transportation, services, credit and some other sectors. The Bac Kan Provincial Cooperative Union has implemented many policies to support and promote the development of cooperatives”.

Cooperative economy and cooperatives have brought more and more benefits to members, built many cooperative models, developed production and business associated with commodity value chains. Cooperatives are gradually returning to the image of a superior economic model that can help people increase their income and move towards sustainable enrichment./.

Bich Ngoc

Source: https://baobackan.vn/vai-tro-cua-kinh-te-tap-the-htx-trong-phat-trien-kinh-te-post70332.html