Cooperatives facilitated to access to preferential loans

Some 35.7 percent of the cooperatives in the South Central Coastal and the Highlands region contributed greatly to the local economic growth, said participants at a meeting on July 7 in Da Lat Town held by the Ministry of Agriculture and Rural Development to review the implementation of Cooperative Law from 2012.

Farmers are working in a cooperative in Lam Dong Province (PHoto: SGGP)

Farmers are working in a cooperative in Lam Dong Province (PHoto: SGGP)

The Ministry of Agriculture and Rural Development, the region has 1,272 agriculture cooperatives, accounting for 22.8 percent of the country’s total number. Averagely, each province has 98 cooperatives.
After four-year implementation of Cooperative Law, newly established cooperatives meet requirements of agricultural restructure and the government’s new rural plan.
As many as cooperatives have their major products and link with other by chains including linkage between cooperatives and big supermarkets to expand consumption of agricultural produces.
In the meeting, participants said that the Cooperative Law 2012 is not appropriate because it stipulated that the maximum of capital contribution of each cooperative member must not exceed 20 percent of the registered capital.
Additionally, the regulation that those who are not cooperative member are supplied products and services less than 32 percent is controversial because it impedes cooperatives’ activities.
Moreover, red tape to set up cooperatives barriers establishment of new cooperatives. It also hinder access to fund to expand production scale and weak link amongst cooperative members.
Speaking at the meeting, Deputy Prime Minister Vuong Dinh Hue said though cooperatives have made positive changes, the development does not match its full potential; accordingly cooperatives have contributed nearly 5 percent to the country’s total Gross Domestic Product.
The south central coastal area and the highlands region plant key trees such as coffee, rubber, pepper, veggies. Orchids growing in Lam Dong Province achieve VND24 billion ($1 million) per hectare a year and farmers enjoy profit of VND7.2 billion.
In the next time, relevant agencies need to increase information of cooperative role in agricultural restructuring to farmers and local administrators. It is needful to show farmers the necessity of link in agricultural production in the market economy.
Last but not least, the government will adjust the Decree No.55 to allow farmers to give their manufacturing equipment as security for a loan.

By DOAN KIEN - Translated by UYEN PHUONG

Other news

Most view

A filling station of Petrolimex

ATM cards can be used to buy gasoline from August 1

Vietnam National Petroleum Group (Petrolimex), National Payment Corporation of Vietnam (NAPAS) and Petrolimex Group Commercial Joint Stock Bank (PG Bank) yesterday signed a cooperation agreement on ATM card payment at Petrolimex filling stations.

Banking-finance

SBV prepares bad debt settlement plan

The central bank on Friday held an online conference to prepare for the implementation of the scheme to settle non-performing loans (NPL) and restructure credit institutions in the 2016-20 period.
 

Economy

Self - introduction

“Taste of world” buffet in Liberty Central Saigon Center

Central restaurant is located on the 3rd floor of Liberty Central Saigon City point hotel where combines the comfort of tradition with modern design for people to experience regionally-sourced cuisine and fresh local seafood, especially lunch and dinner buffet.

Stock market

VN Index drops after two-day rise

Vietnam’s benchmark VN Index retreated from a two-day increase as large-cap stocks were brought down by profit-taking pressure.