HCMC cooperatives set for financial boost

Ho Chi Minh City People’s Committee chairman Le Hoang Quan has told relevant agencies to provide financial assistance to the collective economic sector.

Lattices made of small bamboo in Thanh Truc Company. Cooperative groups and businesses join hand to make products from bamboo, rattan and leaves in Cu Chi District, HCMC (Photo: SGGP)

The HCMC Cooperative Alliance should work with districts and banks to access credit for effectively operating cooperatives, cooperative groups, and their members, he said at a meeting on May 5.

He instructed the Department of Home Affairs, in coordination with the Department of Finance, to come up with appropriate policies to boost the sector’s development. He also instructed it to work with the HCMC Cadre Training School to improve the managerial skills of cooperative officials.
HCMC has more than 4,700 cooperative groups and 540 cooperatives, which have been lent only VND672 billion (US$32 million), very low compared to their total liabilities.

The low rate is blamed on their inefficient production and trading capabilities and poor financial management.

By Van Anh – Translated by Hai Mien

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