Deputy PM Hue urges removal of obstacles to cooperatives’ growth

Deputy Prime Minister Vuong Dinh Hue has requested that the relevant authorities remove any obstacles which are hindering the growth of cooperatives, a significant sector of the economy.

Deputy PM Vuong Dinh Hue
Deputy PM Vuong Dinh Hue

He said that ministries and agencies should amend the existing legal documents to provide cooperatives with easier access to land and credit.

The Deputy PM made the request on July 7 while attending a conference reviewing the implementation of the 2012 Law on Cooperatives in the Central Highlands and south central region.

He said that new-style cooperatives play a vital role in re-organising agricultural production but as of yet have failed to meet expectations, contributing just 5% to the country’s economic growth.

He added that there are many good cooperative models, citing Hoa Mat Troi and Tan Tien in Lam Dong province that he visited a day earlier, but they are not evenly distributed across provinces.

According to the government official, cooperatives can help local residents not only eradicate poverty but also become rich in their own homeland.

He emphasised that cooperatives are an indispensable part of local economy where there is an imbalance between supply and demand, elaborating that there are few sellers of input materials for agriculture while there are many buyers, causing prices to soar at the expense of farmers.

At the same time, the number of agricultural produce sellers outstrips buyers and farmers are again those who suffer.

Therefore it is necessary to communicate to farmers the benefits of joining cooperatives, which will help them to connect their production with the market, emphasised Deputy PM Hue.

At the conference, directors of cooperatives in the region said that there is still much room for their businesses to grow further when the barriers concerning credit, land, human resources and management capacity are removed.

Representatives also expressed their delight at the news that in the near future, the government will introduce a set of policies aimed at attracting investment in agriculture and making it easier for cooperative to borrow.