Currently, Hanoi has over 2,500 cooperatives, including 1,483 agricultural cooperatives, 322 industrial-handicraft cooperatives and 328 trade-service cooperatives. Each cooperative generates an average of 2.5 billion VND (98,600 USD) in revenue, with average profit of 150 million VND (5,900 USD). The capital city’s cooperatives are creating jobs for over 600,000 workers.
To promote socio-economic development and support farmers, cooperatives have facilitated loan access and provided management training for their members as well as promoted agricultural products, handicrafts, traditional crafts, and OCOP products through trade promotion and experience sharing activities.
Hanoi recognises rural residents as key stakeholders in the national programme of building new rural areas. Many localities focus on developing household and collective economies to boost socioeconomic growth and employment. Over 1,400 agricultural cooperatives serve as the foundation, improving business capabilities and supporting farmers, especially in remote areas.
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Making incense in Quang Phu Cau Village, Ung Hoa District. |
Along with developing cooperatives, localities are focused on promoting traditional craft villages, which play a key role in the building of new rural areas in the capital city. According to the Vietnam Craft Village Association, Hanoi has the highest concentration of craft villages nationwide, with over 1,350 craft villages representing 47 out of 52 traditional crafts in Vietnam.
Rural craft villages have shown strong growth in revenue and exports. Currently, over 100 villages are earning 10-20 billion VND annually, nearly 70 villages are earning 20-50 billion VND annually, and 20 villages are earning over 50 billion VND annually. These villages provide employment for tens of thousands of workers and make significant contributions to local budgets and Hanoi’s socio-economic development.
According to Hanoi’s coordination office for the new rural development programme, 188 communes (or 49.2% of total communes in the capital city) have fulfilled the criteria of advanced new rural areas. The city aims for 40% of communes to be recognised as exemplary new rural areas in 2025, focusing on the collective economy as the foundation.
Hanoi Vice Chairman Nguyen Manh Quyen announced that the city government will hold a dialogue with farmers in December to address their concerns and recommendations for socio-economic development, agricultural restructuring, and rural living standards improvement during the 2021-2025 period, with a vision for 2030.
Implementing the Party Central Committee’s resolution promulgated in 2022 on developing the collective economy, Hanoi has issued its 2024 collective economy development plan with specific targets, including the establishment of 100 new cooperatives, 2 cooperative unions, and 145 cooperative groups. The number of well-performing cooperatives will account for about 65-70% of total cooperatives. The capital city will also develop 24 model cooperatives with average revenue of 2.7 billion VND per year and profit of 200 million VND per year.
The development of the collective economy must be linked to production and consumption value chains. The 2025 collective economy development plan must align with the 2021-2025 collective economy development plan, the city’s socioeconomic development plan, the national collective economy development strategy for the 2021-2030 period, as well as the central government’s programmes and plans.
