Situation of Cooperative Economy and Cooperative Development in VietNam and activities of VCA system in first 6 months of 2020

Despite being negatively affected by the COVID-19 pandemic and social distancing in Vietnam, in the first 6 months of 2020, there were 752 cooperatives, 10 cooperative federations, 3,000 pre-cooperatives  newly established in the whole country. The cooperative economy and cooperatives developed diversely in the fields of agriculture, industry and services,... As of June 2020, there were 25,282 cooperatives in the whole country, an increase of 2,002 cooperatives over the same period in 2019;  attracted 7.2 million members and 2.5 million workers.  Cooperatives and cooperative federations have improved their management skills, attracted young laborers, expanded the model of cooperative production with the value chains and high technology; cooperatives, cooperative federations and pre-cooperatives have  been supplying input and output services, bringing benefits to members (21.5% of the cooperatives supplied input, output services and sold members’ products, 13% of the cooperatives have cooperated in production with other companies).  Many cooperatives which suffered from the Covid-19 pandemic have mobilized resources to restore and develop production and business by themselves.

However, the COVID-19 pandemic, avian influenza and African swine cholera epidemic in many localities as well as saline intrusion due to climate change in the Mekong Delta have made a slight increasing in the number of newly established cooperatives and affected cooperative effectiveness and operation. Activities of  cooperatives in agriculture, tourism, small induatry and handicraft and consumer sectors declined over 50% of internal  revenue and product consumption; many cooperatives were in  small-scale, outdated technology, weak management, limited in mobilizing resources and applying advanced technology; some cooperative federations  did not do well the role of "leading/tractors" to support members; many pre-cooperatives  operated unstably.

In the first 6 months of 2020, VCA has implemented many activities such as: implemented the advocacy of the Government and other related agencies on cooperative development and preventing and controling the Covid-19 pandemic; actively making preparations for the National Congress of VCA and the provincial cooperative alliances term of 2020 - 2025 (intended to be organised in November 2020); strengthened propagandizing together with the emulation movement in the cooperative economy to celebrate the important events of the country in 2020; represented and protected the legal rights and interests of members; promoted the models of cooperatives with the value chains; continuing to improve the quality of consultancy, supporting, mobilizing the establishment and restructuring the operations of cooperatives; finalized and submited the Strategic Projects/Plans for Cooperative Development to the Prime Minister for approval; implemented international cooperation activities for the development of cooperatives; innovating way of working, strengthening discipline and system link.

  (1) To take main charge of advising and supporting the establishment of 752 new cooperatives, 10 cooperative federations and restructuring the existing cooperatives;

(2) To promote propagandizing and raising public awareness on cooperatives economy and cooperatives;

         (3) To prepare to organise the VCA’s National Congress term 2020 – 2025 (planned to organise in November 2020);

        (4) To promulgate regulations and mobilizing resources to set up 63 models of cooperatives with value chains in 63 provinces and cities in Vietnam;

        (5) To continue to coordinate with relevant ministries and agencies to finalise projects on auditing, training, information technology ...;

        (6) To collaborate with the Ministry of Planning and Investment to publish the Vietnam’s Cooperative White Paper in 2020; to set up the Strategy for Cooperative Development for  2021 – 2030 period, the Cooperative Support Program for  2021 – 2025 period and VCA’s Public Investment Plan for 2021 – 2025 period;     

         (7) To organize the VCA’s Executive Committee Meeting to review the first 6 months of 2020 and carried out the Conclusions of the Central Secretariat and Government on cooperative development;

          (8) To continue to provide public services on credit, training, trade promotion ...; 

          (9) To inaugurate the project on “Cooperatives with Uncle Ho” at Kim Lien Special National Historic Site, Nam Dan District, Nghe An province.