It is critical to establish a business in a cooperative

DNHN - That was the view of National Assembly Chairman Vuong Dinh Hue at a morning session of the National Assembly Standing Committee on September 20 to examine the proposed Cooperatives Law (amended).

Chairman of the National Assembly Vuong Dinh Hue praised the Government's procedures and outcomes in developing this measure. He stated that the formation of cooperative firms is critical and proposed that this change to the Law on Cooperatives be explored further for more detailed restrictions.

Article 58 of the proposed legislation establishes broad requirements for capital contribution, share acquisition, and business creation (addition and change to Article 20 of Decree 193/2013/ND-CP) and delegates to the Government the power to regulate details. The National Assembly Chairman highlighted the issue: there are now no restrictions, and no one pushes cooperatives to convert into companies but permits cooperatives to form enterprises.

He stated that cooperatives with five enterprises exist in Tam Diep, Ninh Binh. Or an Israeli firm focused on drip irrigation technology with yearly sales in the billions of dollars, but it is an Israeli cooperative. When I first travelled to China to study, there was a cooperative here that controlled a 5-star hotel chain...

The National Assembly President investigated a cooperative in the Ninh Giang district (Hai Duong). Ninh Giang district has a commune that specialized in supplying decorative plants to Hanoi, with hundreds of trucks that operate on asphalt. With the such rapid economic expansion, cooperatives must build enterprises, which is also a global trend. This amendment of policy aims to clarify this policy.

Furthermore, the National Assembly Chairman stated that this amendment is needed to institutionalize the Central Government's Resolution 20/NQ-TW encouraging cooperatives to mobilize land resources from members of business economy cooperation. A provision in the statute should state that "governments at all levels must pay attention to arranging for cooperatives to access land."

In truth, there are numerous very effective business cooperatives in Lam Dong, but not a single pole serves as a headquarters. There was a comrade Chairman of the cooperative, the General Director, who was invited to return to the headquarters, but it turned out to be at his own house, because there was no headquarters, so he had to do it at his own house. Because the aforementioned principles are incorporated into the legislation, the community must create circumstances for cooperatives to obtain property, erect headquarters, and provide basic services.

Another point of concern raised by the President of the National Assembly is how to acquire and utilize land resources from cooperative members and economic groups.

In terms of credit capital, the present legislation allowing a cooperative to obtain a loan without collateral is VND 500 million, but no one can access it and no one loans it. When modifying the law, this problem must also be addressed.

Nguyen Chi Dung, Minister of Planning and Investment, has received comments from the President of the National Assembly and delegates and will continue to research to finalise the draft Law. The Draft Law on Cooperatives (as revised) will be submitted to the National Assembly for the first time in October 2022, upon completion.

PV