Lao Cai: Cooperatives' and cooperative groups' production and economic activities progressively stabilized and flourished again

DNHN - Collective economic sectors and cooperatives in Lao Cai province have gradually entered the province's general recovery trajectory, and cooperative and cooperative group production and business activities have gradually stabilized and developed returning to a new normal through the first six months of 2022.

Monitoring revealed 15 newly founded cooperatives and 1 dissolved cooperative in the first six months of 2022. In all, there are 455 cooperatives in the province, an increase of 7.8 per cent over the same time, with 334 cooperatives active.

The cooperatives now have a total of 7,045 members, a 15% rise over the same time, with 105 new members joining. The cooperative employs a total of 8,806 persons regularly.

The cooperative's average income in the first six months of 2022 is 765 million VND/year. The cooperative's average profit is 88.2 million VND per year, and regular workers' average income is 46.8 million VND per year, increasing 2.3 per cent over the same time.

In the province, there are 245 cooperatives in the field of agriculture; 95 cooperatives in the field of the industry - cottage, handicraft; 38 cooperatives in the field of commerce and services; 44 cooperatives in the construction sector; 31 cooperatives in the field of transportation; and 02 cooperatives in the field of credit. Agricultural, industrial, and handicraft cooperatives' production and economic operations have progressively revived.

Commercial and service cooperatives are becoming more active, with more positive commercial outcomes. Due to the effect of the Covid-19 pandemic, all transport cooperatives lowered the frequency and volume of operations towards the end of the first quarter of 2022; by the second quarter of 2022, the operation had progressively normalized again.

The People's Credit Funds are working well; total equity is 9,378 million VND, with 1,326 members, and income is 2,652 million VND in the first six months of 2022. Currently, the Covid-19 outbreak is being progressively controlled, members' financial demands are increasing, and the Fund is focusing on helping members who are borrowing cash while also expanding and developing new members.

In the construction industry, most cooperatives have ceased operations; the operational efficiency of cooperatives in manufacturing and exploiting building materials is low.

Although the cooperative sector's annual contribution to the province's GRDP is estimated to be only 0.1 per cent, it has indirectly contributed to the construction of new rural areas and socioeconomic development in the locality by promoting the economic development of member households, and creating jobs, eradicating hunger, and reducing poverty.

During the recovery phase, cooperatives continue to confront several challenges in financing, product consumption, buildings, equipment, professional qualifications of management, and so on; the number of cooperatives closing down and awaiting dissolution remains significant.

Currently, the province has two cooperative unions, each with 12 member cooperatives: one agricultural cooperative union and one non-agricultural cooperative union. The province as a whole is anticipated to have 7,534 cooperative groups as of June 30, 2022, with a total number of active members of 113,002 persons, an average of roughly 15 members/group, and one management team head for each cooperative group.

There are 3,297 agriculture groups, 518 industry-handicraft groups, 483 trade-service groups, 2,674 credit and lending groups, 247 transportation teams, and 316 construction teams. Because the Covid-19 outbreak in the province is now mostly under control, cooperative organizations have progressively resumed manufacturing and economic operations; cooperative financing and credit activities are becoming more active.

Lao Cai continues to execute timely solutions to eliminate challenges and hurdles, so generating all of the circumstances for the collective economy and cooperatives to flourish sustainably in line with the locality's real situation. Increase promotion and distribution of new Party and State policies on collective and cooperative economic growth.

Implement cooperative development support and incentive programs in line with Government Decree No. 193/2013/ND-CP dated November 21, 2013. Improve the efficacy and efficiency of state administration and innovation, as well as the quality and performance of collective economic organizations.

PV