Agricultural cooperative development in Dak Lak province - 1

MINISTRY OF EDUCATION AND TRAINING

DA NANG UNIVERSITY

HUYEN CHIEN THANH

DEVELOPMENT OF AGRICULTURAL COOPERATIVE IN DAK LAK PROVINCE

Specialization: Development Economics Code: 60.31.05

SUMMARY OF THE MASTER'S THESIS OF ECONOMY

Da Nang, Year 2015

The work was completed at

DA NANG UNIVERSITY

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Scientific instructor: Assoc.Prof.Dr. Bui Quang Binh

Reviewer 1: Assoc.Prof.Dr. Nguyen Thi Nhu Liem

Agricultural cooperative development in Dak Lak province - 1

Reviewer 2: Dr. Do Thi Nga

Thesis was defended in front of the Graduation Thesis Graduation Committee of Economics at the University of Danang on February 7, 2015

The thesis can be found at:

- Center for Information - Study Materials, University of Danang

- Library of University of Economics, University of Danang

PREAMBLE

1. Urgency of the topic

The cooperative economy, which is popular as a form of cooperative, has played an important role in the economies of many countries around the world. In Vietnam, cooperatives are one of the suitable models to develop agriculture , improve farmers' lives and solve social problems in rural areas. The cooperative movement was formed and developed in 1955, but up to now, the activities of cooperatives, especially cooperatives, still have many weaknesses and have not really promoted the values ​​of the collective economy in the operating economy. operate according to the market mechanism.

In recent years, agricultural cooperatives in Dak Lak province have grown in number, attracting a large number of farmer households and laborers to participate, but many cooperatives are still very weak and exist in form; The income of members and workers in the cooperative is still low. Therefore, it is necessary to find solutions to develop and improve the operational efficiency of agricultural cooperatives in Dak Lak province.

From that actual requirement, we choose the issue  "Development of agricultural cooperatives in Dak Lak province"  as our research topic.

2. Research objective

- Systematize the theory of cooperative development and practical experience of cooperative development in general and agricultural cooperatives in particular.

- Assessment of the current state of agricultural cooperative development in Dak Lak province;

- Proposing solutions to develop agricultural cooperatives in Dak Lak province.

3. Object and scope of research

3.1. Research subjects

- Research object: Solutions to develop agricultural cooperatives.

- Research object: Agricultural cooperatives.

- Survey object: Agricultural cooperatives in Dak Lak area.

3.2. Research scope

- Research space: Mainly in Dak Lak province.

- Research period: Studying the development of agricultural cooperatives in Dak Lak province in the period of 2003-2013, focusing on the period 2009-2013 and proposing solutions to develop agricultural cooperatives up to 2020.

4. Research Methodology

The thesis is based on the dialectical and historical materialism methodology of Marxism - Leninism to study cooperatives in the relationship that is always moving and developing with other objects in the socio-economic background.

On that basis, the thesis also uses some specific methods such as: Inheritance method; descriptive and analytical statistical methods; professional solution; SWOT method, cause - effect; logical thinking method...

5. Dissertation layout

In addition to the introduction and conclusion, the thesis consists of 3 chapters:

Chapter 1: Theoretical basis of cooperative development

Chapter 2: Current status of agricultural cooperative development in Dak Lak province.

Chapter 3: Solutions to develop agricultural cooperatives in Dak Lak.

6. Research literature review

The development of cooperatives in general and agricultural cooperatives in particular has been researched and considered by authors, agencies and organizations from many angles with different spaces and times. Thereby, the authors have summarized the history of formation, development of ideology, basic principles of cooperatives; drawing on practical experience of cooperative development and recommending basic solutions to develop cooperatives... These are important theoretical and practical bases that help us inherit and refer in the research process, do this thesis.

CHAPTER 1

THEORETICAL BASIS ON COOPERATIVE DEVELOPMENT

1.1. SOME GENERAL ISSUES ABOUT COOPERATIVES

1.1.1. Cooperative concept

Cooperation in the production process is an objective law of human society. People cannot produce unless they combine in some way to work together and to exchange activities with each other.

In the world, cooperatives have a history of nearly 200 years of continuous development. In each country, the concept of cooperative is expressed differently, but in general, it has the following connotations: a cooperative is an autonomous organization of volunteers who join together to satisfy their economic needs and desires. economy, culture and society through the establishment of a collective ownership enterprise, equal capital contribution, accepting the sharing of benefits and risks, with the active participation of all members in operating and democratic management.

In Vietnam, according to the Law on Cooperatives 2012: “Cooperative is a collective economic organization, co-owner, legal person, established by at least 07 members voluntarily and cooperating and supporting each other in activities. production, business, job creation in order to meet the common needs of its members, on the basis of autonomy, self-responsibility, equality and democracy in management of cooperatives...".

1.1.2. Cooperative nature: The essence of a cooperative is the cooperation of members who share common needs on the basis of autonomy, self-responsibility, equality and democracy in management, and jointly carry out their production and business activities. cooperative, and at the same time support production and business activities, the life of each member and the community in order to bring the highest benefits to each member and society.

1.1.3. Characteristics of cooperatives in Vietnam today

- In principle of organization and operation: Cooperatives are organized to operate on the basic principles of voluntariness, democracy, equality and openness; autonomy, self-responsibility and mutual benefit; community development cooperation.

- About members participating in the cooperative: The cooperative is currently an economic organization with at least 07 members, including individuals, households and legal entities. Individuals, households, and legal entities can be members of many different cooperatives.

- Regarding ownership relations: In today's cooperatives, there exists collective ownership and private ownership of members.

- Organizational structure and management relationship: The organizational structure of the cooperative consists of the General Meeting of members, the Board of Directors, the Director and the Supervisory Board or supervisors, clearly defining the powers and duties of each department and individual. core. Members of the cooperative are entitled to participate in deciding all issues of the cooperative with equal voting rights, regardless of the amount of capital contributed.

- Regarding the distribution relationship: the cooperative currently implements the income distribution regime for members mainly according to the level of service use of the cooperative or the members' labor contributions to the cooperative, the rest is shared. by capital contribution.

1.1.4. Agricultural cooperatives

a. The concept of agricultural cooperatives: Agricultural cooperatives are cooperatives whose main activities are agriculture and forestry. Agricultural cooperatives can operate in a variety of industries, but revenue from agricultural and forestry activities has the highest proportion in total revenue of the cooperative.

b. Types of agricultural cooperatives: Agricultural cooperatives have 3 basic types of activities: specialized production cooperatives; simple service cooperatives; Cooperative production and business, general services.

c. Some characteristics of agricultural cooperatives in Vietnam: Agricultural cooperatives in Vietnam have common characteristics of cooperatives, but also have their own characteristics due to the characteristics and nature of production and business industries, services and subjects participating in cooperatives:

- Being a voluntary economic association organization of at least 07 members who are individuals, households, farms, legal entities, etc., who share the same requirements for association in production, business, and service provision for production. .

- The relationship between the cooperative and its members has both internal linkage, support, and independence.

- State cooperatives are often weak in terms of internal capacity, especially in terms of management capacity, facilities, capital... and their operations are often subject to great risks and lower efficiency than other economic types.

d. The role of agricultural cooperatives in socio-economic development: In terms of both theory and practice, agricultural cooperatives have a very important position and role in the socio-economic development of a country, because cooperatives not only contribute to the socio-economic development of a country. contributing to creating economic growth, but also creating many jobs to create jobs, ensure the living standards for a large number of workers, create socio-political stability, contribute to promoting agricultural development. rural areas of each country.

1.1.5. Development and development of cooperatives

a. Development: In economics, development is the process of transformation in all aspects of the economy in a certain period, which includes the growth in output scale, the improvement of economic structure and the improvement of economic structure. improve the quality of all aspects of life.

b. Cooperative development: Developing cooperatives in a country or a locality must first of all have an increase in the number of cooperatives and members, and at the same time, there must be an increase in the size of factors such as resources and capacity. activities of the cooperative and an expansion of the services provided by the cooperative to its members with increasingly higher quality.

1.2. CONTENTS DEVELOPMENT OF COOPERATIVES

1.2.1. Development in the number of cooperatives: Development in the number of cooperatives, is an increase in the number of cooperatives in a year or a certain period, assessed by two criteria: the number of additional cooperatives and the average growth rate. the annual number of cooperatives.

1.2.2. Increasing the resources of the agricultural cooperative: As a production and business unit, the operation of the agricultural cooperative also requires resources in terms of capital, labor, land, technology... The increase in the scale of resources This force will reflect the increase in the production and business scale of the cooperative.

a. Increasing the capital size of the cooperative: The capital of the cooperative can be divided into two types: Charter capital (owner's equity), which is the capital contributed by the cooperative members to the cooperative to become a member of the cooperative; Working capital is the total capital of the cooperatives used for production and business, including charter capital, mobilized capital and other accumulated sources. Working capital is used as fixed capital and working capital.

The increase in capital of a cooperative is assessed by two criteria: the amount of additional capital and the average annual growth rate of capital. The analysis of these two indicators for charter capital, operating capital or for fixed capital and working capital in the working capital of a cooperative, combined with factors such as the number of cooperatives and cooperative members... During the same period, it will show fluctuations in the size of each type of capital, the ability to mobilize capital, and the use of capital in production and business activities of the cooperative.

b. Increasing the size and quality of labor: Labor is the only factor capable of being creative in the resource elements of the cooperative. In particular, the managers and operators of the cooperative are a major determinant of the success or failure of the cooperative. The increase in the size and quality of labor of the cooperative is assessed through the following criteria: The number of additional employees and the average growth rate of labor; educational and professional qualifications of cooperative staff.

c. Increasing the size of land: With the production level of agricultural cooperatives in Vietnam today, land is still an important means of production. Evaluation of the increase in land size of agricultural cooperatives is considered through the following criteria: Total land area increased during the year; average annual growth rate of cooperative land

d. Science and technology development: Science and technology not only affects cooperatives in terms of making advances in agricultural production, but also affects the way cooperatives are organized and managed. . However, in this thesis, we only focus on describing a number of scientific and technological advances that agricultural cooperatives in the area have applied to increase production and business efficiency of cooperatives and members. .

1.2.3. Expansion of services of agricultural cooperatives: is one of the requirements in the process of renovating the operation of agricultural cooperatives today and is also one of the criteria reflecting the development of cooperatives. Expansion of services of agricultural cooperatives is assessed through the following criteria: The increase in the number of services of the cooperative; The ratio of revenue from service activities in the total annual revenue of the cooperative; The level of provision of support service requirements for cooperative members.

1.2.4. Completing the production organization of agricultural cooperatives: including the transformation of organizational structure, mode of operation and expansion of linkages, participation in value chains in production and business with other economic organizations, helping the agricultural cooperatives to become better and better. the more complete the organizational apparatus and operating methods, step by step approach and catch up with the level of advanced economic forms; at the same time, it helps the cooperative to reduce its weaknesses, especially in terms of capital and output market.

1.2.5. Results and operational efficiency of agricultural cooperatives: is a general indicator that reflects the final value and economic efficiency that the cooperative creates. Evaluation of the results and operational efficiency of the cooperative can be through the results of the annual classification of cooperative activities assessed by the members and through the following criteria: Net revenue of the cooperative/year; Profit before tax of the cooperative/year; Average income/year of employees in agricultural cooperatives; Profit-to-revenue ratio; Return on working capital ratio; Rate of return on charter capital.

1.3. FACTORS AFFECTING THE DEVELOPMENT OF FEES

1.3.1. Factors of natural conditions: The characteristics of geographical location, topography, soil, climate, water sources... of a locality, more or less affect the operation of agricultural cooperatives. through the effects on the growth and development of plants and animals and on the conditions of the organization and operation of other cooperatives.

1.3.2. Elements of socio-economic conditions: Whether as a model of economic organization or a single economic unit, the process of formation, operation and development of agricultural cooperatives cannot be separated from the economic environment. - Social in the area. All factors such as the status and orientation of economic development planning; infrastructure conditions; education level, culture and the mechanisms and policies of the state... all directly or indirectly affect the cooperatives.

1.3.3. Resource factors of agricultural cooperatives: Any economic unit, when operating, must have basic resources such as labor, capital, land, working facilities, factories, warehouses, and science. technical... As an economic unit, the operation of agricultural cooperatives and cooperative members cannot be without those elements.

CHAPTER 2

SITUATION OF DEVELOPMENT OF agricultural cooperatives in Dak Lak Province

2.1. SOME CHARACTERISTICS OF DAK LUK PROVINCE AFFECTING THE DEVELOPMENT of agricultural cooperatives

2.1.1. Characteristics of natural conditions

a. Geographical location: Dak Lak is located in central Vietnam; bordering Gia Lai province to the North; the South borders Lam Dong province; the East borders Phu Yen and Khanh Hoa provinces; The West and Southwest borders Dak Nong province and the Kingdom of Cambodia.

b. Terrain: The topography of Dak Lak province has a lower direction from the Southeast to the Northwest with many types of terrain, many ecological zones, which are conditions for diversified development in agricultural production.

c. Climate and weather: The climate of Dak Lak province is characterized by a tropical monsoon highland climate. The weather is divided into two distinct seasons. The rainy season is from May to October. The dry season is from November to April next year. The climate and weather conditions in Dak Lak are very suitable for agricultural development, especially perennial crops.

d. Water source: Water in Dak Lak province is quite abundant. Surface water has many rivers, streams, lakes and dams distributed relatively evenly. Groundwater has a fairly large reserve and is easy to exploit. These are favorable conditions for living and agricultural production.

e. Soil: The soil in Dak Lak is very rich with 8 groups and 23 soil units, of which the red and yellow soil group accounts for 72.8% of the natural area. The soil in Dak Lak province is suitable for many crops, especially perennial plants.

2.1.2. Economic characteristics

a. Economic growth and restructuring: In the 5-year period 2006-2010, the economy of Dak Lak province has an average growth rate of 12.1%/year; the period 2011-2013 average growth of 8.4%/year. The economic structure has shifted towards reducing the proportion of the agricultural and forestry sectors. Orientation to 2015, Dak Lak province has set a goal of strongly developing services, but agriculture, forestry and fishery are still important economic sectors, accounting for 32-33% of the economy.

b. Current status and orientation of land use: Land in Dak Lak province is mainly used for agricultural and forestry production purposes with 86.7% of the total area of ​​the province. According to the Land Use Plan to 2015, agricultural land still accounts for 39.7%; by 2020 it will be 39.4% of the total area of ​​the province. Thus, agricultural production and agriculture are still prioritized for land allocation in the provincial planning.

c. Infrastructure development situation: The socio-economic infrastructure system of Dak Lak province has been invested quite basically. In which, external traffic includes Buon Ma Thuot airport and 06 National Highway routes; 100% of districts and communes have asphalt roads to the center. Irrigation has 665 works, ensuring active irrigation of 75% of the crop area that needs irrigation. 100% of districts and communes have national electricity grid; 100% of communes have a smooth information system; telephone rate reached 108 phones/100 people; average 7.4 internet subscribers/100 people...

d. Economic situation of households, cooperative groups and farms: The whole province has 418,757 households, the average income is nearly 6.01 million VND/household/month; there are about 6,000 cooperative groups, in which, the agricultural cooperative group has 315 groups, 4,349 members; 1,731 agricultural, forestry and general business farms. The improvement in income of the household economy and the development of cooperative groups and farms in the province is one of the important bases for building and developing agricultural cooperatives.

e. The implementation of state management and policies for cooperatives: An apparatus for monitoring and managing collective economic development has been formed from the provincial to district levels. The State's support policies for cooperatives have been implemented such as: Training, fostering to improve qualifications for cooperative staff; write off outstanding debts; land; financial, credit and tax incentives; science - technology support, marketing and market expansion; support for the establishment of new cooperatives... However, the level of support and effectiveness of policies for cooperatives is still quite limited.

2.1.3. Social characteristics

a. Population and labor: By 2013, the province's average population was over 1.82 million people. The labor force has 1,077,570 people, accounting for 59% of the population, of which workers in rural areas account for nearly 76.5% of the labor force. The professional and technical level of the workforce has been improved positively, the percentage of trained workers has gradually increased, but mainly in short-term training, technical workers... highly qualified workers. Vocational colleges and universities did not increase much.

b. Education - training situation: The whole province has reached the standard of universalization of lower secondary education in 2009. Professional training has 01 university with 36 majors; 02 colleges; 08 secondary schools; 40 vocational training institutions. The annual training scale of vocational schools and institutions in the area is quite large, but the quality of training is still low, there is no link between the training institution and the units that have demand for labor, so the situation The status of training in excess and shortage of majors is common.

c. Science and technology development situation: Science and technology of Dak Lak province is making many progress. The quality of scientific research is gradually approaching the regional level, focusing on application and transfer of agricultural development. The science and technology market began to form, supporting businesses and encouraging investment in scientific research.

d. Cultural and psychological characteristics of the population: The province has 47 ethnic groups, of which Kinh people account for about 67%, and ethnic minorities account for about 33%. The general development ground of Dak Lak is still low, especially in rural areas, so the idea of ​​individual business and smallholder in the population is still quite popular; Besides, the bad impression about cooperatives during the subsidy period is still quite bold, which is one of the significant barriers to the development of cooperatives in the area.

2.2. SITUATION OF DEVELOPMENT OF agricultural cooperatives in Dak Lak Province

2.2.1. Development situation in number and distribution of agricultural cooperatives

a. Development situation of the number of agricultural cooperatives: By the end of 2003, there were 88 agricultural cooperatives in Dak Lak province. In 6 years (2008-2013), there were 80 newly established cooperatives and 23 dissolved cooperatives. By 2013, the province had 161 registered cooperatives, an increase of 73 cooperatives compared to 2003 and achieved an average growth rate of more than 6.2%/year. However, only 123 agricultural cooperatives are still active, 38 cooperatives only exist in form (accounting for 23.6% of the total number of registered agricultural cooperatives).

b. Distribution of agricultural cooperatives by geographical area: Agricultural cooperatives in Dak Lak province are distributed mainly in the central area and the northern and northeastern districts of the province, while very few cooperatives have formed and operated in the areas of agricultural cooperatives. difficult districts, remote areas, areas with many ethnic minorities in the province.

2.2.2. Situation of the resources of the cooperative

a. Capital situation of the cooperative

- Regarding charter capital: The average size of charter capital of agricultural cooperatives in Dak Lak province is very small and tends to decrease in the last 5 years. In the period 2009-2013, the average charter capital/cooperative decreased by 4.1%/year on average. In 2013, the average charter capital/cooperative was only 749 million VND; Most cooperatives only have an average charter capital of less than 300 million VND.

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Date published: 02/04/2022
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