Strengthening the State's Management Role in Directing and Implementing the Party's Viewpoints on Collective Economic Development

Coordinate with the Vietnam Cooperative Alliance to send young cadres to study and research cooperatives in a number of countries with strong cooperative movements to serve as the core for the state management apparatus at all levels, for the collective economic sector and for cooperative training schools.

+ Implement open land policies to facilitate the operations of cooperatives.

The Government has had measures and policies to encourage and facilitate farmers to “consolidate land and exchange plots”, concentrating land according to the State’s policy to develop commodity production and expand industries. However, the implementation in Hanoi has not yet yielded results. Therefore, in the coming time, the City needs to direct all levels and sectors to pay attention to and facilitate farmers and cooperative members to “consolidate land and exchange plots”, consolidating land for agricultural production households, to create conditions for commodity production and expand industries; farmers are allowed to use the value of land use rights to contribute capital to cooperatives.

Implementing Project No. 17/DA-TU, the Department of Natural Resources, Environment and Housing in coordination with all levels and sectors in the city has investigated and surveyed the land use situation of cooperatives and proposed solutions to implement land policies. However, these policies have only stopped at the City level and have not been widely disseminated to cooperatives. Moreover, the levels and sectors have not paid attention to land allocation for cooperatives due to the weak potential of cooperatives.

In the coming time, the City will direct districts to pay attention to and create all conditions for agricultural cooperatives that need to use land to build headquarters, warehouses, drying yards, and service facilities directly serving members in agricultural production and aquaculture, to enjoy the policy of land allocation without collecting land use fees. If the cooperative already has land, it will consider granting a land use right certificate. In addition, agricultural cooperatives are also allocated land with land use fees or land lease with annual payment if they have a need to use it and enjoy preferential policies on exemption and reduction of land use fees and land rent according to Government regulations.

Maybe you are interested!

+ Implement appropriate financial and credit policies

Encourage cooperative members to contribute capital in many forms, including assets, land, etc., to increase business capital for the cooperative. Make public the contributions of members.

Implement policies to support agricultural product inputs on the principle of not being lower than those of countries with the same level of agricultural economy as ours and support technology application and vocational training for workers.

To create conditions for cooperatives to have operating capital and improve the competitiveness of cooperatives in the process of international economic integration, the City needs to quickly establish a Cooperative Development Support Fund. Credit institutions in the City need to increase lending levels and facilitate loan procedures for cooperatives with feasible investment projects.

Speed up debt cancellation for cooperatives and completely resolve outstanding debts in cooperatives

+ Implement social insurance policy for agricultural cooperative staff

Implementing Document No. 994/BHXH/CĐCS dated April 1, 2003 on implementing social insurance for the cooperative sector. The Hanoi City Social Insurance Agency has coordinated with the City Cooperative Union, the City Department of Labor, Invalids and Social Affairs to thoroughly grasp and implement in all districts, and at the same time organize propaganda on mass media about subjects participating in compulsory social insurance, including cooperative members. The City has established a Working Group to pilot compulsory social insurance for cooperative members and employees. However, the implementation of social insurance in agricultural cooperatives is still limited, as of December 31, 2005, there were only 2 agricultural cooperatives participating in social insurance with 10 people participating in social insurance (mainly cadres working for the cooperative).

One of the reasons affecting the payment of social insurance in cooperatives is the high age of the workers; the average age of the cooperative manager is 47, the head of the control group is 50 and the accountant is 40 (according to the survey results of the Hanoi City Cooperative Union). Meanwhile, the regulation of the social insurance agency is that only those who have paid for 20 years are entitled to social insurance, so the majority of agricultural cooperative staff do not want to participate in social insurance.

Another reason why agricultural cooperatives do not pay social insurance is that the social insurance agency's application of a minimum wage of 350,000 VND/month as a basis for determining the social insurance contribution level for employees is unrealistic for cooperatives, because in many cooperatives, the average salary of staff in the cooperative is less than 300,000 VND/month.

Therefore, in the coming time, the City needs to request the Hanoi Social Insurance Agency to lower the minimum level for social insurance contributions to 300,000 VND/month/person. In addition, the Social Insurance Agency must expand many forms of social insurance contributions, many types of social insurance, such as: voluntary insurance, health insurance, accident insurance, retirement insurance, maternity insurance... to give employees the opportunity to participate in social insurance contributions according to their needs.

+ Effectively and practically implement policies to support science and technology for cooperatives.

The city builds incentive mechanisms to support cooperatives in applying scientific and technological achievements, especially in varieties, biotechnology, processing technology, etc. Cooperatives enjoy the results and are the focal points in programs invested by the city through the agricultural and forestry extension system.

Governments at all levels must be a bridge between cooperatives and universities and research institutes to transfer technology into production, business and services of cooperatives.

The city needs to create favorable conditions for cooperatives to transfer technology, such as not having to pay taxes, enjoying preferential interest rates when cooperatives invest in purchasing new machinery...)

3.2.3. Strengthening the State's management role in directing and implementing the Party's viewpoints on collective economic development

Conduct a review and specific classification of cooperatives after conversion according to the 2003 Law on Cooperatives. Complete the State management system for the collective economy from the City to the commune and ward levels to ensure management requirements and avoid overlap. Each Department, Board and Sector must assign a comrade to the head of the agency directly in charge and send specialized, qualified specialists.

ethical, qualified and especially enthusiastic and dedicated people following the cooperative sector. Re-establish the reporting regime to serve this well, in the direction of:

- District level: Add professional staff to the Economic Planning Department to perform the specialized function of state management of cooperatives, not concurrently holding other management jobs.

- Commune level: Assign economic management officers to concurrently perform state management functions for cooperatives in the area according to regulations.

- Promote administrative procedure reform in the establishment and granting of business registration certificates to newly established cooperatives and cooperative unions.

- Encourage and have a mechanism to mobilize Party members, cadres and civil servants with qualifications, professional capacity and moral qualities to move to work in the collective economic sector.

- Strengthen inspection, supervision and monitoring of production and business activities in the collective economic sector to prevent violations in business, protect cooperatives from doing business properly, and ensure that cooperatives are free to do business legally. Strengthen capacity and improve the system of agencies controlling cooperative business activities.

In the coming time, the City needs to direct the Departments and branches to implement the collective economic development program that has been built; review, supplement, and build policies to encourage collective economic development; consolidate a specialized management apparatus strong enough to monitor and guide the implementation of policies and operations for this economic sector.

People's Committees at all levels are responsible for directly directing the collective economic sector, strengthening the apparatus to have enough staff to carry out tasks; summarizing practical experiences, propagating and replicating good business models; developing plans and organizing on-site training for staff for cooperatives and cooperative groups; guiding the development of collective economic forms associated with local socio-economic development planning.

3.2.4. Enhance the role of Hanoi City Cooperative Union in developing cooperative economy.

Continue to strengthen the City Cooperative Union to effectively carry out the assigned tasks and requirements, in the following main directions:

Strengthen and perfect the organizational system of the City Cooperative Union, ensuring the capacity to fulfill the role of a representative organization and protect the legitimate rights and interests of cooperatives and member organizations:

Enhance the capacity and initiative of the City Cooperative Union in researching, advising, and proposing mechanisms and policies for collective economic development to the City Party Committee and People's Committee:

In recent times, the district and county levels have played a very important role in monitoring and directing the cooperative economy and cooperatives, being the third level of government that is regularly and daily closely linked and has a comprehensive relationship with the activities of the cooperative economy and cooperatives. Therefore, in order to have cadres to monitor and direct the cooperative economy and cooperative movement at the district and county levels, there must be 1 to 2 staff members who are dedicated to monitoring, directing, and advising the district-level Party Committee and government on the development of the cooperative economy and cooperatives movement. These cadres enjoy the district's payroll and salary fund and work in the district's Economic Department, but are guided, professionally trained and have regular activities in the process of monitoring and directing the collective economy with the City Cooperative Union, and act as representatives of the Cooperative Union in the districts and counties. Or the above cadres can enjoy the payroll and salary fund of the City Cooperative Union and be representatives of the Cooperative Union in districts, and have daily activities with the economic department of the district level.

The City Cooperative Union needs to promote its role in organizing public services and promoting development support activities for cooperatives. Areas to support the development of cooperatives that need attention include: promoting training activities, fostering management staff for cooperatives and vocational training for members; providing market information and marketing support activities for cooperatives; legal advice; auditing cooperatives; other support services such as credit, consulting

science and technology, market; organizing exhibition activities to introduce products, build brands;... This means further accelerating the establishment and expansion of the trade promotion service system to support marketing and market expansion for the output products of cooperatives.

3.2.5. Strengthening existing cooperatives and summarizing advanced examples and building new cooperative models

+ Perfecting the organization of operating cooperatives

The City Cooperative Union, together with Departments, Branches, Districts and Counties, reviews and evaluates the actual operations of cooperatives and sets out appropriate development directions for each specific type.

Guide cooperatives to focus on providing input and output services to serve the agricultural production activities of member households. Focus on investing in infrastructure systems, expanding general business activities; shifting the industry structure, linking agricultural production with processing and service business; expanding joint venture activities, and association with enterprises of all economic sectors, especially with state-owned enterprises.

- Conduct a reassessment of the internal capacity of weak cooperatives; guide these cooperatives to develop and supplement production and business plans, exploit potential strengths in the area; develop training and development plans, and perfect the cooperative's operating apparatus to meet the harsh demands of the market mechanism.

- Debt write-off or debt cancellation for cooperatives' debts to State economic organizations from the time before conversion.

- Resolutely resolve issues of land, assets, and capital contributions of members, especially for inner-city agricultural cooperatives in the period 2001-2005.

- Review converted cooperatives, including cooperatives that have been granted business registration but do not operate in accordance with registration, and grant business registration to cooperatives that have been converted according to the Law and are operating.

- Strengthen state financial management of cooperatives, not allowing new debts to arise.

- Strictly implement the accounting regime, ensure adequate accounting of inputs and outputs on the basis of profitable production and business, especially in agricultural cooperatives.

+ Summarize effectively operating cooperatives and encourage the establishment of new cooperatives.

Experience in directing the cooperative movement over the years has shown that summarizing and building cooperative models is extremely important. The model of a good production and business cooperative is the best basis to convince people and create public opinion to support the movement. Therefore, the city needs to organize investigations and surveys to assess the current state of operations of typical cooperatives, perfecting models of good production and business cooperatives as a basis for summarizing, drawing experience and widely replicating.

To replicate typical and advanced cooperative models in the coming time, it is necessary to synchronously deploy the following solutions:

- Continue to develop cooperatives with diverse organizational forms and methods of operation based on the real and voluntary needs of members. In the development process, it is necessary to base on the level of commodity production development and the socio-economic characteristics of each different region to have appropriate orientation and support measures.

In establishing new cooperatives, it is not only necessary to mobilize individuals who are workers to participate in establishing cooperatives, but also to pay attention to mobilizing individual economic households, small owners, farms, and legal entities that are small and medium-sized production and business establishments in various industries and fields. Expand and develop cooperative types based on gathering a large number of social classes and sectors, including workers and civil servants.

- Cooperative development must be linked to the socio-economic development process of each district, with the goal of industrialization, modernization, economic restructuring and integration with local socio-economic development programs, projects and plans. Therefore, it is necessary to attach importance to investment in research.

Build new, typical, advanced models, summarize and disseminate mutual experiences between cooperatives and between districts to find suitable and diverse models for dissemination and replication.

- Promote internal resources, increase internal accumulation to expand production and business activities, and expand the scale of cooperatives.

The self-mobilization of cooperative economic units and cooperatives is an important factor determining the existence and development of cooperatives. Each cooperative must constantly innovate, exploit all potentials, choose appropriate steps and orient its activities correctly. This self-mobilization must be directed towards rationally reorganizing production and business, focusing on internal accumulation to expand reproduction, mobilizing all capital sources, innovating technology and equipment, reorganizing the management apparatus in a compact and practical direction, reducing indirect staff, selecting and arranging qualified, enthusiastic and dynamic staff, perfecting the cooperative's internal management mechanism..., especially appropriate financial management regulations...

3.2.6. Resolutely resolve the conversion and dissolution of cooperatives.

The conversion and dissolution of cooperatives is a very sensitive and complicated matter, ensuring compliance with the law, Directives and Resolutions of the City People's Committee, while at the same time ensuring the harmony of the interests of the State, the interests of the collective, the interests of members and workers.

Based on the reality of the organization and operation of unconverted and dissolved cooperatives in Hanoi, to completely resolve the above problems, in the coming time, Hanoi City must direct relevant levels and sectors to effectively implement the following solutions:

+ The City People's Committee directs districts to review, evaluate and specifically review each cooperative, coordinate with relevant levels and sectors to guide, assist and create conditions for cooperatives to develop plans, regulations and progress of implementing the conversion and dissolution of cooperatives in accordance with the provisions of law.

- For cooperatives that meet the conditions for conversion, including converting the agricultural cooperative model to operate in industry, trade and services or other industries not prohibited by law, the People's Committees of the

Comment