New-style cooperatives will greatly benefit both farmers and the State, creating breakthroughs in the development of Vietnam ’s agriculture, said Politburo member and President of the Vietnam Fatherland Front Nguyen Thien Nhan on April 14.

At a forum in the Mekong Delta province of An Giang , Nhan said connecting farmers with businesses or cooperatives is imperative in selling their farm produce at supermarkets or shipping it abroad.

Since companies pose a higher risk of manipulation, it is better for farmers to partner with cooperatives to help them secure buyers of product quality and origin and mitigate the recurrent situation of product price plunges in instances of bumper harvests, he said.

Forum participants said new-style cooperatives must be part of a chain including businesses. They urged concrete regulations and strict supervision over the implementation of support policies, especially those relating to credit and land use for cooperatives.

They underlined that the biggest problem facing cooperatives is ensuring the purchase of farm produce, since farmers have yet to gain much profit from selling their products.

Huynh Van Thon, Chairman of the Executive Board of the An Giang Plant Protection Joint Stock Company, said new-style cooperatives only exist on the basis of close coordination between enterprises and cooperative members.

By the end of 2014, An Giang had two cooperative unions and 147 cooperatives with a total chartered capital of more than 412 billion VND (19.6 million USD), Vice Chairman of the An Giang People’s Committee Le Van Nung reported, adding that they had 160,576 members.

About 67.4 percent of the cooperatives operate in the agricultural and fisheries sectors, 16.3 percent in credit, 12.9 percent in transport, and 3.4 percent in small-scale industries. They generated a revenue of 837.2 billion VND (39.86 million USD) and a net profit of 92.5 billion VND (4.4 million USD) in 2014, he added.-VNA