“Developing collective economy must follow market principles”

Developing the collective economy must follow the market principles. Experiences show that support policies which do not follow these will fail.
“Developing collective economy must follow market principles” ảnh 1National conference reviewing 15 years of implementing the fifth resolution of Party Central Committee on continuing to renovate, develop and raise efficiency of collective economy. (Photo: VNA)

Developing the collective economy must follow the market principles. Experiences show that support policies which do not follow these will fail.

At the fifth session of the ninth Party Central Committee, for the first time a specific resolution on the collective economy was issued with the goal of bringing the collective economy out of the current weaknesses for a higher growth pace and an increasing rate in the GDP by 2010.

Over the 15 years of the implementation of the resolution, many positive changes have been seen in the perception on the collective economic development by party and administrative committees. Besides, social psychology also recorded an improvement in eradicating the complex created by the old-style cooperative models.

Role of collective economy affirmed

A very clear outcome in the 2003-22018 period is the number of new cooperatives was brought to 20,841. However, that of those dissolved also amounted to 11,473 for their poor efficiency as a result of the competition in the market economy.

It is noteworthy that after the promulgation of the 2012 Law on Cooperatives. The number of new establishments rapidly rises, along with the improvement of the operation quality of the cooperatives. Over the past recent five years, the number of new cooperatives throughout the country was 11,191 while that of dissolved ones was 5,973.

At the national conference to review the 15 years of the implementation of the fifth resolution of the ninth Party Central Committee, Minister of Planning and Investment Nguyen Chi Dung pointed out that the Law on Cooperatives passed in 2012 reveals the need of the collective economic model in the restructuring of agriculture and the building of the new-style rural areas. Members and workers have acquired clearer perception on the operation principles of the cooperatives. As a result, the role of cooperatives in the production and business needs and the life of members have been socially affirmed.

A report at the conference said the collective economic sector has recorded a development and positive results. The number of effectively operating cooperatives is unceasingly increasing, representing 55 percent of the total in agriculture and from 50 to 80 percent in non-agriculture. At present, the whole country counts over 101,4000 units that involve 1.34 million members, about 1.1 million of them regular workers, with an average income of 25 million VND per year.

The trend of cooperative unions is also unceasingly taking shape, currently the country has 74 unions of this kind, mainly in agriculture, representing 52.7 percent of the total with 555 member cooperatives and each with an average income of 8.3 billion VND per year.

“Developing collective economy must follow market principles” ảnh 2Deputy Prime Minister Vuong Dinh Hue addresses the conference. (Photo: VietnamPlus)
 

Developing along with international integration trend

In the new context, the collective economic sector is enjoying various chances to learn and raise its capacity, as well as absorb new production and management technology. However, along with the chances comes pressure of competition, both inside and outside the country. Vietnam’s advantages in cheap labour and natural resources are running while automation and artificial intelligence are gradually replacing the abundant labour resource in the society and, as a result, millions of labourers may lose or have to change their jobs.

In order to successfully achieve the goals and accomplish the tasks set, Minister Dung pointed out a number of solutions which should be concertedly implemented in the time to come. These include the raising of the perception on the nature and role of the collective economic organisations and cooperatives in the socialism-oriented market economy. Besides, management authorities at all levels need to continue reviewing and perfecting the legal framework and support policies for the development of the collective economic sector in close association with the reality. Policy-making authorities need to raise the operation capacity and efficiency of the state management apparatus on the collective economic sector in the direction of concentration from the central to the local levels. The personnel matter plays the key role in this process, he stressed.

For his part, Deputy PM Hue highlighted that this is a very special economic form, closely associated to the national economy, political and rural stability. It is not only the total assets of the cooperative members but also raises their value.

In his opinion, developing the collective economic sector and cooperatives must follow the market principles and experiences have shown that support policies that do not follow these will fail./.

VNA

See more

The 5th Exhibition of Ho Chi Minh City and Friendship Provinces and Cities in Savannakhet takes place from April 2 to 6. (Photo: VNA)

Vietnam, Laos boost trade at Savannakhet expo

Vice Governor of Savannakhet Saensak Soulisak highlighted the exhibition’s role in expanding trade collaboration, enabling businesses to connect, share experience, and explore investment prospects. He also noted its significance in promoting local products to a wider market.

Visitors at the exhibition (Photo: VNA)

Vietnam Expo 2025 opens, spotlighting digital transformation, innovation

This year’s edition, themed “Step together in a digitised world,” has attracted around 400 businesses from 18 countries and territories, with over 500 booths. Alongside traditional networking, it introduces online business-to-business (B2B) matching, enabling year-round connections.

Prime Minister Pham Minh Chinh speaks at the second meeting of the National Steering Committee for building the private economic sector development project (Photo: VNA)

Private sector encouraged to join major national programmes, projects

It must fully unleash the productive capacity and resources of the country through the private sector; mobilise all private resources for national development; harness the effectiveness of internal forces, including human, natural resources, history, and culture, while effectively combining them with external resources such as capital, technology, human resources, and management experience, he said.

At the annual Vietnam-Cambodia business dialogue in Phnom Penh on April 4 (Photo: VNA)

Annual Vietnam-Cambodia business dialogue held in Cambodia

The annual business dialogue in Cambodia attracted around 150 delegates, including Vietnamese businesses and Vietnamese-origin companies operating in Cambodia across various sectors such as finance, banking, insurance, telecommunications, agriculture, construction, interior design, food services, transportation, logistics, trade, healthcare, and tourism.

Rice is one of Vietnam's exports to Cuba. (Photo: VNA)

Vietnam-Cuba Business Forum held in Hanoi

Addressing the event, Cuban Ambassador Rogelio Polanco Fuentes affirmed that Cuba will always stand alongside the Vietnamese Government and business community in their efforts to achieve the challenging target socio-economic goals.

The private sector is expected to make breakthroughs for national development. (Photo: VNA)

Party official anticipates breakthroughs in private economic sector

With the Politburo set to issue a dedicated resolution on the private economic sector, there should be a reformed approach to action plans, according to Secretary of the Party Central Committee and head of Head of its Commission for Policies and Strategies Tran Luu Quang.

NCSoft and VNGGames sign a cooperation agreement to develop products in Southeast Asia. (Photo: VNG)

More RoK’s game developers target Vietnam

Over half of Vietnam's nearly 100 million population being gamers and the country's competitive labour costs are among reasons for Korean gaming firms' expanding presence in Vietnam.

Representatives from the Vietnamese Embassy in the UK, LHR leaders, airline partners, and passengers at the anniversary event (Photo: VNA)

Vietnam Airlines marks 10 years of UK route operations

Vietnam Airlines launched its direct UK route in 2011, initially operating from London Gatwick Airport (LGW) before transitioning to Heathrow in 2015, improving connectivity to one of the UK’s major international hubs./.

President of the Cuban Chamber of Commerce (CCC) Antonio Luis Carricarte Corona. (Photo: VNA)

Cuban commerce official optimistic about bright future of Vietnam-Cuba cooperative ties

President of the Cuban Chamber of Commerce (CCC) Antonio Luis Carricarte Corona hailed Vietnam as Cuba’s second-largest trading partner in Asia and its top investor, spotlighting its foothold in the Mariel Special Development Zone via Viglacera. This zone, he noted, is set to become a pivotal hub for Vietnamese investment in the years ahead.

Imported cars seen at the northern port city of Hai Phong. (Photo: VNA)

Ministry proposes tax cuts for some imported cars

This initiative aims to diversify the supply of imported vehicles, foster competition in the domestic market, and align Vietnam’s tax policies with the evolving trends of the automotive industry.