Developing cooperative economy

and cooperatives in Vietnam

- Trends and solutions

CONTENT

01

02

03

Role of VCA

Status of cooperative economy and

cooperatives

Recommendations of cooperative

development

Status of cooperative economy

and cooperatives in the period of

2013 - 2018

1889119446 19663

18859

20846

22456

917 947 1274 16782326 2390

0

5000

10000

15000

20000

25000

2013 2014 2015 2016 2017 2018

Number of cooperatives

Total of Coops No. of new Coops

Unit: cooperative

- Each year, on average

713 newly established

cooperatives, in 2017

(1,977 new cooperatives)

and in 2018 (1,610 new

set up coops)

- Every year the number

of cooperatives is increas

ed

4446 47

42

59

74

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 2018

Number of federations of cooperatives

Unit: coop

Agriculture-fishery--forestry; 13712; 61%

Small industry and handicraft 2319; 11%

Trading; 1944; 9%

Transportaion; 1406; 6%

Credit; 1181; 5%

Construction 948; 4%Environment; 488; 2%

Others (housing, school, healthcare…);

458; 2%

Sectors by cooperatives

Unit: cooperative

2920533702 35669

4247749627 49382

16001

31324

40246 26397

2833237681

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2013 2014 2015 2016 2017 2018

Assets

Current Assets Fixed Assets

Unit: Billion VND

- Total assets in 2018 increases

two times higher than 2013

- Fixed asset is les than 50%

compared with 2015 of over

50% (53%).

3146 3107

3419

37153855

4205

13961529

1765 1771 17691892

153 168 182 200 229 264

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2013 2014 2015 2016 2017 2018

Turnover – profits

Average revenue of a coop

Average revenue of a coop with members

Average profit of a coop

Unit: VND

- Average turnover increases

regularly from 2015 - 2018

- Average incomes of a coop

eratives the current year is a

lways higher than previous

year and reached (8% - 10

%), in 2016 it reached 16%.

In 2018, it increases two

times higher than in 2013

67237024

74508041

9107

9891

0

2000

4000

6000

8000

10000

12000

2013 2014 2015 2016 2017 2018

Effective operation of a cooperative

Unit: coop

- Number of cooperatives

increases regularly and in

2018 increses 3,168 HTX

(1,5 times ) compared in

2013.

- In 2018, it reached

highest rate.

2325

28

32

39

42

0

5

10

15

20

25

30

35

40

45

2013 2014 2015 2016 2017 2018

Average income

Unit: Million VND

Promoting advanced

technology in governance and

production

Cooperatives develop toward

the integration, cooperation and

production – business

organization in line with value

chain

In Vietnam, over 10 million households in

rural areas, 4 million households in urban,

who are in small production, small

scaterring, so cooperatives are really in

need to organize to compete and develop in

the market economy

Cooperatives develop widely and

originates from its roles in the

communities and development trends of

shared economy and international

integration

Large scale cooperatives setp

up the federation of

cooperatives; affliated

enterprises

Develop widely in different

sectors and fields.

Dvelopment trends of cooperatives

COOP

Objectvies to 2020

15.000

Effective

agriculture10 triệu

thành viên

HTX

100.000 pre-

coops

30.000 coops

and

federations

of coop

85% of

communes

set up

coops

70%

effective

coops

400 300.000 50% 15%20

million60.000

coops

Forecast to 2030

Federation

s of coops

Pre-coops GDP

members

Volumn and value

of of food and

foodstuff

Main roles of VCA

Coordination with ministries,

branches to plan the development

of cooperative economy

Building up new generation

cooperatives inline with value

chain

Representing and protecting

the legitimate rights and ben

efits of coops .

Implementing and programs,

projects and public services

on development of coops

VCA

01

04

05

Promoting and supplying

services to develop

cooperatives

Participating and preparing

policies and laws on

cooperatives

02 06

Representing the members with

local and foreign partnenrs

Propagandizing and

mobilizing the development

of coops .

03 07

08

Functions and missions

Organization of structure and human resources

Vietnam Cooperative Allianc

e (VCA)

National Affiliated

members

63 PCAsDeoartment and center (9)

Centers (5)

Schools (6)

Institute for cooperative

economy

Departments

and affiliated

units

Cooperatives

and federatio

ns, pre-coops

and affiliated

members

Business times

Fund for cooperative dev

elopment

Enterprises (5)

Total of human resources: 1,67

4 staff

- VCA: 542 staff

(91% graduated from universit

y level )

- PCAs: 1,132 staff

(86% graduted from university

level )

Implement the Resolution of the Party, the

National Assembly, policies of the

Government, prepare and implement the

directions of the Prime Minister

Policies to develop the coops

Consulting and guiding the legal

issues to protect the rights and

benefits to over 1000 times of

cooperatives and members

.

Protecting the legitimate rights

and benefits of members

Implement 30 projects and receive 355 delegations,

organized the Coop Ministers’ Conference, siging

with DGRV, NACF, SNV, Agriterra …

International cooperation activities

9,653 newly established coops, conduct 100 legal

training courses for 2,200 people

Propaganda and mobilize to set up the coops

Professional training for 35,187 coop

members, vocational training for 2,000

members

Trainng and freshing

Lending 6.000 coops, 602.000 pre-coops and

members with the total loans of 11,000 billion

VND from the Cooperative Development Fund;

Carry out trade promotion for 1.000 coops;

Build up production cooperatives in line with

value chain;

Mobilize the resources to develop the coops

Operation results in the period of 2013 - 2018

Improve the main roles

of VCA structure

Develop the production

in line with value chain;

joint ventures

Improve the governance

capacities, advanced

technologies

Uniform policies to

support and improve

the State effective

Management

Change awareness of

the public anfd political

structure

Improve the investment

and business

environment

Recommendations to develop cooperatives

Nguyen Manh Cuong

Vice President of VCA

Thank you