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VietNamNews

HCM City aids struggling co-operatives

Update: October, 21/2013 - 08:15
The HCM City People's Committee has asked local agencies to offer training to cooperatives of at least three to seven members so they can improve their business.— File Photo

HCM CITY (VNS)— The HCM City People's Committee has asked local agencies to offer training to cooperatives of at least three to seven members so they can improve their business.

The committee has also told local agencies in the agriculture sector to assist these cooperatives in gaining credit.

Under the committee's instruction, the city's Co-operative Alliance will work with the State Bank of Viet Nam's HCM City branch and other credit institutions to survey cooperatives' need for capital.

The cooperatives will be given guidance on how to apply for bank loans.

The city's Department of Agriculture and Rural Development will also help agricultural cooperatives to diversify their products and apply Vietnamese good agriculture practices.

The city has a total of 4,277 co-operatives of at least three people and 53 co-operatives of seven or more members. Nearly 70 per cent of the co-operatives operate effectively but others do not.

The city targets developing 600 new co-operatives of three or more people, 75 new co-operatives of seven or more and three co-operative alliances by 2015.

The city expects the cooperative economy to achieve a growth rate of 10 per cent a year, accounting for 1 per cent of the city's GDP by 2015.

By 2020, the city will develop 1,500 new co-operatives of three or more, 175 new co-operatives of seven or more and 10 co-operative alliances.

Under the plan, small co-operatives that have ineffective services will be merged and co-operatives that operate ineffectively for a long period will be dissolved by 2020.

The plan targets that more than 70 per cent of co-operatives and co-operative alliances to turn a profit by 2020. — VNS

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