Wednesday, August 22 2018


City's collective economy model viewed as success

Update: July, 02/2012 - 10:12

HCM CITY — HCM City has achieved positive results in the implementation of its collective economic model, contributing to the success of the country's economy.

Le Hong Anh, member of the Party Politburo, praised the results achieved by the city, saying one of the most significant achievements of the city was to help all cadres, Party members and residents improve their awareness of the roles of the collective economy.

He was speaking at a meeting held in HCM City last Friday to review the results of the Party Central Committee Resolution 5, after 10 years of implementation.

Asserted role

He noted that the city had successfully carried out many policies to support co-operatives, including those about land, finance and credit, technology and market expansion.

After 10 years of implementation, the city's collective economy had asserted its essential roles in socio-economic development of the city, especially in production and services.

The number of co-operatives that generate profits is rising, many of which have a profit of 20-35 per cent per year, according to Anh.

Some co-operatives have opened branches in many localities across the country. Co.opMart supermarket, for instance, has expanded branches to 30 provinces and cities.

Models of co-operation and association among co-operatives in the city have proved to be effective and efficient.

The collective economic model of HCM City has been expanded to 27 provinces and cities.

Nguyen Van Dua, permanent deputy secretary of the HCM City People's Committee, said the policy developed to deliver land (without collecting or reducing land-use fee) to agricultural co-operatives had not been carried out yet.

At present, many co-operatives can rent houses for doing business for short term only. In addition, many co-operatives are finding it difficult to access bank loans.

The city recommends that the Government amend the Co-operative Law in 2003 in order to ensure the operation of co-operatives, including reducing or waiving taxes for agricultural co-operatives.

Anh asked the city to continue to disseminate information about the collective economic model to residents to provide them with better understanding about its roles and benefits.

The city must issue more policies to help co-operatives in agriculture, environment, credit and housing, as well as improve the capacity of poorly trained officers in co-operatives, according to Anh.

In addition, Anh asked the city to thoroughly assess the results that it had achieved in implementing the resolution and report to the central steering committee. — VNS

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