Workers at Chúc Sơn Cooperative in Hà Nội's Chương Mỹ District wrap organic vegetables for sale at Big C Supermarket. — VNA/VNS Photo Vũ Sinh

HÀ NỘI — Authorities in Hà Nội plan to boost the collective economy, focusing on measures to raise income for members and help the model achieve more efficient development in rural areas.

In recent years, the collective economic model developed strongly in Hà Nội. Efficient models of many cooperatives have yielded high economic returns, created jobs for local people and contributed to the city’s socio-economic development, especially in the new rural areas.

Figures from the Hà Nội's agriculture sector show that there are more than 22,710 cooperatives in the whole country. Of that, 14,816 are agricultural cooperatives. 

More than half of the cooperatives have operated effectively, bringing average income of approximately VNĐ45 million (US$1,942) per participant per year. Up to 38 per cent of total workers in these cooperatives are college and university graduates.

Kim An Agricultural Cooperative in Thanh Oai District of Hà Nội operates under a new cooperative model with a value chain from production to consumption, thereby bringing high economic efficiency to its members. — Photo Minh Giang

In Hà Nội, there are 1,545 cooperatives, including 1,015 cooperatives in the agriculture sector, 228 in industry and handicrafts; 230 in trade and services; 37 in transport; eight in construction; and 27 in other areas. 

Head of the Hà Nội Rural Development Sub-department Nguyễn Văn Chí said the city has strengthened the efficiency of management in the collective economic sector, overcoming weaknesses and developing it to contribute to sustainable poverty reduction, political stability and social security in the city.

The city aims to develop diverse types of the collective economy model. Six groups are available, including training on human resources; trade promotion and market expansion; new science and technology application; access to capital and cooperative development fund; participation in programmes on socio-economic development; and the establishment of cooperatives and unions of cooperatives.

Chí said the city has offered preferential policies on income tax, registration fees and other taxes for this model. Cooperatives operating in the fields of agriculture, forestry, fishery, and salt production are eligible for some other preferential policies in infrastructure investment; land allocation, land lease; and capital incentives due to natural disasters or epidemics.

Hoàng Long Cooperative in Tân Ước Commune, Thanh Oai District, Hà Nội is currently a bright spot for a new type of pig production in large numbers following the biosafety model. — Photo Hoàng Thắng

Although the model has achieved positive results, it is still facing many challenges in the development of the collective economy model and cooperatives due to their small scale and limited competitive capacity. 

Many cooperatives, especially agricultural ones, were not able to work out effective production and business plans. Most are small-scale with limited financial capacity and lack qualified workers.

Chí said the city has plans to boost the development of this economic model in the future.

By 2025, the city strives to establish 250-300 new cooperatives to raise the total number to 2,052 with 595,000 members and 51,300 workers. 

By then, the average revenue of cooperatives is expected to increase to VNĐ1.2 billion ($51,770) and the monthly average income of workers will reach VNĐ5-7 ($215-301) million. — VNS