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The public transportation is one of various services provided by co-operatives. Photo V.L |
Binh Dinh Provincial People’s Committee has implemented the Resolution No 07/NQ-HDND on the collective economy development by 2008-2010. The Resolution implementation is expected to be an effective measure to aid co-operatives on these days.
Binh Dinh now has 287 co-operatives and cooperative unions, including 188 agricultural, 43 electricity, 20 transportation co-operatives, and 27 People’s credit funds, according to the Binh Dinh Co-operatives Alliance.
Most co-operatives have expanded their scope, operating in various sectors. This helped create jobs and increase the income for their members.
In the agricultural sector, most co-operatives have renewed the operation to well aid the individual economy and adapt to the market mechanism. Binh Dinh agriculture co-operative is a typical example. Its total turnover reached nearly 70 billion VND (4.13 million USD) in 2008, a double rise over 2006.
The newly-established electricity co-operative has also proved effective, well organizing many services, such as petrol, warehouse renting, public transportation, and mechanics repair.
At present, many new co-operative models have set up companies and factories, aiming to expand the production capacity.
However, there are still some disadvantages, such as small scale, ineffective operation, financial difficulties, and debt. Main reasons are that some are not well aware of the new models and collective economy. Also, the managerial staff’s qualifications are still weak.
The implementation of the Resolution on the collective economy development by 2008-10 aims to improve the operation of co-operatives, promote the development of the collective economy, and encourage different kinds of cooperation in various fields, targeting at eliminating the hunger and reducing the poverty.
Accordingly, the number of co-operatives will increase by 6.5%-7.2% per year, their members 6.8%-7.3%, the average capital 15%-20%, and the average profit 10%. Also, the managerial staff will be required to improve their qualifications.
To successfully implement the Resolution, many measures were worked out. Each co-operative and co-operative union will operate under the Law on Co-operatives. All resources will be mobilized for the development of co-operatives.
Under the plan, advanced technologies will be the focus in the future, aiming to improve the effectiveness in business. The operation of People’s Credit Fund will be sustainably and safely enhanced, helping members of co-operatives invest in the production.
The cooperation among co-operatives should be strengthened, aiming to improve the competitiveness. The Steering Board for the collective economy plans to be established to carry out these measures.
With such practical measures, the collective economy in Binh Dinh is expected to have positive development in the coming time.
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