Hanoi’s collective economy on the rise
Hanoi’s collective economy on the rise
Cooperatives have become a crucial economic element in various localities for effective production and business plans.
The Hanoi Party Committee in February 2023 released an action program on the innovation, development, and improvement of the efficiency of the collective economy in the city.
The program focuses on strengthening the organization and revamping the mode of operation of cooperative groups and unions, promoting linkages and cooperation based on mutual interests, and implementing new and effective management methods.
Among key objectives, it aims to establish over 3,000 cooperatives by 2030, including 1,000 new ones and 15 or more cooperative unions, ensuring 100% of cooperatives, people's credit funds, and cooperative associations operating in compliance with the Cooperative Law.
Moreover, it aims to consolidate over 1,200 cooperatives, with 70% or more operating effectively. The program also strives to create 250 models of agricultural cooperatives that apply high technology and digital transformation and produce value chain-associated, sustainable development products.
In practice, Hanoi's collective economy has seen great progress since the Cooperative Law came into force in 2012, contributing to developing rural areas and improving farmers' living standards.
Growing cantaloupe at Chuc Son Clean Vegetable Cooperative in Chuong My District. Photo: Ngoc Anh/The Hanoi Times |
Do Huy Chien, Chairman of the Hanoi City Cooperative Alliance, informed that there are 2,021 cooperatives in the city, out of which 1,314 are effective, making up 65% of the total. These cooperatives generate a yearly revenue of about VND2.5 billion (US$105,300), and their members earn an average income of VND57 million ($2,400). Of the total, over 80 cooperatives in Hanoi are currently operating in high-efficiency value chains, Chien said.
"Thanks to their operational improvements, cooperatives have actively contributed to local economic development," Chien added.
Bac Hong Cooperative Board Chairman Nguyen Tuan Hong reported that his cooperative has more than 30 hectares of farmland that meets VietGAP (Vietnamese Good Agricultural Practices) standards.
According to Hong, to improve the quality of its products, the cooperative has invested heavily in a water-saving irrigation system and facilities for preliminary processing and preservation of fresh produce that meet safe vegetable production standards.
Additionally, the cooperative has developed a product consumption chain through various large distribution channels such as Big C supermarkets or T-Mart retail systems and supplies the market with up to seven tons of vegetables and fruits daily.
Secretary of the Thuong Tin District Party Committee Nguyen Tien Minh said cooperatives had become a crucial economic element in various localities for their effective production and business plans.
"Cooperatives in the region have actively renewed their operations, leveraged their resources and strengths, and promoted local economic growth," Minh continued.
Currently, Thuong Tin has 14 chain link models and 15 models of high-tech agricultural applications and organic and clean farm production, among others.
"Despite favorable results and the emergence of innovative cooperatives, it is a fact that the development of cooperatives in the city is still far from meeting the requirements for growth," Minh said.
The number of cooperatives applying hi-tech production chains is still limited, and districts must prioritize expanding the collective economy."
Proactive solutions
According to the Chairman of the Hanoi City Cooperative Alliance Do Huy Chien, to improve the quality of cooperative operations, the application of high- and digital technologies is the primary and groundbreaking solution.
"The Alliance will closely coordinate with the city's departments, branches, and localities to implement these solutions," he said.
Echoing Chien's view, Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen stressed the significance of understanding the collective economy's nature, role, and importance in the socialist-oriented market economy.
"Hanoi will continue to enhance and refine mechanisms and policies to encourage and support collective economic development," Quyen said.
However, Quyen stressed the importance of cooperatives' proactive stance and local authorities' involvement in promoting the collective economy's efficiency.
"Digital technology must be prioritized in the development of cooperative groups and unions to create a digital collective economy that fulfills the requirements of global integration," he concluded.
