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Roles of Vietnam Cooperative Alliance (VCA) in Promoting the Economy of Vietnam/Vietnamese People More Sustainable and Resilient

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Roles of Vietnam Cooperative Alliance (VCA) in Promoting the Economy of Vietnam/Vietnamese People More Sustainable and Resilient Roles of Vietnam Cooperative Alliance (VCA) in promoting the economy of Vietnam/Vietnamese people more sustainable and resilient. “COOPERATIVES PROMOTES THE ECONOMY MORE SUSTAINABLE AND RESILIENT” November, 2018 Significant achievements of Vietnamese economy Significant achievements of the cooperative economy and cooperatives of Viet Nam Roles of VCA SWOT Recommendations SIGNIFICANT ACHIEVEMENTS OF THE VIETNAMESE ECONOMY Outline of Vietnam The Socialist of Republic of Vietnam - Area: 331.698 km2 (63 provincies, cities) - Population: 95,540,000 people (2017) - Population growth rate: 1,06% (2017) - Labour force: 55,162 million (2017) -Umemployment rate: 1,1% (2017) - Average income per capitai: 2,385 USD (2017); in 2045, estimated 18,000 USD/person - GDP growth rate: 6,8% (2017) -Average economic growth rate (1986 – 2017) : 6,63% -Economic growth rate in 2018 (planned): 6,7%. - Poverty reduction rate up from 60% to 7%. - Economic scale stands 44 in the world according to GDP and 34 according to PPP (in 2045, estimated 2,500 billion USD) Renovation policy Average income country Industrial country 1986 1995 1998 2006 2010 2015 2018 2020 Member of Member of Member of WTO Participating Signing CPTPP ASEAN APEC ASEAN Economic and FTA Communities Thực phẩm chế biến từ tinh bột và ngũ cốc 595 Cá đông lạnh 2882 Tôm đông lạnh 2447 Chè 227 Hạt điều nhân 3516 Gạo 2651 ĐVT: triệu USD Cao su 2248 Cà phê 3244 Hạt tiêu 1117 Hàng rau, hoa, quả 3501 0 500 1000 1500 2000 2500 3000 3500 4000 Graph 1: Exported agricultural products of Vietnam (2017) 300 267 252 250 200 184 150 125 100 50 24 16 16 25 16 2.5 0 Singapore Thái Lan Nhật Bản Hoa Kỳ các nước OECD Năm 1990 Năm 2018 Graph 2: Comparision of reduction of income per capita of some countries to Vietnam in the period of 1990 – 2018. (Unit: time) SIGNIFICANT ACHIEVEMENTS OF COOPERATIVE ECONOMY AND COOPERATIVES Up to June /2018, there are 21,212 cooperatives, 60% is agricultural cooperatives Annual increasing: 3,000 cooperatives Needs of cooperation, joining members and households are very big Trends of establishing and developing cooperatives are required Environment, 461 Others, 572 Construction, 874 Credit, 1182 Transportation, 1319 Trading, 1829 Agriculture, 12799 Industry, 2176 ✓ Over 6,5 million members ✓ Over 2,5 million labourers (2,1 million labourers are members of the cooperatives, average 23 labourers/coop); ✓Total legal capital is 35 trilion VND, average 1,7 billion VND/ HTX; ✓Total assets: 48,000 billion VND; ✓Total turnover: 30,000 billion VND, average 1,5 billion/cooperative in which the turnover from supplying products to members gets 15,600 billion VND (first six months of 2018); ✓Net profit is 2,500 billion VND, average 120 million VND/coop/6 months; ✓ Average monthly income is 3,1 million (first six months of 2018); Contribution to the development of Vietnamese economy: ✓Contribution to over 8% of GDP (In 2017, if the added values of the effective operated cooperatives (45,3% of the total cooperatives) brings 2,5 million members with 36 million VND/person/year that contributes from the cooperative sector to GDP around 10,07% not lower than that of private enterprises. ✓55% labour force mainly in the rural areas. ✓5% of exported values ✓10% of contribution to the State budget ✓The cooperative sector contributes very important in to the implementation of National Targeted Programs on the the construction of new rural areas, sustainable poverty reduction, secure social security as more jobs, improved living standards in line with the shared economy and overall economy , prevent the social vices in rural areas, protecting millitary security and islands bordering. OBJECTIVES ON 2020 ✓250.000 Pre-cooperatives, in which 5% of them develops in to the cooperatives; 38.000 - 45.000 coops, 100% communes establish cooperatives; 100 – 150 federations of cooperatives involving in value added production chains. ✓ 40 % of managerial officers graduated university level and immediate level reaches 50% - 55%. ✓ Average income is two times higher than that in 2015. ✓100% provincies,cities have the fund for cooperative development with the legal capital from 20 billion VND to 100 billion VND; 300 credit cooperatives established ✓For agricultural cooperatives: + 15,000 effectively operatated cooperatives. + Setting up the values added prodcution chains. ROLES OF VCA TOWARDS DEVELOPMENT OF COOPERATIVES AND THE ECONOMY VIETNAM COOPERATIVE ALLIANCE ORGANIZATION STRUCTURE OF VCA: National Representatives ĐạiĐạihộihộitoàntoànquốcquốc Congress MemberBan BanExecutive ChấpChấphànhhành Committee SupervisionỦyỦybanban KiểmKiểm Committeetratra StandingBanBan ThườngThường Committeevụvụ Liên63Liên provincialminhminh HTXHTX ỦySupervisionỦybanban kiểm kiểmComiitteetratra cooperative at the provincial SteeringThườngThường Committeetrựctrực cấpalliancescấptỉnhtỉnh cấplevelcấptỉnhtỉnh Ban VCA Cơ quan Pers Inve BanBan Cơ quan VCA 21 affiliatefd units includes Planni Ban Ban BanInter represe thường onne CoopChínhChính thường represe 06 schools Banng stme natio Supe ntative trực Tổl Kinh Hợp BanBan develosáchsách trực tại ntative 01 Institute for cooperatives TheVăn Kếand nt & nal rvisio Officekhu vực Liên chứcOrga tế tác KiểmKiểm pmentvàvà office in 01 Business Times phòngoffice hoạchPromi Coo n miềnin minh nizat Econ 01 Fund for Coop development; hỗtiontrợ cán đầu quốcpera tratra policyPhátPhát HighlaTrung – HTXVNthe omic Dept 07 Centers ion tive Depttriểntriển ndTây Southphía Dept bộ tư tế 05 enterprises Dept Dept Dept HTXHTX regionNguyên regionNam Cooperatives, Federations of cooperatives, Pre-cooperatives and others FUNCTIONS AND MISSIONS VCA is an organization to play improtant roles for developing coops in Vietnam ✓Representing and protecting legitimate rights and benefits of members; ✓Propaganda and mobilizing the setting up of new coops; ✓Participating to prepare the policies on developing coops; ✓Coordinating with ministries and branches for planning and developing coops in line with the valued added product chains; ✓Supporting and providing services for coops: training, refreshing, trade promotion, technology, loans, ect. ✓Implementing business activities in order to get more programs; ✓Representing its members in the local and international organizations; ✓Other activities assigned by the Government. RECOMMENDATIONS DIFFICUTIES AND CHALLENGES ✓Limited awareness on the model and benefits of the coops; ✓Weakness on linkages among the coops; ✓ Not high awareness on binding the laws ; ✓Weak administration capacities; ✓ Low efficient State management; ✓Limit access to the resources; ✓Policy on encouraging concentrated land for producing commercial products not in practices; ✓Climate change and disasters cause losses. CAPACITIES AND OPPORTUNITIES ✓Natural environment, political – economic and social factors are favourable for the development of the cooperatives; ✓Good agricultural lands, experiences, young and skilled labourers, application of thr industrial revolution of No 4.0; ✓Law on Cooperatives 2012 and other supportive policies put into revision in real life ✓ Good environemnt for investment and international intergations; ✓8,3 million households in rural areas, 4,6 million households in urban areas and 95,000 pre-cooperatives are in need to organize the prodoction and trading activities; ✓ The Government pays attention and gives the funds to suppot the cooperative sector through the national Programs ; ✓International organization such as GIZ, FAO, WB, JICA, UNĐP, ILO, ĐGRV, ADB.... also support the development of the cooperative sector; ✓Recognition from the Government. RECOMMENDATIONS ➢Promoting trade among the cooperatives; ➢Promoting technology and loans; ➢Training, exchanged visits, sharing experiences ; ➢ Supporting and providing consultations. THANK YOU FOR YOUR KIND ATTENTION! COOPERATIVES: SOLIDARITY, COOPERATION AND DEVELOPMENT.
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