Decree No. 15/CP on policies to encourage the development of cooperatives

DECREE OF THE GOVERNMENT

On policies to encourage the development of cooperatives 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Cooperatives dated March 20, 1996;

At the proposal of the Minister of Planning and Investment,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Cooperatives, cooperative unions in various sectors of the national economy, and People's Credit Funds that have been issued Business Registration Certificates under the Law on Cooperatives (hereinafter referred to collectively as Cooperatives) shall enjoy policies to encourage the development of Cooperatives as prescribed in this Decree.

Article 2. In addition to the policies stipulated in this Decree, Cooperatives may also enjoy other preferential policies (if any) as prescribed by law.

Chapter II

POLICIES TO ENCOURAGE THE DEVELOPMENT OF COOPERATIVES

Article 3. Cooperatives that are granted land use rights or leased land according to laws on land shall be guaranteed their rights and obligations as organizations granted land use rights or leased land according to laws and shall be issued Land Use Right Certificates.

Article 4

1. Agricultural production cooperatives, forestry cooperatives, aquaculture cooperatives, salt-making cooperatives if granted land by the State shall not have to pay for land use.

2. Cooperatives located in mountainous rural areas, islands performing tasks of directly providing services to agricultural production, forestry, aquaculture, and salt-making shall be exempt from land rental fees for the first five years.

Article 5. Cooperatives that have been issued Business Registration Certificates under the Law on Cooperatives and are subject to land leasing shall have their land rental fees reduced by 50% for the first two years. In cases where they had previously paid land use fees to the State, such payments shall be handled according to laws on land.

Article 6. Cooperatives that have been issued Business Registration Certificates under the Law on Cooperatives shall be exempted or given reductions in business income tax and profit tax according to laws on business income tax and profit tax as with newly established entities.

Article 7. Offshore fishing cooperatives, highland cooperatives, island cooperatives, and cooperatives in other difficult regions as specified by the Government shall be exempt from business income tax and profit tax for two years from the date they obtain Business Registration Certificates under the Law on Cooperatives.

Service activities of rural cooperatives serving direct agricultural production, forestry, fisheries, salt-making, water supply services, and electricity provision to farming households; and simple handling cooperatives shall be exempted or given reductions in business income tax and profit tax for two years from the date they obtain Business Registration Certificates under the Law on Cooperatives.

Article 8. Business units affiliated with cooperatives, household and individual businesses when acting as cooperative members undertaking tasks assigned by the cooperative shall not have to directly pay business license fees, but the cooperative shall be the entity paying such fees.

Production assets contributed by members to cooperatives and member shares when undergoing procedures to transfer to other members within the cooperative shall be exempt from stamp duty.

Article 9. Besides borrowing funds for business operations (including medium and long-term loans) from the commercial banking system at conditions and interest rates set by banks, cooperatives may also borrow funds from economic and social programs, the National Employment Fund, the National Investment Support Fund, and other state investment development funds as prescribed by the Government. They may accept and implement investment projects from various sources of capital and foreign aid provided that the cooperatives meet the conditions set by the state.

Article 10. Management, operation, and supervision staff of cooperatives shall have their tuition fees reduced by 50% when sent for training at institutions under the state education system and the Vietnam Cooperative Alliance education system.

Article 11. The Ministry of Planning and Investment shall take the lead in coordinating with the Ministry of Finance to develop plans to support training and capacity building costs for cooperative management staff; support research and program development costs for training and capacity building suitable for learners and cooperative staff within the state education system and the Vietnam Cooperative Alliance education system.

Article 12. State management agencies and state promotional organizations shall be responsible for guiding and creating conditions for cooperative management staff to access, study, and survey domestic and international markets; introduce and display products at domestic and international exhibitions and trade fairs.

Article 13. Export-oriented production cooperatives with overseas markets shall be allowed to directly export goods produced by themselves and import necessary raw materials, equipment, and machinery for production according to state regulations.

Cooperative unions registered under the Law on Cooperatives with over 50% of their members being direct export production cooperatives shall be allowed to directly engage in import and export activities according to state regulations.

Cooperatives and cooperative unions specializing in import and export trade must meet the conditions stipulated by law, with working capital set at a minimum equivalent to 100 thousand US dollars as prescribed in Decree No. 33/CP dated April 19, 1994 of the Government. The Ministry of Trade shall issue Import and Export Business Licenses for cooperatives and cooperative unions according to regulations.

Article 14. Cooperatives have the right to form joint ventures, associations, and economic relations with state-owned enterprises through subcontracting, supply contracts, processing contracts, sales contracts of semi-finished products of cooperatives, assisting cooperatives in market creation, skill training, technological innovation, and technology transfer.

Article 15. The Ministry of Labor, Invalids, and Social Affairs shall take the lead in guiding together with relevant sectoral ministries the payment of social insurance for cooperative members in accordance with the characteristics of each type of cooperative and current laws.

Chapter III

IMPLEMENTING PROVISIONS

Article 16. This Decree takes effect fifteen days from the date of signature. Previous provisions contrary to this Decree are hereby abolished.

Article 17. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees, and the Chairman of the Vietnam Cooperative Alliance are responsible for implementing this Decree./.