Decision No. 272/2005/QĐ-TTg Approving the Five-Year Plan for the Development of Collective Economy (2006-2010)

Pursuant to …;

Approving the Five-Year Plan for the Development of Collective Economy (2006-2010)

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Cooperatives dated November 26, 2003;

Pursuant to Decree No. 177/2004/NĐ-CP dated October 12, 2004 of the Government detailing the implementation of certain provisions of the Law on Cooperatives 2003;

The Prime Minister issues this Decision on principles, criteria, and allocation standards for state budget investment capital development phase 2016-2020.

DECISION:

Article 1. Approving the Five-Year Plan for the Development of Collective Economy (2006-2010), with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Developing collective economy in various forms, with cooperatives as the core, to contribute positively to the cause of industrialization and modernization of the country.

2. The State creates a favorable legal environment for the effective development of collective economy; respects the organizational principles, activities, and true values of collective economy; continues to reform and improve management mechanisms and policies to encourage the development of collective economy.

3. Economic organizations of collective economy must primarily rely on their own internal resources while also benefiting from the support and favorable conditions provided by the State to expand scale, enhance quality, and improve the effectiveness of production and business operations.

II. DEVELOPMENT OBJECTIVES

1. General objectives:

a) Reforming and developing various types of collective economy must comply with the laws on cooperatives;

b) Increase the growth rate, bringing the collective economy and the economic contributions of members and household members of cooperative members to a higher proportion in the national economy;

c) Contribute to eliminating hunger, reducing poverty, creating more jobs, improving the material and spiritual life of members and local communities, especially in rural areas.

2. Some specific targets:

a) The number of cooperatives increases by an average of about 7.2% per year, the number of cooperative members increases by about 7.3% per year; encourage cooperatives to expand the scale of production and business and establish cooperative unions;

b) The number of cooperative groups increases by an average of about 3.2% per year, the number of cooperative group members increases by about 5.3% per year; support and encourage cooperative groups that meet the conditions to register as cooperatives;

c) The share of total output of the collective economy sector (including the economy of members) averages about 13.8% of the national GDP;

d) The ratio of cooperative managers who have been trained at the university level reaches about 20%, and those at the college level reaches about 38%;

đ) Average income of labor in collective economy, of cooperative members, and cooperative group members doubles compared to 2005.

III. DIRECTION FOR DEVELOPMENT

1. Regarding agriculture (including forestry, fisheries, and salt production):

a) Reform and improve the efficiency of service cooperatives serving agricultural production towards reducing costs and enhancing the quality of services provided to members; expand internal credit service, product consumption service, and community living service... according to member and community needs;

b) Continue to build new cooperative groups and cooperatives based on multi-industry business models, providing services to support members' economic activities, while developing small-scale industry production, credit, trade, and community living services as required by members;

c) Encourage and create conditions for cooperatives to expand the scale of production and business, consolidate, merge into larger cooperatives, and diversify services in agriculture: technology transfer, agricultural extension, fishery extension, salt farming extension, plant protection, veterinary services; supply of materials, fertilizers, feed, breeding and seed production; product marketing; agricultural product processing; water supply and irrigation services, etc.;

2. Regarding industry:

a) Reform and improve the efficiency and expand the scope of activities of cooperatives to provide services for members' industrial and small-scale industry production. Link reform and development of cooperatives with industrial promotion programs to promote industrial and small-scale industry development in industrial clusters and lay the foundation for the formation and development of new industrial villages in the process of industrialization;

b) Reform and develop cooperatives to become satellites providing services and product consumption for large-scale industrial enterprises;

c) Encourage and create conditions for the formation of cooperative unions or cooperative economic forms with high competitiveness at regional or national levels.

3. Regarding construction:

a) Reform and improve the efficiency of existing cooperatives through integrated financial, management, and organizational solutions, enhancing the efficiency of cooperatives providing services to members, modernizing construction machinery and equipment, adopting advanced technology, and improving the efficiency and competitiveness of cooperatives;

b) Encourage the establishment of new cooperatives. Pilot and develop housing cooperatives. Expand cooperatives providing construction services and building materials.

4. Regarding commerce:

a) Reform and improve the efficiency and development of commercial cooperatives and cooperative unions to better serve the economic activities of members and diverse community needs;

b) Develop appropriate forms of economic cooperation between cooperatives and other economic entities at regional or national scales;

c) Develop supermarket cooperatives and cooperative supermarket networks with civilized and advanced operating methods that benefit members and the community;

d) Develop trading cooperative groups and cooperatives of individual traders;

đ) Develop market cooperatives, including wholesale market cooperatives in places where a large number of traders can become cooperative members.

5. Regarding transportation:

a) Reform and improve the efficiency of transport service cooperatives, providing necessary services for members engaged in transportation business;

b) Develop cooperatives and cooperative unions providing transportation services to meet the common needs of members, communities, or organizations and businesses.

c) Focus on developing cooperatives providing mechanical services, transportation vehicle repair services for members, cooperatives operating wharfs with members being owners of vehicles using the wharfs, and construction and transportation infrastructure repair cooperatives.

6. Regarding credit:

a) Urgently complete the consolidation and rectification of the activities of the People's Credit Fund;

b) Encourage the establishment of new People's Credit Funds in places where there is demand and sufficient conditions according to the law. Expand the scale and area of operation of the People's Credit Fund in a solid, safe manner, attracting more members to join the Fund;

c) Concentrate capital for members to borrow to invest in production and business development, economic structure transformation, and expansion of industries. Link to create capital for cooperatives in the same area to develop production and business;

d) Build and develop the People's Credit Fund system from central to grassroots levels firmly in a closely linked manner, moving towards building cooperative banks; closely link the People's Credit Fund system with other cooperatives; ensure the stable and solid development of the People's Credit Fund system and improve the quality of its operations;

7. Regarding other sectors and fields: Develop cooperative groups and cooperatives in other sectors and fields such as environmental cooperatives; school cooperatives; living service cooperatives; pharmaceutical cooperatives; healthcare cooperatives...

IV. MAJOR SOLUTIONS

1. Implement the Law on Cooperatives and decrees guiding the Law, Civil Code:

a) Promptly issue timely and synchronized sub-Laws; strengthen inspection and supervision of law enforcement;

b) Implement guidance and support for the development of cooperatives as prescribed in Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on certain policies to support and encourage the development of cooperatives;

c) Implement guidance and support regarding: legal education on cooperatives; summarizing exemplary cases and building cooperative models; enhancing the capacity of state management agencies for collective economy; researching the development of cooperative support services; comprehensively surveying and evaluating the collective economy sector; establishing a scientific and practical index system for the collective economy, updating data periodically; implementing projects to train state managers for the collective economy;

d) Draft a decree guiding the organization and operation of cooperative groups as stipulated in the Civil Code;

đ) Conduct research, regularly review and summarize the implementation of the Law on Cooperatives to promptly amend and supplement laws and related policies on cooperatives;

2. Enhance the effectiveness of collective economy operations:

a) Continue to innovate and enhance the effectiveness of existing cooperatives according to the 2003 Law on Cooperatives;

b) Dissolve cooperatives that have not converted or lack the ability to convert, old cooperatives that have converted but are not operating or operating superficially;

c) Mobilize cooperative members to increase their capital contributions and mobilize cooperatives with conditions to attract additional members, consolidate and merge cooperatives in the same industry and operating areas to increase financial strength and operational scale;

3. Establish collective economic organizations:

a) Propagate, mobilize, support, and encourage the establishment of cooperatives and cooperative unions;

b) Mobilize cooperative groups with the necessary conditions to establish cooperatives;

4. Strengthen the capacity of state management over collective economy:

a) Establish and improve management bodies, appropriately assign specialized staff at ministries, departments, and provincial-level departments responsible for state management of collective economy: at ministries with bureaus, departments with divisions, counties with dedicated staff, and villages with non-dedicated staff to monitor and guide the implementation of policies and professional work in this economic sector;

b) Strengthen inspection and supervision of state management of collective economy by higher levels over lower levels, by ministries and departments over localities; conduct periodic summaries and evaluations of state management of collective economy and draw lessons;

c) Study and define standards for commendation, selection, and recommend forms of commendation and honor for individuals and collective economic organizations that operate effectively and achieve outstanding results in economic, cultural, and social aspects;

5. Develop international cooperation in collective economy

Cooperate and seek support and assistance from countries and international organizations in developing collective economy in training and nurturing human resources, information consulting, investment capital, and improving the quality and effectiveness of state management;

V. ORGANIZATION AND GUIDANCE FOR IMPLEMENTATION OF THE PLAN

1. Ministries, sectors, Provincial People's Committees under the Central Government shall complete and implement the Five-Year Plan for Collective Economic Development (2006-2010) of their respective ministries, sectors, and localities based on the approved National Five-Year Plan for Collective Economic Development; annually report on the implementation of the collective economic development plan according to the guidelines of the Ministry of Planning and Investment;

2. The Ministry of Planning and Investment shall be responsible for guiding the development, urging, inspecting, and supervising the implementation of the plan, coordinating with relevant ministries and sectors to allocate state budget funds for implementation; periodically report

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial People's Committees under the central government are responsible for implementing this Decision.