Circular No. 3/TS-TT guiding the implementation of the Charter of Fisheries Cooperatives

 

CIRCULAR

OF THE MINISTRY OF FISHERIES NUMBER 3-TS/TT DATED JUNE 29, 1982 GUIDING THE IMPLEMENTATION OF THE REGULATIONS ON FISHERY COOPERATIVES
IMPLEMENTATION OF THE REGULATIONS ON FISHERY COOPERATIVES

On March 17, 1982, the Council of Ministers issued Decree No. 51-HĐBT on the issuance of the Regulations on Fishery Cooperatives. The Ministry of Fisheries issues this Circular to guide implementation as follows:

Part 1:

OBJECTIVE AND SIGNIFICANCE OF ISSUING THE REGULATIONS AND SCOPE OF APPLICATION

a) Objective and significance:

Currently, in the Northern region (and some areas in the Central region), the socialist collective production relations in the fishery sector have been established but need to be further consolidated and perfected. In the Southern region, the transformation of production relations in the fishery sector is underway.

The issuance of the Regulations on Fishery Cooperatives has significant importance and meets urgent requirements, serving as a legal basis for organizational and economic activities for all levels of party committees, governments, and the fisheries sector to carry out reforms, build production relations, consolidate and perfect production relations, reorganize and develop fishery production, and gradually advance the fishing industry towards large-scale socialist production.

For fishery cooperatives that have been established for a long time, they should now base themselves on these regulations to review and compare their organization and operations. Where they are correct, they should maintain and enhance them; where they are incorrect, they must promptly rectify them, striving to bring the cooperative into compliance with the provisions of these regulations.

For newly established fishery cooperatives, they must base themselves on the provisions of these regulations to ensure their organization conforms to the principles and regulations stipulated therein.

b) Scope of application:

These regulations apply to all cooperatives and high-level production organizations (essentially small-scale cooperatives) at sea and on rivers. For low-level cooperative production organizations (also known as production groups), mainly follow the temporary regulations issued by the Ministry of Fisheries, while also applying certain provisions from Chapters I, II, III, V, and VIII of these regulations.

Cooperatives specializing in aquaculture shall also apply these regulations, and additional guidance will be provided through a separate circular.

Teams and groups engaged in fishing within agricultural, forestry cooperatives, salt production... shall apply the regulations on agricultural, forestry, and salt cooperatives, while also applying relevant provisions of the regulations on fishery cooperatives.

From now on, cooperatives primarily engaged in fishing and aquaculture shall be referred to as fishery cooperatives. Naming cooperatives after leaders or martyrs requires approval from the provincial or district People's Committee.

Part II:

GUIDANCE ON SOME SPECIFIC POINTS IN THE REGULATIONS

The full text of the regulations consists of nine chapters and thirty-three articles, with the content of each article largely explained. In this circular, the Ministry provides additional guidance and explanations on some specific points to help localities and entities fully understand and implement the spirit and content of the regulations.

1. Regarding the principles of organization and operation of cooperatives (Article 2), these are guiding principles that must be actively and thoroughly applied not only during the establishment of cooperatives but also throughout the process of building and consolidating cooperatives.

Individuals wishing to join a cooperative must voluntarily submit an application, voluntarily contribute capital shares, boats, nets, tools (if applicable), and conscientiously comply with the cooperative's regulations and internal rules, fulfilling their obligations as cooperative members.

In terms of leadership, it is necessary to make everyone clearly see the immediate and long-term benefits of the cooperative so that they voluntarily and conscientiously participate in building and consolidating the cooperative. Administrative orders or creating difficulties to force people into the cooperative should not be used.

During the operational period, if any member requests to leave the cooperative, the management board must seriously consider their request and after discussing the reasons for leaving, if they still insist on leaving, then the procedures for their departure must be completed within one month. However, if they later voluntarily request to rejoin the cooperative and meet the conditions, they may be readmitted.

The cooperative must always prioritize the economic interests of its members, improve and enhance their material and cultural living standards, while simultaneously focusing on accumulating capital and building technical infrastructure to expand production. It must fulfill tax obligations, repay debts, and sell products to the state according to bilateral economic contracts. At the same time, it must ensure appropriate rights for those who have contributed capital and tools to the cooperative for production development. Emphasizing self-reliance and self-strengthening, abandoning administrative management and reliance on the state.

The cooperative must respect and guarantee the collective ownership rights of its members, creating conditions for all members to participate in decision-making regarding production and business directions, occupational structures, state plan indicators and implementation measures, cooperative assignment indicators, distribution schemes, financial income and expenditure of the cooperative and production units.

Any actions violating the collective ownership rights of members are violations of the regulations and must be appropriately addressed.

The cooperative is a form of socialist collective economy, and all its production and business activities must be based on national planning and direction, while ensuring economic accounting for profitable operations. Each cooperative must not deviate from national planning and direction, causing damage to common interests or violating state laws.

Regarding the powers of the cooperative (Article 4):

Each cooperative, after being recognized by the People's Committee of the district, shall have full legal personality, be protected by the State according to the law, and have its property ownership rights recognized by the law. The cooperative has the right to self-management in production and business activities, as well as financial matters within the framework of the State's policies, systems, and laws. Based on the planning and medium-term direction of the industry and locality, each cooperative has the right to independently decide on its production and business orientation, occupational structure, technical equipment, so as to achieve high economic efficiency. Higher-level management agencies shall not compel cooperatives; if there is compulsion leading to losses for the cooperative, the person making the decision must bear partial or full compensation depending on the specific circumstances of the cooperative.

After fulfilling their tax obligations under contracts with the State, each cooperative shall have full rights to use, distribute, and sell their remaining products. State trading agencies must conduct equal and fair buying and selling transactions with cooperatives.

After completing the plan to repay debts to the State (if any), each cooperative shall have full rights to use its capital and funds for business purposes, consumption, living expenses, etc. No levels, sectors, or business units may appropriate the capital of cooperatives, while respecting and assisting cooperatives in exercising financial autonomy.

All assets of cooperatives are socialist public property under the collective ownership and management rights of the cooperatives. No one shall use the assets or capital of cooperatives for purposes unrelated to the cooperative's operations, except in cases of urgent mobilization of manpower and resources at the local level, which must comply with Decree No. 232-CP dated November 21, 1965 of the Council of Ministers (now the Government Office).

3. Regarding Conditions for Joining Cooperatives (Article 5):

Individuals voluntarily applying to join a cooperative must be present when the member assembly examines and decides on admission. A cooperative only admits individual workers, not entire households. Admission of members must be balanced with production tools according to technical labor standards. Additional members cannot be admitted while the cooperative still lacks production tools.

For veterans returning to their home areas after completing their service, if they were previously members, they need not reapply. Those who were not members but wish to join now must be examined and admitted according to the regulations of the charter.

Members under 18 years old have the same obligations and benefits as other members but are not entitled to vote or run for positions in cooperative management bodies. Upon joining, each member must pay two types of shares:

- Collective share used for purchasing production tools;

- Production cost share used to support the production process.

Members with necessary production materials for the collective must contribute these materials' value as shares. Determining the amounts of these two types of shares primarily depends on production requirements, while also considering the contribution capacity of most members, specifically:

- The standard for the collective share is calculated by dividing the total value of fixed assets needed for fishing by the total number of fishing members, serving as the basis for the member assembly to examine and decide on a reasonable share amount.

- The standard for the production cost share is calculated by dividing the annual main production cost requirement by the total number of fishing members, serving as the basis for the member assembly to examine and decide on a reasonable share amount.

If a cooperative engages in multiple industries, fishing members pay a unified share amount. Members engaged in other professions such as processing, fish farming, net weaving, etc., should have their shares determined based on the production and business requirements of their respective industries, rather than paying the same share amount as fishing members.

Cooperatives that previously set too low share amounts or suffered losses and faced capital difficulties can decide to increase shares through member assemblies. New members or old members who now pay shares must match the value of new assets.

Members who delay in paying shares will not be recognized as members and will be expelled from the cooperative.

4. Regarding Obligations and Benefits of Members (Articles 6 and 7):

In addition to cooperative work such as going out to sea for production, repairing boats and nets upon return to port, members may engage in family sideline businesses like livestock breeding, farming, forest product extraction, weaving mats, silkworm raising, etc., depending on specific conditions. During off-seasons or when boats and nets await repair and the cooperative does not assign work, members may take advantage of this time to exploit coastal marine resources (where permitted) or during fishing trips, members may fish during rest periods. Income from fishing during rest periods must be partially submitted to the cooperative for depreciation and accumulation (the cooperative sets the amount to be submitted based on the productivity of each trip).

Developing family sideline businesses is a benefit for each member, encouraged by the State and the cooperative, but members must not pursue personal interests or misuse collective boats, nets, or production time to earn private income, affecting collective production and income.

5. Regarding Members Leaving Cooperatives (Article 8):

Members leaving cooperatives (following proper procedures) shall be refunded their shares and settled for any debts owed to the cooperative. If the cooperative incurs losses, the member leaving must bear part of the loss.

Loss calculation method: Divide the annual loss amount by the total number of working members in that year, accumulating the losses over the years that each person must bear.

After deducting the loss offset, if there is a remaining share amount, it can be withdrawn. If there is a shortfall, the member leaving must pay the cooperative before the cooperative certifies the departure or transfer to another location as legal.

The shares of the cooperative member who has died shall be transferred to their children when they join the cooperative and after deducting the loss compensation portion (if there is a loss); if insufficient, additional payment must still be made. In cases where there are no children joining the cooperative, it shall be left to the lawful heir. If the cooperative incurs losses, the heir must still bear the loss compensation portion, but if the loss compensation exceeds the share value, they are not required to pay further.

In cases where a cooperative member violates discipline and is expelled from the cooperative by the general assembly of members, the settlement of shares and loss compensation shall still be handled according to the case of leaving the cooperative.

In all cases where cooperative members leave the cooperative, the issue of profit distribution is not raised because part of the actual profit has been transferred into the accumulation fund and welfare fund and transformed into assets, while another part has been distributed to laborers currently in the cooperative.

6. Temporary departure from the cooperative of cooperative members (Article 9):

Cases where cooperative members go for military service, undertake Party, government, mass organizations, commune, ward... work are still guaranteed the status of cooperative members. The time spent temporarily away from the cooperative is counted as continuous participation in the cooperative and they still enjoy welfare benefits within the cooperative, but they cannot withdraw their shares nor have to share losses.

For elderly or disabled cooperative members who can no longer go to sea, especially those without a stable income source, the cooperative should arrange appropriate jobs or draw from the welfare fund to support their living standards.

For elderly cooperative members unable to go to sea, if the cooperative does not have shore-based production activities, they may be allowed to engage in traditional shore-based occupations to ensure their livelihoods and retain their cooperative member status, enjoying all collective welfare benefits of the cooperative.

7. Regarding collectivization of means of production (Article 19):

Means of production contributed by cooperative members into the cooperative are valued in monetary terms and collectivized (considered as the cooperative purchasing them to become collectively owned).

The valuation of means of production must be resolved satisfactorily based on the principle of mutual voluntariness and mutual benefit between the collective and the individual. When valuing means of production, it must be based on the state-guided price and the quality, age, and remaining utility value, which are discussed and agreed upon by the collective.

For means of production that do not have state-guided prices, they should be compared with corresponding items having state-guided prices and mutually agreed upon through consultation.

Cooperatives that have valued according to Circular No. 3/TT-LB dated March 21, 1979 shall increase the remaining amount after deducting the valuation payment made to the owners of the means of production by three times according to the guidance document No. 2108-TS/HTX dated December 17, 1981 issued by the Ministry of Fisheries.

Cooperatives that have valued according to negotiated prices generally will not be adjusted, except in special cases where the remaining capital should be adjusted to approximately equal the state-guided price.

The value of the means of production is used to pay for collective shares. If insufficient, additional payments must be made; if excess, it shall be repaid gradually over the remaining depreciation period. If cooperative members face financial difficulties or need capital for family members to invest in other cooperatives, the management board may propose to the general assembly of members to decide on prepayment of a higher amount than the annual repayment.

Those requesting to leave the cooperative are not entitled to withdraw the means of production contributed to the cooperative that have been collectivized, except for the remaining shares. The cooperative will continue to repay the capital and interest on the collectivized means of production according to the regulations stipulated in the charter.

Those who now have old boats, nets, tools and voluntarily contribute these to the cooperative, the cooperative may purchase them or operate on the principle of mutual benefit.

Those engaged in other trades wishing to invest capital in business with the cooperative, the cooperative may cooperate in business and share profits with them also on the principle of mutual agreement.

8. Regarding reorganization of production (Article 20):

To fully utilize capabilities and resources, labor power to promote production development and improve the living standards of cooperative members in the district or commune, it must be done according to the conditions of each region, port, beach, island... closely combining the development of fisheries (harvesting, breeding, processing), focusing on export fisheries, with the development of agriculture, forestry, salt production, small-scale industry, through forms such as:

- Fisheries cooperatives organize agricultural, forestry, salt, small-scale industrial teams, etc., with separate economic accounting, contributing to the common welfare fund;

- Agricultural, forestry, salt, handicraft cooperatives, etc., can organize fishing harvesting, breeding, processing teams.

- On the commune level, male labor mainly participates in fishing cooperatives, female labor participates in agricultural, forestry, salt, small-scale industrial cooperatives, etc.

- Where conditions permit, land can be allocated to fisher families for household economy;

- Encouraging the development of household economy in planting, breeding, processing handicraft products... considering the household economy of cooperative members as an important part of the socialist national economy.

9. Regarding the quota system and wage payment for indirect labor (Article 22):

Wage distribution must be based on technical proficiency, labor results, and economic efficiency of each production unit and individual cooperative member. In all fisheries cooperatives, the final product quota mechanism for each production unit and boat team is implemented in two forms:

1) Wage payment based on actual income

2) Wage payment and other contributions (according to Decision No. 16-CP dated January 15, 1981 and the guidance document of the Ministry of Fisheries No. 494-TS/HTX dated September 6, 1981).

Each cooperative may choose one of the two quota forms based on its specific situation, but it must necessarily rely on the quota indicators and implement the quota to handle rewards, penalties, and distribution, and not substitute the quota system in the cooperative with fish distribution to members.

For indirect labor such as cooperative leaders, management board members of cooperatives, general auditors, they must spend at least one-third of their time each year directly participating in production or directing production at sea. As for specialized staff such as accountants, statisticians, warehouse keepers, cashiers, depending on specific circumstances of each cooperative as determined by the member assembly, if there is a large volume of specialized work, it is not necessarily required to have time participating in sea-based production.

The payment for indirect labor involved in production or days not participating in production shall be based on Circular No. 494-TS/HTX dated September 6, 1981, issued by the Ministry of Fisheries.

For those with excellent skills in fishing, farming, processing, and preserving products (especially export products), apart from being allocated products, they may also be paid preferential wages like experts.

10. On income distribution (Article 25):

The establishment of income plans and distribution schemes must be closely linked to the allocation plan of the cooperative for each production unit.

Income distribution within a fisheries cooperative must ensure the general principle that total revenue (all distributable income) must first cover all production costs, depreciation of fixed assets, management expenses, interest payments, and taxes to the State, leaving the actual income which will then be allocated to three funds: accumulation, public welfare, and rewards, and distributed to cooperative members.

- Regarding the accumulation fund, adjustments can be made according to the production situation, whether bountiful or poor harvests. For example, during a bountiful harvest, it could be set at 15 to 20% of actual income. Conversely, during a poor harvest, unstable production, and very low income, the accumulation can be reduced. In special cases, where no accumulation is kept to ensure the livelihood of members, this must be agreed upon by the district fisheries authority.

- Regarding the public welfare fund and reward fund, adjustments should be made according to the actual income situation.

- Regarding the portion distributed to labor, it must ensure correct distribution to the target group based on the number of working days and technical labor grades.

Those who do not directly engage in production labor or serve directly in the cooperative have no right to participate in any form of distribution.

11. Dissolution of cooperatives and reorganization of cooperatives (Article 29):

1) When there is a decision to dissolve a cooperative, measures must simultaneously be taken to reorganize the cooperative in an appropriate scale.

To preserve the property of the cooperative and the State, the People's Committee of the district needs to assign relevant departments and units under the People's Committee of the commune, town, and cooperative management board to conduct asset inventory and evaluation, protect existing assets until the completion of asset disposal and settlement.

2) For some cooperatives organized in a high-level form, now need to be reorganized into a low-level cooperative form, the procedures must be strictly followed, requiring the agreement of the member assembly, certification by the People's Committee of the commune, town, and proposal to the People's Committee of the district (city) for decision (with agreement from the provincial fisheries sector); simultaneously, debt settlement, shareholding, and asset resolution... shall be carried out according to the temporary regulations of the low-level production cooperative.

3) For some cooperatives that are too weak and require member selection, labor and profession rearrangement to consolidate the cooperative, similar principles and procedures must be followed.

4) For some cooperatives that disintegrate due to certain reasons, the People's Committee of the district (city) assigns the fisheries sector and related sectors together with the local authorities to convene the cooperative management board or remaining members to complete the asset inventory, prepare minutes, report to the People's Committee of the district, city for economic and financial handling according to the charter, policy, and state laws.

Part 3:

PLAN FOR IMPLEMENTATION OF THE STATUTES

The Regulations on Fisheries Cooperatives, officially promulgated by the Government, constitute a significant encouragement and support for the fisheries sector in general and a large number of fishery workers in particular. Therefore, the guidance and implementation of these regulations must be strictly and seriously carried out to achieve practical effects in consolidating, building, and developing cooperatives, thereby advancing the cooperative movement and fisheries production nationwide to a new, strong, and stable stage.

1. In accordance with the Decree of the Council of Ministers, provincial, municipal, and central city People's Committees need to have policies and measures to strictly guide the implementation of the Regulations on Fisheries Cooperatives at the local level.

Northern provinces and cities, as well as some other provinces, which have established many cooperatives under the guidance of provincial and municipal People's Committees, should convene industry meetings with districts, towns, communes, wards, and related sectors to disseminate and discuss plans and measures to guide the implementation of the Regulations on Fisheries Cooperatives.

Departments and Services of Fisheries should assist provincial and municipal People's Committees in drafting plans and measures to guide the implementation of the Regulations on Fisheries Cooperatives.

2. The implementation of the Regulations on Cooperatives can be divided into several steps as follows:

- Step 1: Propaganda, dissemination, study, and thorough understanding of the regulations down to cooperative groups, production units, and individual members, including those who fish far and long at sea.

- Step 2: Through learning and linking with the newly issued regulations, review the classification of cooperatives (key cooperatives, good cooperatives, average cooperatives, weak cooperatives), and formulate plans and measures to consolidate each type closely.

- Step 3: Each cooperative should proceed to establish or revise its management rules and complete the 1982 allocation plan, preparing to draft the 1983 allocation plan.

3. On this occasion, all cooperatives need to convene full member meetings to disseminate and study the regulations, review their organizational and operational situations, formulate plans and measures to consolidate and strengthen the cooperatives, rebuild management rules; link with the implementation of state tasks and plans for 1982 and subsequent years, and elect management bodies according to the provisions of the regulations.

Places that are preparing to establish cooperatives need to organize thorough training among cadres, party members, and the masses, ensuring everyone understands and implements the regulations from the process of mobilizing to build cooperatives.

4. The central and local fisheries sectors need to coordinate with propaganda agencies, radio stations, and organize extensive propaganda campaigns on the Regulations on Fisheries Cooperatives, conduct training courses for provincial, district, commune, and cooperative ward cadres, etc., on the Regulations on Fisheries Cooperatives and the Circular guiding the Ministry of Fisheries. The Ministry of Fisheries will print the entire text of the Regulations on Fisheries Cooperatives in a small book for distribution and dissemination down to cooperative members and fishermen. Localities need to launch a campaign to encourage learning and implementing the Regulations on Fisheries Cooperatives.

5. Provincial and county fisheries departments and marine product boards need to assign some leaders and specialized cadres to assist provincial and county People's Committees in monitoring, guiding, and specifically implementing the Regulations on Fisheries Cooperatives. Each province needs to coordinate with counties to specifically implement the Regulations on Fisheries Cooperatives in some cooperatives to draw lessons for overall guidance, while reporting results quarterly to provincial People's Committees and the Ministry of Fisheries.

6. Departments, bureaus, divisions directly under the ministry, marine newspapers, central fisheries companies, seafood export companies, etc., within their functions and authorities, have the responsibility to guide, assist, and inspect fisheries cooperatives in implementing these regulations. Fisheries universities and secondary schools must include the Regulations on Fisheries Cooperatives in their teaching programs.

The Cooperative Department has the responsibility to assist the ministry in monitoring and regularly checking the implementation of the Regulations on Fisheries Cooperatives.

During the implementation of these regulations and circulars, if there are any difficulties, localities need to report them to the Ministry of Fisheries for timely research and supplementary guidance.

This circular is disseminated to People's Committees of communes and wards and fisheries cooperatives.