Decision No. 763-TTg On certain policies for cooperative economic sectors (small-scale, handicraft, construction, transportation, trade, and services)

Pursuant to …;

On certain policies for cooperative economic sectors (small-scale industry, handicrafts, construction,

transportation, trade, and services)

PRIME MINISTER

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

To encourage innovation and development in cooperative economies;

DECISION:

Article 1

Cooperatives, cooperative groups, and cooperative unions operating in small-scale industry, handicrafts, construction, transportation, trade, and services (hereinafter referred to as cooperatives) recognized by the People's Committee of districts, counties, towns, and provincial cities with their charters and granted business registration certificates are considered economic organizations with legal personality, equal to other enterprises under various economic components and operate according to the provisions of the law. For large-scale cooperatives, the People's Committee of districts, counties, towns, and provincial cities shall review and propose to the People's Committee of provinces and centrally-administered cities for approval of business registration.

Article 2

Supplementing certain policies for cooperatives as follows:

1. Cooperatives meeting current regulations are eligible to borrow funds from state investment and development funds.

2. Cooperatives meeting current conditions are granted permits to export goods they produce and import materials for producing export goods according to current government regulations. The minimum working capital level for granting such permits is equivalent to 100,000 USD.

3. Cooperatives meeting the required conditions may accept and implement national socio-economic development projects; foreign aid projects; and projects of international organizations related to the cooperative economic sector such as credit, small and medium enterprise development, science and technology, import and export, training, information, market access, and other development projects. The State Planning Commission and the Central Council of the Vietnam Cooperative Alliance will establish criteria and consider assigning these projects to cooperatives that meet the necessary conditions.

4. Cooperatives with legal personality can borrow short-term, medium-term, and long-term loans from commercial banks under the same borrowing and repayment conditions as state-owned enterprises.

5. Cooperatives must strictly comply with state regulations on business operations and taxes, and if they encounter difficulties in adjusting and innovating to restore and develop in accordance with cooperative principles, they may be considered for tax exemptions or reductions according to the law.

Specifically regarding income tax, the Ministry of Finance will coordinate with the Central Council of the Vietnam Cooperative Alliance to provide specific guidance consistent with the law and the operational characteristics of cooperatives.

Article 3

The Central Council of the Vietnam Cooperative Alliance and the Ministry of Trade will develop plans and measures to regulate and develop rural and mountainous area trade and service cooperatives to jointly organize the sale of essential goods for people in these regions (including goods subject to special policies for mountainous areas and ethnic minority regions).

Article 4

People's Committees at all levels shall consider creating favorable conditions for cooperatives to lease land and factories according to the law.

Article 5

This Decision takes effect from the date of signature.

Article 6

Ministers of Ministries, Heads of agencies equivalent to Ministries, Government agencies, Chairmen of People's Committees of provinces and centrally-administered cities, and Chairman of the Central Council of the Vietnam Cooperative Alliance are responsible for implementing this Decision.