Abstract
Agricultural cooperatives have been established in Vietnam since the 1950s. During its development, agricultural cooperatives have made significant contributions to the growth of agricultural sector and to the improvement of farmers' income who are members of the cooperatives. Since Vietnam implemented the "Innovation-Doi moi" in 1986, the Government has continued to issue many policies to support for agricultural cooperatives. However, the impact of these policies on the development of almost all agricultural cooperatives has not been as expected. This paper aims to analyze the implementation of several policies supporting for agricultural cooperatives; to identify advantages and disadvantages of these policies; and to propose solutions for improving policies in the furture. In addition to secondary data from the Vietnam Cooperative Alliance, this paper uses primary data collected from 60 agricultural cooperatives in the Red River Delta to analyze the implementation of policies on cooperative staffs training, cooperative finance supporting, and cooperative land supporting. Bascially, the results show that the policy on training cooperative staff is quite well implemented, it helps to improve the capacity of cooperative managers in all surveyed cooperatives. In contrast, the finance supporting policy has many regulations that make it difficult for agricultural cooperatives to access capital, only nearly 30% of surveyed cooperatives get loans for production. Similarly, the land supporting policy also has unreasonable regulations which prevent agricultural cooperatives from scaling-up production because of the lack of farm-land. Consequently, about 60% of surveyed cooperatives are supported to rent farm-land for expanding agricultural production.
Highlights
Agricultural cooperatives have been established in Vietnam since the 1950s and have experienced different stages of development: flourishing (1955-1986), recession (1986-2003) and renaissance from 2004 to present [1]
The Cooperative Law in 2003 has contributed to promoting the development of agricultural cooperatives through allowing legal entities to participate in cooperatives
The government of Vietnam has given and implemented many different policies to promote the development of agricultural cooperatives
Summary
Agricultural cooperatives have been established in Vietnam since the 1950s and have experienced different stages of development: flourishing (1955-1986), recession (1986-2003) and renaissance from 2004 to present [1]. Since Vietnam implemented the “Innovation – Đổi mới” in 1986, the Government issued the Cooperative Law in 1996 with many changes in the principles of organization and operation of cooperatives This change caused agricultural cooperatives formed before 1986 to fall into recession [3]. The Cooperative Law in 2003 and the current Cooperative Law issued in 2012 have promoted the development of agricultural cooperatives through a variety of supporting policies, such as policy on training cooperative staffs, finance supporting policy, land supporting policy, taxation policy, agricultural products trading policy, infrastructure construction policy, etc These policies aimed at developing agricultural cooperatives in the past many years has not been implemented effectively. These policies have a modest impact on the development of agricultural cooperatives [4]
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