Roles of Vietnam Cooperative Alliance (VCA) in promoting the economy of Vietnam/Vietnamese people more sustainable and resilient.

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1 Roles of Vietnam Cooperative Alliance (VCA) in promoting the economy of Vietnam/Vietnamese people more sustainable and resilient. COOPERATIVES PROMOTES THE ECONOMY MORE SUSTAINABLE AND RESILIENT November, 2018

2 Significant achievements of Vietnamese economy Significant achievements of the cooperative economy and cooperatives of Viet Nam Roles of VCA SWOT Recommendations

3 SIGNIFICANT ACHIEVEMENTS OF THE VIETNAMESE ECONOMY

4 Outline of Vietnam The Socialist of Republic of Vietnam - Area: km2 (63 provincies, cities) - Population: 95,540,000 people (2017) - Population growth rate: 1,06% (2017) - Labour force: 55,162 million (2017) -Umemployment rate: 1,1% (2017) - Average income per capitai: 2,385 USD (2017); in 2045, estimated 18,000 USD/person - GDP growth rate: 6,8% (2017) -Average economic growth rate ( ) : 6,63% -Economic growth rate in 2018 (planned): 6,7%. - Poverty reduction rate up from 60% to 7%. - Economic scale stands 44 in the world according to GDP and 34 according to PPP (in 2045, estimated 2,500 billion USD) Renovation policy Average income country Industrial country Member of ASEAN Member of APEC Member of WTO Participating ASEAN Economic Communities Signing CPTPP and FTA

5 Thực phẩm chế biến từ tinh bột và ngũ cốc 595 Cá đông lạnh 2882 Tôm đông lạnh 2447 Chè 227 Hạt điều nhân 3516 ĐVT: triệu USD Gạo Cao su Cà phê 3244 Hạt tiêu 1117 Hàng rau, hoa, quả Graph 1: Exported agricultural products of Vietnam (2017)

6 Singapore Thái Lan Nhật Bản Hoa Kỳ các nước OECD Năm 1990 Năm 2018 Graph 2: Comparision of reduction of income per capita of some countries to Vietnam in the period of (Unit: time)

7 SIGNIFICANT ACHIEVEMENTS OF COOPERATIVE ECONOMY AND COOPERATIVES

8 Up to June /2018, there are 21,212 cooperatives, 60% is agricultural cooperatives Annual increasing: 3,000 cooperatives Needs of cooperation, joining members and households are very big Trends of establishing and developing cooperatives are required Environment, 461 Others, 572 Construction, 874 Credit, 1182 Transportation, 1319 Trading, 1829 Agriculture, Industry, 2176

9 Over 6,5 million members Over 2,5 million labourers (2,1 million labourers are members of the cooperatives, average 23 labourers/coop); Total legal capital is 35 trilion VND, average 1,7 billion VND/ HTX; Total assets: 48,000 billion VND; Total turnover: 30,000 billion VND, average 1,5 billion/cooperative in which the turnover from supplying products to members gets 15,600 billion VND (first six months of 2018); Net profit is 2,500 billion VND, average 120 million VND/coop/6 months; Average monthly income is 3,1 million (first six months of 2018);

10 Contribution to the development of Vietnamese economy: Contribution to over 8% of GDP (In 2017, if the added values of the effective operated cooperatives (45,3% of the total cooperatives) brings 2,5 million members with 36 million VND/person/year that contributes from the cooperative sector to GDP around 10,07% not lower than that of private enterprises. 55% labour force mainly in the rural areas. 5% of exported values 10% of contribution to the State budget The cooperative sector contributes very important in to the implementation of National Targeted Programs on the the construction of new rural areas, sustainable poverty reduction, secure social security as more jobs, improved living standards in line with the shared economy and overall economy, prevent the social vices in rural areas, protecting millitary security and islands bordering.

11 OBJECTIVES ON Pre-cooperatives, in which 5% of them develops in to the cooperatives; coops, 100% communes establish cooperatives; federations of cooperatives involving in value added production chains. 40 % of managerial officers graduated university level and immediate level reaches 50% - 55%. Average income is two times higher than that in % provincies,cities have the fund for cooperative development with the legal capital from 20 billion VND to 100 billion VND; 300 credit cooperatives established For agricultural cooperatives: + 15,000effectively operatated cooperatives. + Setting up the values added prodcution chains.

12 ROLES OF VCA TOWARDS DEVELOPMENT OF COOPERATIVES AND THE ECONOMY

13 VIETNAM COOPERATIVE ALLIANCE ORGANIZATION STRUCTURE OF VCA: National Representatives Đại hội toàn quốc Congress Member Ban Executive Chấp hành Committee Supervision Ủy ban Kiểm Committee tra Standing Ban Thường Committee vụ Steering Thường Committee trực 63 Liên provincial minh HTX cooperative cấp tỉnh alliances Supervision Ủy ban kiểm Comiittee tra at the provincial level cấp tỉnh The Văn phòng office Planni Ban ng Kế and hoạch Promi hỗtion trợ Dept Pers Ban onne Tổl chức Orga nizat cán ion bộ Dept Inve Ban stme Kinh nt & tế Econ đầu omic tư Dept Ban Ban Inter Hợp natio nal tác Coo quốc pera tive tế Dept Supe Ban rvisio Kiểm n tra Dept Ban Coop Chính develo sách pment và policy Phát Dept triển HTX Cơ VCA quan represe thường ntative trực tại Office khu vực miền in Highla Trung nd Tây region Nguyên Cơ VCA quan represe thường ntative trực Liên office in minh HTXVN the South phía region Nam 21 affiliatefd units includes 06 schools 01 Institute for cooperatives 01 Business Times 01 Fund for Coop development; 07 Centers 05 enterprises Cooperatives, Federations of cooperatives, Pre-cooperatives and others

14 FUNCTIONS AND MISSIONS VCA is an organization to play improtant roles for developing coops in Vietnam Representing and protecting legitimate rights and benefits of members; Propaganda and mobilizing the setting up of new coops; Participating to prepare the policies on developing coops; Coordinating with ministries and branches for planning and developing coops in line with the valued added product chains; Supporting and providing services for coops: training, refreshing, trade promotion, technology, loans, ect. Implementing business activities in order to get more programs; Representing its members in the local and international organizations; Other activities assigned by the Government.

15 RECOMMENDATIONS

16 DIFFICUTIES AND CHALLENGES Limited awareness on the model and benefits of the coops; Weakness on linkages among the coops; Not high awareness on binding the laws ; Weak administration capacities; Low efficient State management; Limit access to the resources; Policy on encouraging concentrated land for producing commercial products not in practices; Climate change and disasters cause losses.

17 CAPACITIES AND OPPORTUNITIES Natural environment, political economic and social factors are favourable for the development of the cooperatives; Good agricultural lands, experiences, young and skilled labourers, application of thr industrial revolution of No 4.0; Law on Cooperatives 2012 and other supportive policies put into revision in real life Good environemnt for investment and international intergations; 8,3 million households in rural areas, 4,6 million households in urban areas and 95,000 pre-cooperatives are in need to organize the prodoction and trading activities; The Government pays attention and gives the funds to suppot the cooperative sector through the national Programs ; International organization such as GIZ, FAO, WB, JICA, UNĐP, ILO, ĐGRV, ADB... also support the development of the cooperative sector; Recognition from the Government.

18 RECOMMENDATIONS Promoting trade among the cooperatives; Promoting technology and loans; Training, exchanged visits, sharing experiences ; Supporting and providing consultations.

19 THANK YOU FOR YOUR KIND ATTENTION! COOPERATIVES: SOLIDARITY, COOPERATION AND DEVELOPMENT