Vietnam Cooperative Alliance: Perfecting and streamlining to adapt to the new situation

With the goal of creating a future for the collective economy, the workshop “Improving the organizational and operational model of the Vietnam Cooperative Alliance in the new situation” took place on the afternoon of July 11. Delegates discussed core issues and sought the optimal model so that the Vietnam Cooperative Alliance can truly become a solid support for cooperatives, effectively adapting to the demands of the times.

Workshop "Improving the organizational and operational model of the Vietnam Cooperative Alliance in the new situation".

At the workshop, Chairman of the Vietnam Cooperative Alliance Cao Xuan Thu Van said that the streamlining and improvement of the organization and operation of the Vietnam Cooperative Alliance in the new situation is extremely important, a strategic breakthrough task, meeting the requirements of "Refined, Compact, Strong, Effective, Efficient, Effective", to contribute to the comprehensive and sustainable development of the collective economy. When entering a new era, realizing the aspiration of strength and prosperity of the Vietnamese people.

The viewpoint of “Refined, Lean, Strong, Effective, Efficient, Effective” proposed by General Secretary To Lam has become an important guideline for the Vietnam Cooperative Alliance in promoting innovation and restructuring the organizational apparatus. In which, correctly identifying the functions and tasks of the Alliance is the basis and condition for correctly identifying the organizational structure, resources, and operating costs to ensure the efficiency and effectiveness of its operations.

President of Vietnam Cooperative Alliance Cao Xuan Thu Van spoke at the workshop.

Practices over the years have shown that the Vietnam Cooperative Alliance is an organization representing cooperatives, cooperative unions, cooperative groups and other members who voluntarily participate, protecting the rights and legitimate interests of members, playing a leading role in promoting the development of the collective economic sector, contributing to the implementation of social security policies and the socio-economic development of the country. It is an organization representing members in relations with international organizations with legal status.

“It is necessary to affirm that the continuous innovation and improvement of the organizational structure of the Vietnam Cooperative Alliance is one of the basic and decisive conditions for contributing to the country's collective economy achieving great achievements in the renovation process in the past as well as in the coming time,” the Chairman of the Vietnam Cooperative Alliance emphasized.

Throughout its history of formation and development, the Vietnam Cooperative Alliance has carried out the tasks of managing, representing, supporting the establishment and development of cooperatives, cooperative unions, and cooperative groups. The Vietnam Cooperative Alliance has contributed many achievements in the development of collective economy and cooperatives.

The results of the development of collective economy and cooperatives have proven this. Up to now, the country has 33,364 cooperatives operating in many fields; nearly 121,000 cooperative groups and 133 cooperative unions. The collective economy contributes directly about 5% of GDP and indirectly more than 20%, helping to reduce costs by 8-21% and increase selling prices by 10-12% for members.

The workshop received participation and comments from many experts and managers.

From there, Resolution No. 20-NQ/TW dated June 17, 2022 of the 5th Conference of the 13th Party Central Committee on continuing to innovate, develop and improve the efficiency of the collective economy in the new period affirmed: “Resolution No. 20-NQ/TW dated June 17, 2022 of the 5th Conference of the 13th Party Central Committee on continuing to innovate, develop and improve the efficiency of the collective economy in the new period affirmed: “Consolidate and strengthen the operations of the Cooperative Union system and representative organizations. The Cooperative Union is an organization that represents and protects the legitimate rights and interests of collective economic organizations, plays a core role and promotes the development of the collective economy, is a bridge between the Party and the State and the collective economic sector, contributing to the cause of socio-economic development of the country; Research and assign the Cooperative Union to perform a number of public services in accordance with the provisions of law and the functions and tasks of the Union".

According to Ms. Cao Xuan Thu Van, the Vietnam Cooperative Alliance, in addition to representing the collective economic sector, cooperatives, i.e. cooperatives, unions, and cooperative groups, when members, also represent and support those who wish to become members of the Vietnam Cooperative Alliance but are not yet members. This is a difference compared to other associations.

However, due to the unclear nature and legal status of the Vietnam Cooperative Alliance, the Law on Cooperatives (1996, 2003, 2012 and 2023) has defined the Vietnam Cooperative Alliance differently. The 1997 Law on Cooperatives defines the Vietnam Cooperative Alliance as a non-governmental organization, the 2003 Law on Cooperatives defines the Vietnam Cooperative Alliance as a socio-economic organization, and the 2012 and 2023 Law on Cooperatives defines the Vietnam Cooperative Alliance as a representative organization of cooperatives and cooperative unions.

Representatives of Cooperative Alliances of several provinces attended the workshop.

Chairman of the Vietnam Cooperative Alliance Cao Xuan Thu Van said that all the legal status of the Vietnam Cooperative Alliance mentioned above have not been specified in the management of the State and the organization of activities of the Cooperative Alliance at all levels. This causes difficulties for the Vietnam Cooperative Alliance in the process of implementing the task of supporting cooperatives, cooperative unions, cooperative groups as well as in the process of operation and development.

In fact, the Vietnam Cooperative Alliance is operating under the Association model, assigned tasks by the Party and the State. In addition to representing and supporting members in performing many public functions such as propaganda, consulting, training, trade promotion, credit support, capital access, insurance, etc., the Vietnam Cooperative Alliance is also assigned by the Party and the State to perform a number of specific political and social tasks (hunger eradication, poverty reduction, gender equality, new rural construction; support for ethnic minority mountainous areas, etc.).

“There is still much confusion in determining the most suitable organizational model for the Vietnam Cooperative Alliance. Is it a specialized mass association? A professional social organization? Or a political - social - professional organization, representing the community, economy, and politics in the collective economic sector?” - said the head of the Vietnam Cooperative Alliance.

The lack of clarity about legal status has affected the operational capacity, representation effectiveness and resource mobilization ability of the Cooperative Union system from the central to local levels. Meanwhile, reality is posing an urgent requirement: an organization with sufficient scope, legal status and ability to represent the collective economic sector, an economic component that the Party has identified as an objective necessity in the socialist-oriented market economy.

Associate Professor, Dr. Duong Trung Y, Deputy Director of Ho Chi Minh National Academy of Politics, participated in contributing opinions.

Therefore, the Chairman of the Vietnam Cooperative Alliance believes that adjusting and perfecting a suitable organizational model for the Vietnam Cooperative Alliance is not only a legal and organizational issue, but also an institutional strategy issue, related to the capacity to represent, support, and develop the collective economic sector and cooperatives in accordance with practical trends.

At the workshop, Associate Professor, Dr. Duong Trung Y, Deputy Director of the Ho Chi Minh National Academy of Politics, said that collective economy and cooperatives have been and are affirming themselves as one of the important economic components of the national economy. This is an important economic component for both socialist and capitalist countries. This has also been proven in practice by the effective operation of cooperative models globally.

In Vietnam, the importance of cooperatives has been affirmed by President Ho Chi Minh as they not only contribute to economic development but also enhance community connections and promote social culture. Up to now, the Party and State have also affirmed that collective economy and cooperatives play a solid role in the socialist-oriented market economy.

For the Vietnam Cooperative Alliance, this organization plays an important role, existing with the formation and development of cooperatives, cooperative unions, and cooperative groups. Over time, the organizational model of the Vietnam Cooperative Alliance has gradually been improved, currently operating under a two-level model (Central level and Provincial-City level).

However, Associate Professor, Dr. Duong Trung Y said that during its operation, the organizational model of the Vietnam Cooperative Alliance is still fragmented, the rate of cooperatives participating as members is still low. The role of the Vietnam Cooperative Alliance in connecting related units and organizations is still not really clear.

In the new context, when the Law on Cooperatives 2023 is issued and there are many new cooperative models such as multi-value cooperatives, digital transformation cooperatives, etc. Therefore, if the old model is maintained, the Vietnam Cooperative Alliance will find it difficult to fully promote its role in supporting cooperatives, cooperative unions, and cooperative groups in the new conditions.

Delegates attending the conference.

Associate Professor, Dr. Duong Trung Y proposed an organizational model for the Cooperative Union in the new conditions with three major functional departments, closely coordinated but with clear division of roles and tasks. Each department takes on a key pillar in the development ecosystem of the collective economic sector and cooperatives.

Firstly, the representative apparatus - socio-political - policy advocacy. This is the part that plays a central role in representing the voice of cooperatives and cooperative groups before the Party, the State and the whole society.

Second, the support - consulting - public service apparatus. This is the pillar that provides training services, legal consulting, trade promotion, digital transformation, branding, chain linkage, and market.

Third, the production - business - investment apparatus. Through affiliated enterprises or capital contributions, forming key service enterprises, raw material areas, logistics, processing...

The three functional units above are designed as a unified entity, ensuring the implementation of political and social missions, providing specialized services and creating production and business capacity, thereby overcoming the limitations of the old organizational model, enhancing the practical role and legal status of the Cooperative Union in the new context.

According to Vn Business