Long-term strategy

  • Strategic orientation of cooperative economic development (Part I,II)

  • Tuesday, 1/17/2017

  • AsemconnectVietnam - Since the Sixth Party Congress in 1986, the innovative thinking of the Party on socio-economic development has been grasped throughly in research process of planning and directing plan implementation. Vietnam's economy has been gradually operating under market mechanism, developing multi-component economic, having management of the State through legislation, plans, policies and other tools.

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    Part I: COUNTRY  AND INTERNATIONAL SITUATION I. SOCIO - ECONOMIC SITUATION OF THE COUNTRY AFTER 20 YEARS OF INNOVATION                       
     
    I. Achievement
    1. Since the Sixth Party Congress in 1986, the innovative thinking of the Party on socio-economic development  has been  grasped throughly in research process of planning and directing plan  implementation. Our country's economy has been gradually operating under market mechanism, developing multi-component economic, having management of the State through legislation, plans, policies and other tools. This has created a new development dynamic, contributing to overcome difficulties and promote achievement of objectives of socio-economic development in the past 20 years of innovation: The economy has quickly get out of the crisis with hyperinflation rate in the late 1990s and yearly of the 20th century, then has achieved high growth and relatively stable until 1996/1997. After suffering the negative effects of financial money crisis 1997 - 1998 as well as the impact of increasing fuel prices and other pandemics, the economy of our country has been gradually restored and growth.
    In the period 1986-1990 the economy is not simply to restore production, economic growth, curb inflation, but more important has transformed basically old management mechanisms to new management mechanism. But the country is not out of socio- economic crisis. Economic development is slow and unstable, average growth rate of economic in a period of 1986 - 1990 reaches 3.9%; budget deficit accounts for 8% of GDP; galloping inflation has been pushed back but still very high, from 774.7% in 1986 to 67.5% in 1990.
    In a period of 1991 - 1995, the first 5 years of implementation of the strategy (1991-2000) the economy has overcome stagnation and degradation to achieve  relatively high and constant growth rate, exceeding most of the major targets of the five year plan 1991-1995. Average annual gross domestic product (GDP) growth during 1991-1995 was very high to reach 8.19%. Specifically, in 1995 and 1996, GDP growth rates of our country has reached a record level of 9.54% and 9.34%, respectively. Most areas have achieved relatively economic growth rate. Value of industrial production rose annually 13.3% on average, agriculture 4.5% / year and service sector increased 12% / year. Period 1996-2000, the period of accelerating industrialization and modernization of the country, conducting simultaneously three goals on economic growth, sustainable and effective; stabilizing solid macroeconomic ; prepare the premises for more developments after 2000s. In a process of implementing the plan, especially from mid 1997 to 1999, negative impact of regional financial –economic crisis with serious disaster occurring continously puting economy of our country face challenges aggressively. During this period, the economy remains hits high growth rate. Growth rate of GDP in a period of 1996-2000 reaches 6.96%; in which agriculture, forestry and fishery by 4.1%, industry and construction increase by 10.5%, the service sector 5, 2 %. Agriculture develops continuously, contributing significantly to overall growth and remain stability of socio-economic. Value of agricultural production, forestry and fishing increase 5.7% on annual average; in which agriculture rose 5.6%, forestry 0.4% and fishery 8.4%. Industry and construction achieves much progress. Value of industrial production rose 13.5% on annual average, in which state-owned industry rose 9.5%, non-state industrial enterprises rose 11.5%, the region with foreign investment up 21, 8%. In a period of 2001 -2005, alongside a number of advantages such as the socio-political situation  continues stability, strength of national unity has been strengthened, international relations have been continuously expanded, production resources of many sectors of the economy has increased, ... our country still faces many difficulties of the low level economy , new challenges, difficulties  arise: In the country, the epidemic disease appears (SARS and avian flu), natural disasters and complex changes in the weather and climate ... In foreign country, international security – politic situation after the events of 9/11/2001 are complicated; the fluctuations in prices on international markets, natural disasters around the world, has made negative effects to development of the country. In this context, our country has achieved important achievements in the socio-economic development, made an important step of implemention of a 10 years strategy of socio-economic development. The economy achieved high growth rates, in a positive, more than in previous years. Gross domestic product (GDP) in a period from 2001 to 2005 has an average increase of 7.5% / year, reaching the goals of the plan, of which agriculture rose by 3.8%, industry and construction increased by 10.2 %, service by 7%. The size of gross domestic product of the economy in 2005 achieved twice in 1995. Industry continued to achieve high growth rate; structure of manufacturing and product quality have seen positive changes. Value of industrial production rose on average 15.9% / year, higher than 2% / year over 5 years ago. State industry increased by 12.1% / year non-state industry increased 21.8% / year.,industry with foreign investment up 15.3% / year. The agricultural sector to overcome many difficulties to maintain high growth rate. Total production value of agriculture, forestry and fishery increase by 5.5% / year, of which agriculture rose by 4.2%, forestry by 1.3% and fishery by 12.2%. Outstanding achievements in agricultural productivity are an increase of crop yields and livestock, the technological content of agricultural products increased considerably; national food security is guaranteed, especially, agricultural, forestry and fishery exports increased rapidly, maintaining a ratio of nearly 30% of total exports and some agricultural export products of Vietnam now ranks high on the world market. Field development services, business performance was improved. The production value of the service sector increased on average 7.6% / year. The service sectors has been diversified and expanding markets, and better meet the needs of economic development and social life. Total turnover of retail goods rose by an average of 15% / year, vibrant and clear market. The tourism sector has developed quite a step, the number of international tourists to Vietnam increases remarkably.
    2. Industrialization - modernization process of the country has been going strong in all sectors of the economy, the region of the country towards the goal of building Vietnam into a basically industrial countries in 2020. In the process of innovation, the economic structure has gradually shifted towards industrialization and modernization, promoting comparative advantages of each sector and enhance the quality and effectiveness of economic development . The economic structure has shifted positively by increasing the proportion of industry and services, the proportion of agriculture - forestry - fishery, industry - construction, services in GDP in 1986 respectively: 38, 1%, 28.9% and 33% have moved respectively: 20.9%, 41.0% and 38.1% in 2005. Industry (including construction) and its sub-sectors have faster growth rates, making the transition ahead. During the past 20 years, industry has increased by 11 percentage points in GDP structure due to continuous high growth in the process of promoting industrialization and modernization. Agriculture, forestry and fisheries develop in depth due to the restructuring of production, seasonal and rural economic development, contributing significantly to the socio-economic stability, ensuring food security, create diversity employment and conducting industrialization and modernization of rural areas. Restructuring trend in agriculture associating with the development of various sectors in rural areas making rural economy prospered; so even if the share of agriculture, forestry and fisheries in total GDP has declined 16 percentage points, due to the inevitability of the development and restructuring in industrialization, redistribution of social labor, but the lives of people in rural areas has improved. The service sector has seen strong growth, especially in areas related to economic infrastructure and urban development, but uneven growth, especially in recent years has been slower than economic changes in general, limiting economic growth. In the years of innovation, production of transport cargo increase by more than five times, including the private sector greater than 10 times during period of innovation and up to 3 / 4 freight volume.
    3. Because of the high and stable GDP growth rate , GDP per capita at current prices in our country has increased continuously from 1986 to present, from about 10,000 VND in 1986 to nearly 4.0 million VND  in 1996 and over 10 million in 2005. Average GDP per capita for 20 years at about 3.7 million VND , of which the period 1986-1995 was nearly 1.2 million VND and the period from 1996 to 2005 was about 6.3 million. Good growth rate and GDP per capita increase continuously as one determining factor for the improvement of material life and spirit of our people. The social aspects, particularly the poverty reduction achieves initial success encouraging; under Vietnam's poverty, the poverty rate in 2005 was 7%, reduced by half comparing to 2000 ( 14%). Vietnam became the bright spot in the developing countries on economic development go hand in hand with poverty reduction. Vietnam, though still a poor country, but achieve relatively HDI growth compared to the same level of economic . According to the classification of the United Nations, HDI have made the leap from less than 0.5 to above 0.65 in 1995/1996, followed by continuous far reaching nearly level of 0.7 in 2005. The literacy rate of Vietnam's population is also an encouraging achievement comparing to other countries having similar income levels. Only in the last 10 years, from 1988 to 1996, adult literacy rate in our country has increased from 88% to about 95%.
    Percentage of children going to school at right age get a high rate and have continuous increase trend, whereby the rate of children going to grade school hits about 95% on average; the proportion of children attending secondary school  is 75 % on average and the percentage of children attending high school is 45% on average in recent years. Number of telephone /1000 people have increased rapidly, especially in 5 years: from just a few machines in 1991 increased to 45 machines in 2001 and about 120 machines in 2004. Clean water which is noted only in urban centers during the planning economic mechanism now focus attention on the people to provide all parts, from urban to rural region, from plain to mountainous areas. The rate of people using clean water has skyrocketed from only about 45% in 1995 to 70% in 2004. Thanks to the material life and spirit of the people markedly improved, the life of the people of our country has been improved and is quite fast, especially when comparing to countries with higher levels of development. The average life expectancy of people has increased from about 64 years in 1990 to 67.8 years in 2001 and about 71.5 years in 2005.
    4. International relations of the country in the spirit of  "Vietnam is willing to be friends of all countries" is constantly expanding; position of Vietnam in the international arena has been improved. From a closed economy, Vietnam has opened to trade with over 100 countries and territories.Total exports value in a period  of 1986-2005 rose spectacular: from about 700 million USD in 1986 rose to nearly 7.3 billion USD in 1996 and reached over 32 billion USD in 2005. Clearly, foreign trade was a very important contribution to GDP growth in recent years. Thanks to rather increase of exports, export value per person also increased sharply, from nearly 13 USD in 1986 to nearly 100 USD in 1996 and nearly 386 USD in 2005. Openness of the economy of Vietnam has relatively high when considering the rate of export value and the percentage of total import and export on GDP. The rate of export value has increased dramatically from only about 2-3% in 1986 to nearly 70% in 2005, while the percentage of total import and export / GDP also increased in a similar themselves, since only about 13% in 1986 to over 140% in 2005. The country's import –export market  expanded both in scope and size. Currently, Asia is still the largest export and import markets of the country, accounting for nearly 63% of total exports and nearly 74% of the total import turnover of Vietnam. Japan, China and ASEAN are partners having the largest market share among trading partners in Asia. Prospects in the last years of this decade the Asian countries remain the largest customers in trade relations with our country. Law on Foreign Investment in Vietnam issued in 1988 is one of the milestone, marking the process of opening up the economy, diversifying and multilateral relations of the external economy. Once issued, there have been three additions to the 1990, 1992, 1996 and Common Investment Law promulgated in 2005 to more appropriate, to further improve the investment environment. Sector of ​​foreign investment capital have increasingly important position in socio-economic development of the country. The annual average of last 10 years, the sector of ​​foreign investment accounts for 15% of GDP, accounting for 33.6% of total exports (including oil and gas is almost 50%), contributing 4, 9% of total state revenue (not including oil), create jobs for about 83,000 workers directly and more millions of indirectly workers; important contribution to overall growth of the economy, creating jobs for workers, helping Vietnam to access international markets, access to modern technology and advanced management skills. Attracting official development aid (ODA) has made progress. At the beginning of implementation of the strategy 10 years, the Party has been actively advocated to attract official development assistance (ODA) to support the development of socio-economic. The donor community has resumed ODA for us in October 1993. Since then every year, capital commitments for the financing of our country have increased significantly, the disbursement of ODA better. Even the most difficult year in 2001-2003 as the country is attracting an average of over $ 2 billion, the highest peak at 2.8 billion USD in 2003, 3.4 billion in 2004 and 3.5 billion in 2005 capital commitment of donors to Vietnam. Coordination and management of ODA has been improved and enhanced legal and organizational structure. Effective use of ODA capital has increased significantly. ODA funds have been used to support the goals of our development priorities, first of all infrastructure (electricity, transport), agriculture and rural development, poverty reduction poor (irrigation, afforestation, fisheries, road development, power, water ...); rural health, education and training (development of medical facilities, development of primary education, secondary school and college, ...); training capacity and institutional reform in the areas of administrative, legal, economic management ...; on basic research (planning , the feasibility study report ...)and support some areas of production such as fish processing, agriculture ... In recent years many investment projects funded by ODA has been put into use contributing to economic growth and improve people's lives. From January 11, 2007 Vietnam officially became the 150th member of the World Trade Organization (WTO), standing in front of vast possibilities for development, while facing stiff challenges.
    5. The socio - political stability, national defense - security is strengthened, creating a favorable environment for socio-economic development. Effectiveness and efficiency of state management have a step increase. Social democrats continue to be promoted. Many negative social evils, corruption are detected and strictly handling. Potential of defense - security was enhanced; political security, social order and safety, sovereignty and territorial integrity is maintained. Foreign affairs continued to be extended on the basis of new ideology  and strategy of the Party "to strengthen partners, limit enemies", ready to be friends with every country in the world. The combination of socio-economic development with  national defense - security is more focused. The all-people defense and people's security is enhanced; have discovered, preventing much of the plot to destroy by enemy forces.
    II. Challenge
    Besides these achievements, our country is and will continue to face many challenges can not be underestimated, notably:
    1. Firstly the quality and efficiency of the economy is low, the risk of lagging further than other countries in the region is still large. Although average growth rate the economy of our country in 20 years is relatively high reaching 6.98%. Economic growth rate is below the capacity of the country's development, quality of development and competitiveness, productivity, quality and efficiency of the economy is weak, the majority of businesses have weak level of technology and management. Economic growth over the years does not promote strong factors in depth, not commensurate with the potential of the country. Not very clever combination between economic growth with progress and social justice. The ecological environment in many places has not been adequate attention and is on track to be a serious loss of quality.  Small-scale exports, exports through processing, deep processing accounts for the low rate, the trade deficit is even greater. Attracting foreign direct investment increased slowly, the investment environment is not very attractive; ODA disbursement rate is still low. Economic restructuring has been uneven and not to promote the strengths of each sector, each region and product; service sector do not have a significant shift in the structure of GDP and the internal structure of the industry, averaging growth rate is not high. The key areas of economic development does not commensurate with the potential; policies to support less developed regions did not meet the requirements. The development of the economic sectors are much lower than potential. The rate of trained workers is very low, did not meet the requirements of industrialization and modernization. Industrialization and modernization of agriculture and rural deploys in confusion, lack of sustainability. The proportion of industries of processing and assembly are large; technological innovation speed is very slow. In addition to food security is guaranteed, and energy security, balance of international payments, foreign currency reserves is still unbalance. Mobilizing national resources is not high and not very effective use; the ratio of domestic revenue is low and expenses is limited; structure of expenditure is not justified; efficient use of resources and State capital is not high. Bad debt in the banking system is bigger (bad debts of state enterprises, low credit quality ...) potential risk factors.  Science and technology have impacted on the implementation of socio-economic development goals. The management mechanism of science and technology have been renovated, but still slow and the appearance of centralized and subsidized mechanism. The quality of studies was low, not linked to actual production and trade. Market of science and technology are slowly formed.
    2. Many pressing social problems continue to grow with complicated and more serious, such as victims of re-poverty; lack of jobs, especially for youth; social evil and criminal including increased bureaucratic corruption increased and more sophisticated. Poverty reduction achievements are unstable and the ratio of poor households according to international standards and the percentage of households falling into poverty remains high and many policies to support the poor, the poor  area have not done well. Working people's health care is still inadequate; production, management and use of medicines still weak and flawed; the ethical of the health staff are slow to detect and handle time. Some social evils not be prevented effectively. Organized crime tends to increase. Traffic accidents are very serious. The ecological environment polluted, especially in urban pollution, industrial, and illegal deforestation serious, common, no effective measures. Emerging epidemic diseases (SARS and avian flu) caused major damage and a range of people, especially farmers; natural disasters occur frequently, the complicated changes of climatic effects  badly to living conditions, economic activity of people and wholly society. Hygiene and food safety seriously threatened causing foreseeable harm for people's health and to society.
    III. International context
    1. The world has been and will continue to complicated, but still highlights major trends that peace and development cooperation intermingled conflicts, tensions in local region; trend of globalization and international integration occurred rapidly with increasing speed. The context is basically favorable for the development, industrialization and modernization of our country; posed both opportunities and challenges, which if there is a good strategy with the capacity to be prepared better able to grasp opportunities and overcome challenges to progress rapidly. Besides the big mix trends of peace, cooperation and development can not underestimate the tendency of international competition which is increasing between countries and regions, between blocks, the area between organizations , enterprises, etc. However, competition is the objective law of international economic life, a challenge, and is the driving force for innovation and creativity. Regional economy after a currency crisis has witnessed a rapid recovery and growth; the economies of neighboring countries, especially China, Japan , Korea, India continues to develop good, along with global economy continues to grow; with many unexpected and unpredictable, difficult to predict, but basically create a good environment for the economy of our country.
    2. The process of globalization and international economic integration takes place at a unprecedented  rate  in human history, but the changes are very complex, requiring our country  actively integrating and in the other hand, must take initiative to anticipate problems, prepare capacity to deal successfully with the challenges and exploit opportunities effectively, especially when our country has become an official member of WTO from January 11, 2007.
    The global issues, such as environmental degradation, inequality, ethnic conflict, international terrorism, etc., on an increasingly prominent harshly, not only harmful to the development sustainability of the world economy in general and of individual countries in particular, but also threaten the safety of the entire human race, more than ever require enhanced international cooperation to deal with.
    3. The political situation, international security after the events of 9/11/2001 have new development and very complex on the economic, security, political, require huge efforts of both international community, especially the responsibilities of the big corporations and transnational, and international multilateral organizations. The large fluctuations in prices, especially oil prices on international market developments seem to increasingly complex and unpredictable, more incense, less predictable impact on individual countries and the economic community the world. 4) Major disasters occur with more and more serious nature than in the world in general and Vietnam in particular, has and will cause great loss of life and property, requires working higher capacity to predict, prevent and deal with the consequences of natural disasters.

    Part II:
    EVALUATING  COOPERATIVE DEVELOPMENT

    Vietnam
    has gone through many phases associated with major change of thinking about collective economy and cooperatives in the direction of more and more consistent with common international perceptions of cooperative Economic thinking innovative put reform requires thinking about the position, role and model of collective economy in the conditions of market economy mechanisms. The formation and development of market economy institutions, especially the mechanism for promoting the economic sectors and equal treatment for all economic sectors, implementation of the healthy competition in production export business, has a strong impact on the cooperative legacy, forcing them to change; on the other hand slowly up the new demands on the cooperation between the family household economy, the production base, small businesses, to improve production efficiency requiring new types of cooperatives model in accordance with definitions, values ​​and principles which have made their universality in the world. Thinking innovative on collective economy is a process, in addition to noting the historic contributions of former cooperatives during the past pointed out the weaknesses and inadequacies of the type of cooperative legacy, particularly in the context of the economy move to operate under the socialism –oriented market mechanism and gradually making the content provisions of the nature and new type of cooperative model, approach to common  international awareness of the cooperative. Collective economy as an economic sector has contributed to enhancing market competition, bringing market competition gradually become the main mechanism for allocating resources to develop and improve use of resources, and also contribute to strengthening cooperation to mitigate the harsh competition in the market for small producers from being marginalized in the development, contributing to socio-economic development of the country.
    I. Cooperative sector prior to cooperative law in 1996
    1. A common feature Developing cooperative in a period having general characteristic by the following highlights: 1) Our country have not a law on cooperatives. Cooperatives are established and operating under the decisions of the State administrative management. There are two trends associated with each other: the rapid decline come to an end early model of change and other forms of spontaneous cooperation of other people have been coupled with the rapidly growing forms of cooperative under the administrative decision.
    2. Common operating mechanism is pooling of assets and capital from its collective members to conduct joint production, also under the administration of the plan for socio-economic development of the State in the context economic operation under the centrally planned, bureaucratic and subsidy. Characteristic of the cooperative in this period is State owned nature, "half of the State", absolutely the role of collective ownership and collective production, negative private ownership of means of production, the role of household economy and the individual. Misconceptions about the cooperative, not really fully grasp the values ​​and principles of cooperatives and cooperative organizations such as state agencies and as a social organization: property relations, management relation, distribution relations, and methods of operation.
    3. The cooperative movement began to decline from the early 90th century to 20 in 1995 as the economy moved into the socialism-oriented market mechanism with the emergence of autonomous role of households economic, encouraging private sector development and reform of state enterprises.
    II. Development situation and the role of cooperatives
    1. During this period, the economy is operating under the centralized planning, red tape and subsidies; absolutey highlight the role of collective economy, almost negative household economy, private economy ; interest relations between the state  - cooperative - members not assigned definitely, especially, the benefits of cooperative members and workers in cooperatives are little attention; cooperatives were developed increased rapidly in number and size primarily by the state administrative measures; not adhered to the objective economic laws; not paying attention properly the role of productive forces, promote voluntarism relations of production and policies system and  direct implementation and organization heavily administrative orders, etc. In the period before 1996 we do not have the Law on Cooperatives. Resolution of the National Assembly of Vietnam Democratic Republic of May 27, 1959 on issue of agricultural cooperation is the highest legal document for the area of ​​agricultural cooperatives in the north, and the country from 1975. The cooperative activities under the charter form set by the Government (Rules of organization and cooperative purchasing cooperatives, issued together with Decree No. 649/TTg December 30, 1955 Charter on registration of industrial and commercial business was issued with Decree No. 76/CP of April 8, 1974, Charter subscribers industrial and commercial business was issued together with Decree No. 119/CP on 9 April 1980).
    2. The period until the VI Party Congress in 1986 (and even a few years later), along with the implementation of agricultural reform, the private capitalist businesses and cooperatives in our country has been established in almost all fields, economic sectors and in all localities. In the early 60th of 20th century in the North has existed many groups of change, the forms of cooperation of farmers, the individual sector, smallholders under simple form, which is practically at the level of co-operatives originally based on a spirit of cooperation. From 1954 to the late 80th of 20th century cooperative movement in our country is growing. Many cooperatives have been developed into a cooperative higher scale the whole village, the commune, even inter-communal, especially in agriculture and rural areas. Peak period 1986-1987, there were 73,470 of cooperatives, including 17,022 agricultural cooperatives, fishery cooperatives of 474, 32,034 of industrial cooperatives, cottage industries, 3,900 of cooperatives of construction, 3,300 cooperative of transportation, cooperative of purchasing of  9,600, 7,160 credit cooperatives. Due to the history of this period and in the context of the war against the American held a long and fierce, the cooperative movement has a certain success, on several aspects such as area of cooperatives have raised high the resources of the State and people for the resistance against the U.S.; improving the lives, the face of rural infrastructure for production, contributing to huge human and material progress for war. However, the cooperative movement of this period have failed surface, shown more clearly when our country entered a period of renewal: Misconceptions about the cooperative has not really fully grasp the principles of construction and development of cooperative; does not promote motivation to join the cooperative's members, especially the economic benefits, organizing cooperatives just as state agencies or the organizational society, etc.
    3. The sixth congress of the Party was officially open innovation process to confirm the basic long-term existence of economies of many components in the process of building socialism in Vietnam . The Resolution of the Congress VI, VII, VIII and IX of the Party and the Resolution of the Central Executive Committee has gradually clearer path to socialism, gradually formulating and perfecting systems perspective, the policy of socialism -oriented market economic development in our country. On the basis of the Party , the State has been gradually building a complete legal framework and policies for the socialism -oriented market economy, creating favorable conditions for all economic sectors to develop. The renovation moved our economy to the market mechanism, the household economy, the individual has been recognized by law, is growing in both urban and rural areas, is the subject of economic, survival objective.
    In addition to renovating and improving the efficiency of the state sector, private sector has been recognized by law. Company Law, Law on Private Enterprises in 1990 and the Law on amending and supplementing some articles of the Company Law, the Law on amending and supplementing some articles of Law on Private Enterprises in 1994, especially the Enterprise Law in 2000 has open environment legislation and new institutions for private sector development. This fact further clarify the need for a new legal environment for the cooperative sector. 19 March 1988 the Council of Ministers (now the Government) has issued Decree No. 28/HDBT on economic policy for collective industrial production, industrial services, construction, transportation, can create more favorable conditions for cooperatives of this area but does not solve the basic problems of the cooperatives.
    4. In the course of development, household economy, individual economy due to development needs and face the competitive market and need to cooperate more clearly and extensively in order to save costs and improve productivity, business and improve community life. New-type cooperative spontaneous release as the main objective, according to which the basic principles of the cooperative made a more substantive way. The transformation of economic mechanism and legal framework have a strong impact to the old cooperative and open opportunity for the potential of new cooperative. The period from the start of renovation prior to the Cooperative Law in 1996, the country gradually moved into the mechanism of socialist orientation market economy ; consider important to encourage and create favorable conditions for household economy, individual economy, private economy, as the household economy is the subject of autonomy economic , and encourage personal interests. 100-CT/TW Directive by the Secretariat of the CPC Central Committee, 13 January 1981 to improve the contracting and expanding products of labor groups and workers in cooperatives that provide breakthrough,tThe first milestone of innovative cooperative legacy. Under this policy, farmers receive farm stock, simply submit yield, the remaining freedom to consume and sell to the state agency at the agreed price, and was later sold on the free market, in fact the division of the roles and interests between the cooperatives and cooperative members
    During this period the role of cooperatives declined sharply; not due diligence research to model of  new types of cooperatives appropriate market mechanisms; not timely issued legal framework and policies for cooperative; old cooperative sector paralyzed; spontaneous disintegration or transformation to adapt to new environments, especially agricultural cooperatives. Besides disintegration and stoppages of many cooperatives, the State management structure of cooperatives were dissolved, and no longer tracking system statistics on collective economy; not have the specialized agencies State management of the collective economy; so far did not have any research organization in charge of basic theory and a systematic and formal training organization on collective economy, the cooperative. Household economy, the individual which are  opened to  develop is the main objective should be encouraged to develop a maximum on the basis of a complete legal framework. In the early unwind so, along with the psychological influence of the cooperative model of old, people, especially farmers are not aware of the true and complete to the role of cooperatives (new style) , not really aware of the voluntary and cooperative interests for economic activity and life of their own.
    III. Cooperative sector after the cooperative law in 1996 and cooperative law in 2003
    1. A common feature
    Development of cooperatives in our country during the period from 1986 to now have the common highlights feature as the following:
    1.1. For the first time our country has its own laws on cooperatives marked the fundamental change of thinking on theory of cooperative, initial apply value and the principles of international cooperative, creating legal framework basic and long-term for development of cooperative sector in the context of incrementally complete institutional system of socialist orientated market economy.
    1.2. Most of the old cooperatives, especially in the agricultural sector has been transformed by law, or dissolved. More and more new types of cooperatives are established.
    1.3. The new cooperative was established and operating under the Cooperative Law on voluntary basis, members of self-control; cooperatives as autonomous economic entities operating as business
    2. Legal  and policy framework
    2.1. Resolution of the Eighth , the Ninth Party Congress,, the state economy are innovated with collective economic became the foundation of the national economy, continued implementation of a consistent economic policy, multi-component, equal treatment for all economic sectors to the law, irrespective of ownership and organizational forms of business. According to the need to create the basic and long-term law framework for cooperative sector to grow. The demand for new types of cooperation in the market economic conditions have increased, set out requirement to create the law environment , the stable, long-term institution for establishment and operation of cooperatives. The first Cooperative Law in our country was passed by National Assembly in IX-IX Course on March 20, 1996 opened up the potential for new-type of cooperative to establish. Immediately after the Cooperative Law in 1996 came into effect, the Secretary issued Directive No. 68 CT / TW, 24 May 1996 on developing cooperation economic in various sectors and economic sectors . Government, ministries, sectors and governments at all levels direct the implementation of the Law, to help the old cooperative conversion or dissolution, enabling establishment of  many new cooperative. Cooperative Law in 1996 initially led to the creation of new types of cooperatives, create a new legal framework for co-released type; to which the Government has issued a number of policies (Decree 15/CP of the Government's February 21, 1997 on policies to encourage the development of cooperatives) support the development of cooperatives, but has not been fullfiled in a synchronous implementation. Although the cooperative model initially perceived, but not really thinking out the old and clearly not enough.
    2.2. Practice of developing the collective economy and cooperatives in our country in recent years have raised new, complicated issues which has been paid deep attention by the Party and State, reflecting the reaffirmed consistency of the Party and Government on the importance of collective economy in development of socialism -oriented market economic in our country. From the time of the Cooperative Law in 1996, thinking about cooperatives initially renewed in accordance with the general perception of the world. Model of new-type cooperative gradually appear as an objective fact. In the process of implementing the Law on Cooperatives in 1996 and in the process of innovation has appeared a number of fundamental shortcomings of the Law on Cooperatives, should be added, modified, review as cumbersome business registration procedures, limited participants in cooperatives, cooperative development is slow, etc. The 5th Conference of the Central Executive Committee IX passed Resolution No. 13 - NQ / TW 18 March 2002 to continue to innovate, develop and improve the efficiency of the collective economy, marking a important step forward in thinking and policy of the specific economic development group in our country. Resolution specifying the objectives from now to 2010 is taken out of the collective economy of the current weaknesses and strive to achieve higher growth, towards a greater proportion than the GDP of the economy; collective economic take benefit economy as the major, including the interests of its members and collective interests, and valued social benefits, contributing to poverty reduction, progress enrich members, community development, and assess the effectiveness of collective economy must be based on a comprehensive perspective, both economic - political - social, and effectiveness of both collective and its members.
    2.3. Implementation of Resolution 5 Central Section IX, the Prime Minister issued Decision No. 94/2002/QD-TTg 17 July 2002 on the Action Plan of the Government's implementation of Resolution The 5th Meeting of the Central Party Committee of the IXth Congress continue to innovate, develop and improve the efficiency of the collective economy and continue to renew mechanisms and policies, encourage and facilitate development of private economic and issued Directive No. 22/2003/CT-TTg October 3, 2003 to further promote the implementation of the Resolution of the 5th Conference of the Central Committee course IX of the collective economy. New Law on Cooperatives passed by Congress in session IV-XI November 26, 2003 and effective from 1 July 2004 has created a more favorable legal environment for the development of the the cooperative. Then the Government issued Decree 177/2004/ND-CP of October 12, 2004 providing detailed regulations for implementation of some articles of the Law on Cooperatives in 2003 and all of the implementation of Decree Law , as follows:
    - Decree 177/2004/ND-CP, 12/10/2004 of the Government detailing the implementation of some articles of the Law on Cooperatives in 2003.
    - Decree 77/2005/ND-CP, 09.06.2005 of the Government promulgating the model of guiding the cooperative charter building.
    - Decree 87/2005/ND-CP, 11/7/2005 of the Government on cooperative business registration , then MPI has issued Circular 05/2005/TT-BKH, 15/12/2005 guidance a number of provisions in Decree 87/2005/ND-CP, on 07/11/2005 on cooperative business registration.
    - Decree 88/2005/ND-CP, 11/7/2005 of the Government on a number of policies to support the development of cooperatives, followed by the ministries issued circulars guiding the implementation of the Decree. Cooperative Law was born in 2003 to replace the Cooperative Law in 1996 marked a new step in thinking and important innovation on legal framework for cooperative development and create  more favorable legal environment comparing to the previous stage for the establishment and development of cooperatives more consistent with the definition, values ​​and principles of cooperative alliance which has been recommended by international cooperative alliance (ICA).
    IV. Overall assessment of cooperative development
    After the recession of the late 80th and the early 90th of 20th century, the collective sector in the period of 2001 to 2005 step out of the crisis, signs of positive development in terms of size, quantity and quality, operating gradually rather under the Law on cooperative, achieved many significant accomplishments to show more and more important role in terms of comprehensive economic, social, cultural and environmental goods, while facing many challenges, new problems. Economics with a core group of cooperatives gradually became apparent impact of the role vital to the overall growth of the economy in two ways, on one hand contribute directly to economic growth; on the other hand, indirect contribution through enhanced economic efficiency of cooperatives, cooperative members, contributing to create jobs for workers, reduce poverty in a sustainable livelihood; renovating cultural-social life for communities and cooperative members, cooperative groups and local residents, contributing positively in strengthening political security, social order and safety.
    1. The role of cooperatives
    Cooperative development of this period having features such as: to promote economic cooperative members along with building new-type cooperative in terms of socialism -oriented market economy, striving to make economic and the lives of cooperative members and cooperative more powerful, but not necessarily escape old thinking and old models of cooperatives.
    Look throughout the period from the late 80th of 20th century to the early 21th century clear trend adjacent two opposite directions of the two previous phases: rapid disintegration of the old type of cooperative and  the strong spontaneous development of cooperative form in almost every country.
    1.1 The Economic Role
    1.1.1. The collective sector was initially out of crisis and began to have signs of positive development.
    From 2003 to 2005, the decline of the growth of area of ​​collective economy in the long run was initially stopped: after reaching a record low rate in 2003 rose 3.43% 3, 83% in 2004, 3.98% in 2005 and an estimated 4.1% in 2006. The number of cooperatives group and cooperative with the diverse types of activities established recently accelerated more. The organization and management of cooperatives initially strengthened, overcoming initial condition chronic losses, bring cooperative step by step to overcome the weaknesses in the capital and technology. Many cooperatives, along with local governments to participate in building rural infrastructure, play an important role in the industrialization and modernization of rural areas. There appear many new cooperative have great socio- economic efficiency and work on new areas, such as housing cooperatives, cooperative of school, a hospital cooperative or cooperative of catering services industry, cooperatives of sanitation services, cooperative of  management of markets, etc., initially created the interest and support of all levels, sectors and people's trust.
    1.1.2. The collective economic sector contributed significantly to the growth of the country's GDP.
    Collective sector with a core group of cooperatives (in the strict sense, not the economics of cooperative members) accounted on average for nearly 8.76% of gross domestic product (GDP) during the period from 1995 to 2003, while the private sector (including businesses operating under the Enterprise Law) also accounted for only 7.59% on average, the state sector accounted for 39.30% on average, sector of individual accounted for 33.20% and sector of foreign investment accounted for 11.14% on average during the same period.
    Economic of cooperative members are integral part of the cooperative which are being statistics on the individual areas. According to the Cooperative Law in 2003, members of cooperatives may be an enterprise under the State sector, private sector and economic capital, foreign investment, but there are very few types of businesses This involved the cooperative. If including economic cooperatives and cooperative members, the collective sector (broadly defined) account for over 15% of GDP, equivalent to the contribution of the sector of foreign investment . Current statistics of collective economic only calculate contributions to cooperatives.
    Growth and quality, efficient growth of the sector and economic of collective members who have a significant impact to the overall growth of the entire economy. A variety of provincial cooperative transportation charge to 80% -90% intra-provincial transportation needs. Sector of collective economic, based at the cooperative initially change the basic structure: start moving toward economic development of cooperative member in accordance with cooperative principles through saving costs, improve production- business efficiency, most pronounced in the agricultural sector and is gradually spreading to other sectors such as transportation, etc. Economic benefits to its members are basic motivation for the introduction and the development of cooperatives. Through cooperatives, the technical and scientific progress, technology, new varieties, etc. was transferred efficiently to the family household members; the flooding, pest control and prevention for the economic production through cooperative members are more effective than each cooperative member order of execution. Cooperative initially boost development of economic of their members, strengthen linkages within the cooperative and the cooperative business with other organizations, thereby improving the competitiveness of the economy households and overall competitiveness stronger through cooperative, increase competitiveness of cooperative economic and members on the market. Industrial structure of the cooperative develop diversified, particularly start operations in new areas to meet the critical needs of the economy and people's lives, such as schools, medicine, sanitation. The economic structure of the collective economy sector classified by industry and business activities as follows: Zone 1 (including the agriculture, forestry and fishery salt) get the highest proportion in the total value of the area economic group (74%). The next is the third area (including the trade and services) with the proportion decreasing from 16% in 2000 to 15% in 2005. Region 2 (industrial-handicraft) decreased from 12% in 2000 to 11% in 2005 in total added value of the entire region. But now zone 1 includes the service cooperatives for the production of household members; agriculture, forestry and fishery salt is done directly by the household members, while very few of cooperatives to directly organize production of agriculture, forestry and fishery, they create products and services for household members, such as plant, human, process, etc., and do not have the statistical accuracy of the direct production of the cooperative in this region. So can the accounting value of the zone 1 to zone 3, bringing the proportion of added value of the zone 3 to 90% in 2000 and 89% in 2005. By the end of 2005, estimates that the collective economic sector consists of about 19,500 cooperatives (including over 900 people's credit fund, 8,004 newly established cooperatives, cooperative conversion 8,300, over 600 of cooperatives have not converted). According to traditional classification, the cooperative structure in fields of activity as the following: in total about 19,500 cooperatives, agricultural, forestry cooperatives get the majority (55%), cooperative of fisheries (4%), cooperative of industry  accounting for 14%, industrial, commercial cooperative - cooperative of services and construction each account for 3%, the People's Credit Fund accounts for 5%, cooperative of social transport accounts for 6%, the remaining approximately 10% are other types of forms. There has been big changes in the structure, thereby affecting the classification of cooperatives: agriculture and forestry cooperatives get the majority but not the agriculture and forestry cooperatives of old-style - production of agriculture and forestry with the means of production owned by the cooperative members; the cooperative will only provide services for economic production of household members; cooperative agricultural production is carried out directly by households, individuals or businesses. Currently in Vietnam has also appeared a number of cooperative operating under this model. University of Hanoi management business is a new type of cooperative which was born on 10 years but has not established under the Cooperative Law, according to the state administrative decision, under which all employees who work in schools contribution of capital-owners of the school. In some northern midland province had a number of cooperative of technical services, under which all members are highly qualified (graduate and post graduate education) and a owner who has tuberculosis in cooperatives. In particular, recently , cooperative groups develops in most regions and localities across the country, especially the southern provinces; currently over 300,000, including nearly 90,000 of cooperation groups of agriculture, 70,000 of cooperative groups in sector of non-agricultural and more than 150,000 credit cooperatives groups comparing with approximately 150,000 at the time in 2000. On average within five years, each year about 30,000 new cooperative was formed. In essence cooperative organization is a form of voluntary  production, sales and services and cooperative in nature and are formed on the basis of actual needs of the individual households and workers ; have an important role in supporting the production and trading of household members, create jobs and increase income for a division of labor in agriculture and rural areas, contributing to socio-economic development in the locality. Most cooperative operates in the form of mutual support, and flexible link in the short term. The rest, about 15-20% (or about 45,000 to 60,000) of the cooperative raised capital pooling, organizing production and business operating as a cooperative, attracting more household participation in and registration of the People's Committees of communes, wards and townships.The number of cooperative activities such as cooperatives are the people to establish a self-aware and active on the basis of actual demand, not need expensive exercise, do not have the support of the State, operating general effect showing that  the true potential of the collective sector is not little.
    1.2. The social role
    1.2.1. The highlight social role of collective economy is creating jobs and self largest employment among the economic sector, contributing to increasing income and social service providers.  In 2004, all employees working in the collective sector (including members and other employees working in cooperatives, cooperative groups) is of about 14 million, of which the cooperative about 10.5 million workers, a cooperative groups of about 3.5 million workers. The labor in collective sector group focused in the field of forestry, fisheries, accounting for 96% of total employment in the sector remains negligible proportion as the industrial sector, construction: 0.07%, services: 4%. Estimated that average collective number and average number of workers  increased respectively from 473 and 477 people in 2000 to reach 540 and 545 respectively in 2005. The number of members who are direct employees to work in cooperative are 46 people per collective on average in 2005. Through the achievement of economic interests, members of cooperatives to increase their income, more closely together, gradually expanding community activities, mutual help and mutual assistance in activities of production - business and life, improving cultural life. Cooperative agricultural services have more immediate problems, but have provided many important services for household members that are not currently able to calculate the fair cash payments, such as deploying the new seedlings, drought, flood-resistant pests. Thanks to the services of providing inputs for agricultural production, the cooperative members in several provinces have saved several billion comparing to the way of providing input to production and sales of household members before. Many members have been stable operation of its transportation business thanks to support services through the cooperative transportation services. Through cooperatives, economic production of members was enhanced efficiency, saving production costs; on the basis of receiving additional benefits which are distributed from the cooperative, the cooperative members to improve the whole income in particular and in general improve their lives. Activities of cooperative tend to be extended in various social sectors like education, health, environment, culture, thereby positively impact to economic of their members, improve all aspects of life of every household members in particular and community life in general. A cooperative model of sanitation initially promote efficiency by concentrating on solving the pressing problems of life, ensuring the health of people in residential areas such as garbage collection, transport, waste management, tree planting, landscaping environment, clean water supply.
    The community development, especially in rural areas play an important role in solving many social problems, enhance solidarity, mutual support each other in life, helping poor families, building and developing community. Cooperatives play an important role to develop cultural activities in communities and on-site handling conflicts within the community, contributing to security and political stability, social order and safety in rural, mountainous and border areas and ethnic minority. Cooperative and the cooperative spirit is a character in the future culture of the country, should be developed and highly worthy of our society.  The cooperative has achieved some initial results on the major aspects of organizational, management and content of cooperative activities under the Cooperative Law; cooperatives gradually adapt to the market, particularly, a cooperative effort to initially guide the production organize members to produce, bringing the scientific - technical to production, restructuring of plants and animals, contribute active part in the economic restructuring of agriculture and rural; scaling up and improving operational efficiency to provide services for economic cooperative members along with local governments to build infrastructure in rural areas, especially the electrical system construction, irrigation, rural roads, contributing to improve the lives of cooperative communities.
    1.2.2. Cooperative aims to promote the role of mental development "cooperation", the community and gradually realize the lofty ethical values ​​and principles of cooperatives.
    Cooperative initially promote principles of democracy, justice, equality and transparency in the management of cooperatives and promote humanity, honesty, openness, enhance social responsibility of each citizen as well as the community, taking care to community beside take care  to individual interests, economical active of individuals. Cooperatives are often associated with a certain community. Economic benefits brought by the cooperative to create conditions for a stable community, bound together. Through cooperatives, the members of the community can work together to address issues relevant to their lives, such as visiting, helping each other in at hospitality, joy, sickness. Cooperatives by their growth can organize social activities and cultural activities to care for the community as the community becomes united and friendly with each other, thus contributing to solving the right at the origin of the conflict within the population, has strengthened the political security and social order and safety. 2. Exists Development of cooperatives also recently has some of problems as the following: a) The establishment and operation of the cooperatives have not really fully comply with the values ​​and principles of cooperative which has been recommended by cooperative international alliance (ICA). In essence the cooperative, although cooperatives have made an important step forward to serve economic and social life of members, but the service cooperatives provide members also accounts for a very low result of a cooperative business, has not fully reflect the nature of cooperatives, or cooperatives have to first of all to meet the common needs of all members of cooperatives, support for the development of economic of  cooperatives members. Many cooperatives are not really "open" wide for large participants, even limit cooperative participation of new members,  in fact, operate as businesses under the Enterprise Law, common in industry, construction, transportation, electric service, so it is difficult to implement the principles of cooperatives.The cooperative has expressed away from the target of  community solidarity, run by business objectives alone, should not promote the nature and advantages of cooperatives, affect bad reputation of cooperatives . Many cooperative activities are not lawful, as members do not contribute capital, or less capital contribution, no established organization of the cooperative, not a plan of operation, does not organize to have democratic discussion in collaboration issues of cooperatives etc. cooperatives have not persuaded cooperative members of the benefits of socio-economic that cooperatives can bring to the cooperative members. Many cooperatives of industry, construction, transportation and other industries are established and organized to operate not according to cooperative principles under regulation of  the Cooperative Law, less cooperative work substantially as the business under the Enterprise Law. Relationship of  benefits distribution of cooperatives have not been conducted in accordance with cooperative principles. Model cooperative have demonstrated their important role in practice, especially in the cooperative binding. According to the Cooperative Law in 2003, the cooperative association is essentially cooperative, especially when all members are cooperative. Cooperatives do not have real significance in encouraging the formation of economic integration of cooperatives. Sector of  cooperative groups, especially the cooperative groups registered by the People's Committees having large-scale, which plays an important role for economic development of their members, not less cooperative to comply the basic principles of cooperatives, but did not establish the cooperative, or to disclose more clearly the legal provisions of cooperatives is not really attractive to people, such as cumbersome business registration procedures; business regulations on organization and management of complex, the cooperative is not entitled to appropriate tax while the cooperative group does not have to pay any taxes. In general, awareness of the position and role of collective economy, the nature of the cooperative officials and party members,cooperative members and residents have been raised, but incomplete, not clear enough, and inconsistent; on a hand, also haunted the old cooperatives model; on the other hand, skeptical about new cooperative model. The conversion of the old cooperatives (currently about half of the cooperative) as a form of law has limited the development of cooperatives and the establishment of new cooperatives. Cooperative model is not yet clear, yet clearly different ethnicities with enterprises operating under the Enterprise Law and not get out of  the old cooperative model. Besides, have appeared a number of companies established under the Law on enterprises but essentially operate as a cooperative. The common belief is that cooperative is enterprises, or as a low form of enterprise and in the development process will be turned into businesses. There are many convert small industry cooperatives exist only nominal terms, ie for rent by the advantage of ground; or registered professional activities and operations is only subside, actually switched lines others, such as trade. Thus, cooperatives in our country have shown the benefits and advantages of it as an economic organization, really interesting people and economic entities: individuals, private organizations, other organizations , etc. Which could lead to some lasting problems such as cooperatives to take advantage of state subsidies, many cooperatives have not been transformed, dissolved ; impact of cooperatives in their member community in particular and the population in the general; difficult to develop and competitive pressure is too strong; loss or decline in the confidence of the people. Many cooperative conversion is formal; efficiency of production, the cooperative's business is low, especially in the provision of services for production, business and the lives of cooperative members; the development of cooperatives and economic cooperation in many areas is not recommended. b) The growth rate of the sector of collective not only low but also decreased during the past decade; cooperative potentials are weak and their performance are low. The growth of the collective economy is inherently, unstable and low, and even tends to decrease continuously until 2003, on average only 4.13% in the period 1995-2003,, much lower than the level average growth of GDP of the country (7.29%), the state sector (7.59%), the private sector (9.34%) and regional economic foreign investment (13.07%) reached 4.48% in 1995, down 3.25% in 2001, 4.91% in 2002, 3.43% in 2003 - only 1 / 2 overall growth rate of the entire economy. Collective economy have a strong impact on economic growth of the cooperative members. Individual sector, including the member economies of collective economy, with growth of added value in 1995 was from 9.78% to 5.49% in 2001, 6.07% in 2002, 6.06% in 2003, on average only 5.6% in the period 1995-2003 and reached 6.15% in 2004. Collective economy with individual economic sectors are large economic sector, accounting for over 41% of GDP , growth rate was too low, pulled down the overall growth of the economy. Most cooperatives are in confusion in the identification of appropriate and effective orientation activities, compliance with the conditions of market mechanisms in the context of integration and globalization with increasingly fierce market competition ; less experienced members to participate and not significantly improve the confidence of members of cooperatives. Overall scale cooperatives are small, low performance, not really attractive members; the link between cooperatives weak. Annual capital growth of the cooperative slow; low charter capital; the capital mobilization of members limited; capital of the cooperative has less to be invested primarily for fixed assets so lack of working capital; the ability to preserve capital low; annual accounts receivable has reduced but still high.
    Annual results of production, business are low with no accumulation or accumulation is low;work for the labor cooperatives are not stable, seasonal; income of cooperative members and employees of cooperatives are generally low. Many cooperatives are faced with environmental problems. With technology and obsolete equipment, low management level, many cooperatives and production facilities in the village wasteful use of raw materials and environmental pollution. Environmental pollution in some areas are seriously, due to the severity of the production areas and residential areas interwoven; waste water, emissions and solid waste is not processed.
    1.2.3. The internal links in the cooperative sector very weak
    Regional cooperatives often attract mostly farmers, households, artisans, the poorer, weaker in rural areas, mountainous areas, in rural, regional and remote areas, have educational level and low skill, lack of information on production technology and market requirements. The partnership, cooperative spirit, the link between the members of cooperatives and between cooperatives are very weak..
    There is less cooperative  consolidating or mergering of cooperatives, larger cooperative groups. There is a lack of appropriate economic organization form to link the cooperatives to improve efficiency and competitiveness in the market conditions and international economic integration.
    2. The cause of the existence
    The above –mentioned shortcomings has the main reason both of the State and the cooperatives as following: 3.1 Theory and awareness of the cooperative has developed a basic step comparing with the period prior to the Cooperative Law in 1996 but is still not clear enough, not fully aware and consistency of the nature of cooperatives led to difficulties in the institutionalization of the legislation, regulations on cooperatives, especially the Law on Cooperatives, the cooperative has not necessarily escape the old cooperatives model, not clarify the dynamics of cooperative development and the benefits of the cooperative to its members. While there are serious ideology of  State subsidies for cooperatives.
    The work of theoretical research on cooperatives has no system, no other research and teach institutions about cooperatives. This is the main reason leading to the legal framework, mechanisms and policies for development of cooperatives is not really innovative, less effective,  cooperatives sector face prolonged weakness. 3.2 Framework of legislation and policies on cooperatives in particular and the collective sector in general has been slow issued and unsynchronously; the policy to support cooperatives in generally lacking of feasibility and lack of the attractiveness of participation in of cooperatives members. Many regulations are not close to reality and in accordance with the principles and value of cooperatives recommended by the ICA, not create a good environment for new-type cooperative development. Specific policies of the State support for cooperative work is low effect for the cooperative development, incomplete and inconsistent, yet comprehensive, slow to be implemented, no high availability expression and did not create the economic incentives to promote collective, cooperative development; not linked to other policies and not put in a clever way of socio-economic development plans of each local and the nation.
     Support of the State for education and training of cooperative and collective economy is important but are not actively deployed and yet highly effective. Having no a formal training program for the collective economy and cooperatives in the universities and colleges, contributing significantly to the formation of the basic theory of cooperatives, training of many generations have fully aware of the cooperative and is devoted to the development of cooperatives. Raising the participation of other socio-political organizations, socio-economic institutions and social - professional organizations in the development of cooperatives has received attention, but also not correct range; not mobilized fully the factors and necessary conditions to promote cooperative development. Not facilitate the development of the system of versatile consultancy services to support the collective economy and cooperatives in the conditions of market economy mechanisms, such as consulting on the establishment and organization of cooperative activities . Method of communication on legislation, policies for cooperatives are not renovated, yet highly compelling for people to understand and actively join the cooperative. There are very few models of a new type cooperative work efficiently to be disseminated, replicated, which makes people not really believe in the benefits of socio-economic brought by cooperative.
    2.1. The work of organizing and directing the implementation of resolutions of the Party and State's policies not timely, firm and uniform, especially at the local level. The management of the state for the collective sector has been neglected for a long time. Prior to Resolution No. 13, No. 5 BCHTW Conference IX, the apparatus of state management of the collective economy not as yet established in the State management agencies at the central level and local level , making the resolutions of the Party and State's policies for the collective sector was slow to implement. Currently, the organizational structure of State administration are just missing, just weak in both central and local levels. The apparatus of state management of the collective economy and cooperatives from the central to provincial, district and commune levels have been basically perfect in every way; a few localities have set up organizational structure but not enough capacity to advise the provincial implementing effectively state management of economic collectives; generally, the authorities still do not understand the laws and policies of the cooperative, not monitor development situation of collective economy and cooperatives. The Party committees, governments, especially the commune, on the one hand not really interested in helping the cooperative; on the other hand has expressed deep intervention into internal affairs of the cooperative. In the legal system of cooperative, values ​​and principles of cooperatives has not been clearly shown; on the other hand the implementation of laws is not positive, not propaganda, common law a vast, from which lead to misinterpretation, manipulation bias and limit the development potential of the cooperative. Not enough systematic and reliable data on the cooperative; work of direction and administration of collective economic development from central to local level is slow, lack of close coordination between all levels and among the same level. Not properly concerned about the strategy, five year plan and annual plan on developing cooperative economic. The directing and organizing of the implementation of the Cooperative Law, the legal documents, policies remain incomplete, inconsistent, not serious. Coordination between branches and levels of guidance, advocacy and implementation of the Cooperative Law, the legal documents and the guidelines and policies of the Party and State for the cooperative has not been closely .
    2.2. Capacity management and financial capabilities, technology, engineering cooperative are generally weak; cooperatives are small scale of operation, low competitiveness, lack of responsiveness to the market, not providing better services for members of household economy; most staff, technical and professional skills of cooperative are untrained basically, very weak and unstable level of adjacent sources. In general, the cooperative is not strictly observe the provisions of the law on cooperatives, such as the accounting and statistics. The capacity of the cooperative in access to formal capital is low.
    2.3. Psychological dependence, relying on each other, or expect state support of the cooperative members are still bold, community is not high in the cooperative; regime for managers and members working for cooperative are less attractive people with high qualifications. 3.6 System of cooperative is discursive, lack of strong economic links across the region and nationwide; cooperative alliance, on one side is not really positive, creative, on the other hand is not enough conditions and capabilities needed to operate strongly in support of cooperatives.
    3. Experience lessons
    Research the historical development of cooperatives in the country in the last 50 years, can draw four important lessons related to cognitive cooperative models from practical development of cooperatives in our country .
    3.1. Co-operative model must meet the practical benefits of the cooperative members, cooperative are autonomy economic organizations of civil, self-organized by the people, manage to meet their common needs; not impose a host voluntarism model of economic organization which does not meet the interests of the people.
    3.2. Enhancing the proper role of the household economy, private sector and individuals in conditions of market economy mechanism is correct, but not aware of and play fully the role of cooperatives (in the sense new types of cooperatives) are not adequate. Enhancing role of the household economy, private sector and individuals create the initial impetus for the household economy, private individuals, but in the long term it is limited and sustainability, while market competitive pressure increase day by day and it is more difficult for support institution to  access directly to each household,  private business, individuals. The lack of a strong and effective cooperatives sector will impact negatively on economic development and social life of our country and enhance competitive edge of economic organizations, enterprises, products and services Vietnam in both domestic and international market. In the development of new types of cooperatives in market institutions economic conditions initially formed in our country should avoid confusion of the model of cooperative with business model, companies under the Enterprise Law, and avoid confusion between the cooperatives and social and charity organizations, as well as to prevent the phenomenon of abuse of cooperatives to enjoy preferential policies of the State and avoiding its obligations to the State. New-type of cooperative with its nature ensure the realization of the values ​​and principles of cooperatives, ensuring fundamental interests of the people, their members, will motivate them to join the cooperative . Creating the right model of the cooperative with values ​​and principles of cooperatives is a basic condition to promote cooperative development. Most new cooperatives established and operating under the Cooperative Law, apply more fully the principles of cooperatives, are better developed than conversion cooperative.
    3.3. Avoiding lightly, loosening direction of  the party comm ittees, the State management of authorities and must avoid deep interference, not properly authorized, issued by the Party committees and the government for the collective and cooperation economy. First of all, it needs to pay proper attention on the theoretical studies, mechanisms and policies on cooperatives and international experience in developing cooperatives for nearly 200 years, taking into account the specific conditions of our country . Focusing on correct assignment for governments at all levels in promoting the development of cooperatives. In fact, where the government and the Party committees pay interested and direct actively, where cooperative develop well. To organize and direct the implementation of resolutions of the Party, laws and policies of the State must strictly synchronous with organization and consistency forces deploying from the central to grassroots level, having plan and specific measures to avoid the formal implementation , "the movement"; building good cooperatives , from which replication. Policy support for the State's cooperative, especially in the early stages as the current development is essential, but must be feasible and avoid subsidy, direct to implement a consistency from the central to grassroots level. The training of human resources for the establishment of collective economy, developing co-founders of cooperative. Good development of cooperatives need to get good staff management who are capable, dedicated, trained and attached to the development of cooperatives; pay attention to training of staff of State management on cooperative. The propaganda of legislation of  cooperative to the people is essential, it is necessary to restructure of all the basic form , method, content, tools and avoid the simple, formalistic propagation. Renew and improve performance of  cooperatives, organizations representing and supporting cooperatives, shift operation of system of cooperative to protect and serve the interests of members.
    3.4. It is extremely respected and applied research in line with context of Vietnam international experience in developing cooperatives nearly past 200 years, especially the definition (legal) of cooperative, values ​​and the principles of cooperatives that have brought global popularity. In addition to experiences in the development of cooperatives in our country before, should be fully aware and creative application of international experience in developing cooperatives. The nature of the cooperative on relations of ownership, relations of market and relations of distributing benefits as the foundation for realization of the values ​​and principles of cooperatives which has noble sense, to distinguish it from other organizations which promote its advantage fully in socio-economic development of our country.

    L.Giang
    Source: www.mpi.gov.vn
     
     

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