Vietnam dissolves nearly 3,000 weak agricultural cooperatives

Nearly 3,000 poor-performance agricultural cooperatives have been dissolved or stopped operation for the last five years after the Cooperative Law was issued, reported the Ministry of Agriculture and Rural Development.

Phuoc An vegetable coopertaive in HCMC (Illustrative photo: SGGP)

Phuoc An vegetable coopertaive in HCMC (Illustrative photo: SGGP)

Currently, there are 900 poor performance agricultural cooperatives in need of dissolving.
Despite of small revenue, outdated infrastructure and low number of trained employees and officials, agricultural cooperatives have participated in consuming 20.5 percent of farm produce for farmers.
As of November this year, the country has over 13,000 cooperatives including 7,700 new style ones and 65,000 cooperative groups operating in the agricultural field.
The number of newly established cooperatives quickly increased from 1,150 in 2006 to 1,300 in 2017 and 2,100 this year. A total of 1,790 cooperatives have been set up in the first ten months this year.
Cooperative revenue averages VND1.1 billion (US$47,000) a year, 1.5 times higher than five years before.

By HAN NI - Translated by Hai Mien

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