According to the latest Plan No. 35 issued by the Hanoi People’s Committee on developing cooperative economy in the city this year, Hanoi strives to establish 152 new cooperative groups, cooperatives and cooperative unions to raise the total number to 3,200 in 2021.

Hanoi will boost its cooperative economy. Photo: kinhtedothi

According to the plan, the annual average revenue of cooperatives is expected to increase to VND2.9 billion (US$126,028) and the monthly average income of workers will reach VND54 million (US$2,346).

To improve the efficiency of the collective economy in the 2021-25 period, Deputy Director of the municipal Department of Agriculture and Rural Development Ta Van Tuong said that the industry should focus on developing specialized cooperatives, promoting linkages between production and processing, and businesses. 

Nguyen Van Chi, Director of the municipal Rural Development Division under the municipal Department of Agriculture and Rural Development, said that in the next period, it is necessary to concentrate on building cooperatives applying high technology, operating in specialized fields and promoting mechanization. In addition, Hanoi needs to enhance investment and draw up policies to create legal framework for the development of the collective economy and cooperatives.

Earlier, the Hanoi Department of Agriculture and Rural Development has set out five main tasks and solutions for the collective economy and cooperatives, including strengthening the existing cooperatives as well as boosting model transformation and improving the operational capacity of weak cooperatives. 

Currently, Hanoi has more 3,000 cooperative groups, cooperatives and cooperative unions, whose annual average revenue was VND2.75 billion (US$119,509) and the monthly average income of workers reached VND50 million (US$2,172). 

By the end of 2020, Hanoi had 1,235 agricultural cooperatives, of this number, around a thousand are active and 145 others have suspended their operations. Among the total number of effective cooperatives, there were 70 cooperatives participating in value chain linking with production and consumption and 50 others applying high technology. 

About 53 cooperatives with 180 products were certificated as meeting the One Commune, One Product standards with three-star rating and above, contributing to affirm the role of the collective economic sector in the process of socio-economic development of the city.