It is necessary to promptly complete the conversion of the Cooperative Development Support Fund nationwide

​(News Portal – Dong Nai) - On December 25, the Vietnam Cooperative Alliance organized an online conference: "Solutions to promote the implementation of Decree 45/2021/ND-CP on establishment and organization Organization and activities of the Cooperative Development Support Fund". 

Online conference attendees in Dong Nai province

According to a report of the Vietnam Cooperative Alliance, before Decree No. 45/2021/ND-CP dated March 31, 2021 of the Government took effect, there were 50 provinces and cities nationwide that had established Establish Cooperative Development Support Fund (local fund). In addition, there are provinces and cities that create capital sources to support collective and cooperative economies and directly assign them to a financial institution in the area such as the Bank for Social Policies or the Development Investment Fund to provide loans. However, the organization and operation of local funds are very different from the form of lending to the fund's management apparatus because there is no unified legal framework...  ​

Decree No. 45 of the Government stipulates that within a maximum of 3 years, cooperative funds (previously established) must be reviewed and reorganized. But up to now, the reorganization and operation of established and newly established funds in provinces and cities that do not have funds is very slow. Therefore, it is urgent to accelerate the implementation process and put the regulations in the decree into practice to create a legal basis and favorable conditions for development funds.

At the conference, the Vietnam Cooperative Alliance, the local Cooperative Alliance, and representatives of a number of ministries and sectors also exchanged experiences in administration, difficulties and obstacles in the implementation process and recommendations to be able to soon implement the decree in practice. For Dong Nai province, the conversion from the previously established fund to establish the Dong Nai Province Cooperative Development Support Fund has been completed. Thereby, the fund (according to the new model) received charter capital from the provincial budget twice with a total amount of 150 billion VND.