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HCM City seeks to develop 50 new cooperatives this year

21:32 | 15/04/2019

Ho Chi Minh City is set to establish 50 new cooperatives and one cooperative union this year and hopes to push the annual growth of the collective economy to 10 percent and its contribution to the city’s economy to 0.6 percent.


A corner of Ho Chi Minh City (Photo: VNA)

The new cooperatives will be in a number of sectors including agriculture, forestry, fishery, industry, handicrafts, and transportation.

To develop the agriculture - forestry – fisheries sector, authorities will combine agricultural cooperatives and agricultural services with tourism.

The working of transport co-operatives will continue to be strengthened enabling them to expand.

To achieve the goals, local authorities have been instructed to review the number and quality of co-operatives in each sector, and help them access production facilities and hire managers and skilled workers.

The city wants the Ministry of Finance to support its cooperatives by waiving income tax and VAT on inputs provided by them to farmers and to link cooperatives across the country.

The city also wants the Ministry of Natural Resources and Environment to reduce land rents by 50 percent for co-operatives and create a favourable environment for cooperatives to develop.

HCMC has set a target of having 175 cooperatives, 10 cooperative unions and 1,500 cooperative groups by 2020.

By then they will account for 1.2 percent of the city economy.

VNA

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