Post by : Shakul
The Ministry of Finance in Vietnam has put forward significant changes regarding state support for cooperatives and their unions. This initiative is encapsulated in a draft decree that seeks to revise and enhance various provisions of Decree No. 113/2024/ND-CP, which outlines the implementation of the Law on Cooperatives.
Currently, the regulations involve intricate procedures and stringent eligibility conditions, hindering many cooperatives from obtaining necessary government aid. Smaller cooperatives particularly struggle due to limited administrative capabilities and complex application processes.
Local authorities have expressed the need for simplification of these criteria and procedures to better facilitate access to government support initiatives. Consequently, the newly proposed draft suggests more accommodating and practical regulations that assist cooperatives in navigating the application process while alleviating unnecessary pre-approval stipulations.
As per the draft amendments, cooperatives and their unions will be eligible for governmental aid if they comply with the stipulations listed in the Law on Cooperatives and meet at least one additional criterion for development. Acceptable criteria include an increase in membership over the past two years, growth in transaction values, contributions to common funds, enhancements in common assets, or participation of members in educational initiatives.
Particular focus will be given to newly established cooperatives in socio-economically challenged regions. These cooperatives, set up within the last 36 months, will have improved conditions for benefiting from support policies to encourage local economic advancement.
For projects seeking state budget support exceeding 3 billion Vietnamese dong, audited financial documents from the preceding year will be mandated, requiring verification by independent auditors before application submission.
Furthermore, the Ministry has proposed eliminating several existing clauses concerning cooperative eligibility because analogous provisions are being integrated into a new decree in progress. This move aims to reduce redundancy and clarify the legal framework for cooperative access to state support.
Aside from eligibility revisions, changes to the application process are also on the table. The new plan allows cooperatives to submit a singular application to the commune-level People’s Committee where they are registered, via in-person, postal, or electronic means.
Local authorities are expected to acknowledge receipt of applications within a week. They will compile annual requests from cooperatives and forward these to provincial agencies by May 31 annually.
Provincial agencies will then assess the requests and either grant support directly or send them to central ministries for further processing. The application procedures for smaller support services, under 20 million VND, or for short-term training less than five days will be further simplified.
These proposed reforms represent Vietnam's ongoing commitment to enhance cooperative development frameworks, bolster local economies, and promote collaborative economic models throughout the nation.
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