Post by : Shakul

Vietnam’s Ministry of Finance has proposed major revisions to the rules governing state support policies for cooperatives and cooperative unions. The proposed changes are part of a draft decree aimed at amending and supplementing several articles of Decree No. 113/2024/ND-CP, which provides detailed guidance on implementing the Law on Cooperatives.

According to the Ministry of Finance, the current regulations contain complex procedures and strict eligibility requirements that have made it difficult for many cooperatives to access government support. Small-scale cooperatives in particular have reportedly faced significant challenges because of limited administrative capacity and complicated approval processes.

The ministry stated that many provincial and local authorities have requested the simplification of criteria, procedures, and administrative requirements to improve access to state support programs. As a result, the new draft proposes more flexible and practical regulations that are easier for cooperatives to follow while also reducing unnecessary pre-approval conditions.

Under the proposed amendments, cooperatives and cooperative unions will qualify for state support if they meet conditions defined in the Law on Cooperatives and satisfy at least one additional development-related criterion. These include an increase in membership numbers during one of the previous two years, growth in internal transaction value, higher contributions to common funds, an increase in common assets, or participation of members and employees in educational and training programs.

The draft also proposes special consideration for newly established cooperatives operating in socio-economically disadvantaged or particularly disadvantaged regions. Cooperatives established within the last 36 months in these areas may receive easier access to support policies to encourage economic growth and local development.

For projects requesting state budget support worth 3 billion Vietnamese dong or more, the Ministry of Finance proposes requiring audited financial statements from the previous year. These financial reports must be verified by independent auditing organizations before the application is submitted.

The Ministry of Finance also suggested removing several existing clauses related to cooperative eligibility rules because similar provisions are being incorporated into a separate decree currently under development. Officials said this step would help avoid duplication and create a clearer legal framework for cooperatives seeking state support.

In addition to revising eligibility requirements, the ministry has proposed changes to the support application process itself. Under the new proposal, cooperatives would submit one application directly to the commune-level People’s Committee where their headquarters are located. Applications could be submitted in person, by post, or electronically.

The draft further states that commune-level authorities must confirm receipt of applications within seven working days. Local governments would also be responsible for compiling annual support requests from cooperatives and forwarding them to provincial authorities before May 31 each year.

Provincial authorities would then review the requests and either provide support directly or forward them to central ministries for further approval. In cases involving smaller support services worth less than 20 million VND or short-term training programs lasting fewer than five days, the process would be simplified further with applications submitted directly to service providers.

The proposed reforms are part of Vietnam’s broader efforts to improve the effectiveness of cooperative development policies, strengthen local economies, and encourage greater participation in collective economic models across the country.

#Asia News #Economy #Policy #Vietnam