Directive 19/CT-TTg on implementation of the Law on Cooperatives

THE PRIME MINISTER

Directive No. 19/CT-TTg dated July 24, 2015 of the Prime Minister on promoting the implementation of the Law on Cooperatives

Cooperatives, cooperative unions have made important contributions in economic, social development of the country, especially in the successful implementation of the objectives of Resolution 26-NQ / TW of7^th Plenum of the 10^th Party Central Committeeon agriculture, farmers and rural areas. The Law on Cooperatives 2012 is promulgated and takes effect from July 1, 2013 specifying the nature, organizational structure and operation of cooperatives, differentiating between cooperatives and other economy types. In recent years, ministries, departments, and localities have studied and promulgated a number of mechanisms and specific policies to create favorable conditions for cooperative development; many new cooperative model has been formed and operated efficiently, contributing positively to economic restructuring, implementing industrialization and modernization of the country, hunger eradication and poverty reduction, especially in agriculture and rural development. However, the implementation is still difficult, the progress of reorganizing cooperatives under the Law on Cooperatives is very slow because the implementation is not really diligent; there are many guiding documents that are slowly promulgated; propagation, dissemination, training on the legislation on cooperatives to all levels, departments, and localities are still limited; State administration institutions of cooperatives are inadequate and do not keep pace with the need for innovation.

In order to ensure that the Law on Cooperatives 2012 is implemented effectively and takes effect in reality, the Prime Minister requests Ministries, Ministerial-level agencies, Governmental agencies, People s Committees of central-affiliated cities and provinces, Vietnamese Fatherland Front to focus on the fulfillment of the following tasks:

1. Complete the system of legislative documents on cooperatives

the Ministry of Planning and Investment shall take charge and cooperate with Ministries, departments, and People’s Committee of central-affiliated cities and provinces to request the Government for promulgating the Decree amending and supplementing the Decree No. 193/2013/NĐ-CP specifying a number of articles of the Law on cooperatives on land support policy for the cooperative (in accordance with Clause 3, Article 6 of the Law on Cooperatives), transformation of cooperatives (under Article 62 of the Law on Cooperatives);

b) The Ministry of Agriculture and Rural development shall take charge and cooperate with Ministries, relevant agencies to study and formulate the Government’s Decree on agricultural cooperatives;

c) The Ministry of Finance shall take charge and cooperate with relevant Ministries, departments to study and request the Government, the Prime Minister for promulgating the following documents within their competence:

- Regulation on auditing cooperatives, cooperative unions (under Paragraph 3, Article 61 of the Law on Cooperatives);

- Detailed guidance on the implementation of the accounting policy for cooperatives, cooperative unions (under Paragraph 4 of Article 22 of Decree 193/2013 / ND-CP);

- Regulation on additional tasks, increasing charter capital to Fund of cooperative development support to perform the task of credit guarantees and special interest for cooperatives, cooperative unions (under Clause 4, Article 24 of Decree No. 193/2013 / ND-CP)

d) the State Bank of Vietnam shall take charge and cooperate with relevant Ministries, departments to study and issue regulations on the ratio of supply and consumption of products and services that the cooperatives, cooperative unions in credit commit to supply and/or sell to their members and customers (under Paragraph 3 of Article 5 of Decree No.193/2013 / ND-CP);

dd) Ministries, ministerial-level agencies shall cooperate together to formulate the interdisciplinary Circular on mechanisms, specific policies to encourage and support the development of cooperatives, cooperative unions;

e) Ministries, ministerial-level agencies shall review the current regulations relating to organization and operation of cooperatives, cooperative unions to issue or amend, supplement them in accordance with the Law on cooperatives and practical requirements in order to complete the legal basis, enabling the cooperatives to participate in activities equal to other economic types and sustainable development.

2. Commence the propagation, dissemination, building models of cooperatives, cooperative unions.

Ministries, ministerial-level agencies shall strengthen propaganda, disseminating, guiding and implementing legal documents on cooperatives, cooperative unions in the areas they are assigned to manage; Direct the building of a pilot model and replicating the model of cooperatives, cooperative unions operating effectively;

b) The Ministry of Planning and Investment shall take charge and cooperate with relevant Ministries, departments to compile documents and content of dissemination and training; Propagate, build, and replicate the model of cooperatives, cooperative unions operating effectively, firstly replicate models of agricultural cooperatives in the Mekong Delta.

c) The Ministry of Information and Communications shall direct press agencies in propaganda and dissemination of law on cooperatives under appropriate forms on mass media, primarily Vietnam Television and Voice of Vietnam;

d) Vietnam Cooperative Union shall take charge and cooperate with relevant Ministries, departments, the People s Committees of central-affiliated cities and provinces to apply flexibly forms of propaganda of legislation on cooperatives, cooperative models (organizing conferences, workshops, seminars to propagate, organizing contests of knowledge of the Law on Cooperatives, compiling reports, movies having many parts, having specialized programs on economic development of collective economy, cooperatives on the mass media); summarize, replicate the typical forms, begin the emulation movement in cooperatives; perform effectively the task of legal education for managers and members of cooperatives;

dd) Request Vietnamese Fatherland Front and its members such as Vietnam Farmer Association,Vietnam Women s Union, Communist Youth Union of Ho Chi Minh City and other organizations participating in propaganda of law on cooperatives; mobilize people to participate in cooperatives; provide advice, support of the establishment of cooperatives and building collective economic models, cooperatives;

e) People’s Committees of central-affiliated cities and provinces shall focus on directing Departments, People s Committees of districts and communes, press agencies to better provide the propagation and dissemination, education of law on cooperatives to agencies, organizations and people in localities.

3. Implement projects and programs to support the development of cooperatives.

a) Implement the Program supporting the cooperative development in the period of 2015-2020 (Program) approved in Decision No. 2261 / QD-TTg dated December 15, 2014 of the Prime Minister:

- the Ministry of Planning and Investment shall take charge and cooperate with relevant Ministries, departments to monitor and inspect the implementation of the Program of localities; take charge and cooperate with the Ministry of Finance to balance the development investment capital to implement the Program in accordance with the provisions of the Law on public investment and relevant legal documents; provide guidance on procedures for implementation, aggregate the demand, make annual budget estimates and propose appropriate policy to support the implementation of the Program;

- The Ministry of Finance shall take charge and cooperate with relevant Ministries, departments to provide specific guidance on the financial mechanism, guidance on the management and use of funding of the Program; balance business capital from the central budget to implement the Program; Provide specific guidance on norms and financial mechanisms for the policy of support training cooperative human resources;

- The ministries, departments, and localities within their assigned scope, functions and tasks formulate the support plan under the contents of the Program; implement efficiently the supportive policy in accordance with its objectives;

- the Ministry of Agriculture and Rural development shall take charge and cooperate with the Ministry of Planning and Investment, the Ministry of Finance to provide specific guidance on conditions and criteria for beneficiaries of the policy of development of infrastructure of cooperatives, cooperative unions operating in agriculture, forestry, fishery and salt fields;

- The Ministry of Industry and Trade shall take charge and cooperate with relevant Ministries, departments to support and direct the transformation of cooperatives established before July 1, 2013 and encourage the establishment of cooperatives in trade, industrial and handicraft fields; facilitate cooperatives to participate in national trade promotion Program and to access to local industry promotion fund;

- the Ministry of Science and Technology shall take charge and cooperate with relevant Ministries, departments to support cooperatives in the application of science and technologies to improve productivity, quality and competition capacity for products of cooperatives;

- Vietnam Cooperative Union shall formulate plans and determine funding need to implement a number of the Program’s contents: Propaganda, giving advice, supporting the establishment and development of cooperatives; training officials, members of cooperatives; building cooperative models, promoting trade of cooperatives within members of the Cooperative Union; supporting the construction of infrastructure works serving production and business for members of cooperatives;

- Ministries, departments shall aggregate the demand and formulate the support plan under the contents of the Program according to specialized state management field; make estimate and aggregate in the estimation of the department and send to the Ministry of Planning and Investment and the Ministry of Finance for aggregate as prescribed;

- Central authority of Vietnamese Fatherland Front and its members shall formulate the plan and determine the funding need to implement some contents of the Program, which focuses on the propaganda, dissemination to raise awareness of staff, members, members of the legal policies on cooperatives; provide advice, support and mobilize the masses, members to participate in development of the collective economy;

- People’s Committees of central-affiliated cities and provinces shall aggregate the demand and formulate the support plan under the contents of the Program; make estimate and aggregate in the estimation of the province and send to the Ministry of Planning and Investment, the Ministry of Finance, and the specialized Ministry for aggregate; implement the Program and annually report on the results of the implementation of the Program to the Ministry of Planning and Investment, the specialized Ministry for consolidation.

b) Ministries, ministerial-level agencies shall study, formulate, and implement incentive policies, programs, schemes supporting and creating conditions for cooperatives, cooperative unions to participate in and enjoy support policies in the field they undertake;

c) People’s Committees at all levels shall base on specific conditions to balance and distribute the local budget for the program to support the development of cooperatives; create favorable conditions for cooperatives, cooperative unions to participate in target programs, socio-economic development program.

4. Strengthen the inspection, auditing, and monitoring the implementation of the Law on Cooperatives.

The Ministry of Planning and Investment shall take charge and cooperate with ministries, ministerial-level agencies, People’s Committees at all levels to conduct inspection of the compliance with the law on cooperatives and cooperative unions; study and petition the handling measures and provide guidance on handling violations of the law of cooperatives, cooperative unions, individuals, and related organizations in accordance with law; resolve or provide guidance on solving difficulties during the implementation of the law on cooperatives, cooperative unions;

b) The State Bank of Vietnam shall conduct inspection and supervision of credit institutions being cooperatives in order to ensure the safe development of the system of credit institutions; protect lawful rights and interests of depositors and customers of credit institutions being cooperatives; ensure the compliance with policies and legislation on monetary and banking;

c) Central authority of Vietnamese Fatherland Front and its members such as Vietnam Farmer Association,Vietnam Women s Union, Communist Youth Union of Ho Chi Minh City and other organizations shall design the program to cooperate in monitoring the implementation of the Law on Cooperatives;

d) People’s Committees of central-affiliated cities and provinces shall review and guide the cooperatives in reorganizing under the Law on Cooperatives or transforming to other forms before July 1, 2016; dissolve cooperatives that do not operate or operate ineffectively without organizing and operating under the provisions of the Law on Cooperatives; direct, inspect, and supervise the state management of cooperatives in the area;

5. Strengthen the state management and international cooperation in the development of collective economy, cooperatives, cooperative unions.

People’s Committees of central-affiliated cities and provinces strengthen the state management in collective economy, cooperatives; Direct the assignment of full-time or part-time officials at the provincial and district levels to fulfill the functions and tasks of state management on cooperatives to ensure sufficient officials for the registration of cooperatives, cooperative unions; direct and implement the regulation on giving information and reports; monitor and supervise the implementation of the Law on Cooperatives and provide guidance on the implementation of policies for collective economy and cooperatives;

b) Ministries, Ministerial-level agencies shall arrange sufficient officers to advise, monitor, manage, supervise, and report on the activities of cooperatives, cooperative unions in the fields they are assigned to manage;

c) The Ministry of Planning and Investment shall be assigned to conduct survey and periodically report on the data of cooperatives to State management agencies and publicize such data in annual statistical yearbooks;

d) The Ministry of Planning and Investment shall take charge in international cooperation on development of cooperatives, cooperative unions; cooperate with relevant Ministries, departments to study and learn experience in the cooperative development in different fields in the world; call for the support of international organizations in the development of cooperatives; take charge or participate in formulation, providing guidance, conducting inspection, monitoring and assessment, summarizing the implementation of programs and projects supported the development of collective economy, cooperatives by international organizations;

Did) Ministries, ministerial-level agencies, People’s Committees of central-affiliated cities and provinces shall facilitate cooperatives, cooperative unions to access to the international market, comply with international agreements between Vietnam and other countries so that cooperatives can learn experience and rapidly integrate into the international economy?

6. The Ministry of Planning and Investment shall monitor, inspect, summarize, and report to the Prime Minister on the fulfillment of the above tasks.

Ministers, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces and relevant agencies and organizations shall be implement this Directive. /.

The Prime Minister

Nguyen Tan Dung