Agricultural production and sale cooperatives, associations to be strongly promoted

The Government on July 5 issued Decree 98 on policies to promote cooperation and association in the production and sale of farm produce.

Accordingly, cooperation and association to link the production with the sale of agricultural products means willing agreement among farmers, individuals, cooperatives and enterprises to carry out joint investment in, production and sale of their products (associated parties) to raise the efficiency of production and quality of agricultural products.

Under the new regulation, parties assuming the prime responsibility for forming associations will receive a state budget support of up to VND 300 million for getting consultancy on the formation of an association, covering consultancy on and study for the establishment of association contract and project, production, trading and market development plans.

Meanwhile, an association project will enjoy state support equal to 30 percent of the fund required for investment in equipment and construction of infrastructure facilities, which must not exceed VND 10 billion.

The above supports will be provided in line with plans, programs and projects under the national target program on building a new countryside, the programs on restructuring the agricultural economy, natural disaster prevention and mitigation and stabilization of people’s lives, and other lawful programs and projects.

In addition, associated parties may also receive supports for the formulation of agricultural expansion models, organization of vocational training and technical training courses to build the contractual and chain management and market development capacity.

The support fund sources and support levels for such activities comply with the regulations of the programs and projects on agricultural expansion, program on training in agricultural occupations for agricultural laborers, policies on training and retraining of human resources for cooperatives, and other lawful programs and projects.

To be entitled to the above supports, associated parties must prove they are eligible to be covered by local socio-economic development plans; possess certificates or commitments on compliance with the regulations on product quality, food safety, epidemic safety and environmental protection; ensure the stability of their associations; and have their association projects or plans proposed for enjoyment of association supports approved by competent agencies.

(Source:VLLF)