Prime Minister: Collective economic contribution to GDP remains low

Prime Minister Pham Minh Chinh believes that our country's collective economic areas have not developed as intended and required. The growth rate and contribution of collective economic areas to the overall gross domestic product (GDP) are still low.


On February 2, Prime Minister Pham Minh Chinh chaired the Economic Cooperation Forum, Cooperative Groups, and Cooperatives in 2024 with the theme “Improving State Support Policies according to Resolution No. 20-/NQ/TW dated June 16, 2022 – Driving Force to Promote Collective Economy and Cooperatives in the New Period”.

Speaking at the forum, the Prime Minister stated that the development of the collective economy is an inevitable trend in the context of international integration and is in line with Vietnam’s socialist-oriented market economy. Collectively economic organizations operate primarily for economic benefits while also valuing the political, cultural, and social benefits in the area.

Prime Minister Pham Minh Chinh chaired the Economic Cooperation Forum, Cooperative Groups, and Cooperatives. Photo: Nhat Bac.

In recent years, the Party, State, Government, and various levels, sectors, and localities have always paid attention to and issued multiple guidelines, mechanisms, and policies to develop the collective economy and cooperatives. Up to now, the basic collective economic sector has overcome long-lasting weaknesses.

However, according to the Prime Minister, the collective economic sector in our country has not developed as intended. The growth rate and contribution proportion of the collective economic sector to GDP are still low. In addition, some members participating in cooperative activities still have a formal nature, not fully fulfilling their rights and obligations. Joint ventures and linkages between cooperatives and other economic organizations are not widespread.

Therefore, the Prime Minister desires the delegates to propose breakthrough solutions to overcome difficulties and obstacles, especially in attracting social resources; strengthening the linkage between participating members in the collective economy, enhancing coordination effectiveness between ministries, sectors, localities, between public and private sectors… for the collective economic sector, cooperatives to fundamentally change their production and business methods, meet the requirements of the new development situation.

According to the report of the Ministry of Planning and Investment, it is estimated that by 2023, there will be over 31,700 cooperatives, 158 cooperative unions, and 73,000 cooperative associations nationwide. In 2022, the average revenue of cooperatives reached nearly 3.6 billion dong/year, which increased by 35% compared to 2021; the average profit is about 366 million dong/year, an increase of 71% compared to 2021; the average income of a regular worker in a cooperative in 2022 is 56 million dong/person/year…

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