Bounce of Collective Economic Development in Dak Lak

The first success in collective economic development in Dak Lak is the rapid increase and diversification of cooperatives. Currently, the province has over 320 cooperatives, of which 45 percent are classified good, 41 percent average, and 14 percent weak. Helping cooperatives do business and develop is always a top concern for the Dak Lak Cooperative Alliance. Apart from advising the province on cooperative development encouragement policies, the cooperative alliance has also integrated and utilised capital sources to support cooperatives to train and retrain personnel, expand markets, and build better cooperatives. As regards credit support, apart from assisting cooperatives to access preferential loans from the Vietnam Development Bank (VDB), the Dak Lak Provincial Development Fund and the National Employment Fund, the Dak Lak Cooperative Alliance advises the Provincial People’s Committee to set up Cooperative Development Support Fund to finance cooperatives. From these sources of preferential credits, many cooperatives have more favourable conditions to expand production and business activities and improve product quality. The financial support for newly established cooperatives is also deployed on a large scale.

 

From these efforts, the operating quality of cooperatives is increasingly enhanced, not only raising production results and livelihoods of members and reducing poverty, but also strengthening cohesion between cooperative members in both production activities and community activities. Especially, cooperatives have greatly contributed to the province’s State Budget revenue and export turnover. Besides, they provide daily services for its members, apply scientific and technical advances in production, implement social welfare policies and improve infrastructure.

 

Despite positive contributions to the local economy and society, the collective economic development in Dak Lak province still has a lot of limitations. Specifically, managerial and administrative capacity of executive staff remains weak. In addition, they have limited access to bank credit. In addition, some cooperatives face difficulty finding and expanding markets and have unstable income. Mr Nguyen Tan Quang, Chairman of the Dak Lak Cooperative Alliance, said that in the coming time, apart from strengthening infrastructure and providing financial support for cooperatives, the Cooperative Alliance will focus on fostering its employees to raise their devotion, expertise and planning ability to apply new business developments.

 

Furthermore, to develop the collective economy with many different cooperation forms of high quality, real cooperation demand and sustainable development, the province will focus on developing and strengthening effective teams and raise their cooperative level when they gather sufficient conditions for personnel and capital. The Dak Lak Cooperative Alliance will effectively support and advise cooperatives to work out business plans, acquire technologies, and access central assistances. It will also boost cooperation in creating quality-guaranteed material zones by adopting various forms of cooperation and creating product value chains.