Has the Decree 113/2024/ND-CP guiding the Law on Cooperatives been issued in Vietnam?
Has the Decree 113/2024/ND-CP guiding the Law on Cooperatives been issued in Vietnam?
On September 12, 2024, the Government of Vietnam issued Decree 113/2024/ND-CP detailing several articles of the Law on Cooperatives:
- Classification of cooperative scales.
- Criteria for selection, subjects, content, levels of support, sources of funding, and implementation of state policies on supporting the development of cooperative groups, cooperatives, and cooperative unions.
- Conditions for cooperatives and cooperative unions to establish enterprises, contribute capital, and purchase shares in enterprises.
- Conditions for cooperatives and cooperative unions to conduct internal lending activities, including loan amounts, lending limits, interest rates, and risk handling from internal lending activities.
- Internal transactions and income from internal transactions.
- Asset handling when a cooperative or cooperative union is dissolved or bankrupt.
Decree 113/2024/ND-CP takes effect in Vietnam from November 1, 2024.
Has the Decree 113/2024/ND-CP guiding the Law on Cooperatives been issued in Vietnam? (Image from the Internet)
What are regulations on the classification of scale of cooperatives in Vietnam?
According to Article 5 of Decree 113/2024/ND-CP, the classification of cooperative scales is regulated as follows:
[1] Classification of cooperatives in the field of agriculture
- Large-scale cooperatives have 300 or more official members with annual revenue of 50 billion VND or more or total capital of 10 billion VND or more.
- Medium-scale cooperatives have 200 or more official members with annual revenue of 10 billion VND or more or total capital of 5 billion VND or more.
- Small-scale cooperatives have 50 or more official members with annual revenue of 2 billion VND or more or total capital of 1 billion VND or more.
- Micro-scale cooperatives include those cooperatives not falling into the above categories.
[2] Classification of cooperatives in the field of industry - construction
- Large-scale cooperatives have 100 or more official members with annual revenue of 80 billion VND or more or total capital of 20 billion VND or more.
- Medium-scale cooperatives have 50 or more official members with annual revenue of 15 billion VND or more or total capital of 10 billion VND or more.
- Small-scale cooperatives have 20 or more official members with annual revenue of 3 billion VND or more or total capital of 2 billion VND or more.
- Micro-scale cooperatives include those cooperatives not falling into the above categories.
[3] Classification of cooperatives in the field of finance, banking, and insurance
- Large-scale cooperatives have 1,000 or more official members with annual revenue of 200 billion VND or more or total capital of 50 billion VND or more.
- Medium-scale cooperatives have 500 or more official members with annual revenue of 100 billion VND or more or total capital of 20 billion VND or more.
- Small-scale cooperatives have 100 or more official members with annual revenue of 50 billion VND or more or total capital of 10 billion VND or more.
- Micro-scale cooperatives include those cooperatives not falling into the above categories.
[4] Classification of cooperatives in the field of commerce - services and other fields
- Large-scale cooperatives have 200 or more official members with annual revenue of 100 billion VND or more or total capital of 20 billion VND or more.
- Medium-scale cooperatives have 100 or more official members with annual revenue of 20 billion VND or more or total capital of 10 billion VND or more
.- Small-scale cooperatives have 20 or more official members with annual revenue of 5 billion VND or more or total capital of 2 billion VND or more.
- Micro-scale cooperatives include those cooperatives not falling into the above categories.
What rights do cooperatives and cooperative unions in Vietnam have?
According to Article 9 of the Law on Cooperatives 2023, the rights of cooperatives and cooperative unions in Vietnam include:
- Effectively organizing the implementation of established objectives and goals.
- Deciding on the organization, management, and operations of cooperatives and cooperative unions; hiring and using labor.
- Engaging in business and production in industries and trades not prohibited by law.
- Requiring members to register their demand for products and services to build and implement plans for supplying, consuming products and services for members.
- Providing products and services externally after fulfilling obligations and ensuring the interests of members according to the Charter or relevant laws.
- Providing services and organizing economic, social, cultural activities aimed at improving the well-being of members, the community, and sustainable development.
- Participating in implementing policies, programs, and projects for economic, cultural, and social development, ensuring political security, social order and safety, and environmental protection in the community.
- Admitting new members, ending membership according to the provisions of Law on Cooperatives.
- Increasing and decreasing charter capital during operation.- Mobilizing capital according to legal regulations.
- Conducting internal lending as regulated by this Law.
- Separately tracking revenue and expenses for internal transactions and external transactions.
- Partnering, associating, and collaborating with organizations and individuals both domestically and internationally to achieve the goals of cooperatives and cooperative unions.
- Contributing capital, buying shares, and establishing enterprises to support the activities of cooperatives and cooperative unions.
- Distributing income, handling losses, and debts of cooperatives and cooperative unions.
- Participating in representative organizations of cooperatives and cooperative unions.
- Complaining, denouncing violations of the legal rights and interests of cooperatives and cooperative unions according to law; resolving internal disputes and handling violating members as specified in the Charter.
- Other rights as prescribed by law and the Charter.
