Circular 01: Classification of Cooperatives by Products and Services Offered to Members

According to the provisions of Article 3 Circular 01/2020/TT-BKHDT, based on the products and services provided by cooperatives to their members, cooperatives are classified into:

Illustration (source internet)

- Production Cooperative: A cooperative established with the objective of providing input products and services, processing, and consuming output products and services for its members to serve their economic activities. Members are both the owners and the users of the cooperative's products and services.

- Consumption Cooperative: A cooperative established with the objective of providing products and services to meet the consumption needs of its members. Members are both the owners and the customers consuming the cooperative's products and services.

- Job-Creating Cooperative: A cooperative established with the objective of creating jobs for its members. Members are both the owners and the workers in the cooperative.

- Mixed Cooperative: A cooperative operating with two or more of the above-mentioned objectives.

Additionally, cooperatives are also classified based on the scale of members, the scale of total capital, and the industry. To be specific:

- Based on the number of members, cooperatives are classified into:

+ Micro-scale cooperative: a cooperative with fewer than 50 members;

+ Small-scale cooperative: a cooperative with 50 to 300 members;

+ Medium-scale cooperative: a cooperative with over 300 to 1,000 members;

+ Large-scale cooperative: a cooperative with over 1,000 members or more;

- Based on the total capital, cooperatives are classified into:

+ Micro-scale capital cooperative: a cooperative with total capital under 1 billion VND;

+ Small-scale capital cooperative: a cooperative with total capital from 1 billion VND to under 5 billion VND;

+ Medium-scale capital cooperative: a cooperative with total capital from 5 billion to under 50 billion VND;

+ Large-scale capital cooperative: a cooperative with total capital from 50 billion VND or more.

- Based on the registered industry or sector, cooperatives are classified according to the level 1 economic sectors as stipulated in the Decision of the Prime Minister of the Government of Vietnam on the promulgation of the Vietnamese industry's sectoral system.

See the full text of the regulation at Circular 01/2020/TT-BKHDT effective from April 1, 2020.

Thu Ba

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