Criteria for cooperatives to be considered for State support policies in Vietnam from November 01, 2024

Criteria for cooperatives to be considered for State support policies in Vietnam from November 01, 2024 (Image from the Internet)

1. Criteria for cooperatives to be considered for State support policies in Vietnam from November 01, 2024

According to the provisions in Clause 2, Article 6 of Decree 113/2024/ND-CP, the criteria for cooperatives to be considered for State support policies in Vietnam from November 01, 2024, include:

- Criteria as specified in Point a, Clause 2, Article 18 of the Law on Cooperatives 2023: Have a Certificate of artel Registration.

- Criteria as specified in Point b, Clause 2, Article 18 of the Law on Cooperatives 2023: not under the implementation period of an administrative violation handling decision for violating prohibited acts as stipulated in Clause 2, Article 7 of the Law on Cooperatives 2023:

Article 7. Prohibited acts related to artels, cooperatives, and cooperative unions

...

2. For artels, cooperatives, and unions of cooperatives:

a) Operating without a registration certificate in accordance with this Law; operating without sufficient conditions as stipulated by this Law and related legal regulations;

b) Falsely, inaccurately declaring the contents of the registration dossier of artels, cooperatives, and unions of cooperatives;

c) Not complying with the principles of organization, management, and operation as stipulated by this Law;

d) Providing false information, dishonesty, forging documents to seek profit;

dd) Misusing supported resources for purposes not committed.

- Meeting one of the following criteria at the time of submitting the application for support requirements:

+ An increase in the number of members over 2 consecutive years preceding the year of application for support requirements;

+ At least 5% of the total number of members, employees have participated in educational, training, dissemination, fostering, and skill improvement classes either self-organized by the artel or by other agencies, organizations, institutions, and have been certified for participation or have a list confirming their participation by the artel (for courses self-organized by the artel, the artel must have an organized course plan, course content, and a signed attendance list from participants), up to the year preceding the year of application for support requirements;

+ Established not more than 36 months in areas with difficult socio-economic conditions, or areas with exceptionally difficult socio-economic conditions according to the law on investment, up to the time of submitting the application for support requirements.

2. What is an artel?

According to Clause 21, Article 4 of the Law on Cooperatives 2023: an artel is an organization without legal entity status, formed based on a cooperation contract voluntarily established by at least 2 members who together contribute capital, labor to perform certain tasks, sharing benefits and joint responsibilities.

More details can be found in Decree 113/2024/ND-CP, which comes into force in Vietnam from January 1, 2024.

Repealing Decree 193/2013/ND-CP of the Government of Vietnam detailing certain articles of the Law on Cooperatives 2012.

Repealing Decree 107/2017/ND-CP of the Government of Vietnam amending and supplementing certain articles of Decree 193/2013/ND-CP of the Government of Vietnam detailing certain articles of the Law on Cooperatives 2012.

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