Criteria for enjoyment of from the State’s assistance policies for the development of cooperatives in Vietnam from November 01, 2024

Criteria for enjoyment of from the State’s assistance policies for the development of cooperatives in Vietnam from November 01, 2024 (Image from the internet)

On September 12, 2024, the Government of Vietnam issued Decree 113/2024/ND-CP detailing certain articles of the Law on Cooperatives 2023.

Criteria for enjoyment of from the State’s assistance policies for the development of cooperatives in Vietnam from November 01, 2024

Cooperatives in Vietnam will be considered for State’s assistance policies if they meet the following criteria:

- Not under any administrative penalty enforcement for violations of acts prohibited under Clause 2, Article 7 of the Law on Cooperatives 2023; not serving any criminal sentence by a court that has taken legal effect;

- Meet at least one of the following criteria at the time of application for support: increased number of members in the two consecutive years prior to the year of application; increased rate of internal transaction value in the year prior to the year of application; higher rate of contribution to the indivisible common fund than the minimum regulation in Article 84 of the Law on Cooperatives 2023 in the year prior to the year of application; increased value of indivisible common assets in the year prior to the year of application;

Have at least 5% of total members, employees participating in education, training, dissemination, fostering, and retraining courses organized by the cooperative, cooperative union, or other agencies, organizations and have either been certified for course participation or have a list of members and employees who participated in the course stamped by the cooperative, cooperative union (for courses self-organized by the cooperative, cooperative union, the cooperative, cooperative union must have a plan, content list and participant list signed by the participants) as of the year prior to the year of application; have been established for no more than 36 months in socio-economic difficult areas or specially difficult socio-economic areas as regulated by investment law at the time of application for support;

- For cooperatives, cooperative unions that register for support from the state budget valued at 3 billion VND or more, they must have the previous year's financial report audited by an independent audit organization at the time of application for support.

Note: In cases where multiple cooperatives meet the above regulations, the selection criteria for cooperatives, cooperative unions will be determined by the following priority order:

- Larger number of members;

- Higher number of disabled members;

- Higher number of ethnic minority members;

- More members and employees participating in mandatory and voluntary social insurance;

- Female managers, more female members or employing more female laborers;

- Operating in socio-economic difficult areas or specially difficult socio-economic areas as regulated by law;

- Participating in linkage to form value chains, sector clusters, associated with green economy, circular economy, knowledge economy, organic agriculture, adaptation to climate change, digital transformation for sustainable development;

- Organizing or participating in community benefit activities.

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

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