Guidance on classifying the scale of cooperatives in Vietnam from November 01, 2024

Guidance on classifying the scale 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 several provisions of the Law on Cooperatives.

Guidance on classifying the scale of cooperatives in Vietnam from November 01, 2024

Based on the operational sectors stipulated in Clause 1, Article 4 of Decree 113/2024/ND-CP, cooperatives are classified into large, medium, small, and micro scales based on the criteria of the number of official members and one of two criteria: revenue or total capital as stipulated in Clause 2, Article 4 of Decree 113/2024/ND-CP as follows:

(1) Classification of cooperatives in the agricultural sector:

- Large-scale cooperatives have 300 or more official members, and 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, and 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, and annual revenue of 2 billion VND or more, or total capital of 1 billion VND or more;

- Micro-scale cooperatives include those that do not fall under the cases specified in Points a, b, c of Clause 1, Article 5 Decree 113/2024/ND-CP.

(2) Classification of cooperatives in the industrial - construction sector:

- Large-scale cooperatives have 100 or more official members, and 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, and 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, and annual revenue of 3 billion VND or more, or total capital of 2 billion VND or more;

- Micro-scale cooperatives include those that do not fall under the cases specified in Points a, b, c of Clause 2, Article 5 Decree 113/2024/ND-CP.

(3) Classification of cooperatives in the finance, banking, and insurance sector:

- Large-scale cooperatives have 1,000 or more official members, and 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, and 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, and annual revenue of 50 billion VND or more, or total capital of 10 billion VND or more;

- Micro-scale cooperatives include those that do not fall under the cases specified in Points a, b, c of Clause 3, Article 5 Decree 113/2024/ND-CP.

(4) Classification of cooperatives in the trade - services and other sectors:

- Large-scale cooperatives have 200 or more official members, and 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, and 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, and annual revenue of 5 billion VND or more, or total capital of 2 billion VND or more;

- Micro-scale cooperatives include those that do not fall under the cases specified in Points a, b, c of Clause 4, Article 5 Decree 113/2024/ND-CP.

Note:

- In cases where a cooperative meets the criteria for classification at different scales, the cooperative's scale will be determined based on the largest scale.

- The classification of the cooperative scale shall be conducted and recorded on the National Information System on Cooperatives.

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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