Latest regulations on internal transactions in cooperatives in Vietnam

Latest regulations on internal transactions in cooperatives in Vietnam (Image from the internet)

Latest regulations on internal transactions in cooperatives in Vietnam

According to Article 20 of Decree 113/2024/ND-CP, regulations on internal transactions and incomes earned from internal transactions of a cooperative or cooperative union in Vietnam:

(1) Internal transactions of cooperatives and cooperative unions include the following activities:

- Cooperatives and cooperative unions organize the production or purchase externally of products and input materials to supply to official members for production purposes according to the general orientation of the cooperatives or cooperative unions or to serve the living needs of official members;

- Cooperatives and cooperative unions directly provide or hire others to provide services serving the production activities of official members according to the orientation of the cooperatives or cooperative unions or to serve the living needs of official members;

- Cooperatives and cooperative unions provide services for storage, classification, cleaning, preservation, packaging, preliminary processing, processing, and consumption of products produced by official members;

- Cooperatives and cooperative unions support official members with suppliers of input products and services, purchasing products aimed at consuming products produced by official members through promoting contracts between official members and suppliers, purchasers of products. Cooperatives and cooperative unions are paid by official members, suppliers, and purchasers for their support services;

- Cooperatives and cooperative unions organize internal lending activities to support the production costs and living expenses of official members.

(2) Income from internal transaction activities of cooperatives and cooperative unions is the revenue from internal transaction activities minus (-) the direct related costs of those internal transaction activities.

Guidance on classifying the scale of cooperatives in Vietnam from November 1, 2024

Based on the operational fields 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 field of agriculture:

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

- Micro-scale cooperatives include cooperatives not covered in points a, b, c of Clause 1 Article 5 of Decree 113/2024/ND-CP.

(2) Classification of cooperatives in the field of industry - construction:

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

- Micro-scale cooperatives include cooperatives not covered in points a, b, c of Clause 2 Article 5 of Decree 113/2024/ND-CP.

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

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

- Micro-scale cooperatives include cooperatives not covered in points a, b, c of Clause 3 Article 5 of Decree 113/2024/ND-CP.

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

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

- Micro-scale cooperatives include cooperatives not covered in points a, b, c of Clause 4 Article 5 of Decree 113/2024/ND-CP.

Note:

- In cases where cooperatives meet the classification criteria of multiple scales, the scale of the cooperative is determined based on the largest scale.

- The classification of the scale of cooperatives is implemented and recorded on the National Information System on Cooperatives.

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