Principles for organization, management and operation of artels, cooperatives and cooperative unions in Vietnam

Principles for organization, management and operation of artels, cooperatives and cooperative unions in Vietnam (Internet image)

Principles for organization, management and operation of artels, cooperatives and cooperative unions in Vietnam

According to the Law on Cooperative 2023, the principles for organization, management and operation of artels, cooperatives and cooperative unions in Vietnam are prescribed as follows:

- Voluntary and open membership.

Organizations and individuals may establish, join or leave artels, cooperatives or cooperative unions of their own will. Artels, cooperatives or cooperative unions attach much importance to interests of their members and increase membership engagement; irrespective of their gender, social position, ethnic group or religion, membership is open to all.

- Democratic and equal organization and management.

Organization and operation of an artel shall be decided by its members on a democratic basis. Official members of a cooperative or cooperative union are allowed to engage in the organization, management and operation of that cooperative or cooperative union in a democratic and equal manner, regardless of their stakes.

- Economic participation by members of a cooperative or cooperative union

Official members shall make capital contribution when joining the cooperative or cooperative union, and jointly control capital, funds and assets of the cooperative or cooperative union; have incomes distributed primarily according to their levels of use of products/services or levels of labour contribution.

- Autonomy.

Artels, cooperatives and cooperative unions shall have autonomy in their operation before the Constitution and the law of Vietnam.

- Education, training and information.

Artels, cooperatives and cooperative unions shall attach special importance to the dissemination of guidelines of the Communist Party of Vietnam as well as the State policies and laws on development of collective economy to their members, general public and young people;

Regularly provide education, training and re-training for improving qualifications and technical skills for their members and employees; provide adequate, accurate and timely information for their members.

- Cooperation.

Members shall cooperate and assist each other with the aim of enriching themselves and their communities. Artels are encouraged to participate in establishment of cooperatives; cooperatives are encouraged to cooperate in establishment of cooperative unions so as to improve their capability to participate in production and consumption chains of products and services.

Artels, cooperatives and cooperative unions are encouraged to establish and participate in representative bodies and Vietnam Cooperative Alliance system so as to develop domestic and international cooperative movement.

Linkages between artels, cooperatives and cooperative unions, and other organizations, especially state-owned enterprises, in assisting the development of such linkages, consuming and using products/services should be strengthened with the aim of facilitating effective operation of such artels, cooperatives and cooperative unions.

- Concern for community.

Artels, cooperatives, cooperative unions and young people shall express their concern and work for the development of a community of their members featuring solidarity and mutual assistance, and the development of local, regional, national and international residential communities.

The Law on Cooperative 2023 takes effect on July 1, 2024.

Duong Chau Thanh

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