Digital conversion is an inevitable need and driving force for development of cooperatives and cooperative unions

On September 23, at the Government headquarters, the 2022 Cooperative and Cooperative Economic Forum took place with the theme “Digital Conversion – The driving force for the development of cooperative economy and communal cooperatives in the new era associated with Resolution No. 20-NQ/TW dated June 16, 2022”. Prime Minister Pham Minh Chinh chairs and directs the Forum.

Prime Minister Pham Minh Chinh gave a directive speech at the Forum

The forum was held in person at the Government Headquarters, combined online at 63 provinces and centrally-run cities.

Attending the forum at the Government Headquarters bridge were Deputy Prime Minister Le Minh Khai; Ministers, Heads of ministerial-level agencies and Government agencies; leaders of central departments, ministries and branches; representatives of international organizations, experts, scientists; especially cooperative economic organizations and affiliated enterprises.

Representative of the Vietnam Cooperative Alliance, comrade Nguyen Ngoc Bao, Party Secretary, Chairman of the Vietnam Cooperative Alliance attended the Forum and gave a speech on Difficulties, problems and recommendations of cooperatives and cooperative unions in digital conversion.

The Vietnam Cooperative Alliance electronic information portal would like to post the full text of this important speech:

For cooperatives and cooperative unions, digital conversion is the process of applying digital technology and using databases to change the business model, in order to reduce costs, reach maximum customers, Increase productivity and efficiency of production and business, bringing benefits to members.

  1. Situation of recovery and development of production, business, and digital conversion of cooperatives and cooperative unions

1.1. In the first six months of 2022, cooperatives and cooperative unions, including cooperative groups, restore and develop production and business, positively contributing to price stability, economic growth, and job creation , social stability: The number of newly established cooperatives (Cooperatives), unions of cooperatives (LHHTX), cooperative groups (THT) and individual households and individuals participating in membership has increased significantly in most provinces, cities, especially the agricultural sector and rural areas (newly established 756 cooperatives, 11,050 cooperatives, 12 cooperative unions); Cooperatives, LHHTX, THT increase the quantity and value of services provided to members, create jobs for members and workers, the cooperative’s revenue increases by an average of 5.6% over the same period in 2021, the cooperative operates Shipping, trade and credit achieved high revenue; Most cooperatives and cooperative unions are profitable but not high due to increased input costs; Non-agricultural cooperative members’ income increased by 6% over the same period in 2021. The recovery and development of production and business of   Cooperatives and LHHTXs has many reasons, including: (1) Many cooperatives and LHHTXs have Access and benefit from the State’s support policies in the Socio-Economic Recovery and Development Program on land rent reduction, corporate income tax extension, value added tax reduction, debt restructuring at credit institutions, preferential loans from the Cooperative Development Support Fund under the Vietnam Cooperative Alliance system; support from the Unemployment Insurance Fund; (2) Cooperatives and LHHTXs are gradually implementing digital conversion in input supply, farming, processing, traceability, branding, and diversifying domestic and export product consumption channels.

1.2. Some results achieved on digital conversion of cooperatives and cooperative unions

(1) Many cooperatives and cooperative unions use information technology application platforms, data management software with formatted computer files, exchange information, manage input and output activities, etc. ; retrieve information and product origin; Use electronic invoices in payment activities. 65% of cooperatives surveyed in June 2022 by the Provincial Cooperative Alliance used digital technology to varying degrees to manage production and business activities. Many cooperatives and cooperative unions in the fields of agriculture, industry and services have applied digital technology effectively due to qualified staff, ready to access new technology, linked to the value chain and approved by the State and other organizations. Support from domestic and foreign organizations.

(2) Many agricultural, industrial and handicraft cooperatives and cooperatives apply high technology (drip irrigation, drum drying ovens, wet coffee processing, etc.), and produce branded products (OCOP, organic, GlobalGap,…), consuming products through e-commerce (Facebook, Zalo, Fanpage, Group, Shopee, Sendo, Tiki, Voso, Postmart,…), Electronic sales floor of the Vietnam Cooperative Alliance Male. Transport cooperatives invest in equipment and software to manage itineraries, customers and bills of lading, and integrate automatic non-stop payments; Commercial cooperatives invest in expanding warehouses and stores, equipment to apply sales software, and manage import and export of goods; Cooperative Banks and People’s Credit Funds promote digital conversion in operational organization and service provision.

(3) Many cooperatives and cooperative unions carry out digital conversion, changing operations compared to traditional management methods; improve quality and operational efficiency. Cooperatives and cooperative unions have made progress in awareness of digital conversion in production and business activities, investment in infrastructure equipment and application of input and output information technology, reducing time spent searching for information on the platform. digital platform, saving storage space and management costs, improving work efficiency. According to a survey by the end of June 2022 conducted by the Provincial Cooperative Alliance, 83.5% of surveyed cooperatives believe that digital conversion is necessary, 18.9% of cooperatives have a conversion plan. Number, 68% of cooperatives use at least one of the online introduction and sales methods.

1.3. Existence, weakness and causes

(1) The digital conversion process of cooperatives and cooperative unions is slow; According to a survey by the Provincial Cooperative Alliance, about 50% of surveyed cooperatives do not have a digital conversion orientation or plan; Administrators in many cooperatives are not determined, have not been able to propagate and spread to members about the benefits of digital conversion, which is an inevitable need, bringing efficiency and competitiveness.

(2) The information infrastructure of most cooperatives is low, outdated, and does not meet the requirements of the digital conversion process; Many cooperatives do not yet have a working headquarters. The cooperative’s administrative staff and human resources are limited in understanding and practicing digital skills, such as: Database building skills, skills in using digital devices, and search skills. finding, evaluating and managing information on digital devices, skills in using software in the production process, digital communication skills (through websites, e-commerce sites, social networks), skills ecommerce; Electronic payment skills,…

(3) The application of utility software has not been paid attention; Application of digital technology in market search, analysis and forecasting is still limited; Electronic payment accounts for a low proportion in cooperatives in remote areas, asset management is by paper books.

(4) Digitization of data of most cooperatives and cooperative unions is at a low level (digitization of information, documents, vouchers, books, etc.); It is not possible to transfer production and business management activities to cyberspace, from traditional environments to digital environments to transform operating models based on digital technology and digital data.

Reasons: (1) A large proportion of cooperatives, especially in the agricultural sector, are small and micro-scale, producing and consuming products still following traditional models, not seeing the urgent need for digital conversion. ; (2) The awareness of administrators and members of many cooperatives and cooperative unions about digital conversion is still limited; lack of resources and basic conditions for digital conversion such as information infrastructure, finance and human resources with digital conversion skills; (3) Decision No. 749/QD-TTg dated June 3, 2020 of the Prime Minister approving the “National digital conversion program to 2025, orientation to 2030” does not specifically stipulate the subjects of application. Using and benefiting from policies are cooperatives and cooperative unions; The database of industries and fields (agriculture, industry and services) nationwide and locally has not been collected synchronously and has not been made public for cooperatives and cooperative unions to access and use.

  1. Suggestions and recommendations

Digital conversion is an inevitable need and driving force for development of cooperatives and cooperative unions. In addition to self-mobilizing resources to carry out digital conversion , ensuring autonomy, self-responsibility, and improving governance and competitiveness; Cooperatives and Cooperative Federations propose and recommend to State agencies, party committees and local authorities as follows:

(1) Institutionalize the policy in Resolution No. 20-NQ/TW June 16, 2022 of the Fifth Conference of the 13th Party Central Committee on continuing innovation, development and improving economic efficiency collective in the new period “Supporting collective economic organizations to accelerate the digital conversion process” in the Law on Cooperatives (amended) and the Master Program on collective economic development nationwide, with Specific regulations for collective economic organizations to access and enjoy resources to support digital conversion.

(2) Build and create conditions for cooperatives and cooperative unions to access and use databases of industries and fields in the socio-economy to build and apply digital conversion applications to serve products. business.

(3) Issuing instructions on digital conversion for cooperatives and cooperative unions according to industries and fields managed by ministries, branches and localities based on the assigned tasks in Decision No. 749/QD- Circular dated June 3, 2022 of the Prime Minister such as: Propaganda work, raising awareness about digital technology, digital economy and digital conversion for cooperatives, cooperative unions and members; training and coaching on information technology; digital conversion knowledge and skills; Digital conversion solutions for all types of cooperatives and cooperative unions; basic equipment support for digital conversion; Support young human resources with expertise to work for a limited time at Cooperatives, Unions…

(4) Addition of Cooperatives and LHHTX as participants in the Vietnam National Brand Program according to Decision No. 1320/QD-TTg dated October 8, 2019 of the Prime Minister approving the Vietnam National Brand Program From 2020 to 2030, create conditions for cooperatives and cooperative unions to access this resource.

(5) Develop, publicize and organize the implementation of specific value chain plans for key national and provincial agricultural products, associated with high technology application and digital conversion; Along with that, policies are issued to mobilize resources to support economic sectors in agricultural value chains such as land rent, capital contribution with land use rights, credit, taxes, and tree insurance. farming and livestock, digital conversion, human resource training, investment in production and information infrastructure, traceability, brand building…

(6) Consider and grant additional charter capital to the Vietnam Cooperative Development Support Fund and the Provincial Cooperative Development Support Fund according to the provisions of Decree No. 45/2021/ND-CP dated March 31, 2021 of the Government on the establishment, organization and operation of the Cooperative Development Support Fund, in order to have loan capital to support cooperatives and cooperatives in implementing digital conversion, expanding scale and improving production and business efficiency. joint; Up to now, the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs have issued Circulars guiding the implementation of Decree No. 45/2021/ND-CP, providing enough legal corridor for provinces and cities to establish and Cooperative Development Support Fund activities.

Le Huy

Source: Inoste

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