Vietnam and Germany sign MoU on co-operatives development

Minister Nguyen Chi Dung and first secretary of the German Embassy Luisa Bergfeld witness the signing ceremony between DGRV and Co-operative Development Agency (Source: MPI)

On January 22, 2018, German Co-operative and Raiffeisen Confederation (DGRV) and Co-operative Development Agency of the Vietnamese Ministry of Planning and Investment (MPI) signed an MoU towards the common goal—the development of the co-operative sector in Vietnam. The MoU included a number of significant activities, such as exchanging information and expertise, collaboration in joint research, and organising a training programme for officials and co-operative managers.

In Vietnam, co-operatives make up one of the most important economic sectors that provides services for millions of households and connects their production, promoting higher productivity and better quality products as well as link them with enterprises involved in selling, marketing, and processing.

At the signing ceremony, Minister of Planning and Investment Nguyen Chi Dung said that in recent years, since the Law on Co-operatives 2012 was enacted, the sector showed positive changes in quality and effectiveness, presented more clearly contributions of co-operatives in Vietnam’s socioeconomic development.

Currently, Vietnam has nearly 20,000 co-operatives, more than half of which are agricultural co-operatives. The revenue and income of workers in co-operatives have been enhanced, contributing to eliminating poverty and hunger, bringing economic and political stability to the communities.

“Nevertheless, the co-operative sector has only contributed 4 per cent to Vietnam’s GDP, and showed many weaknesses and difficulties. Many co-operatives still produce on a small scale, with low capital and out-dated equipment, with great difficulties in accessing the market and joining the value chain,” said the minister.

Meanwhile, after more than 80 years of development, Germany now has a leading system of co-operatives that makes key contributions to the German economy and the agricultural sector.

“Therefore, I believe that through valuable experiences and practical and effective support, DGRV will be able to contribute greatly to the development of co-operatives in Vietnam. Through our efforts and commitment, we will be able to achieve more success and continue to develop even stronger bilateral relations and friendship between the people of Vietnam and Germany, especial in the co-operatives sectors of the two countries,” noted Minister Dung.

Luisa Bergfeld, development counsellor and first secretary of the German Embassy in Vietnam, said that DGRV is one of the cradles of the co-operative economy model in Europe, with traditions reaching back to the 19^th century. Thereby, DGRV will support Vietnam to develop and transform the co-operatives sector through providing short-term and long-term advisory and sharing professional experiences.

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