He made the instruction during a working session in Hanoi on June 21 with the Vietnam Cooperative Alliance (VCA).
He said the household-based economy model is not strong enough to compete in the current market economy so that there should be a professional linkage among them towards sustainable development to meet public demand.
The PM admitted shortcomings in the State support and management of cooperatives, adding that infrastructure for production in rural and mountainous areas has been downgraded, thus failing to meet demand for high-scale and hi-tech manufacturing.
The leader asked localities to refine mechanisms and legal regulations to develop value chain from manufacturing to consumption.
The Government will continue issuing new documents relating to cooperatives, he stressed.
Localities need to consider the transfer of new technologies and varieties, processing and consumption, build new-style cooperatives and value chains, focusing on agricultural cooperatives, he said.
Minister of Planning and Investment Nguyen Chi Dung, who is also deputy head of the Steering Committee for Innovation and Collective Economy Development, said only 30 percent of cooperatives nationwide are working effectively.
In order to deal with difficulties regarding workforce, manufacturing tools and consumption, he called for the support of Party units and local authorities in the effort.
Chairman of the southern Lam Dong provincial chapter of the VCA Pham Van Tuong said the province is now home to 128 cooperatives and 2,900 working groups with 86,000 members working in almost cities and districts in different sectors. In particular, agricultural cooperatives contributed 80 percent to the locality’s total export value.
He also appealed for the State support in case local firms meet difficulties regarding capital, consumption, planning, manufacturing orientations and seedlings.
Deputy head of the Steering Committee for Innovation and Collective Economy Development and VCA Chairman Nguyen Ngoc Bao said 20,767 cooperatives are operating nationwide with 6.5 million members, up 200,000 from the late 2017.
He said VCA will launch 8 economic development schemes, and build 500 models of manufacturing cooperatives in tandem with value chain for the 2018-2020 period in 63 cities and provinces nationwide in the near future.
