THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No: 15/CP
Hanoi, February 21, 1997
 
DECREE
ON POLICIES TO PROMOTE THE DEVELOPMENT OF COOPERATIVES
THE GOVERNMENT
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Law on Cooperatives of March 20, 1996;
At the proposal of the Minister of Planning and Investment, 
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.-
The cooperatives and Unions of Cooperatives belonging to various branches and fields of the national economy and People's Credit Funds, which have been granted business registration certificates in accordance with the Law on Cooperatives (hereafter referred to as Cooperatives) are entitled to policies on encouraging the development of cooperatives in accordance with the provisions of this Decree.
Article 2.-
In addition to policies provided for in this Decree, the cooperatives are also entitled to other preferential policies (if any) in accordance with the provisions of law.
Chapter II
POLICIES ON ENCOURAGING THE DEVELOPMENT OF COOPERATIVES
Article 3.-
The cooperatives which have been assigned or leased land by the State in accordance with the provisions of the land legislation shall be assured of the rights and subject to the obligations of the organizations to which the State assigns or leases land as prescribed by law and shall be granted certificates of land use right.
Article 4.-
1. The cooperatives engaged in agricultural and forestry production, aquaculture and salt production, which are assigned land by the State shall not have to pay the land use levy.
2. The cooperatives in rural mountainous regions and islands which supply direct services to agricultural and forestry production, aquaculture and salt production, shall be exempt from land rent for the first 5 years.
Article 5.-
The cooperatives which have been granted business registration certificates according to the Law on Cooperatives and which are land lessees are entitled to a 50% reduction of land rent for the first two years. Where the land use levy had been paid earlier to the State, such levy shall be handled in accordance with the provisions of the land legislation.
Article 6.-
The cooperatives which have been granted business registration certificates according to the Law on Cooperatives are entitled to the exemption and/or reduction of turnover and/or profit taxes in accordance with the provisions of the laws on turnover tax and profit tax as is the case with the newly established establishments.
Article 7.-
The cooperatives engaged in offshore fishing or located in highland regions and islands or other difficult areas as defined by the Government, shall be exempt from turnover and profit taxes for two years from the date when they are granted business registration certificates in accordance with the Law on Cooperatives.
Service activities of cooperatives in rural areas which directly serve cooperative member households engaged in agricultural, forestry, fishery and salt production; irrigation services; the supply of electricity to peasant households; and cooperatives engaged in manual loading and unloading shall be exempt from turnover and profit taxes for two years from the date when they are granted business registration certificates in accordance with the Law on Cooperatives.
Article 8
Dependent cost-profit accounting business establishments attached to a cooperative or belonging to a family household and/or an individual, which are members of a cooperative and assigned tasks by that cooperative, shall not have to directly pay business-license tax which shall be paid by the cooperative.
Production means of cooperative members, which are contributed as capital to a cooperative and as shares of cooperative members, if assigned to other members of the same cooperative shall be exempt from registration fee.
Article 9
In addition to business loans (including medium- and long-term loans) from commercial banks under conditions and at interest rates prescribed by the banks, the cooperatives shall also be entitled to borrow capital from socio-economic programs, the National Fund for Employment, National Investment Assistance Fund and other investment development funds of the State in accordance with the provisions of the Government. They are also entitled to receive and carry out investment projects through various sources of capital and aid from foreign countries and international organizations, if they meet conditions set by the State.
Article 10.-
Cadres involved in the management, administration and control of cooperatives are entitled to a 50% reduction of school tuition if they are sent to study at institutions belonging to the State training system and the training system of the Union of Vietnamese Cooperatives.
Article 11.-
The Ministry of Planning and Investment shall assume the main responsibility and coordinate with the Ministry of Finance in elaborating plans to provide fund for the training and fostering of managerial cadres of cooperatives; fund for the research and elaboration of programs on professional training and fostering suited to learners which are cadres and members of cooperatives within the training system of the State and the training system of the Union of Vietnamese Cooperatives.
Article 12.-
The State managerial agencies and the State's sale promotion organizations shall have to provide guidance, create conditions for managerial cadres of cooperatives to have access to, research and survey domestic and foreign markets; introduce and display products at exhibitions and fairs inside and outside the country.
Article 13.-
A cooperative specializing in the production of goods for export, which have overseas outlets is entitled to directly export their products and import materials, equipment and machinery needed for the production in accordance with the regulations of the State.
A Union of Cooperatives which has been registered in accordance with the Law on Cooperatives and has 50% of its members being cooperatives directly engaged in the production of goods for export, is entitled to direct export and import in accordance with the regulations of the State.
The cooperatives and Unions of Cooperatives specializing in import-export business shall have to meet conditions prescribed by law and obtain a minimum working capital equivalent to 100,000 USD, as stipulated in Decree No.33-CP of April 19, 1994 of the Government. The Ministry of Trade shall grant import-export permits to the cooperatives and Unions of Cooperatives in accordance with the regulations of the State.
Article 14.-
The cooperatives are entitled to enter into joint venture, business cooperation and economic relations with State enterprises in the forms of subcontracts, supply contracts, processing contracts and contracts on the consumption of semi-products of cooperatives, contracts on helping the cooperatives create markets, train skills and renew and transfer technology.
Article 15.-
The Ministry of Labor, War Invalid and Social Affairs shall assume the main responsibility and coordinate with the related ministries and branches in guiding the payment of social insurance premiums for cooperative members, according to the characteristics of each type of cooperative and current legislation.
Chapter III
IMPLEMENTATION PROVISIONS
Article 16.-
This Decree takes effect 15 days after the date of its signing. The earlier stipulations which are contrary to this Decree are now annulled.
Article 17.
The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government and the President of the Federation of Vietnamese Cooperatives shall have to implement this Decree.
 
 
ON BEHALF OF THE GOVERNMENT
 FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER


Phan Van Khai