National Assembly deputies insisted
yesterday, Nov 17, that any changes to the Co-operative Law must recognise the
special status the organisations have in Viet Nam.

Photo: VNN

They
also insisted the changes must ensure that co-operatives have the same
discretion to make business decisions as other commercial entities.

The
Government made the Planning and Investment
Ministry responsible for overseeing changes to the Co-operative
Law and it, in turn, appointed the Central Institute of Economic Management to
draft the proposed amendments.

A major
objective of the proposed changes is to encourage and create conditions for the
establishment of many more co-operatives while ensuring that existing
co-operatives work in accordance with the law.

Other
important objectives are to ensure the rights and interest of millions of farmer
households; small to medium enterprises and million of consumers in the context
of the market economy and international integration.

The
draft law defines co-operatives as collective self-managing economic enterprises
based on their own capital and legally responsible for their financial
obligations. In their group discussions, many deputies worried about the
consequences of the law’s implementation.

They
also questioned seeming anomalies.

For
example, Deputies Dang Van Khanh, Nguyen Thi Hoa and Tran Thi Quoc Khanh, from
Ha Noi, asked why Article 4 of the draft legislation would require at least
seven founding members for a co-operative but only four for a “social economic
organisation” participating in Government-sponsored co-operative development
programmes.

Deputy
Nguyen Ngoc Hoa of HCM City argued that if the law acknowledged co-operatives as
commercial enterprises, they should enjoy the same status as all such
enterprises.

Their
members should have the rights to decide to invest where they thought the most
benefits could be earned, he said.

Priority

Deputy
Huynh Thanh Lap of HCM City said: “The priority of a co-operative is to produce
and supply goods or services to the market as well as generate jobs and income
for its members.

“It
means co-operatives must be understood as enterprises that benefit their
members.”

Deputy
Chu Son Ha of Ha Noi suggested that thoughts of making people’s credit
organisations into co-operatives should be abandoned.

“The
business of credit organisations is to make profits from borrowing and lending
money,” the deputy said.

“They
should be made answerable to the Credit Organisation Law.”

Many
deputies rejected a proposed tax holiday on the profits from supplying goods and
services for agricultural co-operative members.

“How can
we separate the profits gained from internal activities with external
activities?” asked Deputy Phuong Huu Viet of northern Bac Ninh Province.

The
deputy said that although he supported the Government’s preferential policies
for agricultural co-operatives, he would like the new law to clearly define
which organisations would have the responsibility to oversee their
implementation.

Many
deputies rejected an article in the proposed law that would prohibit
co-operatives from establishing affiliated companies or raise capital to buy
shares in other enterprises.

The new
law should define what type of enterprises co-operatives could create and what
activities they could engage in, said Nguyen Dang Trung of HCM City.

“These
are the ways and means that the co-operatives can generate profits for their
members.”

Protecting consumers

The Law
on Consumer Rights Protection was passed yesterday with 82.4 per cent approval.

The law
regulates the responsibilities of organisations and individuals that sell goods
and services to consumers, the responsibilities of State management agencies in
protecting consumer rights, and the mechanism for settling disputes between
consumers and businesses.

It also
enhances the legal status, roles, rights and responsibilities of social
organisations in protecting consumers.

Under
the law, organisational and individual businesses must publicly list the prices
of goods and services. They must also issue warnings of any negative effects
their goods and services may have on consumers’ health and property as well as
preventive measures to curb those effects.

Sellers
must also provide information of their capacity to supply spare parts and
components of goods; user guidance; and time period, location, deadline and
procedures for taking advantage of product guarantees.

Consumers have the right to know the origin of products, and to receive invoices
and documents related to transactions.

They
also have the right to seek compensation when goods do not meet standards of
quality, quantity and functions as publicised, committed or advertised by
sellers.

The law
lists eight groups of advertising activities that organisations and individuals
may not engage in to purposely confuse or entice customers.

The law
also includes rules for online trading. Online sellers must create conditions
for consumers to study contracts before signing. The Government will issue a
model contract and common transaction conditions for the trade of several
essential commodities and services.

The law,
which includes six chapters and 51 articles, will come into force on July 1,
2011.

Law on minerals

With
nearly 80 per cent of votes in favour, the amended Law on Minerals, which
includes 11 chapters and 86 articles, was also approved at yesterday’s session

Under
the law, organisations and individuals that wish to win rights to exploit
minerals must take part in State auctions to ensure transparency and publicity.
To increase
the State budget and avoid negative actions, they must also pay
fees for the exploitation rights which will be defined based on price, reserves,
quality of the minerals and other conditions.

The
Government will regulate methods to calculate the fees.

Provincial People’s Committees will grant exploration and exploitation licences
for small and scattered deposits of minerals which will be used for construction
materials or of peat. In all other cases, only the
Ministry of Natural Resources and Environment will have the
right to grant licences.

The Law
will take effect on July 1, 2011.

More
than 83 per cent of NA deputies agreed with a resolution of the National
Assembly’s supervision programme for 2011 and made plans to hold three meeting
sessions next year.

VietNamNet/Viet
Nam News