A foundation for people to develop their economy.

With the advantage of being close to the people and operating with the goal of mutual support and assistance to help members develop economically, the People's Credit Fund (TDND) system in the province has affirmed its role in promoting access to financial services, always accompanying and becoming a reliable address for people to deposit savings and borrow capital for production and business.

Many households in Thang Loi village, Van Loc commune, have received loans from the Ngu Loc People's Credit Fund to invest in effective economic development.

The Ngu Loc People's Credit Fund operates in Van Loc and Hoa Loc communes. The fund has actively mobilized local capital to provide sufficient and timely loans to members for production and business development. To date, the fund has over 5,000 members with a total capital of nearly 500 billion VND. Thanks to attracting a significant amount of idle money from the people, the fund has been able to boost investment in households engaged in processing and exploiting seafood, as well as production and service businesses. The fund's capital has provided loans to nearly 2,000 members, with outstanding loans exceeding 360 billion VND. Members have used the loans for their intended purpose, effectively, and repaid on time, with the overdue rate below the regulated level. Simultaneously, the fund has played a role in the economic development of its members, limiting the prevalence of illegal lending, contributing to social security, and has been highly appreciated by the local government.

Visiting the seafood processing facility of Ms. Nguyen Thi Thuy's family in Chien Thang village, Van Loc commune, we learned that from a small-scale, self-organized household, her family received a loan from the Ngu Loc People's Credit Fund to invest in expanding their processing plant and cold storage for exporting seafood. To date, the family's facility purchases hundreds of tons of seafood annually, selling it to many provinces and cities nationwide, providing regular employment for 20 workers and dozens of seasonal workers. Thanks to the practical and timely capital from the fund, her family has developed their economy effectively, achieving legitimate wealth right in their homeland.

As of the end of May 2026, there were 67 People's Credit Funds (PCFs) in the province; of which 64 were operating normally, and 3 were under special supervision. These funds were licensed to operate in 69 communes, with a total of nearly 13,000 members. The PCF system in the province has shown positive growth, ensuring safety, efficiency, and development. Most funds have effectively utilized local capital, meeting the capital needs for production, business, services, and the lives of members, contributing to the goals of community mutual assistance, poverty reduction, and curbing usurious lending in rural areas. Along with focusing on lending activities, the funds have also strengthened loan control, ensuring loans are used for the right purposes, to the right recipients, and are effective. The non-performing loan ratio of PCFs has consistently remained low, at 0.2% of the total outstanding loans. The development of people's credit funds not only provides local capital for economic development and facilitates depositors and borrowers, but also clearly demonstrates the humane nature of this type of monetary business cooperative in poverty reduction, reducing usurious lending and its distorted forms, thereby contributing to ensuring social order in rural areas.

Despite the achievements, the people's credit fund system in the province still has some shortcomings and limitations, such as: Some funds prioritize profit over compliance with regulations; some Party committees and authorities still do not pay sufficient attention to the activities of people's credit funds; the management capacity of fund officials is still limited, and digital transformation is slow, making it difficult to compete with commercial banks; some funds still face difficulties and obstacles regarding land for building offices, affecting the physical infrastructure, safety, and long-term stability of operations...

To address the existing shortcomings and limitations, and to ensure the stable, safe, and sustainable operation of the People's Credit Fund system, the State Bank of Vietnam, Branch 7, continues to promptly implement new policies and guidelines of the Party and State related to the operation of People's Credit Funds; continues to implement measures to improve the quality, effectiveness, and efficiency of inspection, examination, and supervision to strengthen management, rectify, and consolidate the operation of the People's Credit Fund system. It will strengthen coordination with the Cooperative Bank and the Deposit Insurance Corporation in managing, inspecting, and supervising the operation of People's Credit Funds. At the same time, it will proactively coordinate with local authorities and relevant agencies in the area to gather and exchange information, prevent risks, promptly detect violations in the operation of the People's Credit Fund system, and resolve problems within its authority. Strengthen inspection, supervision, and thematic audits, promptly warn, correct, and strictly handle funds that violate regulations and procedures, and check the rectification of shortcomings and violations according to inspection and audit conclusions. At the same time, people's credit funds should also promote propaganda and mobilize members to boost local capital mobilization; improve financial capacity by increasing charter capital and attracting new members based on the linkage between expanding capital sources and supporting members in accessing loans.

Text and photos: Duc Thanh

Source: https://baothanhhoa.vn/diem-tua-de-nguoi-dan-phat-trien-kinh-te-289112.htm