Perfecting the deposit insurance payment mechanism

Customers are protected by their legal rights and interests when depositing money at people's credit funds. In the photo: People deposit money at Thai Hoc People's Credit Fund, Chu Van An ward.

People's credit funds in the city not only support people in accessing capital and developing the rural economy , but are also protected by deposit insurance policies, providing peace of mind when depositing money.

"Certificate" of faith

Ms. Nguyen Thi Nhung, in Ninh Chap 5 residential group, Chu Van An ward, is a long-time member of Thai Hoc People's Credit Fund (QTDND). Her family runs a general grocery store, so when she has surplus capital, she deposits it in the fund. When she wants to import more goods and needs capital, she borrows from the fund. Thanks to the timely supply of capital, the store's business cash flow is more proactive, and revenue has increased significantly. The family's income has improved and she does not have to borrow money from outside at high interest rates, leading to financial pressure like before. Ms. Nhung's family is borrowing 800 million VND from Thai Hoc QTDND to import goods to serve the Lunar New Year of Binh Ngo in 2026.

Or like the family of Mr. Nguyen Dinh Nam, Ninh Chap 7 residential group, Chu Van An ward, has also been a member of Thai Hoc People's Credit Union for many years. Mr. Nam's family is borrowing 1.2 billion VND to invest in machinery, renovate and upgrade production facilities, and supplement working capital. In the near future, Mr. Nam's family plans to continue borrowing more capital to expand their business.

Ms. Nguyen Thi Nhung and Mr. Nguyen Dinh Nam both said they were very secure when the fund participated in deposit insurance (DI), and their rights were protected. Ms. Vu Thi Vi, in Ninh Chap 7 village, currently saving 1 billion VND at Thai Hoc People's Credit Fund, also shared: "When I have temporarily idle money, I always deposit it in the fund to earn interest for peace of mind. I do not deposit money outside, because although the interest rate is high, it has many potential risks, and I can lose all the money I deposit."

Up to now, the total operating capital of Thai Hoc People's Credit Fund is 260 billion VND. Of which, the capital mobilized from savings deposits from people is 240 billion VND. Total outstanding loans are 181 billion VND, specifically, short-term loans are 168 billion VND and medium-term loans are 13 billion VND. Most of the loans are for production, business, services, life and household economic development. According to Mr. Vu Dinh Hoanh, Chairman of the Board of Directors of Thai Hoc People's Credit Fund, granting the fund a certificate of participation in the Social Insurance is a "certificate of trust". Thanks to the companionship of the Social Insurance, the fund operates stably, minimizes financial risks and enhances its reputation with customers.

Mr. Hoang Van Tuong, Chairman of the Board of Directors of Doan Tung People's Credit Fund in Nguyen Luong Bang Commune, informed that the deposit insurance policy encourages people to deposit money officially instead of keeping money outside the system, helping the fund to be more proactive in mobilizing and allocating capital. From there, the fund increases the efficiency of credit operations, sustainable and safe development.

Ms. Nguyen Thi Nhung, Chu Van An ward, does effective business with loan capital from Thai Hoc People's Credit Fund.

Set up protection mechanisms

In recent years, along with the development of the financial and banking system, the People's Credit Funds in the city have helped people easily access credit sources, develop production and business, build new rural areas, and reduce poverty sustainably. During the operation of the People's Credit Funds, the Government 's deposit insurance policy has contributed to effectively protecting the legitimate rights and interests of depositors. The Vietnam Deposit Insurance operates under the model of a single-member LLC with 100% state-owned charter capital, operating not for profit. This is also a system established to protect depositors from losses on insured deposits when a bank is unable to meet its obligations to depositors.

After implementing the 2-level local government, from September 15, 2025, the Northeastern Regional Deposit Insurance Branch will supervise 148 People's Credit Funds in 6 provinces and cities including: Hai Phong, Cao Bang, Lang Son, Thai Nguyen, Quang Ninh and Bac Ninh . Hai Phong alone has 97 People's Credit Funds, of which the most concentrated are in the Western region with 71 units and the Eastern region with 26 units. In 2025, the areas under the management of the Northeastern Regional Deposit Insurance Branch will not incur payment obligations. Nationwide, the Vietnam Deposit Insurance currently protects more than VND 9.5 million billion in insured deposits for about 130 million depositors, at 1,277 participating institutions.

The National Assembly is collecting opinions to amend and supplement the 2012 Law on Deposit Insurance to suit the reality. It can be said that this amendment to the Law on Deposit Insurance demonstrates the strong commitment of the Party and State to protect depositors and consolidate the stable and sustainable development of the financial and banking system.

Mr. Nguyen Dinh Nam (in black shirt), owner of a ceramic and porcelain shop in Chu Van An ward, is a long-time customer of Thai Hoc People's Credit Fund.

Mr. Luong Tran Chung, Director of the Vietnam Deposit Insurance Branch in the Northeast region, commented that in order for the Deposit Insurance Law to be consistent with reality and truly put into practice, there are some important points that need to be focused on, perfected and revised. Specifically, adjusting the time when the obligation to pay insurance premiums arises earlier than the current law; perfecting the mechanism for quick and transparent payment when risks occur; and shortening the payment time.

In addition, the legalization of the implementation of inspections of organizations participating in the Deposit Insurance Scheme according to the plan and content assigned by the State Bank aims to strengthen the role of the Deposit Insurance of Vietnam in supervision. Inspect and handle weak credit institutions, allowing the Deposit Insurance Scheme to deeply participate in the process of early warning, intervention and handling of failed banks... to ensure system safety.

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