
Da Nang City, along with the whole country, is restructuring the People's Credit Fund (PCF) system to create a driving force for sustainable development in the coming time. Through the process of forming and developing the PCF system, in addition to outstanding achievements, there are also limitations that need to be overcome.
Effective capital channel in rural areas
The People's Credit Fund system was established in 1993 with the goal of mobilizing resources from the community to help people access banking services for economic development, especially in agricultural, rural, remote and isolated areas.
After more than 30 years of formation and development, the system of people's credit funds nationwide in general and Da Nang city in particular has been expanded, increasing access to banking services for people...
Mr. Truong Van Cuong's household (Cam Phu village, Go Noi commune) borrowed 400 million VND from the Go Noi People's Credit Fund from 2024 to invest in raising 50 3B cows. Up to now, Mr. Cuong has sold a batch of 3B cows and is preparing to sell another batch of 3B cows. Each 3B cow was bought for 20 million VND, after 10 months of raising in the barn, it was sold for an average of 40 million VND/cow.
“I raise 3B cows in the Go Noi riverside area, which has many advantages in terms of food, fresh air, and I take good care of the cows so they grow quickly and are almost disease-free. After deducting expenses, each 3B cow when sold brings in a profit of about 10 million VND. We access low-interest loans from the Go Noi People's Credit Fund to invest in raising 3B cows,” said Mr. Cuong.

Ms. Nguyen Thi Hang Nga, Director of Go Noi People's Credit Fund, said that the fund currently has 2,120 members contributing capital, lending farmers in Go Noi area a maximum of 600 million VND, a minimum of 10 million VND to buy agricultural materials for livestock, crop farming and investment in economic models. The lending interest rate of Go Noi People's Credit Fund is 5.5%/year (lower than the lending interest rate for poor households of the policy bank of 6.6%/year). Currently, Go Noi People's Credit Fund has an outstanding debt of 42 billion VND.
Mr. Dang Van Tinh, Planning and Inspection Department (Da Nang City Cooperative Union) said that recently, the People's Credit Funds in the area have flexibly mobilized members, increased charter capital and increased local mobilized capital, meeting the production and business needs of the people. The funds have ensured loans for the right purposes, promoted efficiency, limited the situation of black credit, and helped people build effective economic models.
Create new development momentum
Recently, the State Bank of Vietnam held a workshop to widely collect opinions on the draft Project "Overall restructuring of the People's Credit Fund system and Vietnam Cooperative Bank for the period 2025 - 2030, with a vision to 2045".

Deputy Governor of the State Bank Doan Thai Son said that, through the process of formation and development, the people's credit fund system, besides outstanding achievements, also revealed limitations.
Specifically, the connection between the People's Credit Funds and the Cooperative Bank is not tight; the growth of outstanding loans is still limited, and some People's Credit Funds even have negative growth. From this reality, it is necessary to promptly recognize and evaluate to restructure and improve the operation of the People's Credit Fund system, creating a big boost for the country's socio-economic development.
According to Deputy Governor of the State Bank Doan Thai Son, the orientation of the People's Credit Fund system in the coming time will continue to uphold the principle of "mutual support", focusing on serving farmers, small-scale producers, especially disadvantaged households, contributing to the goal of comprehensive financial development. The principle throughout the operation of People's Credit Funds is to put people at the center, leaving no one behind.
Mr. Pham Trong, Deputy Director of the State Bank of Vietnam, Region 9, said that restructuring the People's Credit Fund system in Da Nang city is very urgent to overcome limitations, promote achievements, and create new momentum for rapid and sustainable development of the People's Credit Fund system.
It is important to establish new credit funds as a lever for development in rural, remote and isolated areas. Accordingly, it is essential that credit funds in the area focus on capital regulation, liquidity support, risk control, provision of technology services and human resource training.
“Local credit funds need to encourage the development of green credit products, credit to support the conversion of high-tech agriculture, organic agriculture, and circular economic development, thereby meeting the goal of developing ecological agriculture and modern rural areas, which is a major policy of Da Nang city,” said Mr. Trong.
Currently, there are 3 People's Credit Funds operating in Da Nang city; in addition to the Go Noi People's Credit Fund, there are the Tay Dien Ban People's Credit Fund and the Dien Duong People's Credit Fund. Up to now, the total operating capital of the 3 People's Credit Funds is more than 525 billion VND, attracting 13,428 members. In recent times, all 3 People's Credit Funds have been profitable, exceeding their annual plans, affirming their role as effective capital mobilization and lending channels in rural areas.
Source: https://baodanang.vn/luc-day-cho-cac-quy-tin-dung-nhan-dan-3265356.html
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