Tho Nghiep People's Credit Fund: A fulcrum for poverty reduction and new rural development

Over 30 years of formation and development (1994-2024), the Tho Nghiep People's Credit Fund (QTDND) in Xuan Truong district, Nam Dinh province, has fulfilled its mission and nhiệm vụ assigned by the Party and the State: serving as a banking credit channel for the people, operating for the benefit of its members, and contributing to the elimination and prevention of illegal lending and usury among the local population.

Create deep, strong roots for growth.

As one of the first pilot funds in Nam Ha province (now Nam Dinh and Ha Nam provinces), Tho Nghiep People's Credit Fund was established and began operating in early 1994 with a meager capital of just over 15 million VND and 18 members. According to Mr. Ngo Van Thiep, Chairman of the Board of Directors of Tho Nghiep People's Credit Fund, the early years of operation were very difficult. The staff worked only three days a week, earning meager wages, but they always remained united, dedicated, and determined to build the fund into a stable entity.

Capital support for people to develop their economy.

In particular, despite the challenging early days, the fund always prioritized professional training and the strengthening of its management, supervisory, operational, and staff. The fund gathered dedicated, qualified, capable, experienced, and reputable personnel working within the Party, government, and agricultural cooperatives to receive intensive training in banking operations at the State Bank of Vietnam branch in Nam Ha province (now Nam Dinh province). This training aimed to acquire fundamental knowledge and experience in monetary business operations as required by the State Bank of Vietnam.

This is a prerequisite for the People's Credit Fund to be qualified to nominate and assign important positions in its management and operational structure. The staff of the People's Credit Fund, from its inception to subsequent generations, has been fundamentally stable, possessing high political awareness and responsibility, a spirit of unity and solidarity, dedication to the Fund, diligence, and a proactive approach to learning and self-improvement. 100% of the Fund's staff have received training in advanced credit operations from the State Bank of Vietnam and the Banking Academy, as well as courses on credit and monetary operations from relevant functional agencies. 100% of the Fund's current staff hold university degrees.

The staff of the People's Credit Fund regularly update and thoroughly disseminate the Party's guidelines and policies, the State's laws, decisions, decrees, and circulars of the Government and relevant ministries, as well as the timely guidance of the State Bank. They also seek the support of the Party Committee, the government, and the people of the two communes. They actively train and study in all aspects to continuously improve their skills, abilities, and experience, closely adhering to the goals and programs of socio-economic development set by the local Party Committee and Government, and the resolutions of the General Assembly of members. They promptly update information channels, especially the guidance, announcements, and warnings, both sudden and regular, from the State Bank, and actively learn from the experiences, methods, and techniques of other funds operating effectively. They closely monitor developments in the monetary market. Take mistakes and weaknesses seriously, stay close to the local area, understand and be familiar with customers and members in order to mobilize deposits and make lending decisions correctly, effectively, quickly, and efficiently.

Continuously innovating to better serve our members.

After 10 years of establishment, consolidation, improvement, and stable development, in 2004, with the agreement of the Party Committee and the government of Xuan Phu commune, the State Bank of Vietnam, Nam Dinh branch, granted permission for Tho Nghiep Credit Fund to expand its operations to Xuan Phu commune. From then on, thanks to the leadership and support of the Party and government of both Tho Nghiep and Xuan Phu communes, Tho Nghiep Credit Fund has continued to develop.

Bringing digital banking products to the people.

In 2016, with the support and assistance of the Nam Dinh branch of the Cooperative Bank, the Tho Nghiep Credit Fund, after meeting all the requirements regarding personnel, information technology skills, infrastructure, and capital, was licensed by the Nam Dinh branch of the State Bank of Vietnam to provide electronic money transfer services and perform collection and disbursement operations for members through the cooperative bank's CF-ebank system.

From this point, the fund's position was significantly enhanced; members no longer had to go to banks to transfer or receive money, but could conduct transactions directly at their local community credit fund. This also led to a substantial increase in the fund's deposits.

In 2024, Tho Nghiep People's Credit Fund was one of nine funds selected to pilot the model of opening accounts for the Cooperative Bank, and was approved by the State Bank of Vietnam, Nam Dinh branch, with Decision No. 627/NADD-TTGS dated May 24, 2024. This demonstrates the development of the credit fund system in general and Tho Nghiep People's Credit Fund in particular in the development of digital banking and cashless payments. Tho Nghiep People's Credit Fund also successfully implemented the Market 4.0 plan dated June 7, 2024, of the Xuan Truong District People's Committee regarding cashless payments.

At Tho Nghiep People's Credit Fund, members and citizens alike feel a sense of closeness and familiarity, not only because the fund's staff are close to the people, but also because the board of directors, supervisory board, and executive board, down to each individual fund employee, are well-mannered, cultured, sincere, and thoughtful. They always respect and listen to the opinions and suggestions of customers and members. When incidents arise, they have appropriate, harmonious, reasonable, and compassionate solutions. Unity, respect, love, and support for customers and members create a friendly, democratic, and highly consensual atmosphere in the fund's operations. The fund considers these actions to be the most important factors, the ethical principles, and the foundation for achieving the goals and plans set forth by the member representative congresses in each term and the annual representative congresses.

As of October 31, 2024, the Tho Nghiep People's Credit Fund had 1,941 members. The fund's total capital reached VND 243,923 million, with charter capital of VND 5,279 million and reserves of VND 8,662 million. Deposits at the Cooperative Bank, Nam Dinh branch, amounted to VND 77,658 million. Outstanding loans reached VND 162,472 million, an increase of VND 26,518 million compared to 2020. The loan capital provided by the Tho Nghiep People's Credit Fund has contributed to strengthening the potential and capabilities of its member customers, directly impacting the growth, transformation of the capacity, status, and appearance of families, farms, workshops, or businesses, creating jobs and income for member families. In particular, the rapid increase in the volume of social products has contributed to poverty reduction, building a new life, and creating a new face for rural areas with hundreds and thousands of road construction projects, houses, means of transportation, and expensive household consumption. These results have actively contributed to the successful achievement of the socio-economic development goals of the localities by the Party Committee and people of Tho Nghiep and Xuan Phu communes.

Mr. Tran Cong Trung, Secretary of the Party Committee of Tho Nghiep commune, acknowledged that the Tho Nghiep People's Credit Fund (QTDND) has contributed to the successful implementation of the commune's Party Committee Resolution by providing capital and banking services to help people develop their economy. "The commune cares about and trusts the fund's staff. Although a small force, the QTDND is a bright spot in Tho Nghiep commune. Especially since its establishment, through the Party Committee's guidance and management, the fund's operations have become even more effective by integrating the commune's economic development strategies and plans into its credit development direction," Mr. Trung stated. To date, Tho Nghiep commune is striving to achieve advanced new rural standards. Currently, the average per capita income in the commune is over 80 million VND, with the poverty rate at only 0.12%.

In addition, Tho Nghiep People's Credit Fund has done quite well in social welfare work such as visiting Vietnamese Heroic Mothers during Tet holidays, encouraging young people to enlist in the national defense mission, supporting charitable funds of local organizations and associations in the area of ​​operation, and giving gifts to outstanding students in the area on holidays, historical events, and local movements.

On April 16, 2024, Thọ Nghiệp People's Credit Fund was honored to be selected as one of 12 credit funds nationwide, along with 88 cooperatives, to receive the 2024 Cooperative Star Award. Building upon the achievements of 30 years of development and growth, and with the breakthrough efforts of each staff member in the coming time, Thọ Nghiệp People's Credit Fund will continue to be a leading example in the People's Credit Fund system in Nam Định province.