Cooperative Development Support Fund: Borrow right, use wisely

Disbursement of capital for many projects

In early 2025, Ms. Tran Thi Thanh, Director of the Nam Nui Danh Ginseng Production and Business Service Cooperative, Lan Tranh 1 village, Lien Chung commune (Tan Yen) received a loan of 500 million VND from the Cooperative Development Support Fund. Thanks to the loan from the Fund and some other sources, Ms. Thanh's family rented land to grow more than 2 hectares of Nam Nui Danh ginseng (increasing the total area of ​​the entire Cooperative to more than 10 hectares), invested in installing an automatic irrigation system, and purchased fertilizers. The newly planted ginseng area is growing and developing well.

Members of Hai Dang Pet Breeding Service Cooperative (Chu town) received loans to develop production.

Ms. Thanh shared that in order for capital to grow, maintaining and developing effective and sustainable production is an important factor. To do so, the Cooperative is focusing on building a large raw material area. In addition to the above area, the unit also maintains production links with many households inside and outside the province with a total area of ​​nearly 50 hectares. At the same time, it is interested in applying high technology, investing in product processing, and proactively seeking markets.

This year, the Cooperative registered to participate in the One Commune One Product Program with the dried Nam Nui Danh ginseng root product. Previously, the unit had a dried Nam Nui Danh ginseng flower bud product that achieved 3-star OCOP. In 2024 alone, the Cooperative will produce and consume about 6 tons of Nam Nui Danh ginseng root, more than 14 tons of fresh flowers, and nearly 3 tons of leaves for domestic and foreign markets; creating regular jobs for 15 workers with a salary of 10 million VND/person/month.

Recently, Mr. Tran Hai Dang, Director of Hai Dang Pet Service Cooperative (Tan Truong residential group, Thanh Hai ward, Chu town) also borrowed 500 million VND from the Cooperative Development Support Fund to develop production. With additional capital, his family invested in building 2 pet cages with a total area of ​​120 m2; installed a cooling system, ventilation fans, and a temperature measurement system. It is estimated that this year, nearly 100 pets will be supplied to the market in and outside the province. From this job, his family has a stable income of about 20 million VND per month.

These are 2 of 11 projects that have received loans (total amount of more than 4 billion VND) from the Fund since the beginning of 2025. Some other projects have also received loans such as: Investment in developing medicinal tea products and dried buds of Hang Anh Cooperative (Yen The); purchasing raw materials, processing agricultural products of Hanh Phuc Agricultural Cooperative (Viet Yen town); Chu noodle production of Trai Lam Noodle Production and Consumption Cooperative, Nam Duong commune (Chu town)... In which, the project that has received the most loan is 500 million VND, the least is 200 million VND; loan term is 1 year/project, interest rate is 0.46%/month. This capital source has become a fulcrum, helping cooperatives develop production, especially those units that have difficulty accessing credit capital.

It is known that in 2025, the Cooperative Development Support Fund will have a total capital of 31.2 billion VND (of which, the provincial budget is 30 billion VND, the rest is from the supplementary fund), 5 billion VND more than in 2024. The Fund's Executive Board strives to disburse 100% of the capital this year according to regulations.

Lending to the right target, effectively

To effectively promote capital resources, the Provincial Cooperative Union has established a Fund Management Board; regularly trains and improves the qualifications, management skills, and file appraisal for professional staff; and guides loan procedures quickly and accurately. Ms. Le Hong Van, Hanh Phuc Cooperative, Tang Tien Ward (Viet Yen Town) said: “The loan procedures are quite simple and quick. After completing the project description and feasible business plan, we were disbursed a loan of 400 million VND in January 2025. The cooperative has used the capital to invest in purchasing agricultural products for processing, increasing product value”.

The goal from now until 2028 is that the Provincial Cooperative Union strives to increase the number of cooperatives operating at good and fairly good levels to 60-80% of the total number of cooperatives through capital support.

During the process of reviewing and selecting loan recipients, the Fund distributed funds evenly across 10 districts, towns and cities; prioritizing disbursement to units operating effectively, cooperatives applying high technology, agricultural production associated with key products, and OCOP of the province. For a few projects with delayed interest and principal payments, the Fund's Executive Board focused on monitoring and preparing documents to handle overdue debts in accordance with the correct procedures, ensuring the principle of "capital preservation".

Ms. Nguyen Thi Thuy Dung, Director of the Fund, Vice President of the Provincial Cooperative Union, added that from 2024, the Fund will begin implementing the Charter of the Cooperative Development Support Fund for the period 2024-2028 approved by the Provincial People's Committee with many new contents and changes compared to the previous Charter of the Fund such as capital targets, capital use, some development orientations... In order to effectively implement lending work, the Fund's Executive Board actively propagates and disseminates new regulations to cooperatives and member units; coordinates to advise, support, and help borrowers build and complete projects and production and business plans.

In the coming time, the Fund will continue to innovate and perfect the management model in a modern direction; diversify short-, medium- and long-term lending forms to meet the needs of members and cooperatives; strengthen inspection and supervision of 100% of loan projects; resolve loan procedures quickly, in accordance with regulations, to the right subjects, and effectively; collect full principal, interest and fees according to the contract; implement well the accounting regime, synthesis and reporting work according to current laws. The goal from now until 2028 is to strive to increase the number of cooperatives operating with good and fairly good grades to 60-80% of the total number of cooperatives through capital support.

Article and photos: Mac Yen

Source: https://baobacgiang.vn/quy-ho-tro-phat-trien-hop-tac-xa-vay-dung-dung-kheo-postid417735.bbg