Ho Chi Minh City: People's credit funds operate stably

People's credit funds in Ho Chi Minh City have low bad debt ratio; stable operations contribute to improving members' lives, limiting usury, promoting local economic development, especially in rural areas.

An Thanh People's Army Headquarters in Binh Duong Province (old) now Ho Chi Minh City. Photo: Quang Phuong

Ho Chi Minh City People's Committee has just issued Report No. 210/BC-UBND summarizing the implementation of restructuring the system of credit institutions (CIs) associated with bad debt settlement in the period from 2011 - 2025.

In the period of 2011-2025, the restructuring of the people's credit fund system in the area has achieved certain results, gradually affirming the position and role of the cooperative credit institution model, contributing to improving the lives of members, limiting usury, especially in rural areas, and developing the local economy .

The operations of the People's Credit Fund system generally comply with the provisions of law and the direction of the State Bank of Vietnam (SBV) on local Party committees and authorities, in line with the goals and principles, developing safely and effectively, and providing good banking services for members...

Headquarters of the People's Army of West Saigon in Binh Chanh district (old)

The report said that as of August 31, 35/36 People's Credit Funds in the city had developed and were implementing a restructuring plan associated with bad debt settlement for the 2021-2025 period. Of these, 31 People's Credit Funds were operating normally, 4 People's Credit Funds were operating poorly, with many potential risks that could affect the safety of banking operations, security, and local social order. 1 People's Credit Fund is under special control, so it does not need to develop a restructuring plan.

According to the report, as of August 31, the total operating capital of the People's Credit Funds was VND4,802 billion, meeting the needs of production, business, crop and livestock development, creating jobs, contributing to the cause of hunger eradication and poverty reduction, and building new rural areas in the locality. The People's Credit Funds have gradually improved their financial capacity by increasing charter capital and attracting new members on the basis of linking capital expansion with member lending support.

As of August 31, the charter capital of the QTDND system in the area reached 235 billion VND (excluding QTDND under special control), accounting for 4.9% of total capital. Of which, 8 Funds have charter capital of 10 billion VND or more, 14 funds have charter capital of 5 - under 10 billion VND and 13 funds have charter capital of less than 5 billion VND. The Fund with the highest charter capital is 16.8 billion VND and the lowest is 1.3 billion VND.

An activity to care for the social life of children of a QTDND in Ho Chi Minh City

Regarding restructuring, as of August 31, mobilized capital was VND4,203 billion, accounting for 87.5% of total capital. Up to this point, total outstanding loans reached VND3,043 billion, accounting for 63.4% of total capital; in which most of the outstanding loans are members, outstanding loans to non-members (mortgaging deposit books) account for a low proportion.

At this time, bad debt is 78 billion VND, accounting for 2.58% of total outstanding debt. Most funds in the area have a bad debt ratio of less than 3% (except for 6/35 funds with high bad debt ratios: QTDND Nam Sai Gon (52.8%), AN Lac (5.4%), Chau Duc (4.5%), An Binh (3.6%), Nhon Duc (3.3%) Binh Chanh (3.1%).

The difference between revenue and expenditure in the first 8 months of 2025 was 24.6 billion VND. Most funds were profitable. Only 4/35 funds had a negative difference between revenue and expense: Nam Sai Gon (-10.88 billion VND), An Binh (-0.58 billion VND), Chau Duc (-0.05 billion VND) Chanh Nghia (-0.05 billion VND).

According to the report, the restructuring implementation still faces some difficulties and obstacles such as: The management and operation capacity of QTDND staff is still uneven, does not meet the requirements, does not have strategic vision, proactive planning and forecasting in business activities... Many QTDND have a relatively small scale, limited financial capacity, and do not meet customers' borrowing needs; the growth of outstanding loans faces many difficulties due to increasingly fierce competition from commercial banks...

The Ho Chi Minh City People's Committee recommends that the State Bank Branch continue to research, review, and legalize regulations on buying, selling, and handling bad debts to create a legal corridor as well as a mechanism to encourage parties participating in the debt buying and selling market to recover bad debts for the credit institution system; support the People's Credit Fund with digitalization programs and the application of modern technology to improve operational efficiency.

Source: https://daibieunhandan.vn/tp-ho-chi-minh-cac-quy-tin-dung-nhan-dan-hoat-dong-on-dinh-10391066.html