Quench the "thirst" for capital

Animal care at Hoang Trung Agricultural and Forestry Production and Service Cooperative, Tam Thanh Ward

The Provincial Cooperative Support Fund was established in 2014. On July 1, 2024, the Provincial People's Committee issued Decision No. 1158/QD-UBND on reorganizing the Provincial Cooperative Support Fund. The reorganization of the fund is an important turning point to further improve the operational efficiency of this fund.

“New wine in new bottles”

The provincial cooperative support fund was established in 2014 with a charter capital of VND3 billion. After several additions, by 2024, the fund had a charter capital of VND7.5 billion. From this fund, 26 cooperatives have been able to borrow capital at preferential interest rates, thereby helping cooperatives have more resources to invest in production and business development.

Since the reorganization of the Cooperative Support Fund to July 11, 2025, the whole province has 91 members of 26 cooperatives borrowing capital from this fund with an amount of 9.1 billion VND.

However, after a period of operation, the Cooperative Support Fund revealed many limitations such as loose management, the number of cooperatives accessing loans was still small, and the efficiency of capital use was still low. Specifically, through inspection, only 8 cooperatives effectively promoted loan capital and paid interest according to regulations; 2 cooperatives used capital ineffectively; 6 cooperatives owed the fund overdue and did not pay, and some cooperatives owed overdue but only paid a part of the principal...

Mr. Lieu Xuan Du, Chairman of the Provincial Cooperative Union, Chairman of the Provincial Cooperative Support Fund, said: Based on actual operations, the reorganization of the fund is very necessary. On July 1, 2024, the Provincial People's Committee issued a decision on the reorganization of the Provincial Cooperative Support Fund. Accordingly, the Provincial Cooperative Support Fund has a charter capital of 7.5 billion VND at the time of reorganization and conversion, and will be supplemented by 20 billion VND in 2026 and 30 billion VND in 2028.

Compared to the previous operation model of the Cooperative Support Fund, the operation of the Cooperative Support Fund after the reorganization is tighter, the borrowers are wider, the loan procedures are easier... Specifically, the operation method of the trust fund is through the Provincial Social Policy Bank Branch to lend and manage the fund's entrusted capital activities. The loan subjects are cooperatives, cooperative unions, members of cooperative groups, cooperatives (except for cooperative members who are enterprises) with headquarters and organizing production and business activities in the province.

The maximum loan amount for cooperatives and cooperative unions is not more than VND 2 billion/unit (previously VND 300 million/cooperative). In addition to lending to organizations, the Cooperative Support Fund also lends to members of cooperative groups and cooperatives with a maximum of VND 100 million/member. The loan term is 5 years; the interest rate is equal to 85% of the average lending interest rate of domestic commercial banks in the same period. The loan procedures are implemented quickly, neatly and in accordance with regulations.

Ms. Ha Thi Luoc, a member of Po Dua Agricultural Production and Service Cooperative, Dong Kinh Ward, said: After learning about the preferential loan capital from the Provincial Cooperative Support Fund, in early 2025, I was guided by specialized agencies to complete the loan procedures and disburse quickly. From the loan capital of 100 million VND, I have more capital to invest in a safe organic tomato growing model.

Along with members of Po Dua Agricultural Production and Service Cooperative, many members of other cooperatives in the province have been informed, guided and supported by specialized agencies to access preferential loans from the Cooperative Support Fund. Thereby, they have more conditions to invest in expanding production and business and gradually improve operational efficiency.

Supporting cooperatives

In recent years, the collective economic sector, with the core being cooperatives in the province, has seen clear changes in quantity. Currently, the province has 560 registered cooperatives with 6,352 members. Despite the large number, the actual operation of cooperatives still faces many difficulties. One of the biggest difficulties of cooperatives is the lack of capital to invest in production and business. Therefore, the reorganization of the Cooperative Support Fund with larger charter capital, wider borrowing objects, higher maximum loan amounts, etc. has helped cooperatives invest in expanding production and business development.

Safe vegetable production model at Po Dua Agricultural Production and Service Cooperative, Dong Kinh ward

Mr. Nong Viet Dai, Director of Yen Son Agricultural Service Cooperative, Cai Kinh Commune, said: The Cooperative mainly operates in the field of growing fruit trees, mainly custard apple trees. At the end of 2024, after being informed and guided about preferential loans from the Provincial Cooperative Support Fund, members of the Cooperative completed procedures to borrow 400 million VND from the fund. From the preferential loan, members of the Cooperative have renovated and expanded an additional 8.5 hectares of Thai custard apple trees. Currently, the new crop area is growing and developing well. This opens up opportunities for the Cooperative to continue to develop further in the future.

Along with members of Yen Son Agricultural Service Cooperative, many members of other cooperatives in the province have accessed preferential loans from the Provincial Cooperative Support Fund. According to data from the Provincial Cooperative Support Fund, since the reorganization of the Cooperative Support Fund to July 11, 2025, the whole province has 91 members of 26 cooperatives borrowing capital from the Provincial Cooperative Support Fund with an amount of 9.1 billion VND.

Preferential loans from the Cooperative Support Fund have helped many cooperatives have more conditions to invest and expand production and business. Typically, members of the Hoang Trung Agricultural and Forestry Production and Service Cooperative in Tam Thanh Ward borrowed 500 million VND from the fund to invest in planting fruit trees, ornamental peach trees, and means of transporting goods; members of the Van An Agricultural and Forestry Production and Service Cooperative in Chien Thang Commune borrowed 400 million VND to develop a white horse breeding model; members of the Quang Huy Agricultural and Forestry Trade and Service Cooperative in Chi Lang Commune borrowed 200 million VND to develop custard apple trees...

In order to strictly manage loan capital, from May 2025 to present, the leaders of the Cooperative Support Fund and representatives of related units have conducted field inspections at 5 cooperatives and cooperative members borrowing capital from the Provincial Cooperative Support Fund and plan to continue to inspect cooperatives and cooperative members borrowing capital from the Cooperative Support Fund in the coming time. Thereby, proactively grasping the implementation of loan capital from the fund by cooperative members; at the same time, grasping practical needs, difficulties and problems arising to promptly have solutions to remove and improve the efficiency of using preferential loans from the fund.

Just a short time after reorganization, the Cooperative Support Fund has initially solved the "capital thirst" for a number of cooperatives in the province, thereby contributing to the development of the collective economy and cooperatives in general in the province.

Currently, the Provincial Cooperative Union, the Provincial Cooperative Support Fund and relevant agencies continue to promote propaganda and guidance for cooperatives on contents related to the Provincial Cooperative Support Fund. Thereby helping many cooperatives access preferential loans from the fund to continue investing, further improving production and business efficiency, contributing to the overall collective economic development in the province.

Source: https://baolangson.vn/giai-con-khat-von-5053357.html