On the morning of December 23, 2024, the Cooperative Bank of Vietnam (Co-opBank) held a conference to deploy tasks for 2025. Deputy Secretary of the Party Committee, Standing Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, attended and gave a speech at the conference.
Effectively fulfilling political mission
Reporting at the conference, Standing Deputy General Director of Co-opBank Nguyen Van Giang said that since the beginning of 2004, Co-opBank has focused on performing well the role of the focal point of the People’s Credit Fund system (PCF) actively supporting PCFs to operate safely and effectively. As of December 16, 2024, Co-opBank’s total capital reached VND 61,840 billion, an increase of 8.50% compared to December 31, 2023, of which the regulated deposits from PCFs were VND 46,678 billion, an increase of 7.78%.
Total outstanding loans reached VND 36,016 billion, an increase of 16.67% compared to December 31, 2023, of which loans to PCFs were VND 2,433 billion, an increase of 52.81%; while loans to businesses and individuals were VND 33,573 billion, an increase of 14.74%. It is expected that by December 31, 2024, profit before tax will reach VND 281.23 billion, an increase of 8.13% compared to the plan assigned by the State Bank of Vietnam (SBV). Beyond these impressive growth figures in operations, Co-opBank has always strived to fulfill its political mission; actively supporting the safe and stable development of the system.
Specifically, with the role of ensuring safety in the operation of the PCF system, Co-opBank has effectively managed capital intermediation, enhancing lending activities, supporting members to use cash flow flexibly and effectively. For PCFs that are subject to enhanced supervision, early intervention, or special control, Co-opBank facilitates early withdrawal of regulated deposits, offering interest rates with terms corresponding to the actual deposit term. During the year, Co-opBank has frequently adjusted lending and deposit interest rates for PCFs. The average interest rate for PCF loans has decreased by 1.4%/year, the current short-term loan interest rate for credit expansion set at 5.0%/year.
To support PCFs in quickly adapting to digital transformation in banking operations, improve competitiveness and and meeting member demands for access to modern banking products and services, in recent years, Co-opBank has focused on investing in research, deploying and providing digital banking products and services with various utilities for PCF to bring cashless payment products to members and residents in rural, remote, and agricultural areas, contributing to the implementation of the national financial inclusion goal. To date, 984/1,181 PCFs have joined Co-opBank’s payment network. Revenue-sharing policies and consultancy fee reimbursements for PCFs involved in deploying Co-opBank’s modern banking services have increased their revenue streams.
At the same time, Co-opBank efficiently manages and utilizes the PCF System’s Safety Fund (Safety Fund), currently,holding total capital of VND 896.9 billion, not only providing financial support to struggling PCFs but also collaborating with the Vietnam Association of People’s Credit Funds (VAPCF) to develop training plans and conduct credit operations and internal control training nationwide as well as coordination for PCF system’s annual review conference. Co-opBank, the Safety Fund, and VAPCF have jointly worked on a Unified Brand Identity System for the PCF system (including logo adjustments, signage updates, and the development of brand recognition applications).
The role of supporting the system is further enhanced through inspection and supervision activities for PCFs. In 2024, Co-opBank completed its plan to inspect 55 PCFs, as assigned by SBV. Additionally, Co-opBank continuously monitors PCF operations via the PCF reporting management system (PRMS) and internal credit rating system of Co-opBank.
For the People’s Credit Funds that do not ensure the safety standards as prescribed by SBV, Co-opBank provides advisory guidance to ensure compliance, When detecting violations or wrongdoings of the PCFs, Co-opBank will promptly report in writing to the SBV branches in the provinces and cities for handling measures. Currently, 58 Co-opBank officers are assigned to struggling PCFs as Deputy Directors, Department Heads, and Special Supervisory Board members, holding positions such as Chairman, Director, Chief Accountant, or Special Supervisory Committee members. These officers are all paid by Co-opBank as well as all expenses during the time of performing their dutie.
Enhancing Economic Support & Operational Efficiency
Given its unique role serving 1200 PCFs, the intermediating fund inflows often fluctuate seasonlly. In early 2024, the intermediating fund increases sharply, but declined by nearly 30% toward year-end. In that context, Co-opBank is always proactive and flexible utilized monetary market instruments to balance capital surpluses and shortages, liquidity safety and financial obligations.
In addition, Co-opBank also promotes the role of a capital provider supporting the economy. With the ability to proactively control credit growth in 2024, Co-opBank has implemented various programs and loan products with many incentives and attractive interest rates to support enterprises and individuals to promote economic development, especially in rural agriculture. In 2024, Co-opBank implemented multiple interest rate reductions, averaging a 1.8% per year decrease for enterprises and individuals, especially customers in the agricultural production, service and tourism sectors affected by storm No. 3 (Yagi). In addition to credit growth, Co-opBank focuses on handling bad debts and improving credit quality. It is expected that by December 31, 2024, the on-balance sheet NPL (non-performing loan) will be 0.80% of total outstanding loans.
Co-opBank has strengthen its foundations for sustainable development through enhance human resource training and restructuring. In 2024, Co-opBank provided online training to over 12,000 branch staffs on various topics, including credit management, treasury accounting, bad debt recovery, money transfers, digital banking, and information security. Co-opBank also collaborated with reputable training institution to implement in-person training programs for selected senior management positions. Co-opBank continues to restructure departments at the Head Office according to the approved model and practical conditions.
However, Co-opBank still faces significant challenges in fulfilling its role for the PCF system due to its limited financial capacity. After nearly 30 years of operation, Co-opBank’s charter capital has only reached VND 3,029 billion, making it difficult to invest and develop as expected. The bank is unable to fully meet the system’s needs in terms of service support, digital transformation, branding, and training. Furthermore, the legal framework remains inconsistent and insufficiently strong for Co-opBank to perform well its duties and responsibilities towards the PCF system.
To execute key banking sector tasks for 2025, Ms. Phạm Thị Hồng Minh, Board Member & General Director of Co-opBank, stated that the Co-opBank would develop and implement a business and financial plan for 2025, closely aligning with government and SBV policies. Synchronously deploy solutions on capital regulation, deposits, loans… Pay special attention to ensuring general liquidity and for the PCF system, solutions for safe and effective credit growth, improving credit quality, controlling and handling bad debts
Co-opBank will also resolutely and effectively implement the restructuring plan associated with non-performing loan management for the period of 2021-2025; Strengthen internal inspection and control; Remotely monitor and on-site inspect PCF according to the plan of the SBV; Improve governance and management capacity; prevent and combat violations of the law in the banking sector.
Continue to implement tasks and solutions to promote non-cash payments; Accelerate digital Digital banking services for PCFs; Enhanced security for IT systems, electronic transactions and card payments.
At the conference, Mr. Đào Minh Tú, Deputy Secretary of the Party Committee & Standing Deputy Governor of SBV, acknowledged that in 2024, thanks to decisive leadership from the government, Prime Minister and SBV, the banking sector had successfully implemented timely and effective solutions. These efforts helped overcome economic challenges and support national socio-economic development. The overall results of the banking industry include the contribution of Co-opBank as a focal bank, supporting nearly 1,200 PCFs to provide capital sources to serve members and people in developing production and business.
“On behalf of the Party Committee and SBV leadership, I acknowledge and highly appreciate Co-opBank for its efforts and achievements in 2024” the Deputy Governor said, expecting that these achievements will create new momentum for development for Co-opBank, increase trust with PCFs and be the basis for Co-opBank to welcome the opportunities and challenges ahead.
The Deputy Governor emphasized that 2025 is a historic milestone as Vietnam moves towards its 14th National Congress of the Communist Party, with key economic and social targets to be met, creating a premise for our country to enter a new era; the year of Party Congresses at all levels, with many great anniversaries of the country such as the 50th anniversary of the Liberation of the South, the 80th anniversary of national independence…
“These major national events place immense responsibility on us to shape the future and contribute to the goals set by the Party for the nation’s centennial,” he noted
Agreeing with the 10 tasks set by Co-opBank in 2025, the Deputy Governor emphasized a number of key tasks that Co-opBank needs to do in the coming time.
Firstly, continue to review and study documents and guidelines on cooperative credit models, including the Law on Credit Institutions effective from July 1, 2024 and other circulars and documents to disseminate not only within Co-opBank but also within the PCF system for proper and good implementation. On the part of Co-opBank, it is necessary to continue to deploy and promulgate a complete system of documents guiding professional operations related to the authority and responsibility of Co-opBank based on the guidance of the SBV.
Second, Co-opBank needs to build a business plan for 2025 with a more drastic spirit than in 2024. With a very strong staff force today, Co-opBank needs to be bolder in assigning targets and be more drastic in building business and financial plans to bring about higher and safer operating results.
Third, continue to perform well the assigned political tasks, continue to affirm the role of the central bank connecting the entire PCF system.
The Standing Deputy Governor of the State Bank of Vietnam, Mr. Đào Minh Tú, also requested Co-opBank to continue to implement the contents, tasks, and solutions according to the roadmap set out in the Co-opBank restructuring plan associated with the resolution of non-performing loans for the period of 2021-2025. In particular, closely coordinate with the SBV in submitting to the Prime Minister and the Government to report to the National Assembly for approval of state capital support to increase charter capital for Co-opBank from the state budget; Implementing solutions for safe and effective credit growth while improving credit quality. Strengthening the inspection of PCFs according to the direction of the SBV…
Recognizing that 2025 marks the 30th anniversary of Co-opBank’s establishment and 35 years of the PCF system, the Deputy Governor emphasized that although PCFs and Co-opBank are two legally independent financial institutions, they operate as a unified system to develop the cooperative credit model. The Deputy Governor assigned Co-opBank the task of conducting a comprehensive assessment of the PCF model since its pilot launch 35 years ago, evaluating Co-opBank’s role within the system, and proposing a new development strategy. He stressed that Co-opBank must be strong enough to enhance its role in supporting the system even further.
On behalf of Co-opBank, Chairman of Board of Directors, Mr. Nguyễn Quốc Cường expressed his sincere gratitude for the guidance and directives of Deputy Governor Đào Minh Tú and affirmed that Co-opBank would incorporate these instructions into its 2025 action plan and future development strategy.
Chairman Nguyễn Quốc Cường also extended his deepest appreciation to the SBV leadership for their continuous support of Co-opBank, especially Governor of SBV and Deputy Governor Đào Minh Tú for their close supervision and strategic direction. He also acknowledged the support from SBV’s various departments, domestic and international partners, and member PCFs. Their collective efforts, combined with the determination and dedication of Co-opBank’s entire system, have significantly contributed to Co-opBank’s achievements in 2024.
2025 is an important year with many important events of the nation, towards the 14th National Party Congress, also the year Co-opBank celebrates 30 years of establishment and development, entering the most brilliant age of maturity; The election of a new Party Committee; and a crucial year for implementing the Co-opBank restructuring plan alongside the resolution of non-performing loans for the period of 2021-2025..
Given these significant milestones, Chairman Nguyễn Quốc Cường reaffirmed that the entire leadership team, employees, and workers across Co-opBank’s system would remain committed to collective intelligence, solidarity, and professional ethics. He emphasized their determination to overcome all challenges, aiming for even greater success in 2025, Co-opBank strives to grow stronger, expand further, strive to best fulfill all tasks assigned by the Party, State, Government and State Bank of Vietnam, worthy of the role of “Bank of People’s Credit Funds” and successfully achieve the goal of becoming a multi-functional, modern and strong Bank.
Some photos at the Co-opBank 2025 Mission Deployment Conference:
Standing Deputy Governor of the State Bank of Vietnam Mr. Đào Minh Tú gave a speech at the Conference
Standing Deputy Governor of the State Bank of Vietnam Mr. Đào Minh Tú took a souvenir photo with the Board of Directors of Co-opBank and delegates attending the Conference
Chairman of the Board of Directors of Co-opBank Mr. Nguyễn Quốc Cường delivered the opening speech at the Conference
Member of the Board of Directors and General Director of Co-opBank Ms. Phạm Thị Hồng Minh spoke at the Conference
Permanent Deputy Governor of the State Bank of Vietnam Mr. Đào Minh Tú awarded the emulation flag of the State Bank of Vietnam to Co-opBank units
Units receiving emulation flags from the Vietnam General Confederation of Labor
Conference Overview
