The development of the Co-operative Bank of Vietnam (Co-opBank) can be seen as a process of transformation and continuous improvement to meet the needs of the People’s Credit Fund (PCF) system and the overall development of the financial and banking sector. From the initial three-tier pilot model, the PCF system shifted to a two-tier structure in 2000, and then once again reformed in 2013, transforming from the Central People’s Credit Fund (CCF) into Co-opBank. Along with this transformation, Co-opBank has gradually moved towards the model of a cooperative providing financial and credit services, as stipulated in the Law on Credit Institutions and the Law on Cooperatives. It has also played an important role in connecting, supporting, and ensuring the safety of the PCF system.
Looking back over the past 30 years of development, it is clear that Co-opBank has successfully fulfilled its core mission: supporting PCF members through capital regulation, assisting PCFs facing operational difficulties, and acting as a management tool of the State Bank of Vietnam (SBV) in supervising PCF activities as directed.
Especially in the context of the Fourth Industrial Revolution and the national push towards digital government and a digital economy, despite limited financial resources, Co-opBank has actively participated in the digital transformation efforts of the banking sector. More importantly, it has laid a foundation to support PCFs in accessing and gradually digitizing their operations, through training and service transfers. Co-opBank’s modern services in payment and electronic banking not only help PCFs diversify their offerings to better meet the needs of members and rural populations—particularly in remote areas with limited access to commercial banks—but also enhance their management capacity and improve the stability and safety of the system.
The achievements of Co-opBank are the result of a long process of development, built upon responsibility, dedication, and innovation. Generations of Co-opBank’s leaders and staffs have continuously strived to overcome challenges, step by step improving policies, organizational models, and operational structures from the Head Office to the branches.
Resolution No. 20-NQ/TW once again affirms the Party’s view on the collective economy: “The collective economy is an important component of the national economy and must be strengthened and developed alongside the state economy to become a solid foundation for the national economy.” The Law on Cooperatives 2023 and the Law on Credit Institutions 2024, which take effect on July 1, 2024, present unique opportunities for the PCF system and Co-opBank.
The role, responsibilities, and effectiveness of Co-opBank over the past 30 years have been clearly demonstrated through the consolidation, stability, and safety of the cooperative financial system—making significant contributions to national development. These expectations continue to guide Co-opBank’s development direction in the next phase—a phase of national growth, prosperity, and transformation.
In the context of deeper integration and growing demands from the PCF system, and to fulfill the mission entrusted by the Party, the Government, and SBV, as the bank of the PCFs—with the core goal of building Co-opBank into a modern, multi-functional, and strong financial institution capable of serving and supporting PCFs—the SBV leadership expects Co-opBank to maximize its role as the central link of the PCF system by reforming and renewing its operations in a more appropriate direction. Co-opBank needs to expand its scale and enhance its financial capacity, broaden its operational reach, and meet the development needs of the new era as a core bank providing effective support for PCFs. It must also fulfill a new task assigned by the SBV: acting as the focal point for developing and implementing a digital transformation strategy for the PCF system through 2030.
To achieve this, Co-opBank must secure strong financial resources by increasing its charter capital from state contributions, while also introducing policies and strategies to attract foreign aid, investments from businesses and economic organizations at home and abroad, as well as contributions from PCFs as members. At the same time, it is necessary to establish a linkage mechanism between Co-opBank and PCFs to form a safe and reasonable management system that aligns with the cooperative model’s true nature.
On this journey, in order to support Co-opBank in achieving its strategic goals, the SBV will move towards delegating more authority to Co-opBank in supervising and inspecting PCFs, aiming to establish a management and operational mechanism that fits the actual needs of the economy. The SBV will also plan and arrange the network of PCFs and Co-opBank branches in a reasonable manner to ensure their continued existence and enhance their role within the system.
I firmly believe that in the coming time, with the support and attention of the Party, the State, the SBV, and local authorities, Co-opBank will continue to promote the strength of unity and the dedication not only of its staff but also of the entire PCF network. With a shared mission and unity of purpose, Co-opBank will achieve even greater accomplishments, contributing to the successful implementation of the Party’s and State’s policies on agricultural and rural development—highlighting the value of the collective economic model as a cornerstone of the socialist-oriented market economy.
