Mr. Dao Minh Tu – Standing Deputy Secretary of the Party Committee, Standing Deputy Governor of the State Bank of Vietnam
It can be said that the development of the Co-operative Bank of Vietnam (Co-opBank) is a process of transformation and increasing improvement to meet the development requirements of the People’s Credit Fund (PCF) system and the overall credit institution system. From the initial three-tier PCF model in the early pilot phase, it was restructured into a two-tier model in 2000, and once again reformed in 2013, when the Central PCF was officially transformed into Co-opBank. Along with this was a clearer shift toward the model of a credit and financial service cooperative, in line with the Law on Credit Institutions and the Law on Cooperatives, while also promoting the role of a central coordinating body, providing support and ensuring safety within the PCF system.
Mr. Dao Minh Tu – Standing Deputy Governor of the State Bank of Vietnam – speaking at Co-opBank’s 2025 Mission Deployment Conference
Looking back on the 30-year development journey, it can be affirmed that Co-opBank has fulfilled its core mission of supporting and serving PCF members through capital intermediation, assisting struggling PCFs in their operations, while also effectively functioning as a management tool of the State Bank of Vietnam (SBV) for the PCF system through activities such as inspections and monitoring in accordance with SBV directives.
Especially in the context of the Fourth Industrial Revolution and the nationwide push toward digital government and digital economy, despite limited financial resources, Co-opBank has actively joined the digital transformation movement of the banking sector. More importantly, it has created a foundation to help PCFs access and gradually digitize their operations through training and product/service transfers. Co-opBank’s modern services in payments and e-banking not only support PCFs in diversifying products to meet the needs of members and rural residents particularly in remote areas underserved by commercial banks but also contribute to improved management and operational capacity, enhancing the stability and safety of the entire system.
These achievements of Co-opBank are the result of a long process of development, driven by dedication, creativity, and the determined efforts of generations of Co-opBank leaders and employees, who have steadily overcome difficulties over the past 30 years and gradually refined mechanisms, organizational models, and operational structures from the Head Office to Branches.
Resolution No. 20-NQ/TW continues to affirm the Party’s viewpoint on the collective economy: “The collective economy is an important component of the national economy and must be consolidated and developed alongside the state economy to become a firm foundation of the national economy.” The 2023 Law on Cooperatives and the 2014 Law on Credit Institutions, effective from July 1, 2024, have opened up exceptional opportunities for the PCF system and Co-opBank.
Co-opBank’s role, responsibility, and effectiveness over the past 30 years have been demonstrated through its contributions to strengthening, stabilizing, and ensuring the soundness of the cooperative credit institution system, which has greatly contributed to the cause of national development. This will continue to be the direction for Co-opBank’s development in the coming period—a period when the country is poised to take off and prosper.
Standing Deputy Governor Dao Minh Tu, Vice President of the Vietnam Cooperative Alliance Nguyen Manh Cuong, together with Co-opBank Chairman Nguyen Quoc Cuong and General Director Pham Thi Hong Minh, at the Co-opBank Annual Member Assembly 2022.
In the context of deep integration and the development needs of the fund system, to fulfill the mission entrusted by the Party, Government, and SBV as the bank of the PCF system, with the most important goal of building Co-opBank into a modern, multi-functional, and strong-enough bank to serve and support PCFs, the SBV leadership expects Co-opBank to further promote its role as the central coordinating entity of the PCF system by reforming and innovating its operations appropriately.
In particular, Co-opBank must aim to increase its scale and financial capacity, expand its scope of operations, and meet new development requirements as the central bank effectively supporting PCFs. Co-opBank is now assigned a new task by the SBV: to lead the development and implementation of a digital transformation strategy for the PCF system through 2030. To do so, Co-opBank must secure strong financial resources, including increasing charter capital through state contributions. Alongside this, there must be policies and strategies to attract foreign funding, partnerships with domestic and international enterprises and economic organizations, as well as contributions from PCFs themselves as members. At the same time, a coordination mechanism between Co-opBank and PCFs must be established to form a safe and rational system governance model that aligns with the cooperative model’s nature.
On this journey, to support Co-opBank in achieving its strategic goals, the SBV will work toward empowering Co-opBank with greater authority in supervising and inspecting PCFs, moving toward a suitable management and operational mechanism that fits the actual and objective needs of the economy. The SBV will also plan and rationalize the network of PCFs and Co-opBank branches to ensure the sustainability and continued promotion of the PCF system’s role.
I firmly believe that in the time ahead, with the support and attention of the Party, the State, the SBV, and local governments, Co-opBank will continue to harness the strength of unity and the dedication of not only Co-opBank’s employees but also the entire PCF system. Together, we will uphold a common purpose, strive to achieve even greater results, and contribute to the successful implementation of the Party and State’s policies on agricultural and rural development, while affirming the role and value of the collective economic model as a cornerstone in the socialist-oriented market economy.
