On 30 September 2025, the State Bank of Vietnam (SBV) issued Circular No. 28/2025/TT-NHNN, amending and supplementing several provisions of Circular No. 27/2024/TT-NHNN on the Co-operative Bank of Vietnam (Co-opBank), and the contribution, management, and use of the Safety Assurance Fund for People’s Credit Funds (PCF) network.
The issuance of Circular No. 28/2025/TT-NHNN is considered an important step in improving the legal framework, contributing to strengthening supervision and ensuring the safe operation of the PCFs network, while reaffirming the central role of Co-opBank in coordinating, supporting, and enhancing the capacity of the entire network.
Reinforce network supervisory
Over more than three decades of development, the PCFs network has affirmed its significant role in providing capital for the agriculture–rural sector, supporting members in production, creating jobs, and contributing to socio-economic stability at the grassroots level. However, along with the expansion of scale, diversification of activities, and the impact of market fluctuations, the need for stronger management and system-wide safety supervision has become increasingly urgent.
Circular No. 28/2025/TT-NHNN was issued to promptly supplement and adjust several provisions in the management mechanism of the PCFs network and Co-opBank, particularly regulations on the contribution, management, and use of the Safety Fund for PCFs network. This aims to reinforce Co-opBank’s role in supervising, ensuring safety, and providing support to the PCFs network, especially for PCFs facing difficulties.
In addition, the circular supplements regulations on the responsibilities and authority of Co-opBank in the process of inspection and supervision of PCFs; while also raising requirements for transparency and information disclosure across management levels. This establishes an important legal foundation enabling Co-opBank to fulfil its role as the “bank of PCFs”, serving as the key institution for technical support, liquidity coordination, and ensuring overall network safety.
Affirm Co-opBank’s central role
With its function as the bank of PCFs, Co-opBank not only performs the role of a financial intermediary but also holds a special responsibility in safeguarding network safety and strengthening member confidence. Circular No. 28/2025/TT-NHNN further clarifies this role, positioning Co-opBank as the direct “bridge” between SBV and the PCFs network, and as an essential instrument for effectively implementing the State’s cooperative finance policies.
Under the new regulations, Co-opBank is assigned greater responsibilities in early warning, risk supervision, and participation in the restructuring support of weak PCFs through the Safety Fund. This facilitates Co-o-opBank to address emerging issues proactively but also reflects the SBV’s trust in Co-opBank’s management and operational capacity as the backbone of the network.
In recent years, Co-opBank has proactively implemented various solutions to support the PCFs network in terms of capital, technical assistance, and human resource training. Programs such as the provision of modern banking services, payment connectivity, governance consulting, professional training, and digital transformation have significantly contributed to enhancing PCFs operational capacity, ensuring compliance with safety standards, and gradually modernizing services.
With the new circular, this role will be further strengthened as Co-opBank is provided with a clearer and more flexible mechanism for resource coordination, while also gaining greater initiative in collaborating with regional SBV branches in supervising PCFs operations.
Circular No. 28/2025/TT-NHNN is not merely a technical adjustment but also conveys a strong message about the goal of sustainable development for the PCFs network in the new context.
Enhance supervisory mechanisms that to ensure information transparency, and reinforce Co-opBank’s role will enable the PCFs network to operate more cohesively, minimize risks, and better protect the interests of its members and customers.
For Co-opBank, this presents both an opportunity and a major responsibility. As Co-opBank must strengthen coordination capacity, improve technical support, expand modern banking products and services, while simultaneously upgrading human resource quality and applying technology to supervision. Through this, Co-opBank is not only a companion to PCFs but also the “safety filter” of the entire cooperative finance network that contribute to public trust in the collective economic model.
The new circular will pave the way for a more stable, efficient, and sustainable development phase for the PCFs network, while reaffirming Co-opBank’s position as the central pillar in ensuring safety and advancing Vietnam’s cooperative finance network.
Customers at the Co-opBank Bac Ninh branch
Reporter
