On January 25, 2026, the State Bank of Vietnam (SBV) Region 8, in collaboration with the Co-operative Bank of Vietnam (Co-opBank) Ha Tinh Branch, convened a conference to assess the performance of the People’s Credit Fund (PCF) system in 2025 and to establish strategic directions and key priorities for 2026 in Nghe An, Ha Tinh, and Quang Tri provinces.
The conference was honored by the attendance and guidance of Ms. Nguyen Thi Nguyet, Member of the Provincial Party Committee and Vice Chairwoman of the Ha Tinh Provincial People’s Committee, accompanied by senior leaders from provincial departments and agencies. The SBV delegation was led by Ms. Nguyen Thi Thu Thu, Director of SBV Region 8, together with Deputy Directors and heads of the Inspection and Supervision Departments of SBV Region 8. Distinguished attendees also included Mr. Dang Duy Cuong, General Director of Vietnam Deposit Insurance (DIV); representatives from the Vietnam Association of People’s Credit Funds (VAPCF); and Chairpersons of the Boards of Directors and Directors of 126 PCFs operating across the three provinces of Nghe An, Ha Tinh, and Quang Tri.
Co-opBank was represented by Mr. Nguyen Van Giang, Standing Deputy General Director; senior leaders from several departments at the Head Office; and representatives from Co-opBank branches in Nghe An, Ha Tinh, and Quang Binh.
At the conference, delegates received a comprehensive report reviewing the performance of the PCF system in 2025. Despite ongoing economic challenges, intensifying market competition, and increasingly stringent requirements for safety and transparency, the PCFs under the purview of SBV Region 8 have successfully reaffirmed their role as a vital channel for capital provision, supporting production activities, business operations, and social welfare at the grassroots level. Concurrently, the funds have progressively modernized their operations, strengthened competitiveness, and proactively implemented digital transformation initiatives. These strategic efforts have established a solid foundation for the PCF system to continue its trajectory toward safe and sustainable development in the forthcoming period.
As of December 31, 2025, a total of 126 PCFs with 311,861 members under the management of SBV Region 8 were operating in a stable and efficient manner. The consistent growth in membership reflects the enduring appeal of the community-based financial model, particularly in rural areas where demand remains robust for production capital, accessible consumer loans, and convenient financial services. Total operating capital surpassed VND 30 trillion, while outstanding loans to members approached VND 23 trillion. The non-performing loan (NPL) ratio remained at a commendably low level, and no overdue loans were recorded at Co-opBank. These results underscore the maintenance of rigorous financial discipline and the continued strengthening of trust among members and local communities in the PCF model.
At the conference, delegates also identified several potential risk factors that could compromise the safety and stability of the PCF system if not promptly recognized and addressed. Natural disasters, including storms and floods, coupled with volatility in production and business activities in certain localities, have adversely impacted the cash flows of some borrowers, thereby intensifying pressure on post-disbursement monitoring, debt restructuring, and risk provisioning.
Additionally, challenges related to land-use procedures, legal documentation of collateral assets, and registration of secured transactions in some localities may result in prolonged appraisal processes, documentation completion, and loan disbursement timelines—particularly affecting members with time-sensitive seasonal funding requirements.
From an internal governance perspective, the quality of oversight and the effectiveness of internal control systems across PCFs remain inconsistent. Some funds require further enhancement of management capacity, standardization of operational procedures, strengthening of compliance frameworks, and reinforcement of internal control mechanisms. A clear delineation of roles and responsibilities is essential to prevent overlaps or gaps in supervisory functions and ensure accountability at all organizational levels. Maintaining unwavering adherence to the principle of mutual support and preventing operational deviations is a fundamental requirement, as even minor irregularities in a member-based cooperative model can directly undermine confidence and tarnish the reputation of the entire network.
Furthermore, the ongoing reorganization of commune-level administrative units under the new governance framework may result in changes to operating territories and potential overlaps among PCFs. Close monitoring is therefore essential to ensure healthy competition, preserve stability in the rural financial services market, and prevent imprudent adjustments in interest rates or credit standards. PCFs are strongly encouraged to proactively review their operating territories, customer portfolios, and legal documentation to mitigate risks arising during this transition period.
Addressing the conference, Ms. Nguyen Thi Nguyet, Member of the Provincial Party Committee and Vice Chairwoman of the Ha Tinh Provincial People’s Committee, underscored the robust and sustainable partnership between Co-opBank and the PCF system, and recognized Co-opBank’s pivotal role as the central coordinating institution, particularly in the current operating environment. She further directed PCFs to closely align with the guidance of the SBV and local Party committees and authorities; continue to effectively implement the Scheme on Consolidating and Developing the PCF System toward 2030; strengthen operational discipline and governance frameworks; enhance the quality of leadership and workforce capabilities; and accelerate the adoption of technology, digital transformation, and operational modernization to elevate service quality and competitive positioning.
Ms. Nguyen Thi Nguyet, Vice Chairwoman of Ha Tinh Provincial People’s Committee delivered remarks
Mr. Nguyen Van Giang, Standing Deputy General Director of Co-opBank delivered remarks
Speaking at the conference, Mr. Nguyen Van Giang, Standing Deputy General Director of Co-opBank, affirmed that more than three decades of Co-opBank’s development have consistently been anchored in a clear strategic axis: strengthening partnerships, providing comprehensive support, and fostering the advancement of the PCF system, with the objective of building a modern, secure, and socially responsible cooperative finance sector. With the aspiration to become a leading institution in community-based microfinance, Co-opBank remains committed to partnering with PCFs to contribute to the development of a safe, sustainable PCFs network that better serves members, customers, and society at large.
In recent years, Co-opBank has worked closely with the SBV Region 8 in information exchange to enhance supervisory effectiveness, capital balancing, and support for PCFs, thereby helping ensure the system’s safe and stable operations. At the same time, Co-opBank has continued to review, refine, and develop products and services tailored specifically to the PCFs network in a flexible and practical manner, in order to strengthen its role in capital balancing and liquidity support. Amid the accelerating pace of digital transformation, Co-opBank has been investing in upgrading its technology systems and developing digital banking products dedicated to the PCFs network.
“However, digital transformation can only be truly effective when PCFs proactively participate and regard it as an inevitable requirement to enhance competitiveness, improve operational transparency, and better serve their members,” Mr. Nguyen Van Giang emphasized.
In addition, Mr. Nguyen Van Giang called upon PCFs to place greater emphasis on governance and management excellence, to regularly review and update internal regulations and operational procedures to ensure full compliance with current SBV regulations and Co-opBank’s guidance, thereby strengthening governance capacity and risk management capabilities. He further urged PCFs to actively adopt information technology and digital solutions in their operations, proactively identify and mitigate risks to ensure safe and efficient performance, and embrace a unified brand identity system to reinforce their market position and enhance institutional credibility.
Ms. Nguyen Thi Thu Thu, Director of the SBV Region 8 delivered directive speech
In concluding the conference, Ms. Nguyen Thi Thu Thu, Director of SBV Region 8, affirmed that despite facing numerous challenges and adverse market developments in 2025, the PCF system nevertheless achieved highly commendable results. This performance, she noted, underscored the safety and resilience of the network, which has consistently been supported by the SBV and Co-opBank. Entering 2026, the inaugural year of implementing the resolutions of Party congresses at all levels, the economy is anticipated to face elevated growth pressures, heightened risks, and unpredictable volatility stemming from both international and domestic factors. In this context, she called upon Co-opBank, DIV, and VAPCF to continue strengthening coordination with regional SBV branches, in alignment with Directive No. 06/CT-TTg dated March 12, 2019, of the Prime Minister on enhancing solutions to ensure operational safety and to further consolidate the PCFs network. These collaborative efforts, she emphasized, are essential to effectively executing state oversight of PCFs in the region, contributing to the overall advancement of the banking sector, and supporting local economic transformation and sustainable growth in 2026 and beyond. Concurrently, she provided strategic guidance for the operations of PCFs in the region and reaffirmed the continued commitment of SBV Region 8 to support PCFs in achieving safe and effective operations.
The signing ceremony of the Coordination Regulation between SBV Region 8, Co-opBank, and DIV branches
Within the framework of the conference, SBV Region 8, Co-opBank, and the Deposit Insurance branches executed the signing of the “Coordination Regulation on the Management of People’s Credit Funds (PCFs),” reaffirming the strong resolve and steadfast commitment of the relevant agencies and institutions to collaborative partnership in this new era. The regulation not only establishes a formal coordination mechanism but also serves as a critical foundation for enhancing the effectiveness of oversight and supervision of the PCF system, safeguarding the legitimate rights and interests of depositors, and contributing to the preservation of monetary and banking stability in Region 8.
The conference on the implementation of directives for the PCFs network in 2026 was successfully concluded and received widespread commendation from leaders at all levels and participating delegates. With a message of connectivity and transformation, coupled with trust and the strength of collective solidarity, these systemic linkages will continue to propel the development of Co-opBank and the PCFs network, enabling them to advance in unity and confidently reach new heights in the emerging era.
Reporter
