With more than 30 years of formation and development, the Co-operative Bank of Vietnam (Co-opBank) has continuously innovated, gradually shaping a long-term development strategy closely aligned with its mission to lead and support the People’s Credit Fund (PCFs) network in adapting to economic fluctuations and the increasingly stringent requirements of the cooperative financial sector.
In particular, during the 2021–2026 period, Co-opBank has clearly demonstrated its resilience and strong spirit of innovation. The entire system has decisively restructured its operating model, enhanced governance capacity, accelerated digital transformation, and built a comprehensive service ecosystem, creating a solid foundation for the bank to further affirm its role as the “bank of the PCFs network,” while making active contributions to the development of microfinance and the community economy.
Ms. Pham Thi Hong Minh – Member of the Board of Directors and General Director of Co-opBank, together with leaders of the SBV Region 12 presented awards to PCFS that performed well in capital balancing activities in 2025 within the area managed by Co-opBank Thai Binh branch
Outstanding milestones in a period of significant volatility
The 2021–2026 period has unfolded amid complex and volatile global economic and financial conditions, including the prolonged impacts of the COVID-19 pandemic, geopolitical conflicts, high inflation, and tightening monetary policies in many countries. Domestically, small businesses, cooperatives, and households especially in agriculture and rural areas have faced considerable pressure from rising capital costs, climate change, and market fluctuations.
In response to this context, Co-opBank has implemented a range of comprehensive solutions, focusing on three key priorities. First, it has actively participated in research, policy proposals, and the improvement of the legal framework while enhancing system capacity. Co-opBank has contributed to the development of several important legal documents, including the 2023 Law on Cooperatives, the 2024 Law on Credit Institutions, Circular No. 28/2025/TT-NHNN, and the overall restructuring scheme for the PCF system and Co-opBank for the 2025–2030 period, with a vision to 2045.
A notable highlight in the legal framework is the promulgation of Law No. 68/2025 on the management and investment of state capital in enterprises, with Article 57 clearly defining the mechanism for investment, support, and management of state capital in Co-opBank. In parallel, Co-opBank has focused on reviewing and refining its internal regulatory system, contributing to enhanced governance capacity and operational safety.
The second priority has been strengthening internal capacity. Co-opBank has effectively implemented its restructuring plan associated with non-performing loan (NPL) resolution for the 2021–2025 period. The NPL ratio decreased significantly from 1.54% in 2020 to just 0.34% in 2025, well below the threshold set by the State Bank of Vietnam.
At the same time, during 2023–2025, Co-opBank carried out four phases of organizational restructuring toward a leaner, more specialized model, clearly separating the functions of “Planning – Execution – Supervision – Improvement.” The three lines of defense governance model has also been introduced, gradually aligning with modern banking standards. As a result, operational efficiency has improved markedly, with annual profits increasing by over 10%, asset quality strengthened, and human resource quality progressively enhanced.
Notably, during the past term, Co-opBank has persistently developed a proposal to increase its charter capital by VND 5 trillion through state support. This is a fundamental condition for the system to continue operating and developing—a crucial step that has gained consensus from the Government, the National Assembly, and relevant ministries and agencies.
The third priority has been accelerating digital transformation and developing a digital banking ecosystem. Co-opBank has expanded its Core Banking system, implemented 24/7 instant transfers, promoted cashless payments, and upgraded the CF-eBank electronic banking system. As a result, revenue from digital banking services has grown steadily in recent years. More importantly, this has created a foundation to support PCFs in digital transformation, promote cashless payments, and connect payment systems with commercial banks, thereby meeting the essential needs of members and customers in rural, remote, and underserved areas.
As of December 31, 2025, Co-opBank’s total operating capital increased by more than 39%, total outstanding loans rose by nearly 80%, and profits exceeded targets for multiple years, increasing by nearly 52% compared to 2021. The bank’s network currently includes its Head Office, 32 branches, and 72 transaction offices nationwide, continuing to affirm its core role in the cooperative financial system and effectively serving nearly 1,200 PCFs across the country.
Mr. Nguyen Quoc Cuong – Secretary of the Party Committee and Chairman of the Board of Directors of Co-opBank delivered remarks at the Conference reviewing the performance of the first six months of 2025 and implementing tasks for PCFs in Region 9, jointly organized by Co-opBank and the SBV Region 9
Putting PCFs at the center of development
One of the most notable highlights during this period has been a shift in development mindset: placing PCFs at the center of all activities. While previously focusing mainly on providing off-the-shelf products, Co-opBank now designs tailored products specifically for the PCFs netwoks. The bank not only performs capital balancing but also develops deposit and lending products with flexible tenors and preferential interest rates, allowing early withdrawals while still maintaining appropriate returns.
As a result, during the 2021–2025 period, total intermediation deposits reached nearly VND 797 trillion, while lending to PCFs exceeded VND 112 trillion. In addition, Co-opBank has actively promoted cooperative products such as syndicated lending with PCFs, thereby meeting large funding needs of members while enhancing appraisal capacity and risk management for PCFs.
Digital transformation has also been implemented with PCFs at the core. Platforms such as CF-eBiz, CF-eAM, and CF-ePCF enable funds to manage operations and provide 24/7 digital banking services, forming a closed, secure service cycle. Notably, Co-opBank has waived many fees related to the deployment and operation of electronic payment services for PCFs. To date, the CF-eBank electronic banking system has connected to more than 1,000 PCFs, forming a nationwide payment network with over 1,100 transaction points. Digital transformation has delivered clear results, with many PCFs reducing cash transactions by 70–80%, while attracting more members and increasing service income.
During this period, Co-opBank organized 34 training courses for more than 2,400 PCF participants on e-banking and payment operations, collaborated in training nearly 5,000 staff across the system, and deployed over 50 experienced managers to directly support struggling PCFs in strengthening governance and operations. These efforts have contributed to the stable development of the PCF system: by the end of 2025, total assets reached over VND 203 trillion (up more than 27% compared to 2021), and outstanding loans exceeded VND 147 trillion (up nearly 27% compared to 2021).
Beyond professional and technical support, Co-opBank has also actively supported communication efforts and the development of a unified brand image for the PCF system. In 2024, Co-opBank collaborated with the Safety Assurance Fund for the PCF system and the Vietnam Association of People’s Credit Funds to develop a unified brand identity. It is currently continuing to build a roadmap to support funding for signage installation in line with this unified identity, thereby enhancing the image and reputation of the entire system.
Towards a new phase of development
Entering the 2026–2031 period, Co-opBank aims to further strengthen its role as the “bank of all PCFs,” striving to become a modern community-based microfinance bank. To realize this goal, the bank will implement its restructuring scheme for the 2025–2030 period, with a vision to 2045; enhance governance in line with modern standards; improve capital efficiency; and pursue the objectives of “Scale – Productivity – Quality – Efficiency” in tandem with discipline and risk management.
At the same time, Co-opBank will continue to focus on strengthening financial capacity, developing human resources, reinforcing system linkages, and expanding support in finance, technology, training, and governance advisory for PCFs. Digital transformation will remain a key driver, aiming to build a comprehensive digital financial ecosystem serving the agricultural and rural sectors. The road ahead will undoubtedly present challenges.
However, with an increasingly solid financial foundation, an emerging digital ecosystem, a dedicated workforce, and the collective commitment of more than one thousand PCFs nationwide, Co-opBank is moving toward becoming not only a safe and efficient bank, but also a central hub for financial, technological, and governance linkages across the entire PCFs network – a modern community-based microfinance bank accompanying the sustainable development of the cooperative economic sector.
Reporter
