Looking at the capital scale of the People’s Credit Fund (PCF) network within the big picture of credits in the banking sector, it is apparent that the scale remains relatively small. However, with nearly 2 million members receiving credit products and financial services, particularly in rural and remote areas, the PCF network has helped fill gaps in access to credit, enabling people to develop their products and businesses. Notably, the capital syndication between the Co-operative Bank of Vietnam (Co-opBank) and the PCFs has created positive changes, promoting in-depth economic growth in local areas across the nation.
Joining forces to unlock economic growth drivers
Mr. Thai Dinh Cau – Director of Tay Thanh PCF – stated that one of the most important factors helping the PCF grow rapidly, safely and sustainably is to effectively leverage the power of system connectivity, especially through syndicated loans with Co-opBank.
He also noted: “In the context of fluctuations in member lending demands, having Co-opBank as a partner with strong financial resources and sound governance capacity has become a crucial anchor for the Tay Thanh PCF to execute its business plan. If credit expansion is needed, the PCF will have the capacity to do so; if growth needs to be controlled, we can proactively adjust our lending accordingly, thereby ensuring operational safety.”
Not only supplementing capital resources, Co-opBank also assigns credit officers to coordinate directly with PCF officers in assessing loan applications, valuing collateral, and providing guidance on credit procedures as well as accounting on the software system. Therefore, the PCF’s contingent of cadres can gradually improve professional expertise and meet the modern management requirements, contributing to the enhancement of operational efficiency.
“There is no solution safer than building connectivity. When one unit encounters difficulties, the entire system is always ready to accompany and support it. This very connectivity not only stabilizes operations but also gives the leadership greater confidence in management. Therefore, we always proactively strengthen our connection with Co-opBank,” Mr. Thai Dinh Cau added.
This spirit of collaboration has made Tay Thanh PCF become one of the network’s leading units in rolling out syndicated loan products. At times, the outstanding syndicated loan balance reached VND 60 billion, accounting for more than a third of the PCF’s total outstanding loans. In 2025 alone, this activity generated approximately VND 800 million in income for the PCF. This has also been a vital resource contributing to economic restructuring, livelihood diversification, and labor export development, helping Tay Thanh commune (prior to merger) achieve new rural status standards in 2019.
At Nghia Thai PCF, syndicated loans have also become an anchor for the PCF to expand its role in supporting the livelihoods of its members and the community. Since 2016, the Nghia Thai PCF has coordinated with local authorities to implement many economic development models suitable for local conditions – such as farming beef cattle in enclosed facilities, farming apple snail, and beekeeping, etc., thereby enabling members to stabilize their incomes and improve their living standards.
To align with its financial capacity, Nghia Thai PCF segments its customers and sets appropriate credit limits for different groups of members. At the same time, the PCF works with Co-opBank Nghe An Branch to implement syndicated loan mechanisms for members with substantial financing needs. This approach helps the PCF maintain credit safety while ensuring that members do not miss opportunities to expand their production and businesses.
These are just two of the many representative models demonstrating the effectiveness of the syndicated loan activities implemented by Co-opBank in recent years.
Promoting financial inclusion and spreading community economic values
Not only timely meeting the capital needs of PCFs, Co-opBank also creates favorable conditions for PCFs to access capital at reasonable interest rates, contributing to operational stability and enhancing their capacity to serve members.
By the end of June 2026, total outstanding syndicated loans reached VND 1,264 billion, with 224 PCFs participating alongside Co-opBank in syndicated lending.
During the 2020–2025 period, Co-opBank made multiple adjustments to deposit and lending interest rates in accordance with directives from the State Bank of Vietnam (SBV) and market developments. This aimed to guide interest rate levels across the PCF system while supporting funds in overcoming difficulties. Alongside these efforts, Co-opBank implemented several preferential credit programs, notably the program “Joining Hands to Support PCF Members” during 2021–2022. As a result, outstanding loan balance to PCFs reached VND 5,590 billion by the end of 2022, an increase of 60.57% compared to 2021. Even amid a context where many PCFs had surplus capital, loan balances to PCFs gradually recovered in 2025, reaching VND 3,617 billion. Cumulative lending turnover to PCFs for the 2021–2025 period reached VND 112,781 billion.
These results have contributed to promoting the growth of the PCF system in both scale and quality, progressively affirming its role as a vital financial channel for the collective economy, agriculture, and rural areas.
Both experts and managers assess that alongside capital balancing operations, the growth potential for syndicated loan products remains vast, as this meets a practical need for many PCFs. In particular, under the 2024 Law on Credit Institutions, the credit limit for a single PCF customer will gradually decrease from 15% down to 10% of equity by 2029. In a context where credit limits are increasingly tightening, syndicated loans will play an even more crucial role – helping PCFs meet the large capital demands of members while ensuring compliance with operational safety regulations.
Furthermore, as Resolution No. 68 of the Politburo comes into practice, many household businesses are expected to convert into enterprises, including a significant number of members currently lending from PCFs. Therefore, PCFs hope that Co-opBank and competent authorities will research and refine mechanisms to allow PCFs to participate in syndicated loans for local enterprises. This approach will help retain members while expanding the capacity to serve the rural economic sector. Leveraging local understanding, deep community ties, and Co-opBank’s partnership, extending syndicated loans to enterprises will help businesses grow sustainably, create jobs, and foster local prosperity.
In line with this trend, Co-opBank is determined to continue to prioritize resources, refine mechanisms, simplify procedures, and enhance support quality so that syndicated loans truly become an “extended arm” of the PCF network. This will solidify a safe and sustainable foundation for the entire network and spread the value of the cooperative financial model.
Looking further ahead, Co-opBank is step-by-step realizing its direction to become the hub connecting the PCF network under the Scheme for Restructuring the PCF System and Co-opBank for the 2026–2030 Period, with a Vision to 2045. Accordingly, Co-opBank will keep developing its system of products and services based on a modern multi-purpose banking model, build a central infrastructure for capital, technology, and data, standardize operational procedures, and elevate customer experience system-wide.
On this foundation, a cohesive ecosystem between Co-opBank and PCFs will gradually take shape where Co-opBank serves as the central hub for products, technology, and data, while PCFs act as the direct touchpoints providing care and services to members at the grassroots level. This direction will enable members to fully access modern financial services, ranging from credit and payments to digital banking, insurance, and other value-added services.
With this roadmap, Co-opBank is not only expanding its operational scale and depth but also strengthening connectivity across the entire network. This establishes a sustainable development foundation for both Co-opBank and PCFs, contributing effectively to the goals of promoting financial inclusion and driving the community economy forward.
Minh Ngoc
