The State Bank of Vietnam held a consultation workshop on a draft project to comprehensively restructure the People’s Credit Funds (PCFs) system and Vietnam Cooperative Bank for 2025–2030, with an orientation to 2045. The initiative is intended to build on a review of the 2020–2025 period and address identified weaknesses, including uneven linkages between some PCFs and the apex cooperative bank. By end-2024, the PCF network comprised 1,176 funds operating across 57 provinces and cities with nearly 2 million members, total assets of VND 191.5 trillion and a non-performing loan ratio of 0.68%. Vietnam Cooperative Bank reported total assets of VND 60.3 trillion and a non-performing loan ratio of 0.35%. Workshop contributions focused on strengthening system-wide integration and clarifying the cooperative bank’s central functions, including liquidity support, capital rebalancing, risk controls, technology services and training, alongside the development of green and agriculture-focused credit products. Another theme was reorganising PCFs in line with commune-level administrative arrangements, including a “one commune, one PCF” approach, with depositor protection, member consultation, governance upgrades, stronger risk controls, investment in information technology and workforce development.
State Bank of Vietnam 2025-07-04
State Bank of Vietnam seeks feedback on draft restructuring plan for People’s Credit Funds and Vietnam Cooperative Bank through 2030
The State Bank of Vietnam held a workshop on restructuring the People’s Credit Funds system and Vietnam Cooperative Bank for 2025–2030 to address weaknesses from the 2020–2025 review. Discussions included enhancing system integration, clarifying the cooperative bank's functions, and developing green and agriculture-focused credit products. The initiative considers reorganizing PCFs with a "one commune, one PCF" approach, emphasizing depositor protection, governance, risk controls, and technology investment.