The State Bank of Vietnam held a consultation workshop in Can Tho on a draft scheme to comprehensively restructure the system of People’s Credit Funds and the Vietnam Cooperative Bank for 2025–2030, with orientation to 2045. The draft aims to reorganise and strengthen the cooperative credit institution model, positioning it as a microfinance channel supporting low-income and vulnerable groups in rural areas. Local authorities reported that, as of June 2025, 49 People’s Credit Funds in the Can Tho and Vinh Long area were operating with outstanding credit of more than VND 3.2 trillion and nearly 66,600 members, but faced constraints including weak governance capacity, non-performing loans above 5.5%, lagging information technology systems and limited product diversification. The State Bank of Vietnam’s Region 10 unit also flagged that commune-level administrative reorganisation in Lam Dong and Khanh Hoa had created overlaps in operating areas between funds, potentially undermining the model’s “no internal competition” principle, and called for clearer guidance on network reorganisation alongside stronger risk supervision and follow-up after inspections. The State Bank of Vietnam indicated its functional departments will incorporate feedback and finalise the scheme during July for submission to the competent authorities, with the intention that the Government will then submit it to the National Assembly. Regional State Bank of Vietnam units were instructed to continue coordinating with local governments and credit funds to collect further input, while funds were urged to proactively strengthen and rectify their operations.
State Bank of Vietnam 2025-07-12
State Bank of Vietnam consults on a 2025–2030 restructuring plan for People’s Credit Funds and the Vietnam Cooperative Bank
The State Bank of Vietnam held a workshop on restructuring the People’s Credit Funds and the Vietnam Cooperative Bank from 2025 to 2030 to enhance microfinance for rural low-income groups. Issues include weak governance, non-performing loans over 5.5%, and limited product diversification. The State Bank will incorporate feedback, finalize the scheme for government submission, and urge regional units and credit funds to improve operations and gather further input.