On May 4th, VCA Chairwoman Cao Xuân Thu Van held a working session with the Chiang Mai University Savings and Credit Cooperative (CMU), agreeing to promote cooperation in developing credit cooperative models between the two countries. This is a concrete step to enhance financial capacity for the collective economy while opening access to advanced governance models in the region.

Financial foundation for the cooperative sector

At the meeting, Chairwoman Cao Xuân Thu Van stated that the Vietnam Cooperative Development Support Fund is an off-budget state financial fund under the VCA, operating as a single-member limited liability company wholly owned by the government.

The Fund is headquartered in Hanoi and has two operational units under its Credit Department in the Central Highlands region (based in Da Nang) and the southern region (based in Ho Chi Minh City). It also coordinates with 34 provincial cooperative alliances to implement lending nationwide.

The Fund provides loans to cooperative members, cooperative groups, cooperatives, and cooperative unions for production and business needs. Lending forms include short-, medium-, and long-term direct loans, or entrusted lending to local funds when conditions are met.

At the same time, the Fund mobilizes capital from domestic organizations and individuals; receives and manages domestic and international funding, aid, and contributions; provides financial consulting, investment advisory, and training for borrowers in accordance with regulations; and conducts entrusted and trust-receiving activities under Decree No. 45/2021/ND-CP.

As of December 31, 2025, the Fund’s charter capital reached VND 1 trillion, ten times higher than at its inception, of which VND 946.1 billion came from the state budget. Total equity stood at VND 1.0519 trillion.

The Fund prioritizes lending to sectors such as agriculture and rural development; export-oriented projects; supporting industries; and high-tech cooperative models under government priority lists. This orientation aligns with sustainable development policies and enhances the competitiveness of the collective economy.

During 2024–2025, the Fund signed 170 loan contracts totaling VND 1.315 trillion, nearly 1.2 times the total lending for the entire 2020–2024 period. Total disbursement reached VND 1.376 trillion, while outstanding loans stood at VND 943 billion by the end of 2025.

Lending activities have been assessed as timely, safe, and aligned with proper purposes and beneficiaries. Appraisal, approval, and disbursement processes strictly follow regulations; eligible projects receive prompt support, while ineligible cases are clearly explained. Debt recovery has been effectively implemented, keeping non-performing loans at a safe level of 1.5% as of end-2025.

Preferential credit, especially for agricultural cooperatives, rural areas, and women-led cooperatives, has created positive spillover effects. Surveys show that average cooperative revenue increased by 43.5%, profits by 37.2%, and membership by 24.2%.

Members’ income rose by 26.2%, workers’ income by 24.2%, and budget contributions by 10%. Many cooperatives have joined supply chains and OCOP programs, creating jobs and promoting gender equality.

Toward modern cooperative finance

At the meeting, Duong Tuan Cuong, Deputy Head of the VCA’s Economic and Policy Department, emphasized the desire to establish cooperation with the Chiang Mai University Savings and Credit Cooperative, a reputable community financial model in Thailand.

 Both sides outlined cooperation across multiple areas. First is training and sharing experience in internal financial management, including member credit assessment based on reputation, participation duration, and contribution level; credit appraisal and risk management processes; and developing training programs for cooperative staff in Vietnam.

In terms of technology, the VCA aims to access advanced management solutions such as customer relationship management (CRM) systems to digitize loan records, track interaction history, and assess compliance. The two sides also discussed software solutions for operations management, debt monitoring, automated loan classification, and early warning risk systems.

They also aim to enhance IT capacity to ensure efficient operation of credit systems, while strengthening data security and safety in the context of digital transformation.

Beyond bilateral cooperation, the Vietnam Cooperative Development Support Fund seeks to expand connections with cooperative financial organizations in the region. Accordingly, Vietnam proposed that CMU act as a bridge to the Federation of Savings and Credit Cooperatives of Thailand (FSCT) to explore broader cooperation opportunities.

Notably, the VCA Chairwoman expressed a desire to learn from Thailand’s university-based cooperative model for pilot implementation in Vietnam, a new approach to expanding the collective economic ecosystem.

Mr. Pairat Kanjanakaroon, Chairman of the Chiang Mai University Savings and Credit Cooperative, praised the scale and support system of Vietnam’s cooperative funds and expressed interest in strengthening practical exchanges between the two sides.

The Thai delegation invited VCA to visit and work in Thailand to gain deeper insights into the university-based cooperative model, while also being ready to share management experience and support digital transformation through existing platforms. “We hope the Vietnamese delegation will visit so we can share our experience in establishing university-based credit cooperatives,” Kanjanakaroon emphasized.

The meeting concluded with a commitment to close cooperation, implementing practical programs aligned with digital and green transformation, contributing to improved efficiency and sustainable development of the collective economic sector.

Vũ Hương