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A few years ago, Mr. Le Van Hung's family in Thieu Duy commune, Thieu Hoa district started a farm business with capital mainly borrowed from the local people's credit fund. From the initial loan of several tens of millions of VND, after many investments and production expansions, his family's farm now has 400 rabbits, dozens of pigs, and hundreds of poultry of all kinds. In addition, the family has also expanded the area for growing cucumbers and chili peppers for export. Each year, it brings in hundreds of millions of VND in income.

Mr. Le Van Hung, Sy Nhan village, Thieu Duy commune, Thieu Hoa district, Thanh Hoa province said: " Previously, I borrowed more than 300 million, now I have 250 million left. I am also trying to ask the credit fund to lend more to expand the market, raise rabbits, raise more pigs, and grow crops. I have 1.2 hectares of high land, and have worked for many years so I have experience, so I want to invest to earn more profit".

Thanh Hoa currently has 67 people's credit funds, operating in 18 districts, towns and cities, with a total of nearly 117,000 members; total capital reaches over VND8,600 billion, outstanding credit balance reaches VND6,200 billion. The credit quality of the funds is basically guaranteed, the bad debt ratio is within the allowable limit, accounting for 0.4% of total outstanding loans.

Along with effective capital mobilization, grassroots people's credit funds in the province have closely followed the policies and orientations of local economic development to provide loans to the right subjects, support people in developing economic models, improving their lives, creating jobs, and building new rural areas.

Along with improving financial capacity by increasing charter capital and attracting new members based on the connection between expanding capital sources and supporting members to borrow, People's Credit Funds also focus on training to improve management and operation capacity, restructuring the system, ensuring the bad debt ratio within the safety threshold, increasing the effectiveness of mutual support activities in the member community, ensuring capital mobilization and lending quickly, safely and effectively.

Mr. Nguyen Van Ngu, Chairman of the Board of Directors of Ngu Loc People's Credit Fund, Hau Loc District, Thanh Hoa Province said: " We have implemented many propaganda measures to affirm the prestige and position of the credit fund so that people and members continue to trust the operating model, goals and objectives of the fund. Regarding the responsibility in governance, operation and control, we have approached, received and improved our capacity."

In 2024, the State Bank of Vietnam, Thanh Hoa branch, will continue to strengthen inspection, examination and supervision of the operations of the People's Credit Fund system to ensure safety and consolidate the fund system. At the same time, direct grassroots People's Credit Funds to implement solutions to enhance financial capacity, internal control, improve quality and efficiency of operations, promote bad debt handling and credit growth along with strengthening credit quality control. The credit fund system will proactively reduce operating costs, reduce profit targets to reduce lending interest rates, and share difficulties with members in the process of developing production and business activities.

Source: Thanh Hoa News, April 5, 2024