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Finding Solutions to Maximize the Effectiveness of Loans from the Cooperative Development Support Fund

(News Portal – Dong Nai) - Alongside other credit organizations providing loans for production and business activities, the Cooperative Development Support Fund (CDSF) was established to lend to the collective economy and cooperatives nationwide. In Dong Nai, over recent years, the CDSF has enabled cooperatives to execute their production and business plans with preferential loans. 

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Director of Dong Nai Cooperative Development Support Fund Tran Quoc Huy (right) conducts a survey on loan demand at a cooperative in Bien Hoa city. 

Enhancing Capital for Operations  

In 2008, the Cooperative Development Lending Fund of Dong Nai, under the Dong Nai Cooperative Alliance, was established with an initial capital allocation of VND 30 billion from the provincial People's Committee. The fund's establishment and operations introduced an additional capital support channel for cooperatives and cooperative groups, creating numerous jobs, especially in rural areas, and contributing to local socio-economic development tasks.

In 2021, the Government issued Decree No. 45/2021/ND-CP regarding the establishment, organization, and operation of the CDSF. In Dong Nai, the provincial People's Committee Chairman issued Decision No. 1543/QD-UBND on June 13, 2022, to establish the Dong Nai CDSF with a charter capital of VND 150 billion allocated from the provincial budget. The fund inherited the personnel, assets, rights, obligations, and legal interests of the previous Cooperative Development Lending Fund. It was designated as a non-budgetary state financial fund, operating as a single-member limited liability company wholly owned by the State.

According to Mr. Tran Quoc Huy, Director of the Dong Nai CDSF, the fund has annually developed specific plans to implement its mission of providing preferential loans to the collective economic sector and cooperatives. To date, the fund has received its full charter capital of VND 150 billion. New regulations have addressed previous shortcomings in loan operations. The fund is now authorized to provide short-term, medium-term, and long-term loans, allowing flexibility in repayment periods based on production and business cycles, livestock and crop cycles, or investment project timelines.  

Seeking Solutions to Improve Loan Utilization Efficiency  

Many cooperatives, cooperative groups, and members who have received loans have become exemplary models, spreading positive impacts. The fund has contributed to promoting the development and improving the efficiency of the collective economic sector, encouraging investment in technology and technical innovations, and expanding production and consumption.

Prominent examples include: Suoi Cat Agricultural Service Cooperative (Xuan Loc District) expanded from 22 members to 67 members, building clean raw material zones for cocoa production and has its products contracted with Marou Company (France); Xuan Hoa Agricultural Service and Cattle Breeding Cooperative (Xuan Loc District): applied biological farming solutions and self-produced animal feed for its 9 members (this solution won an award at the 2021 Dong Nai Agricultural Science and Technology Innovation Contest); Nhon Trach Transportation Service Cooperative (Nhon Trach District): ensured capital for contracts transporting workers in Long Thanh and Nhon Trach industrial zones; Melon Planting Cooperative Group in Long Khanh City: cultivates organic melons for markets inside and outside the province.

“During our development process, we have received support from the local authorities as well as the Dong Nai Cooperative Alliance. Loans from the fund have enabled cooperative members to invest in production," shared Mr. Truong Van My, Director of Suoi Cat Agricultural Service Cooperative.

Similarly, Mr. Cao Xuan Lam, Director of Xuan Hoa Agricultural Service Cooperative, stated that the cooperative secured a VND 3 billion loan at preferential rates from the CDSF. This funding allowed the cooperative to invest in livestock facilities, purchase breeding cattle, and fund infrastructure projects for farming, helping members increase their income and enhancing the cooperative's production and business efficiency.​

According to Mr. Tran Quoc Huy, the CDSF Director, in its 2025 plan, the fund will continue collaborating with local authorities, associations, and organizations to strengthen loan accessibility for the collective economic sector and cooperatives, aligning with the directives of the provincial People's Committee. Additionally, based on survey results, the fund will build upon its achievements, update regulations on credit activities, and propose necessary adjustments and supplements for approval by competent authorities. These efforts aim to align with the practical production and business activities of cooperatives and cooperative groups, realizing the Party and State's credit support policies for the collective economic sector.  

Author: Bao Nguyen

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