Policy Credit Strengthens Cooperative Production and Business
Access to state-backed policy credit has enabled local cooperatives of Lam Dong to invest in machinery, technology, factories and warehouses, thereby expanding production and business operations.
Loans from the Vietnam Cooperative Development Support Fund have played a key role in helping cooperatives upgrade technology and enhance operational capacity. At the same time, credit programs offered by the Vietnam Bank for Social Policies and the Vietnam Bank for Agriculture and Rural Development provide preferential loans with terms tailored to production cycles, including dedicated packages for OCOP projects, high-tech agriculture, and green credit.
Recently, 13 cooperatives under the provincial Cooperative Alliance received more than VND 55 billion in loans from the Vietnam Cooperative Development Support Fund to invest in transport vehicles, machinery and equipment. According to the provincial alliance, the funds have been used effectively and for the intended purposes, with borrowers fulfilling their repayment obligations.
Financial support not only helps cooperatives overcome short-term capital constraints but also lays the groundwork for sustainable growth. Improved access to suitable funding enhances competitiveness, creates jobs and raises incomes for cooperative members. The funding has also contributed to restructuring the rural economy, particularly in new-style rural communes and cooperatives with OCOP-certified products.
The provincial Cooperative Development Support Fund is currently undergoing restructuring through a merger with its counterpart in Dak Nong Province ahead of provincial consolidation. Once operations are stabilized, with charter capital of over VND 29 billion, the fund is expected to continue serving as a significant financial resource for cooperative development.