Agriterra supports Vietnam government to make cooperatives bankable
17-12-2021 14:07:10
On 10 and 11 December 2021, Agriterra successfully organised a Credit Management Training, aiming to equip cooperative development funds’ management and staff with needed skills to lend cooperatives effectively. The training was attended by 15 representatives coming from 4 cooperative development funds (CDFs): Vietnam Cooperative Development Fund (VCDF), Tra Vinh CDF, Dak Lak CDF, Quang Nam CDF. 93% of the trainees expressed that the training fully meets their expectation and 100% of them committed to applying what they learnt to their work via their follow-up plans submitted to Agriterra at the end of the training.
The training curriculum was well designed after the effectiveness of the Decree 45 issued by Vietnams Prime Minister in March 2021 regarding the “establishment, organizing, and operation of cooperative development funds”. The Decree 45 opens many opportunities for CDFs to receive more loan capital from the government. The equity of each cooperative increases from 15%-130% after 9 months. Eg. VCDF’s equity increases from VND 300 billion (US$ 12.5 million) in March 2021 to VND 700 billion (US$ 29 million) in December 2021. Quang Nam CDF’s equity increases from VND 90 billion (US$ 3.8 million) in March 2021 to VND 104 billion (US$ 4.3 million) in December 2021. However, the cooperatives are facing the challenges of restructuring, effective operation, and professional credit management as required by the State Bank of Vietnam as well as the competitive financing environment.
Given the success of the training, Agriterra was asked by all of the participants to provide this training for many other CDFs’ management in Vietnam. Agriterra also considers the possibility to work with Rabo Foundation in order to assist Vietnam Cooperative Development Fund to provide loans to many cooperatives under the Loan-Guaranteed Scheme of Rabo Foundation since 2022.