To date, the province has 2,026 cooperatives and 761 cooperative groups. In the system of credit channels for the collective economic sector, the Cooperative Development Support Fund is considered an important financial support, with a preferential interest rate of 0.55%/month, lower than the interest rates of commercial banks. Therefore, immediately after the merger of the province, the Chairman of the Provincial People's Committee signed Decision No. 21/QD-UBND to establish the Bac Ninh Provincial Cooperative Development Support Fund. The fund has a charter capital of 68 billion VND, merged from the former Bac Giang Provincial Cooperative Development Support Fund (charter capital of 31.26 billion VND, outstanding loans of 11.58 billion VND; currently lending to 28 projects) and the former Bac Ninh Provincial Cooperative Development Support Fund (charter capital of 38 billion VND, outstanding loans of 14.77 billion VND, currently lending to 40 projects).
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Leaders of the Provincial Cooperative Union grasp the desire to borrow capital at Hiep Thang Fine Arts Wood Cooperative (Phu Khe ward). |
Through evaluation, most cooperatives that borrowed capital from this fund have made good use of the capital to purchase machinery, equipment, and materials for production. Many cooperatives have expanded their scale, innovated technology, developed markets, built product brands, increased income for members, reaching an average of 5-7 million VND/person/month, and complied with the repayment of principal and interest on time as prescribed.
When it was first established in late 2022, Minh Phuong Agricultural Services and Transport Cooperative (Phat Tich commune) encountered many difficulties in accessing capital from commercial banks. After developing a clear production and business plan, the Cooperative was approved by the Cooperative Development Support Fund for an initial loan of 200 million VND and gradually increased to 500 million VND to purchase machinery. Currently, the Cooperative has 4 plows, 2 harvesters, 1 dryer, providing services such as land preparation, harvesting, and drying agricultural products for local people and neighboring areas. Mr. Vuong Huu Vung, Deputy Director of the Cooperative, said: "Compared to commercial banks, the interest rates and loan terms of the Cooperative Development Support Fund are more preferential, suitable for agricultural cooperatives with the characteristic of slow capital recovery".
As a unit with 4 OCOP products, Hiep Thang Fine Arts Wood Cooperative (Phu Khe Ward) soon had access to capital from the Cooperative Development Support Fund. Mr. Nguyen Tran Hiep, Director of the Cooperative shared: “For the handicraft production industry, we have a huge demand for capital due to slow capital turnover. Normally, the Cooperative needs a lot of time to prepare orders, even orders take up to 3 years to complete and be paid, but the Cooperative has to pay for most of the raw materials, labor, etc. Currently, we are being disbursed 500 million VND in loans from this fund but hope to be able to increase the limit higher in the near future”.
According to Mr. Pham Minh Hien, Chairman of the Provincial Cooperative Union, realizing that the capital needs of cooperatives are very large, after merging the Cooperative Support Funds of the two old provinces, the unit is urgently developing and submitting to the Provincial People's Committee for approval the operation, finance and development investment plans according to the provisions of Decree 45/2021/ND-CP and related regulations; arranging the use of assets according to standards and norms; implementing asset management and use according to the provisions of law, ensuring savings and efficiency. The exciting thing is that in 2025, the Fund will be supplemented with capital from the budget to reach 80 billion VND, by 2030 it will reach 150 billion VND. The Fund limit will not be limited to 500 million VND/project but will expand according to the needs and feasibility of the approved project.
Receiving this information, Ms. Duong Thi Luyen, Director of Ngoc Chau Bamboo Shoots and Forestry Cooperative (Ngoc Thien Commune) shared: “Our cooperative has 29 members. Previously, some members received capital disbursement from the Cooperative Development Support Fund, but the limit was only about 300 million VND/project, not enough to meet development needs. We hope to increase the loan limit or flexibly provide unsecured loans for members.”
To effectively operate and manage the Fund, the leaders of the Provincial Cooperative Union and the functional departments proactively follow the production, business and loan capital usage situation to promptly remove difficulties and obstacles; focus on selecting units with needs and feasible production and business projects to advise and support access to capital sources; urge repayment of principal and interest on time. At the same time, connect with other credit channels to increase resources and diversify loan products for cooperatives. In addition, the Provincial Cooperative Union integrates consulting and assisting cooperatives to change their awareness and thinking from small-scale business to forming production and consumption chains; apply science and technology to improve product quality and competitiveness...
Source: https://baobacninhtv.vn/bac-ninh-tiep-suc-nang-cao-hieu-qua-hoat-dong-cua-cac-hop-tac-xa-postid424687.bbg
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