According to the statistics of the Vietnam Cooperative Alliance, currently there are over 20,000 cooperatives nation-wide with over 6.3 million members.
Lack of capital makes many cooperatives unable to expand their production and business, even potentially falling into bankruptcy. Additionally, cooperatives wishing to approach to high tech also face many difficulites due to the absence of capital.
The main reason for that is because Vietnamese cooperatives do not have collateral to deposit and fail to meet the strict requirements of banks.
According to current regulations, the establishment of cooperatives is different from other types of enterprises as most of cooperatives assets are only personal property of cooperative members.
It is not common property, which can be used as collateral at banks or credit institutions.
“In my opinion, banks or organizations need to have better approach, customer care, even consultants to support cooperatives to create business plans or focus on evaluating them. The trust between cooperatives and the bank is not high," Cuong said.
He added, "It is therefore important not only to focus on the ability to evaluate business plans of cooperatives but also provide both unsecured loans, which base on trust and mortgage loans requiring collateral."
"Furthermore, it is necessary to improve corporate governance and equity of cooperatives to facilitate capital mobilization,” said Nguyen Ngoc Bao, Chairman of Vietnam Cooperative Alliance.
