The Performance of Hanoi Cooperative Assistance Fund

Abstract

      Hanoi Cooperative Assistance Fund was established with the expectation to solve the desperate needs of funds from 1.700 cooperatives who are in weak capacities and lacking of collaterals. After seven years of official operation, the source of funds has increased from VnD 5 billion 2008 to VND 256 billion in 2014 and provided preferential credit loans to 219 cooperatives and 1.220 cooperation groups. The beneficiaries have expanded their business, increased profits and generated more jobs for rural dwellers. The financial capacities of the funds, policies and working mechanisms, and the capacities of coops and cooperation groups themselves were identified as the key factors affecting the performance of the fund. In order to increase the efficiency of the fund performance, the following measures should be taken: (i) complementing legal documents and policies, (ii) continuing to carry out administrative reforms, increasing credit quality in the fund’s performance and (iii) continuing to develop the human resource quality.