VBSP Dak Po, Gia Lai prioritizes capital for cooperative members

(VBSP News) While cooperatives do not have collateral to get a loan, members of cooperatives in Dak Po district (Gia Lai province) getting loans from district VBSP is a feasible solution to contribute to development of cooperative economy in agriculture - rural sector.

Thanks to the support from VBSP, members of An Thanh Agricultural and Services Cooperatives have shifted to planting fruit trees, gaining economic efficiency.

An Thanh Agricultural and Services Cooperative, An Thanh Commune, Dak Po District was established in August 2019. With the motto of taking members' benefits as the foundation for development of cooperative, the An Thanh cooperatives built the model of “joint purchase and sell”, allowing members to select appropriate plant and animal breeds, creating stable market for local agricultural products, applying new technical processes in production to improve economic efficiency and contribute to create jobs for members and farmers.

As a member of the cooperative, Mr. Nguyen Van Minh, village 5, An Thanh commune has been shifting most of the sugarcane planting area to grow Huong Chi longan, combining with raising deer, fish and breeding cows. This model has developed well, Mr. Minh's family earns hundreds of millions VND every year.

Mr. Minh shared: “In addition to accumulated capital, I have to borrow from VBSP to invest in caring for plants and animals more effectively. At present, I still have 5-6 acres of vacant land, so I really want to borrow more to expand the plantation area”.

In the first months of 2020, there were 16 out of 18 members of the cooperative got loans of up to VND 50 million per household from Dak Po VBSP. Thanks to loans, many people have invested in cow raising model, switching from sugarcane to fruit trees with higher economic efficiency.

Mr. Huynh Huu Nghi - Director of the cooperative said: “The biggest obstacle of the cooperative is that there is no collateral to borrow bank loans. Currently, with the charter capital of only VND 100 million, members find it hard to contribute the money. Therefore, the fact that VBSP helps each member to borrow capital means VBSP has contributed to solve difficulties regrading capital for members and the cooperative. My family also got VBSP loans to invest in production development”.

Ms. Nguyen Thi Thanh Thao – Dak Po VBSP district director said: “Currently, there are 16 members of the cooperative receiving unsecured loans with a total capital of VND0 530 million. So far, loans have been invested in production fairly effectively.”

Ms. Thao also informed that, in order to solve the problem in business and production, some members wish to increase the loan to VND 100 million. VBSP can still meet the capital requirements, but the borrower must ensure the loan as prescribed.

Reportedly, besides loans to An Thanh cooperative, in the first 6 months of 2020, VBSP Dak Po also lent to 9 members of An Binh Cooperative (An Khe Town) with VND 306 million; 2 members of Tu An Agricultural and Service Cooperative (An Khe Town) with VND 80 million.

 VBSP