Why is it difficult for Ha Tinh cooperatives to access capital from banks?

According to data from the State Bank of Ha Tinh province, as of July 31, 2023, the outstanding loans to cooperatives of credit institutions reached 142.92 billion VND, accounting for only 0.16% of the total outstanding loans in the whole area.

Credit balance of cooperatives is low

Since its inception in 2012, the Loan Hoan Aquaculture, Purchasing, Import-Export Cooperative (Thach Chau Commune, Loc Ha) has grown steadily. With the business of commercial clam farming in the alluvial areas along the Cua Sot River, the 9 members of the cooperative have contributed capital to expand production scale. From a few hectares when it was first established, the total exploitation area of ​​the cooperative has now increased to 40 hectares. If conditions are favorable, the cooperative harvests an average of over 800 tons of commercial clams each year, with a revenue of about 10 billion VND.

Workers of Loan Hoan Aquaculture, Purchasing, Import and Export Cooperative classify clams after harvest.

Ms. Le Thi Loan - Director of Loan Hoan Aquaculture, Purchasing, Import-Export Cooperative said: "The scientific production and business plan, scale and operational efficiency are increasingly affirmed, so the cooperative is qualified to access bank capital. In addition to Agribank, we also received a loan from ACB Ha Tinh with a limit of 5 billion VND. Thanks to that, the cooperative has resources to invest in production and business, creating stable jobs for nearly ten local workers and increasing revenue continuously."

Loan Hoan Aquaculture, Purchasing, Import-Export Cooperative is one of the few cooperatives in Ha Tinh that is large enough to access bank loans. In reality, many cooperatives are not eligible to borrow capital from “banks”.

Mr. Le Ngoc Trung - Director of Son Ham Agricultural, Forestry and Environmental Cooperative (Huong Son) shared: "The unit specializes in producing and supplying forestry trees, shade trees... in and outside the province. However, the production situation is increasingly difficult as the consumption market gradually decreases. Along with that, the cooperative has not been granted land, does not have collateral, so the bank refuses to lend capital."

As of July 31, 2023, outstanding loans to cooperatives from credit institutions accounted for only 0.16% of total outstanding loans in the whole area.

Mr. Tran Van Anh - Director of Cam Thanh Commune Environmental Cooperative (Cam Xuyen) said: "The unit operates in collecting, transporting and treating waste in the communes of Cam Thanh, Cam Vinh, Cam Thach, Cam Quan, Cam Quang, Cam Loc, Cam Due... The operating model is mainly public interest, not enough resources to invest in other fields, so the revenue is insignificant. In addition, the cooperative does not have collateral, so commercial banks all refused when we requested loans."

In order to create conditions for the collective economic sector to develop, in recent times, commercial banks in the area have proactively provided eligible cooperatives with access to loans. However, it is regrettable that the collective economic sector in Ha Tinh is not strong enough to "touch" the capital sources of "banks".

According to data from the State Bank of Ha Tinh province, as of July 31, 2023, the outstanding loans to cooperatives of credit institutions reached VND 142.92 billion, accounting for only 0.16% of the total outstanding loans in the whole area. With 1,030 cooperatives in operation, this outstanding loan is too modest.

What to do to increase capital absorption capacity?

According to Mr. Vo Minh Manh - Deputy Director of Agribank Ha Tinh II Branch: With the strength of agricultural, rural and farmer credit, the branch always creates conditions for the collective economic sector to access loans. However, the number of cooperatives operating effectively is modest, so the outstanding debt in this sector is still low. Up to now, only 10 cooperatives are generating outstanding debt at the branch with a total amount of 21.8 billion VND. Therefore, innovation and improving the operational efficiency of the collective economic sector is an urgent task.

People come to transact at Agribank Ha Tinh II Branch.

Talking about the "barriers" in accessing credit, Mr. Nguyen Ngoc Hung - Chairman of the Ha Tinh Cooperative Union analyzed: "Weak financial capacity, weak management and operation capacity, small scale, outdated infrastructure, low efficiency... are the main reasons why many cooperatives have not created trust with credit institutions. Through review and assessment by professional agencies, out of 1,030 cooperatives currently operating, only 128 are classified as good. In addition, to borrow capital from banks, you must have collateral, however, the number of cooperatives granted land use right certificates in the area is still small (over 100 cooperatives)".

According to Mr. Nguyen Ngoc Hung, to access bank capital, each cooperative must improve its own "capacity index" by striving to innovate, create, improve management and financial capacity. At the same time, members need to proactively contribute capital, develop and implement production and business plans suitable to reality, standardize products associated with trade promotion, expand scale, and increase revenue. Cooperatives also need to proactively learn and grasp information about related mechanisms and policies, and be proactive in transaction relations with banks...

On the part of departments, branches, sectors and localities, it is necessary to take drastic action, actively accompany, remove difficulties, and have solutions to support cooperatives in terms of procedures and documents; orient and advise on production and business plans, and operational directions; support infrastructure, technology, and trade promotion. At the same time, strengthen coordination with the banking sector in information activities, disseminating policies and mechanisms to the collective economic sector and cooperatives; in connection and dialogue activities; in handling secured assets, handling bad debts, etc.

The provincial Cooperative Union needs to strengthen training for cooperatives in accessing loans from the Ha Tinh Cooperative Development Support Fund and commercial banks.

In addition, the Provincial Cooperative Union must truly be the "midwife" of cooperatives, becoming a bridge between Party committees and authorities at all levels and cooperatives. Strengthen training to improve the capacity of cooperatives, promote "hand-holding" training for cooperatives in accessing loans from the Cooperative Development Support Fund, commercial banks, etc.

Thu Phuong

Source: https://baohatinh.vn/kinh-te/vi-sao-hop-tac-xa-ha-tinh-kho-tiep-can-von-tu-ngan-hang/253373.htm