Our STEP project in Vietnam concludes with transformative results

30 years ago, we began setting up the People's Credit Funds (PCF), a network of credit unions that has become the largest inclusive finance institution in Vietnam with its 1156 financial cooperatives and 1.7 million members, 45% of whom are women. Inspired by the Desjardins model, this network has fostered socio-economic development, created jobs, reduced usury and alleviated poverty, particularly in Vietnam's rural and agricultural sectors. 

The STEP project we've been running for the past ten years with the PCFs and Co-opBank, the cooperative bank that now federates these cooperatives, has had a profound and tangible impact on Vietnam's rural communities, with a particular focus on empowering women and supporting small businesses. Funded by the Government of Canada, the project has broken down systemic barriers to accessing financial services and created economic opportunities for thousands of vulnerable people.

“STEP serves as a prime example of the robust bilateral collaboration between Canada and Vietnam in advancing financial inclusion, community development and women empowerment. The project had a significant contribution to enhancing the collective economic model, with a particular focus on cooperative financial institutions, which play a critical role in rural development.” Mr. Đào Minh Tú, Deputy Governor of the State Bank of Vietnam

Going digital!

With a strong focus on modernizing Co-opBank and the PCFs, the project has resulted in several technological innovations to better meet the needs of rural populations.

• An e-banking system has been deployed in 948 cooperatives, representing over 86% of the national network, facilitating remittances which now total CAD 166 million annually.
• The Co-opSmart educational application, one of the first of its kind in the country, has enabled 12,883 entrepreneurs (60% of whom are women) to adopt better financial behaviours, strengthen their management skills and increase their income in a sustainable manner.

“Co-opSmart helps me manage my household expenses and income. At the same time, I can easily keep track of the revenue earned from my business and the money spent, including extraordinary amounts, so I know how much profit we've made monthly. It's an excellent application for both households and business owners like me.” Hồ Thị Thu Tình, businesswoman

Better adapted financial services

The project has given rise to several tailor-made financial products, adapted to the realities of rural populations. By introducing, for example, cash flow-based, eco-friendly and gender-sensitive loans, the project has encouraged the development of local, sustainable economic activities, with a direct impact on the living conditions of women and vulnerable families.

• 7,960 people were able to obtain agricultural, business or group loans.
• Over 28,000 people saw their living conditions improve.

“The women's group of which I am a member collectively saves a sum of money for an emergency fund. The income we generate helps us pay for our family’s everyday expenses, like food. Besides having less financial stress, we now have a budget for ourselves, without having to depend on our husbands or children.” Tran Chị Ut Sơn, tradeswoman

A more resilient and efficient national financial system

The project's benefits go beyond the individuals impacted. STEP has also enabled systemic change on a national scale by influencing Vietnam's financial policy. The reforms introduced, such as improved reporting processes and simplified member enrolment, have strengthened the accessibility, resilience and sustainability of rural cooperatives, promoting inclusive and sustainable economic development.

The innovative tools, methodologies and capacity-building programs developed under STEP will continue to be scaled up and supported by Co-opBank and its PCF network, ensuring a lasting impact on financial inclusion and economic development beyond the project's completion.