Preferential loans from the provincial Cooperative Development Support Fund have helped numerous cooperatives in Dak Lak invest in infrastructure, secure input supplies, expand production and improve operational efficiency.

With most activities concentrated in agriculture, many cooperatives province-wide have substantial capital needs for irrigation systems, machinery, equipment and member services. Given their limited capacity to accumulate capital, preferential loans have become a vital source of support, helping them  overcome difficulties, gradually improve infrastructure and strengthen their capacity to serve production.

At Quyet Tien Agricultural Services Cooperative in Krong Ana Commune, loans have been used to invest in and repair irrigation canals, other irrigation facilities and internal farm roads. Director Tran Huu Tien, said the cooperative had accessed the fund twice, receiving a total of more than 1.2 billion VND to invest in production infrastructure. To date, the cooperative has four pumping stations and 22 km of concrete irrigation canals, meeting approximately 80% of irrigation needs.

Thang Binh 1 Agricultural Services Cooperative using funding to purchase machinery, equipment and fertilisers for its members.

Similarly, in 2021, Quang Tan Agricultural Services Cooperative obtained a 500 million VND loan from the Cooperative Development Support Fund to repair more than 500 m of irrigation canals and purchase high-capacity water pumps. These investments have gradually improved infrastructure and helped stabilise crop production.

Beyond irrigation infrastructure, the funding has also enabled cooperatives to proactively supply production inputs and equipment. Thang Binh 1 Agricultural Services Cooperative has accessed funding from the Cooperative Development Support Fund for the fourth consecutive year to purchase machinery, equipment combined with fertilisers. Under the cooperative's policy, rice growers can defer payment for approximately five months and coffee growers for around 10 months, without interest. This approach eases members' financial pressure at the start of the production season while giving them access to inputs of known origin at competitive prices.

Strengthening the fund and expanding support

According to the provincial Cooperative Alliance, during the 2020 - 2025 period, the Cooperative Development Support Fund provided loans to cooperatives on 44 occasions, with outstanding loans totalling 26.5 billion VND. The funding helped support production and business activities, technology investment along with job creation for more than 4,000 workers.

As cooperatives' capital needs become increasingly diverse, strengthening the fund's financial capacity and expanding access to financing are crucial. For the 2026 - 2030 period, the fund aims to increase its charter capital to 50 billion VND by 2030, with plans to meet the financing needs of 100 - 150 loan projects. Priority areas include technological innovation, product development, market expansion, value chain linkages, digital transformation, alongside the development of clean and high-tech agriculture.

Mr. Dang Quang Khoa, Vice Chairman of the provincial Cooperative Alliance and Director of the fund, said the establishment as well as continued operation of the fund had delivered tangible benefits to cooperatives. The provincial Cooperative Alliance serves not only as a focal point for helping cooperatives access funding, but also as a platform for connecting members, sharing experience and supporting them throughout the collective economic development. In the coming period, the fund will continue to strengthen its support role by aligning financing with the actual needs and production coupled with business plans of individual cooperatives, prioritising feasible projects that create value and deliver benefits to members.

Translated by KHUONG THAO