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…(Scopus)Organizational Dynamics and Financial Sustainability: Evidence from Vietnam’s People’s Credit Funds
Quang Minh Le
Thanh Dong University
Anh Phan
Banking Academy of Vietnam
Dieu Linh Nguyen
Banking Academy of Vietnam
Thi Minh Ngoc Le
Banking Academy of Vietnam
Van Lanh Nguyen
University of Technology and Management
Bao Huyen Nguyen
Banking Academy of Vietnam
Tra Thi Huong Le
Banking Academy of Vietnam
DOI: https://doi.org/10.36956/rwae.v7i1.2455
Received: 13 July 2025; Published: 21 January 2026
Copyright © 2026 Quang Minh Le, Anh Phan, Dieu Linh Nguyen, Thi Minh Ngoc Le, Van Lanh Nguyen, Bao Huyen Nguyen, Tra Thi Huong Le. Published by Nan Yang Academy of Sciences Pte. Ltd..
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract
This study investigates the factors affecting the financial sustainability of People's Credit Funds in Vietnam, which are essential for promoting financial inclusion in rural areas. The research, grounded in organizational management and financial systems theories, uses a mixed-methods approach with a survey of 363 stakeholders across all 63 Vietnamese provinces, conducted from October 2024 to March 2025. Multivariate regression analysis reveals that Organizational Performance, Loan Portfolio Management, Management Quality, Customer Outreach, Organizational Transparency, and Financial Sustainability all have a significant impact on Financial Self-Sufficiency. However, the study found that Organizational Capacity and the Legal and Policy Environment were only marginally significant. Interestingly, many of the significant factors showed negative coefficients, suggesting operational trade-offs specific to the context of Vietnamese People's Credit Funds. For example, stringent risk management or extensive customer outreach may increase costs, temporarily reducing financial self-sufficiency. These findings broaden existing theoretical frameworks by highlighting the complex trade-offs within cooperative credit institutions. The study provides practical recommendations for People's Credit Funds’ managers, urging them to balance risk-based lending with digital tools to streamline operations and reduce costs. Policymakers are also advised to implement tax incentives to support the digital transformation of People's Credit Funds, aligning with Sustainable Development Goals 1 and 8.