Exploring Key Drivers of Operational Sustainability in Vietnam’s People’s Credit Funds: The Crucial Role of Transparency and Governance

This study aims to identify the key factors influencing the sustainability of People’s Credit Funds (PCFs) in Vietnam, focusing on organizational capacity, loan portfolio management, risk management, and transparency. Data were collected from 219 respondents across PCFs nationwide. Statistical analyses, including Cronbach’s alpha, exploratory factor analysis, and structural equation modeling (SEM), were conducted using SPSS to validate the research model and hypotheses. The results indicate that transparency, particularly in governance and financial reporting, has the most significant positive impact on the sustainability of PCFs. Meanwhile, organizational capacity and risk management show less influence on long-term sustainability. These findings highlight the critical importance of enhancing transparency to build trust, improve operational efficiency, and ensure the long-term stability of PCFs. This has implications for improving governance practices and financial reporting standards in Vietnam’s credit fund sector.