Policy credit has helped needy households across the country embrace economic development sustainably. Photo: VBSP

Following the motto ‘Understanding people's hearts, wholeheartedly serving, bolstering efficiency for sustainable development’, VBSP continuously accompanied policy beneficiaries, making it easier for the poor to access preferential credit sources.

The bank expedited many effective solutions, from mobilising development resources to timely disbursement, helping clients restore production and stabilise their lives after natural disasters.

According to Huynh Van Thuan, VBSP’s deputy CEO, as of December 31, 2024, the total policy credit volume tailored to support needy and disadvantaged people and households came to $15.68 billion, up $1.24 billion on-year. Of this, entrusted capital from the local budget reached $2.1 billion, up 479.4 million on-year, accounting for 13.5 per cent.

The capital entrusted to VBSP includes funds under Resolution No.111/2024/QH15 of the National Assembly on specific policies to implement national target initiatives, which amounted to $89.2 million being provided to VBSP branches in 20 localities.

Several branches had received entrusted capital exceeding VND1 trillion ($41.6 million) since Directive No.40-CT/TW of the Secretariat on strengthening Party’s leadership in social policy credit came into force from November 2014, including Hanoi being allocated $368 million, Ho Chi Minh City $306.3 million, Binh Duong $92 million, Danang $90 million, and Ba Ria-Vung Tau $67.5 million, to name but a few.

By December 31, 2024, the total loan disbursement approximated $5 billion, with over 2.3 million poor households and other policy beneficiaries accessing loans.

The total outstanding policy credit reached $15.3 billion, an increase of $1.48 billion or 10.8 per cent compared to 2023, with nearly 6.8 million customers having outstanding loans.

Among these, the outstanding loans for production and business activities reached $10.97 billion, accounting for 71.6 per cent of total outstanding loans, focusing on programmes to support poor and near-poor households, newly escaped poverty households, and job creation.

Outstanding loans for living and daily needs amounted to $4.35 billion, accounting for 28.4 per cent, supporting diverse target programmes on clean water, environmental sanitation, social housing construction, and education.

VBSP has made significant contributions to three national target programmes. Regarding the sustainable poverty reduction lending programme, outstanding loan volume for poor and near-poor households, and newly escaped poverty households came to $5.85 billion, accounting for 38.2 per cent of total outstanding loans, supporting over 2.8 million households.

For the lending earmarked for new-style rural area development, total outstanding loans reached $13.5 billion, focusing on agriculture, forestry, fisheries, and social infrastructure.

For the lending serving socioeconomic development of ethnic minorities, outstanding loans reached $5.42 billion, of which loans to ethnic minority households amounted to $3.73 billion, supporting more than 1.6 million local households, contributing to improving production and living standards.

Deputy CEO Huynh Van Thuan also noted that in the past year, policy credit had created jobs for over 712,000 workers, supported 9,300 people to work abroad, and nearly 7,000 people secured stable jobs after completing their jail terms.

Additionally, leveraging policy credit sources, more than 88,500 disadvantaged students got loans to cover tuition fees, nearly 1.76 million clean water and sanitation facilities in rural areas were built; 1,143 houses for poor households, and over 6,200 social housing units were completed, meeting the housing needs of low-income people.

Strengthening capital mobilisation

To achieve the credit growth target in 2025, deputy CEO Huynh Van Thuan said that VBSP is focusing on key tasks to provide loans to poor households and other policy beneficiaries, ensuring timely debt repayment and maintaining the system’s overall liquidity.

The bank proactively advises the government, ministries, departments, local authorities, and closely coordinates with member units to implement Directive No.39-CT/TW in October 2024 by the Secretariat on enhancing the effectiveness of social policy credit in the new era.

“The entire VBSP system identifies Directive No.39 as crucial, laying the foundation for continuing the effective implementation of social policy credit, effectively contributing to driving the country’s socioeconomic development in the upcoming period,” said Thuan.

In addition, VBSP is set to draft and submit a plan to implement the Directive to the government.

At the same time, VBSP will coordinate with central agencies to advise on the allocation of local budget entrusted funds under NA’s Resolution No.111/2024/QH15 on supporting national target programmes.

Immediately after getting the Prime Minister's approval, VBSP shall implement the credit growth plan, focusing on national target programmes, including sustainable poverty reduction, new-style rural area development, and socioeconomic development for ethnic minority regions for 2021-2025.

Enhancing the efficiency of capital use will also continue through strict credit quality management measures, with effective handling of risky debts to ensure safe and sustainable financial operations.

This year, VBSP shall concentrate resources on executing the 2025 digital transformation plan, which includes upgrading the Intellect Core Banking system to the digital banking version, developing products and services on the Mobile Banking platform, and expanding the digital ecosystem for customers.

The year promises to continue being challenging, but also presents many opportunities for VBSP. With the government's support, VBSP is striving to fulfill its tasks effectively, supporting national target programmes and contributing to the sustainable development of the country.