Vietnam Bank for Social Policies (VBPS) has received support from the government along with great efforts and determination of all the staff as well as support from international organisations since its inception, including the long-term and sustainable relationship between the bank, the Policy Research Institute (PRI) under Ministry of Finance of Japan, the National Life Finance Corporation (current JFC-Micro) through Technical Support Project for VBSP.

The Technical Support Project (2003-2011) ran in three phases in which the PRI, in collaboration with JFC-Micro, and gave lectures and conducted seminars to provide expertise regarding credit investigation small businesses analysis, skills of customer interview and educational loans to VBSP headquarters executives, staff, and branch managers.

Daikichi Momma (left), former president of PRI and VBSP CEO Duong Quyet Thang

Daikichi Momma, former president of PRI, once said, “The effectiveness and impact of the technical cooperation project with VBSP will be shared and replicated by us in other countries.”

Currently, the credit analysis materials compiled with support from Japanese partners are still used by VBSP credit officers to investigate and analyse credit in lending activities, and some branches have applied a part of the appraisal form in the credit analysis materials to supplement the loan appraisal process of VBSP.

Appraisal skills, experience in credit assessment and analysis for loan programmes in general and loan programmes for small and medium-sized enterprises (SMEs), and job creation have been improved, especially for newly recruited staff. Thereby, credit quality has been improved, and the rate of overdue and frozen debt of VBSP has decreased sharply and remained stable in the past few years at less than 0.8 per cent of total outstanding loan balances.

Technical cooperation between PRI, JFC-Micro and VBSP has brought positive results to VBSP's policy credit activities

By October 31, the total credit capital reached $12.75 billion, an increase of $12.45 billion (41.3 times) compared to 2002, growing an average 21.3 per cent annually.

In the past 20 years, policy credit has supported nearly 6.3 million households to overcome poverty, created jobs for nearly 5.9 million workers, supported more than 3.8 million students to get loans to study, and helped buy nearly 82,000 computers and online learning equipment for students.

VBSP’s credit sources helped to build nearly 16.8 million rural safe water and sanitation constructions, building more than 728 thousand houses for the poor and other policy beneficiaries, and supporting the purchase/rent-purchase of more than 28,400 social housing houses.

Besides, nearly 2,000 businesses and employers affected by the COVID-19 pandemic borrowed VBSP capital to pay wages and restore production.

Policy credit has actively contributed to implementing the National Target Programme on rapid and sustainable poverty reduction, ensuring social security, building new rural areas, and reducing poverty across the country.

Hisao DAITO, former chief of International Cooperation Office at JFC-Micro said, “Through seminars and meetings within the project framework, we know much more about the culture and people of Vietnam.

“With regard to VBSP staff, we appreciate that they are all very enthusiastic about and dedicated to acquiring the knowledge and experiences that we imparted. Personally, I did regard myself as a member of VBSP when I had a chance to work with you to prepare the Credit Analysis Materials in 2005. And the project's success today is a testimony to the close coordination between the two sides in recent years.”