As part of the project 'Mobile Banking - Financial Inclusion and Economic Empowerment for the Low-Income Population and Women in Vietnam', the Vietnam Bank for Social Policies (VBSP) has partnered with The Asia Foundation to implement the Mobile Digital Education scheme for its customers.

The initiative aims to equip participants with financial knowledge, entrepreneurial skills, and the tools to utilise technology in managing personal finances. Women and low-income households are to be the primary beneficiaries.

Ngo Thuy Hang, deputy director of VBSP’s Hanoi Branch, said, "We operate across 30 districts, towns, and communes through 28 transaction offices and its headquarters. The primary lending method involves direct loans, with several processes delegated to socio-political organisations such as the Women’s Union, the Farmers’ Union, the Veterans’ Association, and the Ho Chi Minh Communist Youth Union."

The agreements with these organisations are structured through interagency documents at the city and district levels, delegation contracts at the commune level, and authorisation contracts with savings and loan group leaders.

Ta Thu Huong (red blouse) a craftswoman in Thanh Oai district, successfully applied the digital skills learned to her traditional hat-making business. Photo: The Asia Foundation

As of November 25, the branch managed total capital of almost VND16.5 trillion ($660 million), an increase of VND2.3 trillion ($91 million) since the beginning of the year. Outstanding loans across various programmes reached VND16.4 trillion ($657 million), reflecting a growth of just over VND 2.25 trillion ($90 million). Over the first 10 months of 2024, VBSP extended loans to almost 105,000 disadvantaged households and policy beneficiaries in Hanoi.

These loans have supported various objectives: 20 households escaping poverty, job creation for almost 78,000 individuals, and financing for over 26,000 families to construct or renovate more than 52,000 rural water and sanitation facilities. Additionally, 47 students received loans to cover education costs, 90 former prisoners were financed to reintegrate into society, and 600 disadvantaged households accessed funding to repair homes. A further 54 customers benefitted from loans under the social housing scheme.

"VBSP’s policy lending programmes have significantly contributed to Hanoi’s socio-economic development, providing effective tools to reduce poverty, create jobs, develop rural areas, curb loan sharking, and address social welfare challenges," said Hang

The initiative has received praise from local authorities and socio-political organisations for its alignment with the city’s goals of digital transformation and economic modernisation. Participants also lauded the offering for disseminating practical knowledge on personal finance management, online business operations, and safe digital transactions.

For instance, Ta Thu Huong, a craftswoman in Thanh Oai district, successfully applied the digital skills she learned to her traditional hat-making business. With a VBSP loan of VND100 million ($4,000), she upgraded her shop, purchased materials, and now provides stable jobs for three local workers. By integrating online sales channels, her business received positive customer feedback and expanded its market reach.

Similarly, Nguyen Thu Phuong, a young entrepreneur in Thanh Oai district, used her VND100 million ($4,000) loan to renovate her garment workshop and purchase materials. Phuong not only fulfilled traditional orders but also embraced online sales through livestreaming, gaining popularity for her ready-to-wear clothing designs. She credited the digital education scheme for teaching her how to safeguard against online fraud and manage her finances effectively, particularly for small businesses.