Maximising the effectiveness of preferential loans

One year after the consolidation of the VBSP branches in Ha Nam, Nam Dinh and Ninh Binh, the Viet Nam Bank for Social Policies – Ninh Binh Branch quickly stabilised its organisational structure and continued to implement the Government's policy credit programmes effectively.

According to Tran Song Tung, Permanent Vice Chairman of the Provincial People's Committee and Head of the Representative Board of Directors of the provincial VBSP, policy credit managed directly by the bank has become an important instrument for achieving the province's economic development, poverty reduction and social security objectives since its establishment.

The branch's Director, Pham Duc Cuong, said the bank initially faced numerous challenges, including limited capital resources, inadequate facilities and a shortage of staff.

Thanks to the close attention of Party committees and authorities at all levels, together with the effective coordination of socio-political organisations, preferential loans have been delivered safely and promptly to eligible beneficiaries. The branch currently administers 17 policy credit programmes.

As of May 31, 2026, the bank's total funding had reached 15.175 trillion VND, an increase of 1.209 trillion VND compared with the beginning of the year. Of this, 1.514 trillion VND came from funds entrusted by the local government budget, equivalent to 133.7% of the planned growth target. Outstanding loans totalled more than 15.147 trillion VND, benefiting 209,621 borrowing households, with an average loan balance of 72.25 million VND per household. Overdue and rescheduled debts accounted for only 0.14% of total outstanding loans, while all district transaction offices and commune-level transaction points were rated as performing well.

Policy credit has continued to deliver tangible results by creating stable employment for around 14,000 workers, supporting nearly 600 disadvantaged pupils and students, financing the construction and upgrading of 65,204 rural clean water and sanitation facilities, and helping build 234 new homes for poor households and policy beneficiaries. These efforts have contributed to reducing the provincial poverty rate to 1.48% by the end of 2024, with a target of lowering it further to 0.99% by 2026.

Bringing capital directly to communities

The effectiveness of policy credit is also reflected in the improved livelihoods of many local families. To ensure loans reach the intended beneficiaries, the provincial VBSP maintains a network of 21 transaction offices and 6,130 savings and loan groups. Through close cooperation with local authorities and socio-political organisations, borrower selection, loan disbursement and guidance on fund utilisation are carried out directly at the grassroots level, making access to finance more convenient.

Nguyen Thi Duyen, from Rang Dong Commune, borrowed 100 million VND under the employment generation loan programme to invest in grouper and shrimp farming. By applying modern production techniques, her family harvested 5 tonnes of grouper and nearly 500 kilograms of commercial shrimp, while also expanding into handicraft production and areca cultivation. After deducting expenses, the family now earns approximately 100 million VND in annual profit.

In Cuc Phuong Commune, Bui Van Tuan, a member of the Muong ethnic minority, used preferential loans to develop cattle farming and rehabilitate hillside orchards. Access to credit has enabled his family to overcome capital shortages, stabilise their livelihood and increase household income.

Meanwhile, in Duy Tien Ward, Nguyen Thi Thuy has become a model borrower after using policy loans to develop a modern indoor duck farming operation with climate-controlled housing on nearly 0.5 hectares of land.

"With the initial preferential loan provided by the State through the Viet Nam Bank for Social Policies, my family has expanded production and applied modern technology to livestock farming. The ducks have grown well and achieved high productivity, generating around 600 million VND in annual income," Thuy said.

Her family has also opened an animal feed dealership, creating jobs for five local workers, each earning between 7 million and 10 million VND per month.

As Viet Nam implements its two-tier local government model, the VBSP – Ninh Binh Branch continues to maintain commune-level transaction points to ensure uninterrupted access to preferential loans. By May 31, 2026, the branch was operating 397 transaction points across communes and wards. Loan applications, disbursements and repayments have continued according to schedule, ensuring convenient services following the administrative restructuring.

"To ensure policy credit continues to flow smoothly without interruption, the branch has placed great importance on coordinating with the People's Committees of newly established wards. This helps facilitate loan application verification and authorisation procedures, preventing administrative bottlenecks. Since the merger, all transactions have been conducted on schedule, with policy credit reaching communities directly and without disrupting people's access to these important financial resources," said Le Thi Kim Dung, Deputy Director of the provincial VBSP.

In the coming period, the branch will continue implementing Directive No. 39-CT/TW of the Party Central Committee's Secretariat on improving the effectiveness of social policy credit in the new period. It will also mobilise additional resources and ensure the timely delivery of preferential loans to poor households and policy beneficiaries, contributing to sustainable poverty reduction and stronger social security.