Nguyen Hai Ha, director of VBSP’s Lao Cai branch, has revealed the local people's committee has entrusted $5.6 million from the local budget to the bank to carry out its plan for 2025. The amount represents 230 per cent more than the $2.4 million assigned by the central government.

Duong Quyet Thang (sitting), VBSP general director, sits in on a regular monthly transaction session at VBSP’s Lao Cai branch. Photo: VBSP

This achievement came by virtue of the dedicated efforts of all staff in advising local management authorities and stakeholders on the implementation of by the Central Party Secretariat's Directive No.40-CT/TW on strengthening leadership over social policy credit, along with Conclusion No.06-KL/TW and the initial results of implementing Directive No.39-CT/TW.

Commenting on this issue, Duong Quyet Thang, VBSP general director, said, "This is not the first year the Lao Cai branch’s entrusted capital source has grown by three digits. Last year, its capital source swelled 497 per cent, surpassing the growth target for the year, corresponding to more than $5.96 million, showing an almost 49 per cent jump on-year. This brought total entrusted capital to $22.1 million, accounting for 11 per cent of the branch's total credit sources."

VBSP’s Lao Cai branch has also laid out a long-term strategy for the next three and five-year periods.

The plan for the next three years, from 2025-2027, is expected to grow by 35 per cent, equal to $62 million, compared to the outstanding balance at the end of 2024.

By the end of 2027, the total outstanding balance of diverse policy credit schemes at the branch is expected to approximate $259 million.

The five-year plan, for the 2026-2030 period, is expected to increase by about 58 per cent on average compared to the outstanding balance at the end of 2025, equal to $121.8 million. By the end of 2030, the total outstanding balance of policy credit schemes at the branch is projected to reach $320 million.

In addition, the Lao Cai branch has advised the provincial People's Council to extend the implementation of Resolution No.06/2021/NQ-HDND to 2030, in order to support Lao Cai’s tourism development.

The branch also proposed to the provincial leaders to allow Si Ma Cai district to continue using $1.85 million in debt recovery to support sustainable poverty reduction in the area until the end of 2030.

Local management authorities in policy credit are determined to significantly expand the reach of social policy credit to ensure no one is left behind due to a lack of capital.

Last year, social policy credit supported 23,705 poor households and other policy beneficiaries with business production investments.

In addition, 36 workers went abroad for work, and 35 former prisoners were able to access funds for employment; 68 underprivileged students received loans for their studies, and 4,847 families were granted loans to build or repair water supply and sanitation facilities.

Furthermore, 35 social housing units were built for low-income people, contributing to social stability, economic development, and effective implementation of national programmes for sustainable poverty reduction, rural development, and socioeconomic advancement in ethnic minority and mountainous areas.

Lao Cai’s poverty rate dropped by 3.7 per cent last year, equal to 6,380 households, while the near-poor rate decreased by 317 households.

The estimated regional GDP growth rate came to 7.38 per cent, higher than 2023’s 5.1 per cent hike. Regional GDP per person reached $3,900, an increase of $356 compared to 2023. Lao Cai’s total economic scale was estimated at $3.12 billion, up 11.8 per cent on-year.