The credit limits of the Vietnam Bank for Social Policies (VBSP) are not high. Particularly, the maximum lending level to poor households is VND30mln; pupils and students with difficulties, VND10mln. But, the efficiency from loans of the bank in realizing policies on social welfare, hunger eradication and poverty reduction is very great.

VBSP is not for profit, contributing to successfully implementing hunger eradication and poverty reduction and ensuring social welfare. VBSP is a state-owned bank operating as a tool of the Vietnamese Government to fight against poverty. Hence, VBSP has over time mobilized all resources to make much progress in poverty reduction, improve the effectiveness of policy credit loans and mobilize the whole society to take part in hunger eradication and poverty reduction. 

Residents in TDM city’s Tan An commune getting loans from the VBSP’s branch in Binh Duong

Noticably, VBSP has realized the above things by a proper management way. As a result, VBSP has become a reliable friend for poor people, helping them overcome difficulties for sustainable poverty escape.

The VBSP’s branch in Binh Duong has so far implemented 11 loan-giving programs for poor people and beneficiaries of social welfare policies together with 30,795 students for continuing their education. The average lending level to each household is now VND15mln, up 12,9mln compared to 2003. As of late 2012, there were more than 1,529 loan-giving groups; 88 out of 91 communes, wards and townships with the branch’s mobile transaction points. The credit programs of the VBSP’s branch in Binh Duong saw improvement in quality with the bad debt ratio reducing to 0.35%.

After 10 years of operation and development, the VBSP’s branch in Binh Duong has well realized its main task in implementing preferential credit policies for the poor and other social policy beneficiaries in the province, greatly contributing to the national target program on poverty reduction and employment creation. Pham Quang Hung, Director of the VBSP’s branch in Binh Duong said that in the 2003 and 2012 period, the Bank branch disbursed more than VND1.8trillion in loans for nearly 190,000 poor households and other social policy beneficiaries. As a result, nearly 48,000 poor households in the province step by step rose up out of poverty.

For the period of 2013-2020, the VBSP’s branch in Binh Duong will strive to have 100% of the poor and other social policy beneficiaries to get access to loans provided by it and reach the annual average growth of outstanding loans of 10%. Staff of the branch will constantly improve their professional ability to effectively realize the above targets, according to Mr.Hung.

Reported by Thanh Hong-Translated by K.T