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Updated: 2018-12-10 09:22:47

VBSP Hung Yen strives for greater efficiency in microfinance

 (VBSP News) Vietnam Bank for Social Policies (VBSP) in Hung Yen province looks back at its accomplishments in the past 16 years and expects an ever stronger future for microfinance in the area.

vbsp hung yen strives for greater efficiency in microfinance

VBSP Hung Yen representatives recently met with the local authorities of the province to discuss the results of microfinance programmes offered by the bank. The capital reserves have increased by 14 times since 2002 to reach VND2.5 trillion ($108.7 million) in 2018.

Nguyen Thi Xuan, director of VBSP Hung Yen, revealed that the bank is carrying out ten microfinance programmes with preferential credit rates. At the moment, more than 81,000 households in the area have a total amount of VND2.48 trillion ($107.8 million) of outstanding loans, with the average growth rate of 20.9 per cent a year. More importantly, capital from VBSP has enabled 712,000 poor households to open a business, seek a new job, work overseas or finish their studies. At least 21,000 workers have found jobs, 2,455 people have been sent abroad for work, over 56,000 students have received study grants, more than 340,000 clean water projects have been completed, and 2,925 houses have been built for poor families.

Nguyen Van Phong, Chairman of the Hung Yen People’s Committee, was impressed with the results. According to Phong, VBSP Hung Yen has ensured superior credit quality, carried out a rigorous loan repayment programme, and kept the number of bad debts very low. The loans from VBSP have helped Hung Yen improve economically, with its GDP growing by 9.64 per cent in 2018.

Other senior officials added that the local authorities will do all they can to help VBSP provide loans for a wider range of impoverished people. This includes transferring part of the local budget to VBSP, as stated in Decision 40-CT/TW released in November 2014. The target is VND100 billion ($4.3 million), said officials.

vbsp hung yen strives for greater efficiency in microfinance

However, there is still a lot of room for improvement in VBSP Hung Yen’s activities. Specifically, Phong suggested that VBSP extend help in housing and accommodation matters for poor people. Moreover, clean water and other hygiene projects in the area still need capital, requiring assistance from VBSP.

Duong Quyet Thang, CEO of VBSP, replied that the bank is committed to providing capital for everyone that needs it, including poor families in Hung Yen province. Thang thanked Hung Yen authorities to transfer the local budget to VBSP, praising that microfinance programmes at Hung Yen have been “immensely effective” in reducing poverty and creating more jobs to local residents.

“VBSP Hung Yen will strive for greater efficiency in the future, with detailed plans for each group of borrowers. Some groups require immediate help, such as those recently made homeless or jobless. VBSP Hung Yen will make sure that people here receive the capital they need for a better life,” said Thang.

Nam Phuong - Vietnam Investment Review

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Term Deposit Rate
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1 week 3,23%/year
2 week 3,5%/year
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