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Updated: 2022-11-25 16:10:33

20 years of implementing social policy credit for the poor and other disadvantaged groups

(VBSP News) Sustainable poverty reduction has always been a major policy of the Party and State with profound humanity. In Thai Nguyen province, with the participation of the whole political system, especially the provincial branch of VBSP, the implementation of Decree of the Government on credit for the poor and other policy beneficiaries (Decree 78) has brought remarkable results, affirming its position as one of the "pillars" in the system of poverty reduction policies.

VBSP staff in Phu Binh district checks the capital use of households in Xuan Phuong commune

After twenty years of implementing the preferential credit policy according to Decree 78, from 3 credit programs, with total outstanding loans was VND 175 billion, up to now, VBSP branch in Thai Nguyen province has implemented 16 programs, with total outstanding loans reaching more than VND 175 billion. By the end of June 2022, the total lending turnover reached more than VND 12,360 billion, with nearly 617 thousand turns of customers receiving loans. The average credit growth rate in the period 2002 - 2022 is 19%/year. The average loan amount per household is increasing, from VND 3.3 million/household (in 2003) to VND 37.3 million/household (in 2022).

Mr Le Van Hong - Deputy Director of the VBSP branch said: In order to convey policy capital to the right beneficiaries, improve credit quality and provide maximum support to borrowers, the branch always focuses on well implementing the direct lending method with entrustment of some work contents through mass organizations. At the same time, we also establish a local network of Savings and cCredit Groups.

In recent years, the total entrusted outstanding loans through mass organizations has accounted for over 99% of the total outstanding loans. Along with that, in villages and hamlets, the head’s role in directly supervising the loan review; Inspecting and supervising the activities of Savings and Credit Groups are also focused with practical efficiency. These have helped credit capital reach the right beneficiaries, the use with the right purpose. Credit quality has been improved, the overdue debt ratio accounts for over 0.05% of total outstanding loans for many years now.

According to the report, in the period 2003 - 2005, policy credit has made an important contribution to reducing the poverty rate in the area from 9.85% to 4.68%; in the period 2006 - 2010, the number of poor households according to multidimensional standards reduced from 26.85% to 10.8%; period 2011 - 2015 decreased from 20.57% to 7.06%; in the 2016-2020 period, the poverty rate according to the new standard decreased from 13.4% to 2.82%.

With the results achieved, policy credit has contributed to the poverty reduction goals. It is considered as an important solution in the implementation of the national target program on poverty reduction, job creation, and social security. However, the process of implementing Decree 78 also encountered a number of shortcomings and limitations, such as the need for job creation but limited capital, so it is not enough to meet the needs of the people …

On this basis, VBSP branch in Thai Nguyen province sets a general goal in local policy credit activities in the next period (until 2030) to develop stability and sustainability, ensuring good implementation of social policy credit associated with the development of more effective supporting products and services; creating conditions for the poor and other policy beneficiaries to rise out of poverty sustainably…

Accordingly, there have been many solutions proposed by the Provincial People's Committee. In which, Thai Nguyen province will spend resources for VBSP to effectively implement policy credit programs. Representatives of the BOD of VBSP branch in the province and district will performed well the role of operational management in the area; strengthen the annual inspection and supervision, improve the quality of products and services; implement the diversification of banking products and services according to the approved strategy.




Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year