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International Relation

Updated: 2017-01-04 13:09:20


According to the evaluation report of the leading information network of microfinance in the world (Microfinance Information Exchange), VBSP ranks third among the institutions providing microfinance services in the world regarding number of active customers. To obtain these accomplishments, the VBSP has always appreciated the role and contribution of the donors at home and abroad in the activities of the VBSP in particular and poverty reduction in Vietnam in general. In 2014, the VBSP continues to achieve remarkable accomplishments through 12 years accompanying the poor and other policy beneficiaries in Vietnam. Contributing to the overall success of the entire system, international cooperation has made remarkable achievements in attracting external funding for the objectives of poverty reduction and social welfare in Vietnam.


In 2014, VBSP continued to call for support from longterm collaborating international organizations and connect with other donors in order to mobilize support and ODA, remarkable achieved results as follows:

       Funding support

In 2014, the Ministry of Finance has allocated VND 695.5 billion from the Second Economic Management and Competitiveness Credit (EMCC2) to supplement the charter capital for VBSP.

       Technical Assistance

VBSP has received VND 13.390 billion from the capital of the Asian Development Bank allocated through the State budget in 2014 to provide training to Savings and Credit groups.

Following success of the first year implementation in Da Nang, the project "Expanding access to microfinance for people with disabilities: Loans for small-scale production bases hiring, serving or owned by people with disabilities (called Nippon Project)” is extended to Hanoi as agreed by the sponsor - Nippon Foundation.

The Asia Foundation has approved funding a feasibility study project "Application of new technologies in banking services via mobile phone for VBSP (referred to as Mobile Banking project) with a total budget of nearly VND 882 million.

  1. The Forest Sector Development Project

Under the Forest Sector Development Program (FSDP) signed between the Vietnam Government and the World Bank (WB), VBSP is responsible for financing Production Forest Plantation component. The goal of this component is to develop 56,000 ha of production forest in four provinces of central Vietnam: Thua Thien Hue, Quang Nam, Quang Ngai, Binh Dinh.

In 2005, the Ministry of Finance (MOF), on behalf of Vietnamese Government, signed a sub-agreement with VBSP to give a sub-loan of USD 27.2 million for commercial forestation loans (production forestation) with the preferential lending rate of 0.75% per year.

As of 31 December 2014, FSDP project deployed in 34 districts of 6 provinces, including: Thanh Hoa, Nghe An, Thua Thien Hue, Quang Nam, Quang Ngai, Binh Dinh, the total outstanding loans reached more than VND 552 billion with 18,939 active borrowers.

  1. The Rural Income Diversification Project in Tuyen Quang province

Under an agreement between the Socialist Republic of Vietnam and the International Fund for Agricultural Development (IFAD) to implement the Rural Income Diversification Project in Tuyen Quang province (RIDP), the Vietnamese Government gave VBSP a sub-loan of SDR 1,12 million (equivalent to USD 1,43 million) with the lending rate of 0.75% per year (2003-2022).

The project aims at socio-economic development of its target groups, who are the poor and small-scale business households, suppliers of seedlings and agriculture materials at Region II and III in project area. New lending methodology of wholesale through the credit and savings groups is employed under the project.

As of 31 December 2014, the total outstanding loans reached nearly VND 25 billion with 639 active borrowers.

  1. Lending program for small and medium enterprises (KFW project)

Within the Small and Medium Enterprises Development Program’s framework, VBSP was allowed by the Prime Minister to take out a loan of an amount equaling to EUR 10 million from the German Government source, which is funded through the German Reconstruction Bank (KfW) in 2 phases with 0.75% interest rate and 0.25% commitment fees.

The project aims at setting up a credit revolving fund to provide loans to small and medium enterprises (SMEs) in 22 project areas.

By the end of 2014, total loans outstanding of the program is nearly VND 133 billion, implemented in 19 provinces and cities with 367 active SMEs borrowers.

  1. Participatory Resources Management Project in Tuyen Quang province

 The International Fund for Agricultural Development (IFAD) and the Government of Vietnam (GoV) has the consent to select VBSP to implement the Participatory Resources Management Project in Tuyen Quang province (PRMP) with an amount of USD 3,724,000. The interest rate is 2/3 of the calculated rate, which is equal to the average lending interest rate to VBSP borrowers minus the operation expenditure and the norm profit.  

The project has the goal to improving income and living standards of people in the project area, especially those who are the poor in ethnic communities and have limited access to banking services. The total outstanding loans reached nearly VND 45 billion with 2,588 active borrowers.

  1. Coastal wet land development project (CWPD)

VBSP received an amount of USD 650,000 from the Supporting Social component of Coastal wet land development project (CWPD) funded by DANIDA to implement the project.

The project objectives are to provide credit for the poor households in the project area for income generation such as: planting, animal husbandry, small scale industry and small business that must be appropriate with the general target of wet forest protection.

The project scope includes 21 communes of 12 districts in four provinces: Tra Vinh, Soc Trang, Bac Lieu and Ca Mau. The total outstanding loans of the project reached 1.1 billion dongs with 221 active borrowers. 

  1. The Forestation and Sustainable Forestry Project (KfW6)

Under the financial agreement signed between the German Reconstruction Bank (KfW) and the Socialist Republic of Vietnam to implement project “Afforestation and sustainable forestry management of natural forests in Quang Nam, Quang Ngai, Binh Dinh and Phu Yen”, VBSP takes charge of opening and managing deposit accounts for farming households and rural communities in the project areas. Each project beneficiary receives a non-refundable grant through the deposit account opened at VBSP district transaction office.

It aims to support afforestation and sustainable forestry management of 32,700 hectare of natural forests in 4 project provinces. The total grant value for KfW6 project’s components is EUR 3,712,710.

VBSP followed and managed 14,640 deposit accounts for project beneficiaries.

  1. Community Hygiene Output-Based Aid (CHOBA) funded by the East Meets West Foundation (EMW), USD 3 million

This project was funded by the East Meets West Foundation (EMW), in collaboration with the Vietnam Women's Union and VBSP through savings accounts for the poor and near-poor households who borrowed money from VBSP to build sanitation facility.

Expectedly, around 100,750 to 125,750 the poor and near-poor households would borrow money to build sanitation facility in 8 provinces: Hai Duong, Ninh Binh, Thanh Hoa, Ha Tinh, Quang Binh, Tien Giang, Dong Thap, Tra Vinh.

In 2013, the project has signed the memorandum of understanding and issued the guidance to implement the project for 8 project provinces.


As of 31 December 2014, the Vietnam Women's Union has transferred nearly VND 3.2 billion to pay remuneration money to 5,764 households to build standardized sanitation facility. 

  1. Project “Disability-inclusive finance: small finance for businesses employing, serving or owned by persons with disabilities” funded by the Nippon Foundation of Japan with the grant of USD 600,000 is piloted in Da Nang city.

The overall goal of this grant project is to promote micro and small enterprises which employing, serving or owned by PWDs so that the PWDs can have steady jobs or they can start and expand their own micro or small businesses to generate income sustainably and have economic independence, sustainable livelihood.

In 2013, the project activities were successfully conducted in Da Nang city. As of 31 December 2013, the project has disbursed VND 2,220 million to 37 borrowers, who are the individuals and enterprises employing, serving or owned by persons with disabilities. 

In addition, the Project Management Unit has designed and compiled the handbook of the project for the borrowers and the credit manual of lending procedures and project implementation for systematic performance.

In 2014, VBSP signed an agreement with Nippon Foundation to receive the total grant of USD 199,500 and expand the project in Hanoi capital. As of 31 December 2014, VBSP has provided loans to 40 enterprises and businesses owned by people with disabilities with total amount of 4,145million dongs; deliver 1,000 Client Manuals to potential clients and 200 Credit Manuals to VBSP staff at Da Nang and Hanoi branch.

  1. Project “Strengthen capacity of VBSP through improving skills of district office managements, piloting a new overseas remittance service and conducting the research on economic impact of VBSP policy credit” funded by Ford Foundation (Ford II) – the phase piloting Western Union overseas remittance service

In 2013, VBSP has collaborated with the Bank for Investment and Development of Vietnam (BIDV) to open 20 points of overseas remittance at VBSP provincial branches in Da Nang, Ninh Thuan, Thua Thien-Hue, Nghe An, Quang Binh and Phu Yen, increase the number of overseas remittance points up to 235 in 51 provinces and cities all over the country.

In 2014, the project reviewed and evaluated the operation of 200 points of overseas remittance and worked out the orientations and plan to strengthen and facilitate the remittance services in the coming time. Under the project, there are 380 transactions so far valued at VND 5.5 billion.

  1. Project “Application of new technology for mobile phone based products and services for VBSP” - (Mobile Banking)

VBSP and Asia Foundation signed an Agreement to implement the project of feasible study on application of new technology for mobile phone based products and services on 05 August 2014 with total grant of over VND 881 million.

The purpose of this project is to improve more sustainable and effective and efficient access to financial services including credit and other services provided by VBSP for poor, low-income, and other vulnerable groups in Vietnam; promptly and effectively transform information to clients; strengthen risk management and diversify and modernize products and services, in contribution to implementation of the Development Strategy of VBSP till 2020.


After 12 years of operation, VBSP is now better known in the international community when it has strengthened communication and propaganda; expand the international cooperation for knowledge and experiences sharing with other countries in the world, particularly those in the region on the management of micro credit for the poor and other policy beneficiaries.

  1. Communication through foreign relation materials

VBSP’s website in English version regularly updates VBSP’s operation, policies and directions from the Government on policy credit for the public at home and abroad. As of 31 December 2014 VBSP’s website in English version was reviewed by 63,202 turns of viewers at home and abroad, mostly coming from America, Japan, France, England, Laos, India, Holland and German.

Develop the propaganda materials on VBSP (both English and Vietnamese versions) to deliver at meetings with Vietnamese and foreign partners, give an overview and overall understanding on VBSP to individuals, organizations, partners and donors at home and abroad.

In 2014 VBSP compiled more than 38 videos in English to introduce VBSP’s operation in policy lending to the poor, disadvantaged students, rural households for safe water and sanitation and savings mobilization from the poor. There are currently more than 1,000 viewers of 30 videos in English on Internet introducing the operation, products and services of VBSP.

  1. Communication and propaganda through international membership organizations

In 2014, VBSP has continuously enhance the membership at international organizations such as: the Asia-Pacific Rural Agriculture and Credit Association (APRACA), the Banking the Poor (BWTP), the Global Microcredit Summit (MCS) and the Microfinance Information Exchange (the MIX) etc, through updating information and introduction of VBSP operation on their forums to attract and find out the potential supports from the donors all over the world.

  1. Communication and propaganda through direct dialogs and experiences exchange with international organizations

In 2014, VBSP received 09 delegations from Bank for Agriculture and Agriculture Cooperatives (BAAC) (of 320 staff for study tour program; the delegation under the framework of launching technical assistance of Asia Development Bank (ADB) on VBSP’s training demand as well as its capacity to implement projects of Sub-Program 2 for microfinance development valued at USD 50 million; introduce VBSP’s operation and achievements and explore potential projects from international donors at the Regional Conference on “SME Access to Finance: Moving Forward in Support of Women Entrepreneurs in the Less Developed ASEAN Countries”.

VBSP held two training courses for senior management and staff of the Bank for Social Policies of Lao People’s Democratic Republic (NBB) in Da Nang city and Nghe An province on VBSP’s credit procedures, human recourse management, risk management, inter-system money transfer and experiences in implementing “Upgrading & modernizing IT in the whole system of VBSP”. Held the friendship and cooperation ceremony between VBSP branch in Nghe An and NBB branch in Xieng Khuang, between VBSP branch in Da Nang and NBB branch in Savannakhet and between VBSP branch in Binh Dinh and NBB branch in Champasack.

In addition, VBSP also received many international agencies and organizations to learn about VBSP’s operation, such as: the World Bank, International Finance Cooperation (IFC), Nippon Foundation-Japan, TYM fund, Handicap International, International Monetary Fund (IMF), Sydney University from Australia, Agency for Development (AFD), Handicap International, Agriculture Bank Insurance Joint-Stock Corporation (ABIC), delegation from Mozambique Government, Asia-Pacific Association of development financial organizations etc., These meetings are good opportunities for VBSP to introduce its operation, share experiences and explore the potential cooperation and support from the donors.

Through these activities, the foreign relations and project development and implementation of VBSP are acknowledged as an effective closed cycle, which has made impacts on many aspects of VBSP operation in particular and on the target groups of VBSP and VBSP social performance for the social welfare in general.



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