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Updated: 2021-07-06 10:33:40

Nayoby Bank, Lao PDR successfully pilot experiences from Vietnam Bank for Social Policies

(VBSP News) On June 22, 2021, the Nayoby Bank Sangthong Service Unit welcomed Mr. Vouthi Leanvilayvong, General Director of Nayoby Bank (the Policy bank of Lao PRD) and high level managers to visit and encourage operation of Sangthong District Service Unit – the first and most successful unit piloting lending method learned from Vietnam Bank for Social Policies 


The General Director of Nayoby bank handed certification to Mr. Panyasavay Ratthasena – Director of Sangthong Policy Service Unit and staff


The Sangthong district is about 60 km from Vientiane capital, with 35 villages and a total population of over 32,000 people. Its main economy sector is agriculture (agriculture and animal husbandry) accounting for 26%. Sangthong Policy Service Unit of NBB was established in 2007, at present, the unit has 11 staff.

From 2007 to mid-2019, credit management of the Unit was not very effective, with non-performing loans of individuals and groups accounted for 33 billion Kip. During latter half of 2019, the Unit started to pilot experiences adapted from VBSP in an innovative way. Sangthong Unit organized lending through socio-political organizations and village-level funds in 14 villages similar to the model of lending through mass organizations in VBSP. This helped the bank improve credit management as socio-political organizations become lengthen-arms of the bank in monitoring borrowers, loan utilization and urging interest and debt payment. The model was appreciated by village authorities as a good lesson. Thus, in 2021, the model of lending through socio-political organizations was expanded to 8 more villages and would be expand to total of 22 villages by the end of 2021 and to all 35 villages throughout Sangthong district by 2024.

After 1 year of piloting the model of lending through socio-political organizations, non-performing loans in Sangthong unit reduced to 30 billion Kip; total credit balance reached over 8 billion Kip. In the first 5 month of 2021, the Unit’s income-spending positive effect (+) 570,97 million Kip, debt collection reaching a total of 3,72 billion Kip, equal to 62 % of the 2021 plan.

With these prominent gains, General Director of Nayoby bank signed the document No. 638 /NBB on May 13, 2021 awarding certificate to Sangthong District Service Unit for outstanding performance in lending through socio-political organizations and funds. The unit becomes the first Unit successfully piloting the new lending model adapted from VBSP.

Lending through socio-political organizations and village funds has been piloted in all branches of the Nayoby bank with 5,552 household borrowers in 912 lending groups from 117 villages, 48 districts. Total loan outstanding of this lending model is 91.24 billion Kip with rate of interest collection reached 99.5%.


VBSP and NBB signed cooperation agreement since 2010 in Hanoi, Vietnam. VBSP has actively supported NBB in sharing experiences and provide training in all aspects of policy banking operation. Many experiences of VBSP have been adapted to NBB operation helping the bank to develop faster and more sustainable.


Minh Ha and Panyasavay Ratthasena



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