Over 30 million underprivileged households access inclusive finance

(VBSP News) Over 30 million underprivileged households in Việt Nam received loans from the Việt Nam Bank for Social Policies last month, the bank’s latest report showed.

People apply for loans from VBSP in Ninh Phước District in central province of Ninh Thuận. — VNA/VNS Photo Cong Thu

The bank was established 15 years ago in accordance with the Prime Minister’s Decision No 131/2002/QĐ-TTg. It was aimed at expanding client groups from just the poor and disadvantaged students, to people needing money for job training, to work overseas or business households in remote areas. The VBSP, with a network of almost 11,000 offices in communes across the country, was assigned to offer loans to people in underprivileged areas.

By the end of last month, VBSP gave loans worth VNĐ167.047 trillion (US$7.35 billion), 23 times higher than that given when the bank first began operations in 2002.

The loans helped create jobs for some 3.5 million people, including 111,000 people from underprivileged households and policy beneficiary families, so they could afford payments before working overseas.

More than 3.5 million poor students received loans to cover tuition fees. The VBSP’s loans also helped build some 10 million clean water works and environmental hygiene works in rural areas.

Nearly 520,000 houses for the underprivileged and policy beneficiary families, some 105,000 flood-proof houses in Mekong Delta Region and over 11,000 storm shelters were built with funding from the VBSP.

State Bank of Việt Nam Deputy Governor Đào Minh Tú said that the VBSP helped translate the State’s and Government’s policies for disadvantaged people into action.

However, Tú said that in 2016-20, Việt Nam will measure poverty not only on the basis of income but also other factors, relating to access to basic services such healthcare, education and entertainment.

Thus, it was necessary to receive more funding to ensure efforts in reducing poverty in Việt Nam, he said, adding that it was a challenge for the VBSP.

Source: VNS