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Updated: 2021-01-20 09:53:09

Inclusive finance contribution to the implementation of national target programs

(VBSP News) In line with economic growth, Vietnam has always paid special attention to social welfare programs, focusing on national poverty reduction programs and new rural development. More than 20 policy credit programs are implemented by VBSP for a wide range of target groups and goals have created a breakthrough in improving living conditions and employment of the poor, contributing to successful implementation of the National Target Program on sustainable poverty reduction and new rural development.

Policy credit contribution to the implementation of national target programs

Policy credit in sustainable poverty reduction

With the goal of sustainable poverty reduction, contributing to economic growth, ensuring social security, improving living standards and increasing income of people, especially in poor areas to facilitate the poor to smoothly access to basic social services, the National target program for poverty reduction for the period 2016-2020 has set following specific objectives:

Firstly, to reduce the national poverty rate by 1-1.5%/year, particularly by 4%/year in poor districts and communes and by 3-4%/year vs poor minor ethnic households basing upon the multi-dimensional poverty approach adopted for the period 2016-2020. With the involvement of the entire political system, to achieve this goal, in 2019, policy credit capital has been invested to poor households and policy beneficiaries in 100% of communes and wards nationwide; lending turnover to the poor reached VND 8,934 billion, contributing to decrease of national poverty rate to 4.05% (decreased by 1.3% as compared to 2018).

Policy credit in sustainable poverty reduction

Secondly, to improve livelihoods and living standard of the poor, ensuring their capita income by 2020 end rise by 1.5 times as compared to the end of 2015 in the whole country. Responding to this objective, in 2019 policy credit programs of VBSP has attracted and created jobs for more than 302,367 laborers, helping more than 7,269workers have migrant jobs; over 43,813 disadvantaged students in schooling.

Thirdly, to synchronously develop socio-economic infrastructure in poor districts and communes, as well as in extremely disadvantaged villages in accordance with criteria of new rural development, firstly essential infrastructure such as transport network, schools, health care bases, small irrigation systems, safe water, VBSP has been extending loans for housing, rural safe water and sanitation. In 2019, policy credit supported to build nearly 17,155 houses for poor households and people in Mekong River Delta.

For poor districts, total lending turnover till the end of 2019 reached VND 7,311 billion for 187,680 turns of the poor and near poor households and other policy beneficiaries. Total outstanding loans of policy credit programs in poor districts reached VND 22,171 billion for 581,075 active customers. Average outstanding loan of a poor district currently is VND 261 billion.

Policy credit in the new rural development

The general objective of the new Rural Development Program is to "build new rural areas to improve material and spiritual life of the people; have appropriate socio-economic infrastructure; suitable economic structure and production organization, linking agricultural development with industry and services; rural development with urban areas; a rural society of democracy, equality, stability, rich cultural identity; protected ecological environment; maintained defense and security." Accordingly, 19 national criteria for new rural communes was built under Decision No. 1980/QD-TTg of the Prime Minister dated 17st October 2016 approved the National Target Program for new rural development for the period of 2016-2020.

Among these 19 criteria, policy credit has contributed to helping the people in communes under new rural development progress achieve some criteria such as: for employment in 2019, credit policy has helped attract and create jobs for over 302,367 laborers; helping 6,773 workers work abroad; 496 workers from poor districts work abroad. For education and training, credit policy has helped 43,813 turns of disadvantaged students to continue studying. For environment protection and food safety, credit policy has contributed to building over 1.3 million safe water and sanitation facilities in rural areas. For residential housing, credit policy has supported to construction of nearly 16,000 houses for poor households and people in the Mekong River Delta and more than 1,000 houses against flooding in Central Vietnam, etc.

Policy credit in the new rural development

Particularly for communes under new rural development progress, VBSP considers the increase of investment capital and improvement of the efficiency of credit policy which contribute to reducing poverty rate, creating jobs, raising income and improving people's living standards as the leading task. In 2019, total lending turnover at new rural communes reached nearly VND 63,350 billion, accounting for 87% of the total lending of VBSP; total outstanding loans as of December 31st 2019 of these communes reached VND 179,300 billion, accounting for 86.7% of total outstanding loans with nearly 5.5 million active customers. Average outstanding loan per commune reached VND 20.2 billion, an increase of VND 2.4 billion (+ 11.2%) compared to the beginning of 2019. In 2019, policy credit has contributed to supporting and creating jobs for over 272,000 laborers, in which more than 6,000 workers work abroad; helping more than 38,000 disadvantaged students in schooling; buildingover1.2 million water supply and sanitation facilities in rural areas and over 15,000 houses for poor households, etc. Up to now, the whole country has 4,849 (54.5% of total) new rural communes, the average national standard reaches 15.66 criteria per commune, 113 district-level units of 41 provinces/cities are recognized as new rural communes by the Prime Minister.

In the coming years, VBSP ensures that 100% of the poor and other policy beneficiaries have access to products and services provided by VBSP. Furthermore, VBSP will focus on mobilizing resources to provide loans for poor, near poor, post poor households, communes in ethnic minority areas, poor districts, poor communes, border communes and extremely disadvantaged communes, coastal areas and islands.

In addition, VBSP will continue coordinating and effectively integrating policy credit with the activities of mass organizations in order to reduce poverty quickly and sustainably, ensuring social security; effectively coordinates agricultural extension, industrial extension, forestry extension, fishery extension, technical assistance, science and technology transfer, products consumption, etc.; and strengthen communication to all people, replicating escaping poverty model associated with local communities in order to contribute to successful implementation of the Government's rapid and sustainable poverty reduction target.




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