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 1. Development perspective

To strengthen the operation capacity of VBSP to be such an effective management tool for the State credit policy on  supporting rapid and sustainable poverty reduction in the socialist-oriented market economy, contributing to the successful implementation of the Socio-Economic Development Strategy in 2011-2020, the National Target Program on Sustainable Poverty Reduction in2011-2015 and the New Rural Construction Program.

2. Strategic goals

2.1. Overall goals

To develop the Vietnam Bank for Social Policies towards stability and sustainability, to ensure better implementation of the state policy credit as well as to develop more effective products and services for the poor, near-poor households and other policy beneficiaries.  

 2.2. Specific objectives

To conduct this goal, the specific objectives are identified:

- 100% of poor households and other policy beneficiaries who have borrowing needs and eligible conditions are entitled to access to products and services provided by VBSP;

- The annual average growth of outstanding loans is roughly 10%;

- The delinquency rate is below 3% of total outstanding loans;

- Simplification and standardization of professional procedures;

- Diversification of products and services;

- Modernization of functional operation, integration with global and regional banking systems;

- Staff of the whole VBSP system could have stable jobs with proper compensation bonus and social welfare.

- To improve supervision and monitoring, analyzing and risk warnings systems, to promote effective and efficient operation

- To effectively coordinate and mainstream policy credit activities with technical assistance, technology transferring, industrial , agricultural, forestry and fishery extension and activities of mass organizations with a view to rapid and sustainable poverty reduction and social security.

3. Strategy contents

3.1. Target clients

The target groups of VBSP are poor households and other policy beneficiaries mandated by the Government and other beneficiaries who are entrusted by organizations or individuals for VBSP to extend direct lending.

3.2. Products and services development strategy

Continuing to effectively utilize resources mandated by the State, to provide current products and services with high quality, mainly lending preferential credit to poor households and policy beneficiaries and such services as savings, payment and money transfer etc. of targeted clients.

As gradually improving capacities, VBSP develops diversified banking services to satisfy customers’ demands. The following tasks are to be completed:

- Accomplish and expand savings service for the poor and clients who have needs for savings, payment, money transfer, and remittance services.

- Provide collection services (receiving and paying) for agencies and enterprises such as collecting electricity fees, water tariff, salary and allowance, insurance etc.

- Carry out services as training, microfinance consultancy for building capacity to trustee staff, SCGs and clients.

3.3. Financial strategy

The financial strategy of VBSP include policy orientation and funding mechanisms, interest rates, risk handling and internal financial management.

3.3.1. The operating capital resources of VBSP is primarily provided by the State, mobilized by VBSP and entrusted by organizations and individuals at home and abroad under the slogan "the State, enterprises and people working together.", including:

(i) Capital resources from the State Budget in the forms of:

- Charter capitals: to be initially granted and annually supplemented. The rate of charter capital supplementation is minimally equal to the credit growth rate assigned by the Prime Minister for VBSP.

- Loans in national target programs for poverty alleviation, job creation and other social policies.

- Capital allocated from the annual surplus revenue of the Central Budget for poverty reduction target.

(ii) Capital mobilization

+ Deposits of individuals and organizations at home and abroad.

+ Deposits from credit institutions lawfully operating on the territory of Vietnam as stipulated by the Government;

+ Savings of the poor and other policy beneficiaries

+ Borrowings from credit &financial institutions at home and abroad ;
+ Borrowings from the State Bank of Vietnam;
+ Borrowings from the Vietnam Social Insurance Corporation;
+ ODA loans (VBSP mobilizes itself / or being channeled from the State );
+ Bond issuance guaranteed by the Government, deposit certificates and other valuable papers.
(iii) Non-refundable fund contributions from organizations and individuals at home and abroad.

 (iv) Entrusted funds from organizations and individuals at home and abroad; Entrusted funds from the increased revenue and savings of local budget.

(v) Other legal funds.

3.3.2. Interest rate

The preferential interest rate policy is continued to be implemented in compliance with the financial capacity of the Government and of borrowers in each period. The interest rate’s preferential level is applied for each client group and gradually decreased to be replaced by other non-financial preferential policies. The highest preferential level is offered to poor ethnic households in extremely disadvantaged areas. Those groups who are not the poor but being offered with some preferential credit policies shall borrow loans with interest rate near such of commercial lending..

3.3.3. Risk management

Risks due to objective reasons are handled according to the State regulations. VBSP is responsible for loan classification, credit risk provisioning, formulating the risk handling process in accordance with the operation characteristics of VBSP under the guidance of the State Bank of Vietnam.

3.3.4. Internal financial management

To accomplish the mechanism of finance assignment in each period (5 years), ensuring sufficient sources to cover operating costs as stipulated; ensuring salaries and other benefits for officers, employees so that they can devote to the work.

3.4. Bank management strategy

3.4.1. Development of organizational system

To strengthen institutional capacity and operation quality of the Board of Directors and the BOD representatives of all levels to improve their activities of reviewing and proposing mechanisms and policies for VBSP as well as  supervision of VBSP operation. To ensure the consistent direction in operation from BOD at central level to BOD representatives at provincial and district levels. To promote the role and responsibilities of the communal People's Committee in certifying targeted beneficiaries, mainstreaming programs and projects, propagation and loan management.

To consolidate and improve the management model at three levels: central, provincial and district by centralizing management at central level, simplifying intermediate steps and enhancing operation at the fixed-date transaction points at communes and wards.

3.4.2. Monitoring and supervision tasks

To complete the system of controlling and supervision in accordance with the specific operation model of VBSP on the basis of strengthening capacity and operation of the BOD members, BOD representatives at local levels and the BOD Supervisory Board. To formulate a system of independent surveillance and monitoring, consolidation on organization and operation as well as close coordination between the BOD Supervisory Board with the systems of internal control and supervision. To promote the effectiveness of monitoring and supervision of Party bodies, State agencies, the Fatherland Front, mass organizations and people on the implementation of State’s preferential credit policies and on VBSP operation.

3.5. Strategy on human resource development

- Standardization of professional staff on the basis of the State regulations with regard to  specific characteristics of VBSP, to ensure correspondence to  VBSP’s  operational environment mainly in remote, mountainous and extremely disadvantaged areas. Give priority to ethnic minorities in staff recruitment as well as giving appropriate incentive to attract staff to go working in disadvantaged areas, especially in poor districts.

- To provide training to entrusted staff, SCGs on basic knowledge of credit management, monitoring and supervision, risk detecting and  prevention, consultancy and guidance to use loans efficiently for poor households and policy beneficiaries.

3.6. Strategy on information technology infrastructure development

- To boost application of modern technologies in VBSP operation.

- To well organize data collection, processing, storage for management, direction and administration.

 3.7. International cooperation strategy

To expand international cooperation in order to learn, share experiences with other countries in the world, especially countries in the region in terms of management of small credit for poor households and other policy beneficiaries. To mobilize funding, technical assistance of international organizations to supplement resources for credit and training, strengthen management capacity for VBSP staff, entrusted mass organizations and SCGs leaders.



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