Synchronizing solutions to ensure safe and effective credit operations

On 14 January in Hanoi, the Board of Directors (BODs) of VBSP convened its regular meeting for the fourth quarter of 2025. The meeting was chaired by Ms. Nguyen Thi Hong - Governor of the State Bank of Vietnam - Chairwoman of the VBSP BODs.

Ms. Nguyen Thi Hong - Governor of the State Bank of Vietnam - Chairwoman of the VBSP BODs chaired the meeting

Speaking at the meeting, Ms. Nguyen Thi Hong emphasized that in 2025, in line with the directions of the Government, the Prime Minister, and the State Bank of Vietnam, the entire VBSP system effectively implemented the political tasks assigned by the Party and the State. Notably, VBSP’s operations remained efficient and safe following the administrative unit reorganization pursuant to Resolution No. 60-NQ/TW dated 12 April 2025 of the 11th Plenum of the 13th Party Central Committee.

At the local level, the Representatives’ Boards of the VBSP BODs closely followed the Board’s Resolutions to guide VBSP branches in translating tasks and solutions into actions suitable to local conditions; promptly identifying and addressing difficulties; and proactively advising on improving mechanisms and policies for social policy credit. They also directed the mobilization of resources, including local budget entrustment through VBSP, to supplement lending capital.

In addition, monitoring and supervision of policy credit implementation continued to be effectively carried out by the BODs and the Representatives’ Boards, ensuring that social policy credit operations remained transparent, democratic, compliant with regulations, and targeted to the right beneficiaries, thereby promptly resolving difficulties and improving the quality and effectiveness of policy credit.

Mr. Duong Quyet Thang - Member of the VBSP BODs - General Director of VBSP reported on VBSP’s operational results in 2025

As of 31 December 2025, VBSP’s total funding reached VND 426,262 billion (approximately USD 17.76 billion), an increase of VND 44,103 billion (approximately USD 1.84 billion) (+11.54%) compared to 2024. Of this, capital entrusted from local budgets amounted to VND 66,091 billion (approximately USD 2.75 billion), up VND 15,410 billion (approximately USD 642 million), accounting for 15.5% of total capital, enabling the entire system to achieve the strategic development targets of VBSP through 2030.

Total outstanding social policy credit reached VND 413,527 billion (approximately USD 17.23 billion), serving nearly 6.7 million poor households and other policy beneficiaries. In 2025, social policy credit supported investment in production and business, creating jobs for nearly 817,000 workers, including nearly 8,600 workers employed abroad under fixed-term contracts and nearly 5,500 ex-offenders gaining employment. It also enabled over 68,000 disadvantaged students to access study loans, of which nearly 5,500 students borrowed for STEM fields; supported the construction of more than 1,958,000 rural safe water and sanitation works; built nearly 3,000 houses for poor households to stabilize their lives; and nearly 10,400 social houses for low-income beneficiaries. These efforts contributed to economic stability and development, ensured social welfare, and effectively implemented national target programs on sustainable poverty reduction, new rural development, and socio-economic development in ethnic minority and mountainous areas.

Alongside the growth of policy credit portfolios, loan quality remained stable. The ratio of overdue and rescheduled loans accounted for 0.54% of total outstanding loans, of which overdue loans were 0.25% and rescheduled loans 0.29%.

The year 2025 also marked an important milestone in VBSP’s digital transformation journey. In line with Resolution No. 57-NQ/TW of the Politburo on breakthrough development of science, technology, innovation, and national digital transformation, VBSP focused on digital transformation by implementing the Intellect Core Banking system upgrade project. The operation of the new version of Intellect Core Banking has established a critical technological foundation, directly enhancing the efficiency of managing and deploying social policy credit operations.

Overview of the meeting

The Chairwoman of the Board of Directors highly appreciated the timely and flexible advisory and guidance work of the Executive Board. In 2025, faced with complex developments of natural disasters and floods, and in accordance with the directions of the Government and the State Bank of Vietnam, VBSP promptly reviewed and assessed the impact on borrowers’ production, business activities, and debt repayment capacity in affected localities. Based on this assessment, VBSP proactively developed plans and reported to ministries and agencies to submit to the Prime Minister for approval of a 2% interest rate reduction for customers affected by natural disasters in 26 localities. As a result, over 5 million customers received the interest rate reduction, totaling VND 1,460 billion (approximately USD 60.83 million), providing timely support for people to overcome difficulties while not increasing the state budget compensation plan for 2025.

Entering 2026, VBSP continues to actively and proactively mobilize various sources of capital, including increasing entrusted capital from local budgets and receiving 2% deposits from State-owned commercial banks. This ensures sufficient funds for disbursement in accordance with the credit growth plan assigned by the Prime Minister, with a priority on mobilizing medium and long-term capital to promptly meet the lending needs of social policy credit programs and maintain system-wide liquidity. In addition, VBSP works closely with local authorities and mass organizations entrusted with fund management to implement coordinated measures aimed at consolidating and improving credit quality across the system.

VBSP also collaborates with relevant ministries to develop and improve mechanisms and policies on social policy credit, as well as regulations on VBSP’s organization and operations, in alignment with Vietnam’s socio-economic development strategies.

VBSP continues to study and apply key banking technologies in its operations to reduce costs and labor; save time; optimize management and control processes; and ensure tasks are carried out accurately and safely; thereby enhancing the overall efficiency of the VBSP’s system. Information technology is increasingly applied in risk management, credit monitoring, and operational reporting.

Finally, the Chairwoman of the VBSP BODs expressed confidence that VBSP officers will continue to uphold the spirit of “Understanding deeply, serving dedicatedly, improving efficiency, sustainable development”, striving to overcome difficulties, and making every effort to excellently fulfill the tasks entrusted by the State and the people.

Article by: Thuy Trang - Pham Hanh

Photo by: Phan Anh