The Bank of the Lao PDR visits and works with the Vietnam Bank for Social Policies (VBSP)

On the morning of December 4, a delegation from the Bank of the Lao People's Democratic Republic, led by Mr. Phetsathaphone Keovongvichith, Director General of the Banking Operations Department, visited and worked with the Vietnam Bank for Social Policies (VBSP). The delegation concluded representatives of the leadership and staff from various departments of the Bank of the Lao PDR.

Mr. Duong Quyet Thang - General Director of VBSP

At the meeting, Mr. Duong Quyet Thang - Member of the Board of Directors and General Director of VBSP extended a warm welcome and conveyed his best wishes to the delegation from the Bank of the Lao PDR during their working visit to VBSP. The General Director affirmed that VBSP greatly valued the cooperative relationship between Vietnam and Laos in general, and between the banking sectors of the two countries in particular. He emphasized that VBSP was always ready to share its accumulated experience in the process of establishment and development to support research and practical implementation in Laos.

Mr. Duong Quyet Thang - General Director of VBSP provided the delegation with an overview of VBSP's history. Over nearly 30 years, from its initial steps as the Fund for Preferential Loans to Poor Households established in 1995, VBSP has become an effective instrument of the Communist Party and the Government of Vietnam in implementing preferential credit policies. These efforts have contributed significantly to achieving the important guidelines, policies and goals set by the Party and State.

Social policy credit in Vietnam is implemented with the active involvement of the entire political system, from central to local levels, creating an effective operational framework characterized by the principle of "Understanding the people's needs, serving with dedication". Currently, VBSP manages total capital exceeding VND 380 trillion with outstanding loans of over VND 365 trillion. Its network includes 169,109 Savings and Credit Groups and 10,546 Commune Transaction Points, serving nearly 6.9 million customers. Overdue debt is maintained at a stable rate of below 1%. VBSP's practical operations stand as a testament to the sustainable development and increasing effectiveness of Vietnam's unique social policy credit system.

Mr. Phetsathaphone Keovongvichith, Director General of the Banking Operations Department of the Bank of the Lao PDR, delivered a speech during the meeting

Speaking at the meeting, Mr. Phetsathaphone Keovongvichith, Director General of the Banking Operations Department of the Bank of the Lao PDR, highly appreciated the model of VBSP. He shared that the Bank of the Lao PDR is currently implementing the Laos Access to Finance Program. This program aims to develop sustainable credit products and diversify funding sources from licensed credit providers to expand access to credit for micro, small, and medium-sized enterprises (MSMEs).

Additionally, starting in 2025, the program will focus on financing sustainable agricultural production activities. The goal is to support small-scale farmers and micro-enterprises in transitioning to climate-resilient crops while enhancing product value and improving livelihoods. The program will provide comprehensive support for agricultural activities, including production, processing, consumption and market linkages. This holistic approach aims to increase product value, raise farmers' incomes and improve the quality of life for rural communities.

Given these objectives, Mr. Phetsathaphone Keovongvichith emphasized that VBSP's model aligns well with the development direction of the Laos Access to Finance Program and the future of policy credit in Laos. He expressed a strong desire to exchange experiences and gain deeper insights into VBSP’s operations.

Working scene

At the end of the meeting, VBSP agreed to actively support relevant units of the Bank of the Lao PDR in the process of research, experience exchange, and piloting activities similar to VBSP’s operations in Laos.

Following the morning session, the delegation from the Bank of the Lao PDR continued their working program with several professional departments at VBSP's headquarters. They also visited some VBSP branches and met with a number of loan beneficiaries.

PV