The year 2024: VBSP achieves many outstanding achievements

The year 2024 was marked by significant challenges such as natural disasters, storms, floods and climate change, severely impacted the socio-economic conditions of numerous localities across Vietnam. Poor households and vulnerable groups suffered extensive losses, both materially and spiritually. However, under the leadership of the Party, the National Assembly and the Government, along with active support from ministries, sectors and local authorities, Vietnam Bank for Social Policies (VBSP) successfully fulfilled its assigned political tasks. This affirmed its pivotal role in supporting socio-economic development, promoting sustainable poverty reduction and advancing new rural development.

Poor households have achieved sustainable economic development thanks to policy credit

Impressive growth in credit scale

With the motto of “Understanding the people’s needs, wholeheartedly serving, enhancing efficiency, and fostering sustainable development”, VBSP consistently supports policy beneficiaries, enabling the poor easily access preferential credit sources. VBSP has implemented many effective solutions, from mobilizing resources to timely disbursement, helping customers restore production and stabilize their lives after natural disasters.

According to Mr. Huynh Van Thuan - Deputy General Director of VBSP, as of December 31, 2024, the total policy credit capital reached VND 376,247 billion, an increase of VND 29,823 billion compared to 2023. Among this, capital entrusted from local budgets amounted to VND 50,681 billion, an increase of VND 11,506 billion, accounting for 13.5% of the total.

Entrusted funds to VBSP included VND 2,141 billion from the implementation of National Assembly Resolution No. 111/2024/QH15 on special mechanisms and policies for national target programs. These funds were distributed to 20 provincial branches of VBSP. Notable branches receiving over VND 1,000 billion in entrusted capital from local budgets since Directive No. 40-CT/TW include: Hanoi (VND 8,834 billion), Ho Chi Minh City (VND 7,351 billion), Binh Duong (VND 2,207 billion), Da Nang (VND 2,163 billion), Ba Ria - Vung Tau (VND 1,620 billion), Quang Ninh (VND 1,502 billion), Dong Nai (VND 1,446 billion) and Vinh Phuc (VND 1,047 billion).

Under Decision No. 22/QD-TTg by the Prime Minister, 60 provincial branches of VBSP have advised on utilizing entrusted funds from local budgets for lending, totaling VND 248.3 billion. Of these, 53 branches have successfully guided local authorities to allocate VND 205.3 billion specifically for lending to individuals who have completed their prison sentences.

By the end of 2024, total loan disbursements reached VND 119,507 billion to over 2.3 million poor households and other policy beneficiaries. The total outstanding loans reached VND 367,631 billion, an increase of VND 35,708 billion (+10.8%) compared to 2023, serving nearly 6.8 million active borrowers.

The outstanding balance for production and business loans reached VND 263,293 billion, accounting for 71.6% of the total, focusing on programs for poor households, near-poor households, post-poor households and job creation. Meanwhile, loans for living and social purposes amounted to VND 104,387 billion, accounting for 28.4%, supporting goals such as safe water, environmental sanitation, social housing and education.

VBSP has actively contributed to three national target programs. Specifically, Sustainable Poverty Reduction Program: Outstanding loans for poor households, near-poor households, and post-poor households reached VND 140,423 billion, comprising 38.2% of total outstanding loans, benefiting over 2.8 million households; New Rural Development Program: Total outstanding loans in rural areas amounted to VND 324,958 billion, focusing on agriculture, forestry, fisheries and rural infrastructure; Socio-Economic Development Program in Ethnic Minority Areas: Outstanding loans reached VND 130,130 billion, including VND 89,455 billion for ethnic minority households, supporting over 1.6 million households and improving their living and production conditions.

According to Mr. Huynh Van Thuan - Deputy General Director of VBSP, thanks to policy credit, over 712,000 workers have been created jobs, 9,300 individuals worked abroad and nearly 7,000 former prisoners found stable jobs after completing their prison sentences. Additionally, over 88,500 disadvantaged students received education loans; nearly 1.76 million rural safe water and sanitation facilities were built; 1,143 houses for poor households and more than 6,200 social housing units were built, addressing the housing needs of low-income groups.

Enhancing capital mobilization and management

To achieve the goal of credit growth in 2025, Deputy General Director Huynh Van Thuan emphasized that VBSP had been focusing on key tasks to provide loans to poor households and other policy beneficiaries, ensure timely debt repayments and maintain liquidity across the system. VBSP has been proactively advising the Government, ministries, sectors and local authorities, while closely coordinating with relevant units to implement Directive No. 39-CT/TW dated October 30, 2024, issued by the Party Secretariat, on improving the effectiveness of social policy credit in the new era.

"The entire VBSP system recognizes Directive No. 39-CT/TW as a vital foundation for continuing to implement social policy credit effectively, contributing to the country's socio-economic development in the upcoming time", Mr. Huynh Van Thuan - Deputy General Director of VBSP stressed.

In 2025, VBSP will focus its resources on implementing its digital transformation plan. This includes upgrading its Intellect Core Banking system to a digital banking version, developing products and services on the mobile banking platform and expanding its digital ecosystem to better serve customers.

The year 2025 is considered to be a challenging year but it also opens up many opportunities for VBSP. With the support of the Government, the VBSP is striving to fulfill its assigned tasks, effectively supporting national target programs, making an important contribution to the country's sustainable development.

Viet Hai