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Updated: 2023-07-10 16:56:31

VBSP Lang Son lending helping hand to people in need

(VBSP News) With funding support from Vietnam Bank for Social Policies's (VBSP) Lang Son branch, increasing numbers of local residents have acquired pleasing accommodation thanks to contributions to provincial development.

Vu Duc Tai, a resident in Hoang Van Thu ward in the northern highland province of Lang Son, said happily that the construction of his family’s dream house would be finalised within the next few months.

His mega family consists of eight members; him, his wife, and their two children, his mother, and his sister with her two kids.

Vu Duc Tai supervising the construction of his new house

Tai works for a private auditing firm with a monthly salary approximating $350, whereas his wife is a teacher, earning a monthly wage of nearly $400. Tai’s mother has a pension approximating $200 each month, and his sister is a freelance worker with an average monthly income of around $220.

Before building the house, finding satisfactory accommodation for the whole family caused a great concern due to their modest income.

“The total savings of my entire family come to around $24,000. However, we needed at least double that sum to build a house. All family members were extremely concerned about where to borrow from and how to repay the loan,” said Tai.

In another case, Le Thanh Ha, an employee at the Lang Son Department of Labour, War Invalids and Social Affairs, is occupied with another challenge.


Raising two kids on a tight income of around $350 a month, and with no land to build a house, Ha got to know about the scheme that supports low-income people with social housing purchases through the media.

“We thought we would permanently rely on renting a house. If it were not for this support, my dream could never come true,” said Ha.

After studying, Ha gained access to a loan programme for social housing purchases from VBSP's Lang Son branch.

Ha decided to acquire a loan valued at more than $26,000, equal to 80 per cent of the home's value with an annual interest rate of 4.8 per cent for 25 years.

“I took on the loan from July 2022, and before the 10th of each month, I have to pay back about $150 worth of both equity and interest to the bank. That sum is suited to the income of a state employee like me, as well as my current financial capacity,” said Ha.

Similarly, Tai's family also belongs to a low-income group in the province’s urban areas. They were given a loan valued more than $21,700 to cover the construction cost of building a new house on their existing site. The total construction cost comes to around $45,650.

Tai decided to take on the loan for 15 years, featuring a fixed principal payment every six months averaging $120 a month, and an interest payment taking place on a monthly basis.

“Every family member sets aside their income for the payment, and I, on behalf of the whole family, make payment either directly or through a money transfer at a VBSP relevant unit, making it very convenient,” said Tai.

Phan Anh Thang, deputy director of VBSP Lang Son, noted that VBSP’s Lang Son branch swiftly introduced these drastic measures as a top priority.

The branch has coordinated with relevant agencies to propagate the guidelines and policies to the potential beneficiaries in the province, joining the efforts of the local authorities to remove barriers and support people with loans quickly.

The branch was allocated a total sum amounting to $10.12 million to exercise the lending scheme.

As of May 31, the total outstanding balance had reached $7.8 million, benefitting 499 customers and reaching 77.1 per cent of assigned plan.

To date, the cumulative lending volume under the scheme has reached $8.33 million, assisting 562 customers.

“We always ensure the capital sources get to the right people at the right time, and that the customers can properly handle their payment obligations. Above all, the bank’s capital sources have helped our customers to have a more relaxed mindset, stabilising their lives and making a contribution to provincial development,” said Thang.

Standing next to the block of land that caters to low-income people, which is in its final stage of completion, Ha said happily, “New housing units are expected to be handed over to us in the third quarter of this year. At that time, we will move into our new dream house.”




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