VBSP promotes green inclusive finance towards sustainable development

Implementing the Party and State's policies on green growth, the Vietnam Bank for Social Policies (VBSP) has step-by-step integrated Green Banking and green credit contents into its Development Strategy to 2030. This is considered an important financial tool to promote socio-economic development and improve climate change adaptation, especially in rural and ethnic minority areas.

In the 2021-2023 period, VBSP strongly implemented lending programs in various green sectors with total loan turnover reaching VND 320,125 billion, serving more than 6.4 million customers. Of which, focus was placed on key areas :

• Green Agriculture: Loan turnover reached VND 225,752 billion with over 3.1 million outstanding customers. This capital helps people invest in developing livestock, poultry, aquaculture, fishing, afforestation, and planting environmentally friendly industrial and fruit trees.
• Sustainable Water Management: Loan turnover reached VND 70,103 billion. Particularly, the rural clean water and environmental sanitation program supports the construction of over 1.5 million facilities each year, contributing to a marked change in living conditions and community health.
• Sustainable Forestry: Sales reached VND 22,511 billion.

Regarding risk management, VBSP has integrated environmental and social factors into the credit appraisal and approval process. VBSP resolutely refuses to provide loans for activities that cause serious environmental damage. This risk assessment is integrated throughout the inspection work before, during, and after lending.

In the coming time, VBSP will continue to coordinate with local authorities and socio-political organizations to strengthen communication and guide local customers to use capital for the right purposes and effectively, ensuring the goal of inclusive and sustainable growth.