VBSP signs a Memorandum of Understanding on Cooperation for the 2026-2027 period with Laos Policy Bank (NAYOBY Bank)

On November 10, 2025, in Vientiane - the capital of the Lao People’s Democratic Republic, Vietnam Bank for Social Policies (VBSP), represented by General Director Duong Quyet Thang, and Laos Policy Bank (NAYOBY Bank), represented by General Director Souphak Thinxayphone, signed a Memorandum of Understanding (MOU) on cooperation for the 2026-2027 period. The signing ceremony was attended by representatives of the leadership from both VBSP and NAYOBY Bank.

General Director Duong Quyet Thang and General Director Souphak Thinxayphone signed the MOU on cooperation for the 2026-2027 period

At the signing ceremony, Mr. Souphak Thinxayphone, General Director of NAYOBY Bank, briefed on the NAYOBY Bank’s operations. NAYOBY Bank is a special financial institution under the management of the Government of Laos, using State policy funds to provide concessional loans to poor households at interest rates determined by the Government for each period, contributing to poverty reduction among ethnic communities across Laos.

Currently, NAYOBY Bank provides loans targeting three main objectives: poverty alleviation, government and local development priorities, and the “làng 3 xây”. These activities have contributed to improving living conditions nationwide. There are 148 districts across Laos, of which, 63 districts have escaped poverty, 85 remain poor, and NAYOBY Bank’s policy credit has reached 143 districts, including 74 poor ones. Out of 8,424 villages nationwide, 5,231 villages have received credit from NAYOBY Bank, including 1,711 poor villages. Among 1,238,168 households, 266,268 are poor, and 249,090 households have accessed NAYOBY Bank’s credit, of which 43,596 are poor households.

Regarding future orientation, NAYOBY Bank plans to soon be restructured into the Lao Rural Development Bank (RDB). Once transformed, RDB will implement its strategic plan to 2030 and vision to 2035, aiming to become the leading bank in providing financial services for rural development and a key driver of the national economy, contributing to sustainable development in Laos under the motto: “Developing together for stability and sustainability”.

On behalf of VBSP, General Director Duong Quyet Thang emphasized that VBSP, as a State-owned bank of Vietnam, implements preferential credit policies for the poor and other policy beneficiaries.

Since its official establishment in 2002, VBSP’s preferential credit has helped more than 7 million households escape poverty; created jobs for nearly 7.6 million workers through the National Employment Fund; enabled 167,000 workers to work abroad under fixed-term contracts; supported 13,000 ex-offenders reintegrate into the workforce; provided loans to over 4 million students, funded the purchase of over 90,000 computers and e-learning devices; and financed nearly 800 students and postgraduates in STEM fields. VBSP has also supported the construction of 21.4 million rural safe water and sanitation facilities; 734,000 houses for the poor and policy beneficiaries; 60,000 social housing units; and provided loans to 1,500 enterprises to pay wages for 1.2 million workers.

Through these efforts, VBSP has worked hand in hand with local authorities to successfully implement national target programs on sustainable poverty reduction, social welfare, and new rural development, thereby promoting socio-economic growth and strengthening public trust in the Party and the State of Vietnam.

Delegates attending the signing ceremony

During the event, both sides discussed and agreed to sign the MOU under the witness of the leadership of the two banks. Accordingly, two parties will cooperate and exchange experiences in areas such as credit operations, fund mobilization and management, product and service development, information technology activities, and other areas of mutual interest arising during implementation.

Under the MOU, during the 2026-2027 period, VBSP will support NAYOBY Bank in leadership training, study visits, and experience-sharing programs at VBSP headquarters for NAYOBY Bank leaders and staff. The two sides will also organize mid-term and final review meetings to evaluate the implementation of the MOU on cooperation for the 2026-2027 period.

According to Pasaxon Newspaper - Laos