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Updated: 2020-03-18 13:17:56

VBSP supports the poor on its development process

(VBSP News) After 17 years of establishment and development, VBSP has created sustainable livelihoods for the poor and advised the Government to build a credit policy system to address poverty reduction, especially mobilizing domestic resources and the poor to solve the problem of escaping from poverty sustainably.

VBSP started its operation in March 2003 with only 3 credit programs, currently, VBSP has implemented 22 credit programs and increased the loan size many times to meet the economic development needs of people

Visiting households borrowing loans from VBSP can understand more operational model of VBSP. The people's determination to overcome difficulties and poverty and the VBSP capital has brought happiness to them.

Ms. Nguyen Thi Kim's family in Ha Tinh province is an example. More than 10 years of access to social policy credit programs such as lending to poor and near-poor households, job creation, clean water and rural sanitation, production and business, and disadvantaged students. She borrowed loans 3 times for 3 children going to university with the amount of VND 101.4 million, the outstanding loans of poor household program is VND 30 million. She said that if the Government did not provide the financial inclusion service, only her first son would go to college, and her three daughters would only finish high school to go to work. From 2015 until now, her two children have graduated from university and had jobs. They helped her pay off the bank loans, raised the youngest daughter and renovated the house. So her family escaped from poverty.

As for Mr. Mai Thanh Hung in Ha Tinh province, VBSP’s financial inclusion service saved his family after the marine environmental incident. From a household living on fishing, the marine environmental incident led to him losing his job and having to work in the South of Vietnam. He only earned several million dongs a month to send to his wife to raise four children. However, the loan of VND 50 million from VBSP helped him repair boats and fishing gear. After 3 years, his family life has temporarily stabilized. His boat also creates jobs for 2-3 other people.

VBSP’s capital not only creates sustainable livelihoods for the poor and social policy beneficiaries, but it also supports the dreams of going to school for children in Ha Tinh province. Ms. Dang Thi Trinh - Head of Savings and Credit Group in Ha Tinh said that thanks to VBSP’s loans, more than 60 children have been able to attend university since 2010, such as Mr. Nguyen Dinh Tam’s family, his four children have finished college.

From the 3 credit programs in 2003, up to now, VBSP has advised the Government to implement 22 credit programs, as well as increased the loans size for the programs many times. Especially, in the 10-year period (2011-2020) implementing the VBSP Development Strategy, the introduction of 2 credit programs, which is lending to near-poor households and newly escaped from poverty households, is considered a breakthrough, contributing to sustainable poverty reduction goal. As of January 2020, outstanding loans to poor households have not decreased much compared to 2010, from VND 36,166 billion to VND 34,692 billion, but the lending structure of poor households has decreased from 40.4% to 16.7% of total outstanding loans of VBSP. Instead, outstanding loans for near-poor households and newly escaped from poverty households increased sharply with the proportion of outstanding loans of 15.4% (VND 31,856 billion) and 16.8% (VND 34,749.7 billion) respectively.

Along with that, the credit programs have been created more and more deeply, helping the poor and the policy beneficiaries to have opportunities to develop their economy and improve their quality of life such as lending to clean water and rural sanitation, job creation, migrant workers abroad for limited terms; socio-economic development in ethnic minority and mountainous areas. The Government also has a policy to lend to households affected by marine environmental incidents in the central provinces to help people overcome difficulties and stabilize their lives.

All efforts of VBSP have brought a colorful picture in policy credit activities over the past 17 years. In particular, policy credit contributed to multidimensional poverty in 2019, estimated at 5.7%, down 4.11% compared to 2016. At the same time, it also contributes to supporting 4.806 communes (reaching 53.92%) and 111 districts meet new rural standards, exceeding 3.92% of the targets set for the 2010-2020 period.

Total outstanding loans of VBSP reached over VND 209,000 billion and more than 6.5 million customers. This is the foundation for VBSP to continue on the path of development, promoting the role and mission of a specialized bank for the poor and social policy beneficiaries, ensuring that no one will be left behind in national development progress.



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