VBSP’s 15th Anniversary - Policy credit contribution to socio-economic development and sustainable poverty reduction in Vietnam

(VBSP News) VBSP’s financial inclusion remarked a significant contribution to socio-economic development and sustainable poverty reduction in Vietnam. This is the assessment of Prime Minister Nguyễn Xuân Phúc  in the VBSP’s 15-year establishment anniversary  on policy credit in periods of 2002 - 2017 held on 16^th October 2017, Hanoi.

Prime Minister Nguyễn Xuân Phúc attached the First Class Labor Medal to the traditional flag of VBSP

Hosting the teleconference included Deputy Prime Minister Vương Đình Huệ; Deputy Prime Minister Vũ Đức Đam; State Bank Governor cum VBSP’s BOD Chairman Lê Minh Hưng; VBSP’s CEO Dương Quyết Thắng.

Attending the conference included MOLISA Minister Đào Ngọc Dung; Ethnic Minorities Committee Chairman Đỗ Văn Chiến; Women Union Chairperson Nguyễn Thị Thu Hà; Farmer Union Chairperson Lại Xuân Môn; Deputy Minister of Public Security Ministry Bùi Văn Nam; senior representatives from Central Committee of the Vietnam Fatherland Front, Central Economic Committee, Central Commission for Mass Mobilization; Central Party Office; Provincial/municipal Standing Committee, People's Council, People's Committee of central run provinces and cities; Economic Committee of National Assembly; Mass mobilization Committee of National Assembly; State Office of President;  state audit agency; MPI, MOF, Ministry of Construction, Ministry of Education & Training; National Defense, Internal Affairs, Justice; Inspect of Government; mass organizations; VBSP BOD members and 63 provincial branches of VBSP at  TV online bridges.

VBSP as an effective and efficient channel in poverty reduction and social security

VBSP was established under Premier’s Decision 131/2002/QĐ-TTg dated 04/10/2002 based on reorganizing Bank for the Poor with a view to conduct Government’s Decree 78/2002/NĐ-CP on credit for the poor and other vulnerable groups.

Prime Minister Nguyễn Xuân Phúc delivered a speech at the conference

Looking back a 15-year development path of VBSP, CEO Dương Quyết Thắng said: VBSP pro-actively collaborated with local governments to mobilize resources for providing financial inclusion for the poor and other disadvantaged groups, contributing to socio-economic development goals, especially the goal of sustainable poverty reduction, ensure social security and new rural construction.

State Bank Governor cum VBSP’s BOD Chairperson Lê Minh Hưng made a speech at the conference

To help the poor and other disadvantaged groups access inclusive finance in a convenient, flexible and fast manner, VBSP has developed an operation network ranging from central to grassroot level with 10,974 POS at commune and around 190,000 savings and credit groups at village/hamlet.

Not only covering network nationwide during 15 past years, VBSP is constantly growing about both quality and quantity. From only 3 initial credit programs in 2003, up to now VBSP has conducted more than 20 credit programs and other foreign funded financial schemes for the poor and other last mile population with total loan portfolio reaching VND 169,036 billion, more than 24 times against the establishment timepoint; annual growth rate on average reached 19.2%, with over 6.7 million the poor and other vulnerable groups. The bad debt and frozen debt rate is down from 13.75% at the initial establishment time to 0.81% (of which bad debt rate is only 0.4%) as of 30 Sept 2017.

CEO Dương Quyết Thắng highlighted VBSP’s operation result over past 15 development years

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