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Updated: 2020-12-22 08:57:56

World Bank Remarks at the Conference on reviewing the Development Strategy of VBSP for the 2010-2020 period and receiving the title "Hero of Labor" in the Renovation period

(VBSP News) On December 21, 2020, in Hanoi, VBSP held the Conference on reviewing the Development Strategy of VBSP for the 2010-2020 period and receiving the title "Hero of Labor" in the Renovation period. Mr. Ketut Kusuma - World Bank Senior Financial Sector Specialist made a speech at the conference.

Mr. Ketut Kusuma - World Bank Senior Financial Sector Specialist made a speech at the conference

"It’s a great honor for me, on behalf of the World Bank in Vietnam, to attend this National Conference on reviewing the Development Strategy of VBSP for the 2010-2020 period and receiving the title "Hero of Labor” in the Renovation period.

As you may know, a credit model for development or policy credit with the support of the Governments is the model that has been applied in many countries around the world. However the number of successful models is few thus far. Vietnam Bank for Social Policies (VBSP) is one among them, which is currently the leading microfinance provider in Vietnam and one of the largest microfinance providers in Asia.

This success is thanks to Vietnam’s careful study of global experience and finding its own path that is suitable for Vietnam's culture, history and social structure. It is the establishment of a strong leadership and partnership relationship between the Party committees, the Government authorities with VBSP and socio-political organizations from the central to local levels in the provision and supervision of policy credit. It is also the combination of credit with national target programs and projects to encourage economic development and application of new science and technology. The success of the implementation of social policy credit in Vietnam also contributes to Vietnam's early achievement of the millennium goals.

I am very impressed with the achievements of VBSP, especially in recent years. As of 30 November 2020, VBSP extended loans to near 6.5 million active households with near 10 billion USD loan outstanding through a nationwide network including 63 provincial branches, 625 district transaction offices, 10.426 transaction points at the commune level and nearly 173,000 savings and loan groups. Through this network, VBSP has accessed to about 92% of the total number of borrowers and accounts for 87% of the total value of loans in Vietnam's microfinance market (MIX 2018).

It can be seen that currently VBSP has become a very important organization with its coverage throughout Vietnam, playing a key role in building a comprehensive financial system in Vietnam. Without the key role of VBSP, the promotion of financial inclusion in Vietnam would not be a reality.

From 2018, within the Financial Inclusion Support Framework (FISF), the World Bank has conducted an assessment of the Vietnam Bank for Social Policies, the purpose of which is to evaluate the effectiveness of the implementation of the goals in VBSP's development strategy for the period of 2011-2020 and propose solutions for the strategy in next phase of VBSP. The results show that VBSP has basically achieved the goals set out in its development strategy for the period 2011-2020, which is to diversify products and services and actually, VBSP has moved towards an environment of more diversified products. Now VBSP has been providing a set of various credit products, with more than 20 credit programs for different types of lending needs, offered at preferential interest rates or close to the market rates. Credit is the main product of VBSP, but savings are gradually increasing from low to significant level.

With the leadership of the Communist Party of Vietnam and the Government's efforts, VBSP loans have brought many positive socio-economic impacts in recent years, ensuring the right and capacity of access to finance for disadvantaged groups in Vietnam. With the results in the management and operations of VBSP, the WB appreciates VBSP model and wishes to publicize the Report on the WB website in order to promote knowledge sharing and exchange regarding state-owned financial institutions across the globe. As a leading microfinance provider in Vietnam, the development journey of VBSP offers valuable experience and lessons learnt to other governments.

In the future, one of the important points that our evaluation has made is that we believe that VBSP can basically continue to modernize the operating model and improve the products in the direction of automation. For example, it is possible to consider investment in the development of electronic payments, digital payments and other services that VBSP can provide to better serve the poor and other policy beneficiaries. I think that it is extremely important for the future of VBSP to strengthen the ability and potential in serving more and more vulnerable groups, focusing on the segments not served by commercial credit institutions such as providing modern banking services to customers in remote areas. This helps VBSP take advantage of its network and customer coverage, maintain its ability of serving more clients in spite of decreasing ratio of State subsidy, and move towards financial sustainability.

I would like to thank you for your attention and wish VBSP’s credit model under the leadership of the Communist Party of Vietnam and the Government of Vietnam to develop and more sustainable, being a good example  for other countries in the world to study and apply.

May I also take this opportunity, on behalf of the World Bank in Vietnam, to wish the Communist Party of Vietnam, the Government of Vietnam, the State Bank of Vietnam and Vietnam Bank for Social Policies greater successes.

Wish you all good health and happiness!

Wish the conference a success!

Thank you very much".



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