Poor households and vulnerable groups suffered heavy losses both materially and spiritually. However, under the leadership of the Party, the National Assembly and the Government, with active support from ministries, branches and local authorities, the Vietnam Bank for Social Policies (VBSP) has successfully completed its assigned political tasks, affirming its core role in supporting socio-economic development, sustainable poverty reduction and new rural construction.
Impressive credit growth
With the motto of “Understanding the people, serving wholeheartedly, improving efficiency, developing sustainably”, the VBSP constantly accompanies policy beneficiaries, helping the poor easily access preferential credit sources. The bank has implemented many synchronous and effective solutions, from mobilizing resources to timely disbursement to support customers to restore production and stabilize their lives after natural disasters.
According to Huynh Van Thuan, Deputy General Director of the Vietnam Bank for Social Policies, the total policy credit capital as of December 31, 2024 reached VND 376,247 billion, an increase of VND 29,823 billion compared to 2023; Of which, capital entrusted from local budgets reached VND 50,681 billion, an increase of VND 11,506 billion, accounting for 13.5%.
The capital entrusted to the VBSP includes the capital entrusted under Resolution No. 111/2024/QH15 of the National Assembly on a number of specific mechanisms and policies to implement national target programs, reaching VND 2,141 billion at 20 branches of the VBSP in provinces and cities. Typically, some branches have received capital entrusted from large localities of over VND 1,000 billion since Directive No. 40-CT/TW, such as: Hanoi VND 8,834 billion, Ho Chi Minh City VND 7,351 billion, Binh Duong VND 2,207 billion, Da Nang VND 2,163 billion, Ba Ria - Vung Tau VND 1,620 billion, Quang Ninh VND 1,502 billion, Dong Nai VND 1,446 billion and Vinh Phuc VND 1,047 billion,...
Implementing Decision No. 22/QD-TTg of the Prime Minister, up to now, 60 provincial branches of the Vietnam Bank for Social Policies have advised on lending using capital entrusted from the local budget with an amount of VND 248.3 billion. Of which, 53 branches have advised local Party committees and authorities to transfer capital separately to lend to people who have completed their prison sentences with an amount of VND 205.3 billion.
By December 31, 2024, total lending turnover will reach VND 119,507 billion, with more than 2.3 million poor households and other policy beneficiaries receiving loans; total outstanding policy credit will reach VND 367,631 billion, an increase of VND 35,708 billion (+10.8%) compared to 2023 with nearly 6.8 million customers with outstanding loans.
Of which, outstanding loans for production and business reached VND 263,293 billion, accounting for 71.6% of total outstanding loans, focusing on programs such as loans for poor households, near-poor households, households that have just escaped poverty and job creation; outstanding loans for living and livelihood reached VND 104,387 billion, accounting for 28.4%, supporting goals such as clean water, environmental sanitation, social housing construction and education.
The VBSP actively contributes to three national target programs. Specifically, with the sustainable poverty reduction lending program, outstanding loans to poor households, near-poor households and households that have just escaped poverty reached VND 140,423 billion, accounting for 38.2% of total outstanding loans, supporting more than 2.8 million households. With the lending program for new rural construction, total outstanding loans in rural areas reached VND 324,958 billion, focusing on the fields of agriculture, forestry, fisheries and people's infrastructure. And with loans for socio-economic development in ethnic minority areas, outstanding loans reached VND 130,130 billion, of which outstanding loans for ethnic minority households were VND 89,455 billion, supporting more than 1.6 million households, contributing to improving their lives and production.
According to Deputy General Director Huynh Van Thuan, last year, policy credit capital created jobs for more than 712,000 workers, supported 9,300 people to work abroad and nearly 7,000 people who completed their prison sentences to have stable jobs. In addition, more than 88,500 students in difficult circumstances received loans for their studies; nearly 1.76 million clean water and sanitation works in rural areas were built; 1,143 houses for poor households and more than 6,200 social housing units were completed, meeting the housing needs of low-income people.
Strengthening capital mobilization and management
To achieve the target of increasing credit balance in 2025, Deputy General Director Huynh Van Thuan said that the VBSP is focusing on implementing key tasks to provide loans to poor households and other policy beneficiaries, ensuring debt payment on time and maintaining the solvency of the entire system.
In particular, the VBSP proactively advises the Government, ministries, departments, branches, local authorities and closely coordinates with units to organize the implementation of Directive No. 39-CT/TW dated October 30, 2024 of the Secretariat on improving the effectiveness of social policy credit in the new period.
“The entire system of the VBSP identifies Directive No. 39-CT/TW as very important, serving as a premise and basis for continuing to effectively implement social policy credit, contributing to the socio-economic development of the country in the coming period,” Deputy General Director Huynh Van Thuan emphasized.
In addition, the VBSP will draft and submit to the Government a Plan to implement the Directive. At the same time, the VBSP will coordinate with central agencies to advise on the implementation of the assignment of local budget funds according to Resolution No. 111/2024/QH15 of the National Assembly, supporting national target programs.
In addition, continue to implement the tasks in the Development Strategy of the VBSP according to Decision No. 05/QD-TTg dated January 4, 2023 of the Prime Minister, coordinate with local authorities to develop plans in line with strategic targets; organize a preliminary review of the implementation of the strategy at provincial and municipal branches, ensuring the achievement of the set goals.
Immediately after the Prime Minister's approval, the VBSP will implement a credit growth plan, focusing on national target programs including sustainable poverty reduction, new rural construction, and socio-economic development in ethnic minority areas in the 2021-2025 period.
The VBSP also continues to improve the efficiency of capital use through solutions to strictly manage credit quality and effectively handle risky debts to ensure safe and sustainable financial operations.
In 2025, the People's Credit Fund will focus resources on implementing the 2025 digital transformation plan, including completing the upgrade of the Intellect Core Banking system to a digital banking version; developing products and services on the Mobile Banking platform, and expanding the digital ecosystem to serve customers.
The year 2025 promises to continue to be a challenging year but also opens up many opportunities for the VBSP. With the support of the Government, the VBSP is striving to fulfill its assigned tasks, effectively supporting national target programs, making an important contribution to the country's sustainable development.
