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Beyond conventional lending activities, the figures reflect the efforts of Vietnam Bank for Social Policies (VBSP) to bring the state resources to the right areas and population groups with the most limited access to capital, thereby generating jobs, improving livelihoods, and strengthening the foundation of social security.
As of May 31, the bank’s total capital reached almost VND471.2 trillion ($18.12 billion), an increase of VND44.75 trillion ($1.72 billion) compared to the end of 2025. Of this, entrusted capital from local government budgets increased by over VND13.7 trillion ($527.7 million) after the first five months of 2026, raising the total to just over VND79.8 trillion ($3.07 billion). Entrusted capital accounts for 17 per cent of total capital, fulfilling the target set in the VBSP development strategy to 2030.
It is evident that the localities have drastically shifted their mindset towards policy credit. Previously, lending resources mainly came from the central budget. Today, many provinces and cities have allocated capital in collaboration with VBSP to implement preferential credit schemes.
Some localities like Hanoi, Ho Chi Minh City, Danang, Haiphong, Can Tho, Dong Nai, and Quang Ninh have entrusted capital amounting to trillions of VND. This helps improve the ability to meet local borrowing needs while also creating more room to implement poverty reduction initiatives, create jobs, and boost socioeconomic development.
With enhanced resources, total loan disbursement under the policy credit programmes amounted to almost VND80.5 trillion ($3.10 billion) in the first five months. Over 1.1 million poor households and policy beneficiaries have gained access to preferential loans to invest in production, business, and livelihood development. As of the end of May, total outstanding loans stood at just under VND450 trillion ($17.30 billion), up 8.8 per cent from the end of 2025, with over 6.7 million customers currently borrowing capital. This is a low ratio given that the bank’s main clients are poor and near-poor households and other disadvantaged groups in the society.
The results reflect the effectiveness of the policy credit model with the close collaboration among the banks, local authorities, and the socio-political organisations in evaluating loan applicants, monitoring the use of funds, and mitigating risks.
In the first five months of 2025, policy credit capital contributed to over 428,600 jobs created nationwide. Among them, there were 3,218 individuals taking up fixed-term foreign employment. It also supported capital for 1,752 individuals completing their prison sentences and 144 individuals recovering from drug addiction to reintegrate into the community. This is a tool to help people create livelihoods, reduce the risk of falling back into poverty, and contribute to ensuring social order and safety.
In the education sector, nearly 12,000 disadvantaged students have received loans for their studies. Over 1,100 of these students are pursuing STEM degrees, which are the foundation for digital transformation and the knowledge economy in the future.
In addition, policy credit funds have contributed to improving the quality of life in rural areas. Nearly 860,000 clean water and rural sanitation facilities were constructed. The bank has supported the purchase, lease-purchase, or new construction of over 6,300 social housing units for poor families and low-income earners.
In the remaining months of 2026, VBSP continues to fully meet the borrowing needs of poor households and other policy beneficiaries. The bank will step up efforts to mobilise resources from the localities while strengthening inspection and supervision of credit activities. This is coupled with promoting digital transformation to enhance governance capacity.
In light of the push for inclusive development, policy credit is expected to remain one of the key pillars of Vietnam’s social welfare system. More than 1.1 million households have access to capital in the first five months of the year, reflecting the scale of the VBSP’s operations. The figure also highlights the far-reaching impact of a policy that is helping bring development opportunities to those who need them most.
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DPM Phoc highlights VBSP’s role in poverty reduction
Deputy Prime Minister Ho Duc Phoc chaired a meeting in Hanoi with Vietnam Bank for Social Policies (VBSP) on March 27 to assess the bank’s organisation and operations over the past few years, along with setting future directions and expectations. |
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How policy credit fuelled Ho Chi Minh City’s 50-year rise
Fifty years after the liberation of Ho Chi Minh City and national reunification, the southern metropolis has undergone a remarkable transformation, evolving into Vietnam’s leading economic, cultural, and educational hub. |
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VBSP highlights strong credit performance amid administrative restructuring
VBSP disbursed over $4.2 billion in loans, supporting millions of poor households and policy beneficiaries across Vietnam in the first nine months of 2025. |
Source:vir.com.vn
