A transaction point of the Việt Nam Bank for Social Policies. — Photo vietnamplus.vn

Trần Lan Phương, deputy director of the Việt Nam Bank for Social Policies, talks to Nông Thôn Ngày Nay (Countryside Today) online newspaper about the bank’s big achievements last year

What were the bank's outstanding achievements in 2019?

2019 was the Việt Nam Bank for Social Policies (VBSP)'s most successful year to date. We registered a record lending of VNĐ72.8 trillion (US$3.16 billion), an increase of $466 million compared to the previous year.

The fund helped provide credit to nearly 2.2 million poor households and other social beneficiaries. 

More than 266,000 people gained employment – with nearly 7,000 sent abroad as guest workers and 36,000 disadvantaged students continued studying last year thanks to the bank’s loans. Nearly 20,000 houses and 1.2 million water supply and sanitation facilities were built in rural areas.

By late 2019, the bank's total credit balance stood at more than VNĐ206.8 trillion ($8.9 billion), up 10.1 per cent compared to last year. 

The rate of overdue and charge-off debts made up 0.7 per cent of the total outstanding balance.

In 2019, the VBSP had almost 10,900 transaction points in communal people’s committees to facilitate the poor and people of social beneficiaries to access easily.

Besides, the VBSP has worked closely with local credit organisations to enable more poor households to access the fund.

Tell us some outstanding activities in the transfer of local budgets to the Bank for Social Policies?

Last year was successful for all localities nationwide in their plans to transfer local budgets to the VBSP in accordance with the Government’s Instruction No 40. A total of VNĐ15.4 trillion was entrusted by local budgets across the country, up VNĐ3.6 trillion compared to 2018.

What are the impacts of the bank's decision to raise the lending limit to poor households to VNĐ100 million ($4,300) per household?

From March 1, 2019, each poor household was allowed to borrow from VNĐ50-100 million without any guarantee requirement. The loan term will increase to a maximum of 120 months (10 years). This decision has enabled many farmers to think of their long term development plans.

The new policy has created conditions for many poor or near poor households, particularly ethnic minority households to expand their production or business.

How will the bank improve services?

A key task that the bank will focus on this year is to implement its development strategy which was approved by the Prime Minister.

In addition, the bank will effectively carry out credit growth plans assigned by the Prime Minister in order to better serve poor households and other social beneficiaries, contributing to effectively implementing the national target programme on sustainable poverty reduction and building new rural styles. 

In 2020, the bank will continue to focus its efforts to mobilise financial resources for lending and disbursing credits to meet the demands of targeted groups and ensure operational efficiency of the bank. — VNS