Vietnam Bank for Social Policies reports positive half-year results
Vietnam Bank for Social Policies reports positive half-year results
Vietnam Bank for Social Policies has completed 67 per cent of its 2018 target by the end of June, signalling a successful year of helping impoverished families in Vietnam.
Positive figures
By June 30, the outstanding loans at Vietnam Bank for Social Policies (VBSP) stood at VND181.768 trillion ($7.8 billion), up 5.8 per cent from the end of 2017. More than 6.7 million impoverished families and other disadvantaged citizens are borrowing from VBSP. In this figure, VND160.837 trillion ($6.9 billion) is outstanding loans from credit programmes that have been approved by the government for national growth. This is 67 per cent of the target for 2018.
In the first six months of 2018, VBSP has closely followed regulations and directions from the government, especially the State Bank of Vietnam, and collaborated with various government entities or different organisations to streamline and carry out a wide range of programmes. VBSP ensured that there is sufficient capital to serve the credit needs of borrowers and the liquidity requirement of the bank, as well as pushing monitoring activities to guarantee the quality of debts and ensure sustainable long-term growth.
By the end of June 30, the total amount of capital stands at VND189.105 trillion ($8.1 billion), up 7.8 per cent from 2017. Specifically, charter capital is VND13.893 trillion ($600 million), capital entrusted by local governments is VND10.9 trillion ($471 million) and capital raised from individuals and organisations reaches VND22.548 trillion ($974 million).
The quality of credit programmes has improved significantly. Problematic loans only take up 0.81 per cent of outstanding loans and overdue debts account for 0.42 per cent.
At the same time, VBSP has reported the results of three years following Instruction 40-CT/TW by the Secretariat of the Central Committee Communist Party of Vietnam. Since the Instruction was issued three years ago, VBSP has received VND4.1 trillion ($177 million) of capital from the national budget and VND7.1 trillion ($306 million) from local governments. In the first six months of 2018 alone, local governments have entrusted VND1.8 trillion ($77.8 million) of capital on VBSP.
With these impressive results, VBSP has helped 1.2 million impoverished families escape poverty and other disadvantaged citizens to take out loans with low interest rates. Business and manufacturing activities received proper funding and 137,000 people found new jobs—3,000 of whom were sent overseas to work. About 10,000 poor students have financed their education with loans from VBSP, about 840,000 projects on clean water and hygiene have been finished in rural areas. About 14,600 houses have been developed to assist impoverished families and more than 100 social houses (following Decree 100/2015/ND-CP) are made available.
Striving towards sustainability
Encouraged by these outstanding results for the first half of 2018, VBSP will continue to try its best to finish 2018 on a good note. In particular:
VBSP will continue to raise capital for different borrowers, especially social housing projects according to Decree 100/2015/ND-CP, prepare next year’s target and continue to advise local governments on following Instruction 40 of the Secretariat and Decision 401 of the prime minister. VBSP will also convince local governments to continue entrusting its social capital to the bank.
Moreover, VBSP will continue to collaborate with different political and social organisations to improve the quality of its credit programmes, especially in branches with subpar or inconsistent credit quality. The bank will enhance the efficiency of its deposit team, follow the timeline for transactions at local governments, closely monitor the effect of natural disasters on different locales and map out solutions. VBSP will also push its monitoring and investigation activities to detect any wrongdoings or errors in its system.
In terms of communication, VBSP will carry out promotional programmes to various levels of the government and local communities, helping spread awareness about its credit programmes and seek new collaborations.
