VBSP offering support to those in need
VBSP offering support to those in need
An online conference held by the Vietnam Bank for Social Policies (VBSP) earlier this month reviewed last year's disbursement of policy credit following a governmental decree from January 2022 to provide extra support to people and businesses in need.
Last year, the Vietnam Bank for Social Policies (VBSP) disbursed close to $700 million in policy credit through its programmes that support people in need.
Of that total, it is estimated that more than $36 million was used by over 85,000 students taking out loans to buy computers or other online learning equipment. Loans supporting the construction of social housing, with more than 10,000 homes built, came to over $175 million. Social security support came to almost $435 million, with more than 210,000 borrowers.
Lending to non-public primary or preschool education institutions was just under $8.5 million, with nearly 2,600 schools taking advantage of the scheme. In addition, loans for the development of ethnic minority and mountainous areas amounted to a little over $42 million, with nearly 19,500 borrowers in total.
Speaking at the conference, Standing Deputy Governor Dao Minh Tu said, “Preferential credit policies have brought positive results, contributing to the success of ensuring the removal of difficulties for people, workers, disadvantaged groups, and those heavily affected by the pandemic, thereby maintaining order and social security”.
These achievements aside, there are still some obstacles related to the disbursement of capital, particularly the slow pace with which social housing programmes receive funding.
These achievements aside, there are still some obstacles related to the disbursement of capital, particularly the slow pace with which social housing programmes receive funding.
Social housing loan programmes only received approximately 66 per cent of what was projected last year due to a number of factors, such as the limited supply of social housing units or the ineligibility of borrowers via the review process.
Deputy Minister of Construction Nguyen Van Sinh suggested that local authorities should continue to pay attention to investors to speed up project implementation and create a steady supply of social housing. At the same time, offer timely administrative support to people with real demands to buy houses.
Minister and Chairman of the Committee for Ethnic Minority Affairs Hau A Lenh suggested that, "local ethnic minority agencies should coordinate with relevant departments, sectors and units in the VBSP system to develop plans to deliver well-tailored credit initiatives. This would ensure adequate capital is available in accordance with the government’s commitment".
VBSP CEO Duong Quyet Thang proposed the Party and local authorities at all levels pay further attention to directing social policy credit activities, focusing on the mobilisation of resources.
"The VBSP system needs to focus on fast-tracking loans to ensure timely support for the right beneficiaries, helping the poor and others to easily access assistance, ensuring the publicity and feasibility of the policy, and effectively using the state's resources," said Thang.
At the same time, Thang explained, "Member units need to further coordinate with the State Bank, the Committee for Ethnic Minority Affairs and relevant ministries to advise the government on the allocation of capital and implementation of preferential credit policies over the next two years, and offer regular review to keep the implementation process running smoothly".
