VBSP highlights strong credit performance amid administrative restructuring

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.

VBSP held a conference on October 3 in Hanoi to review the achievements of the past nine months (3Q) and outline plans for the final months of 2025.

VBSP general director Duong Quyet Thang

According to data revealed at the conference, as of September 30, the bank's total capital approximated $16.9 billion, up 10.6 per cent compared to the end of 2024. Of this, entrusted capital from local government budgets increased by $500 million, raising the total to $2.53 billion, accounting for 14.9 per cent of total capital. Notably, 31 out of 34 provincial branches have completed or exceeded their capital allocation plans for 2025.

Over the nine-month period, total loan disbursement exceeded $4.2 billion, benefiting over 1.66 million poor households and policy beneficiaries. Loan repayments reached $2.73 billion, equivalent to 64.8 per cent of total disbursements.

By the end of the reporting period, total outstanding policy credit stood at $15.9 billion, an increase of $1.2 billion, or 8.3 per cent compared to the end of 2024. Nearly 6.73 million poor households and policy beneficiaries currently hold outstanding loans.

Overdue and rescheduled debt across the system stood at $86.9 million, accounting for just 0.55 per cent of total outstanding loans. Impressively, 31 out of 34 branches maintain an overdue debt ratio of under 0.5 per cent, reflecting the overall sound quality of policy lending.

In line with government directives on administrative unit reorganisation and the development of a two-tier local government model, VBSPhas successfully completed the restructuring of its organisational apparatus in accordance with the plan approved by its board of directors.

The conference overview

The new structure has now stabilised, with appropriate personnel arrangements in place, ensuring staff confidence and smooth operations across the system. Despite the structural changes, all operational activities continued uninterrupted.

Communal transaction points have remained operational and been adjusted to suit the new two-tier governance model. As of September 30, there were 9,970 transaction points nationally. VBSP ensures sufficient staffing to maintain secure and seamless operations, with all branches rated as having good-quality transaction point operations.

In the first nine months of 2025, policy credit capital contributed to job creation for over 601,000 workers, including more than 6,800 individuals taking up fixed-term foreign employment.

It also supported nearly 4,100 reintegrated individuals in securing stable jobs, and provided loans for over 20,000 disadvantaged students, including 788 pursuing STEM (science, technology, engineering, and mathematics) degrees.

Additionally, more than 1.2 million clean water and rural sanitation facilities were constructed, along with over 2,900 houses for poor families and nearly 7,500 social housing units for low-income earners.

Addressing the conference, VBSP general director Duong Quyet Thang commended the system-wide efforts that had led to the strong performance over the past nine months, ensuring stable and efficient operations, especially at transaction points and savings and credit groups, despite the recent administrative restructuring under Resolution No. 60-NQ/TW.

On the occasion of the 30th anniversary of the bank's establishment, from its beginnings as the Bank for the Poor to today's VBSP, Thang emphasised the evolution of the institution into a uniquely Vietnamese model of policy banking.

“VBSP contributions have been nationally recognised, notably through securing the noble title 'Hero of the Renovation Period',” he said.

Building on these accomplishments, Thang urged all units to proactively coordinate with local authorities to fulfill assigned tasks, strengthen debt recovery and supervision, and continue improving the quality of policy credit.

Looking ahead, the VBSP leader called on the entire system to identify suitable directions in line with evolving circumstances, ensure funding and resources for policy beneficiaries, and enhance governance, inspection, and monitoring.

VBSP leaders and employees donating to people affected by Typhoon Bualoi

He also stressed the need to accelerate IT modernisation and maintain a dedicated, determined approach towards building a stronger, more resilient VBSP to contribute to social welfare and stability.

During the conference, the organising committee announced commendations for individuals and collectives with outstanding achievements in recent emulation campaigns, as well as for provincial and municipal VBSP branches with excellent performances over the past nine months.

At the same time, a fundraising campaign was launched, calling on all VBSP staff, union members, and employees to contribute to those affected by Typhoon Bualoi.

VIR