During 03 years of operation, VBSP has been giving preferential credit to the poor and other policy beneficiaries under Decree No.78/2002/ND-CP dated October 04, 2002 by Vietnam’s Government, under the close concern by the Government, the Prime Minister, authorities at all level, in competent collaboration with relevant ministries and agencies, socio-political organizations, and in warm welcome from people and the poor and policy beneficiaries especially. As a result, VBSP has gained mountainous achievements, which reveals that the establishment of VBSP by Vietnam’s Government was under an objective requirement and in line with the Communist Party’s direction, under people’s expectations and in the way to facilitate the poor and other policy beneficiaries to access banking services. VBSP’s achievements can be put into a summary as follows:

1. Preferential lending programmes financed by the State Budget and mostly managed by the central agencies are put into VBSP’s united credit channel under the consensus policies directed by the Government. After three years of operation, VBSP’s sharp increase in outstanding loans presented 3 times increase against 2002 (the last year operation of Vietnam Bank for the Poor-VBP).

2. VBSP’s operation network and human resource structure are built from the central to the commune/ward level: the Headquarters, 64 provincial branches, 596 district transaction offices, more than 8,000 transaction units to communes/wards where are at least 3km away from the district transaction office, 256,742 Savings and Lending Groups at villages and communes/wards.

3. VBSP has reached the poor and other policy beneficiaries through Savings and Lending Groups at villages and communes by entrust lending to socio-political organizations. To practice socialization and publication of policy lending, the eligible borrowers are selected based on the evaluation and approval of Savings and Lending Groups. In this way, mistreatments and funds loss are canceled early and policy beneficiaries can get access to funds.

During April to December 2004, VBSP took the handover from VBARD of  the total funds (VND6,086 billion) entrusted by the Vietnam Bank for the Poor to be managed and partially entrusted by socio-political organizations. VBSP has got 03 policy credit programmes at the time of handover and has been implementing 08 programmes at present. Newly-implemented programmes are named as follows: Lending Programme for Safe Water and Rural environment Sanitation (SWRES); Lending Programme for Migrant Workers for Limited Duration; Lending Programme for Housing Purpose at Cuu Long River Delta and at ethnic communities in Central Highland area and two programmes in collaboration with international financial institutions: Lending Programme for Forestation at 4 provinces in the Central Region, and Lending Programme for Small and Medium Enterprises.

As of 2006 VBSP has been implementing policy lending prorammes for the poor and other policy beneficiaries for four years. Early in the year, VBSP set out strong directions to effectuate plans mandated by Vietnam’s Government. Achievements can be overviewed as follows:

As of 30 June 2006, the total outstanding loans reached VND21,392 billion, representing VND2,960 billion increase against the beginning of the year and performing 52% of outstanding loans growth designated for 2006. Policy lending programmes are listed below:

1. Lending Programme for the Poor:

Total outstanding loans of VND17,557 billion was performed through 239,000 Savings and Lending Groups with total active borrowers of 3,836,744 households, representing 297,000 households increase. During 2002-2005, 773,139 households escaped from poverty and 53,900 households are accumulated to this number during the first six months in 2006.

Results of entrust lending through socio-political organizations:

Total funds of VND17,644 billion comes to:

1.1. Entrust lending through Farmers’ Association:

Total outstanding loans of VND7,188.5 billion is maintained by 1,590,119 active borrowers through 102,188 Savings and Lending Groups.

1.2. Entrust lending through Women’s Union:

Total outstanding loans of VND7,609 billion is maintained by 1,708,840 active borrowers through 114,779 Savings and Lending Groups.

1.3. Entrust lending through War Invalid’s Association:

Total outstanding loans of VND2,032 billion is maintained by  412,986 active borrowers through 28,628 Savings and Lending Groups.

1.4. Entrust lending through the Youth’s Union:

Total outstanding loans of VND814.6 billion is maintained by 165,675 active borrowers through 11,628 Savings and Lending Groups.

2. Lending Programme for Job Creation:

The total outstanding loans reached VND2,604 billion. 75198 projects for job creation have benefited 361,995 borrowers, representing an increase of 59,246 newly-created jobs; particularly VND202.9 billion outstanding loans by ethnic communities and VND255.2 billion outstanding loans in areas of Programme No 135 with the accumulated 40,214 turns of borrowers, of which:

- Funds for job creation managed by the Headquarters with the total outstanding loans of VND2,419.7 billion has financed 72,464 projects with 336,605 active borrowers and 53,216 newly-created jobs. Including:

+ 66,817 projects managed by provincial branches with the total outstanding loans of VND2,124.1 billion have benefited 285,955 borrowers. Under the projects, 44,343 new jobs were created.

+ 5,647 projects managed by socio-political organizations with the total outstanding loans of VND295.6 billion have benefited 50,650 borrowers. Under the projects, 8,873 new jobs were created.

- Funds for job creation managed by the local authorities the total outstanding loans of VND184.1 billion has financed 2,734 projects with 25,390 active borrowers and 6,303 newly-created jobs.

3. Lending Programme for Disadvantaged Students:

The total outstanding loans of VND162.1 billion including VND6 billion for disadvantaged students in ethnic communities are maintained by 61,550 students. During the first six months in 2006, 8,530 students accumulated have got benefit from the programme.

- Direct lending to 56,070  students amounts to VND152.5 billion.

- Entrust lending through families to 5,480 students amounts to VND9.6 billion.

4. Lending Programme for Migrant Workers for Limited Duration:

The total outstanding loans amounts to VND376.6 billion with 24,249 active borrowers, representing an increase of 8,877 borrowers as migrant workers for limited duration, of which:

- Lending to 15,934 borrowers in the list of poor households for overseas working purpose with the outstanding loans of VND247.2 billion; particularly VND44.6 billion outstanding loans to ethnic communities and VND37 billion outstanding loans to  areas of Programme No 135.

- Lending to 8,315 borrowers in the list of other policy beneficiaries for overseas working purpose with the outstanding loans of VND129.4 billion; particularly VND21.6 billion outstanding loans to ethnic communities and VND15.3 billion to areas of Programme No 135.

5. Lending Programme to Households for Housing Purpose with Deferred Payment and to Enterprises for House Sale to Programme beneficiaries:

The total outstanding loans reached VND230 billion. During the first six months in 2006, 6,330 houses were built, of which:

- In respect to lending to households, 29,645 households have maintained the total outstanding loans of VND221.3 billion; particularly VND17.2 billion by ethnic communities and VND38.6 billion in areas of Programme No 135 with 5,386 newly-built houses, of which:

+ Loans for buying houses with deferred payments to 24,808 households amount to VND180.3 billion, particularly VND17.2 billion to ethnic communities and VND37.3 billion to areas of Programme No 135, which is used to finance 3,537 houses.

+ Loans for building houses to 4,837 households amount to VND41 billion, particularly VND1.2 billion to areas of Programme No 135, which is used to finance 1,849 houses.

- In respect to lending to enterprises for house building, the outstanding loans of VND8.8 billion is used to finance 944 houses.

6. Lending Programme for Safe Water and Rural Environment Sanitation (SW&RES)

The total outstanding loans reached VND324.2 billion with 104,374 borrowers, particularly VND26.3 billion to ethnic communities and VND22.2 billion to areas of Programme No 135. During 2004-2005, the funds were used to build more than 100,000 facilities. During the first six months in 2006, 6,799 facilities for SW&RES were built. Of which:

- In respect to entrust lending through socio-political organizations, the total fund of VND318.8 billion reached 102,504 households, particularly VND25.8 billion to ethnic communities and VND21.1 billion to areas of Programme No 135. The total facilities numbered 6,464 (including 3,111 facilities for safe water and 3,353 sanitation facilities).

- As of June 30, 2006 VBSP has provided direct lending of VND5.4 billion to 1,870 households; particularly VND436 million outstanding loans to ethnic communities and VND1 billion outstanding loans to areas of Programme No 135, which is used to finance 335 facilities (including 165 facilities for safer water and 170 sanitation facilities).

7. Lending Programme for Forest Sector  Development Project:

The total outstanding loans reached VND10.6 billion to 825 households for forestation development. 

Nguồn: Tài liệu giao ban Báo chí tháng 9/2006 (Người dịch: Đỗ Thị Ngọc Liễu)