Regulations on the Organization and Operations of Vietnam Bank for Social Policies (VBSP)

On 10 January 2026, the Government promulgated Decree No. 06/2026/ND-CP stipulating the organization and operations of Vietnam Bank for Social Policies (VBSP).

VBSP was established by the Prime Minister and operates on a non-profit basis to implement the State’s socio-economic policies

VBSP’s head office is located in Hanoi. Its Transaction Department, Training Center and Information Technology Center are also located in Hanoi. VBSP’s provincial branches are located in provinces and centrally run cities, while its training facilities and other dependent units are located in selected provinces and centrally run cities. Transaction offices under VBSP provincial branches are located in selected communes, wards and special administrative zones.

VBSP operates on a non-profit basis. VBSP was established by the Prime Minister and operates on a non-profit basis to implement the State’s socio-economic policies. The State is the owner of VBSP. The Government exercises unified state ownership over VBSP. The Board of Management is the direct representative of the State as owner at VBSP, performing the ownership rights stipulated under this Decree. The Board of Management acts as the lead and focal point of the state ownership function, exercising general management and conducting inspection and supervision over VBSP’s operations.

VBSP’s solvency is guaranteed by the Government. VBSP is allocated charter capital, investment support capital for other policy beneficiaries, interest rate subsidies for preferential credit and management fees from the state budget; is guaranteed solvency by the Government; is exempt from taxes and other state budget contributions in accordance with law; is exempt from compulsory reserves requirements and is not required to participate in deposit insurance.

VBSP has legal personality, charter capital, assets and its own seal; is permitted to open payment accounts; and to conduct banking services related to payment and treasury operations in accordance with regulations of the State Bank of Vietnam and relevant laws. VBSP’s charter capital is allocated from the state budget and may be supplemented from the state budget and other lawful financial sources.

VBSP is mandated to provide lending and other banking operations as stipulated under this Decree and relevant laws; to receive, mobilize, manage and use capital sources and assets (if any) in accordance with law; and to comply with reporting and accounting regimes as stipulated under this Decree and relevant laws. VBSP is subject to inspection, examination and audit by competent state authorities in accordance with law; performs tasks assigned by the Government and the Prime Minister; and organizes its operations under this Decree to implement such assigned tasks.

VBSP’s governance structure comprises the Board of Management and its assisting units; the Representative Boards of the VBSP Board of Management at all levels; the Supervisory Board; and the General Director. VBSP’s organizational system includes the Head Office comprising the Board of Management and its assisting units, the Supervisory Board, the General Director, Deputy General Directors, Chief Accountant, Office and professional departments; the Transaction Department, Training Center and Information Technology Center comprising the Director, Deputy Directors and professional divisions; the provincial level comprising the Representative Boards of the VBSP Board of Management at provinces and centrally run cities and VBSP provincial branches comprising the Director, Deputy Directors and professional divisions; and the commune level comprising the Representative Boards of the VBSP Board of Management at communes, wards and special administrative zones and VBSP transaction offices comprising the Director, Deputy Director and professional teams. Transaction offices implement social policy credit operations and banking activities in the locality (commune/ward or clusters of communes/wards and special administrative zones). The number of transaction offices is decided by the Board of Management. Transaction offices arrange staff to conduct transactions at transaction points located at commune People’s Committees’ premises or other suitable locations arranged by commune-level authorities.

This Decree takes effect from 10 January 2026. Decision No. 16/2003/QD-TTg dated 22 January 2003 of the Prime Minister approving the Charter on the organization and operations of VBSP ceases to be effective from 10 January 2026, except for Article 12 and Chapter IV until further regulations are issued by competent authorities.