Deputy PM instructs increasing lending for poverty alleviation

In document No 160/TB-VPCP issued by the Government Office, the Deputy PM required the VBSP to revise credit policies and mechanisms, making them practical and relevant to the national target programme on building new-style rural areas, in order to make social policy credit an effective tool to reduce poverty sustainably, develop rural areas and ensure social welfare.

Meanwhile, local governments should channel capital from their budgets or mobilise other legal capital to the VBSP to increase financial resource for lending. 

Localities should regularly update on the numbers of poor and near-poor households and families entitled to social welfare policies and create favourable conditions for them to get access to the VBSP’s loans.

According to a report from the VBSP, after 13 years of operation, the bank established a network of nearly 11,000 transaction points nationwide and mobilised VND152.5 trillion to lend VND147,819 trillion, as of May 2016. 

More than 28.8 million poor and near-poor households and other beneficiaries borrowed VND356 trillion, which helped lift 4 million households above the poverty line, and create new jobs for over 3.2 million labourers, including 107,000 overseas workers. 

The bank lent to 3.4 million disadvantaged students and built over 8.1 million washroom and sanitary facilities in rural areas, more than 7,500 flood-resistant houses in the central region, over 104,000 elevated houses in the Mekong Delta and 484,000 other houses for poor families and beneficiaries nationwide.