Millions of households escape from poverty

Illustration photo

After 15 years of building and development, the Viet Nam Bank for Social Policies (VBSP) have backed the poor and other social beneficiaries; closely worked with political and social organizations to promote social credit programs in favor of socio-economic development, sustainable poverty reduction, social security, and building of new rural areas. 

As of late September 30, 2017, the bank has a total capital of over VND 179 trillion, almost 25 times higher than the size it was founded 15 years ago.

The bank absorbed VND 27,762 billion (or 15.6% of the total) from the State budget and VND 129,775 billion (or 72.5%) from market, the State Bank of Viet Nam, and Governmental bonds.

Over 31.8 million households got access to preferential credit

As of September 30, 2017, 6.7 million households and social beneficiaries had loan outstanding balance with the bank. 

Under the Government’s Resolution 30a/2008/NQ-CP, poor households and social beneficiaries borrowed VND 13,944 billion in which 457,000 made loan outstanding balance. 

So far, 31.8 million poor households and social beneficiaries have accessed the preferential credit source of which 4.5 million escaped from poverty; 3.4 people found jobs; over 3.5 million poor students and learners borrowed study loans; over 9.9 million water supply and environmental sanitation projects were constructed. In addition, over 11,000 storm shelters  and 528,000 houses for the poor were built. 

Especially, the credit helped cut poverty rate from 17% to 7% in 2001-2005; 22% to 9.45% in 2005-2010; and 14.2% to 4.25% in 2011-2015./.

By Kim Anh