Vietnam Social Policy Bank Disburses $3.1B to 1.1M Households in Early 2026

HANOI – Vietnam Bank for Social Policies (VBSP) provided capital access to over 1.1 million poor households and other policy beneficiaries during the first five months of 2026. The lending is part of a broader state effort to channel resources to underserved communities, aiming to generate employment, improve livelihoods, and reinforce the national social security framework.

Capital Base Strengthened by Local Funds

As of May 31, the bank's total capital base reached almost VND471.2 trillion ($18.12 billion), representing a substantial increase of VND44.75 trillion ($1.72 billion) compared to the end of 2025. A key component of this growth was the increase in entrusted capital from local government budgets, which expanded by over VND13.7 trillion ($527.7 million) in the first five months of 2026. This brought the total entrusted capital to just over VND79.8 trillion ($3.07 billion).

This locally sourced capital now accounts for 17% of VBSP's total capital, fulfilling a strategic target set for 2030. This development signals a significant shift in mindset among local authorities, who are moving from a reliance on the central government budget to proactively allocating their own funds in collaboration with VBSP for preferential credit schemes.

Major municipalities and provinces such as Hanoi, Ho Chi Minh City, Danang, Haiphong, Can Tho, Dong Nai, and Quang Ninh have become major contributors, each entrusting trillions of VND. This collaboration enhances the bank's ability to meet local borrowing needs while providing greater scope for implementing targeted poverty reduction initiatives and stimulating regional socioeconomic development.

Lending Accelerates with Broad Socioeconomic Impact

Leveraging its enhanced resources, VBSP disbursed a total of almost VND80.5 trillion ($3.10 billion) across its policy credit programs in the first five months of the year. These preferential loans have enabled over 1.1 million beneficiaries to invest in production, business operations, and livelihood development.

By the end of May, the bank's total outstanding loans had climbed to just under VND450 trillion ($17.30 billion), an 8.8% increase from the close of 2025. The portfolio currently serves over 6.7 million customers, a client base composed mainly of poor and near-poor households and other disadvantaged social groups. The effectiveness of this model is attributed to close collaboration between the bank, local authorities, and socio-political organizations, which assist in evaluating loan applicants, monitoring the use of funds, and mitigating credit risks.

The impact of this policy credit has been extensive. In the first five months of 2026, the capital contributed to the creation of over 428,600 jobs nationwide. Among these, 3,218 individuals were able to secure fixed-term employment abroad. The program also plays a crucial role in social reintegration, providing capital to 1,752 individuals who have completed prison sentences and 144 individuals recovering from drug addiction to help them establish livelihoods and rejoin the community.

In the education sector, nearly 12,000 disadvantaged students have received loans for their studies. Notably, over 1,100 of these students are pursuing degrees in STEM fields, which are foundational for Vietnam’s digital transformation and future knowledge-based economy.

Policy credit funds have also been instrumental in improving living standards in rural areas. The period saw the construction of nearly 860,000 clean water and rural sanitation facilities. Additionally, the bank supported the purchase, lease-purchase, or new construction of over 6,300 social housing units for poor families and low-income earners.

Future Priorities

Looking ahead to the remaining months of 2026, VBSP affirmed its commitment to fully meeting the borrowing needs of poor households and other policy beneficiaries. The bank plans to step up its mobilization of resources from localities while strengthening inspection and supervision of its credit activities. Concurrently, it will promote digital transformation to enhance its governance capacity and operational efficiency. As Vietnam pursues inclusive development, this policy credit framework is expected to remain a key pillar of its social welfare system.